Movable Property Security Proclamation

December 10, 2019 Eyasu Mekonen 952 Comments

The Movable Property Security Proclamation No. 1147/2019 introduces key features that repealed provisions of the Civil Code of Ethiopia and the Stamp Duty Proclamation No. 110/1998.

  • The Proclamation does away with the requirement of 1% stamp duty that was applicable on transactions that create security right over movable property.
  • Transfer of possession of the movable property over which security interest created is no longer required for the validity of the contract that created the security right.
  • The Proclamation allows the registration of a single notice relating to security rights created by the grantor under one or more than one security agreements with the same secured creditor.
  • The powers of various ministries which were endowed with registration of security rights over movable property by virtue of different proclamation are taken away and given to Collateral Registry Office that will be established pursuant to the Proclamation and Regulation thereunder.

These key provisions are expected to ease the creation of security rights over movable property.

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