The Ethiopia Movable Collateral Registry (EMCR) is established and housed in the National Bank of Ethiopia (NBE). All business is conducted online through the website www.emcr.nbe.gov.et which can be accessed 24/7.
The Proclamation authorizes creation of the Movable Collateral Registry, but otherwise delegates all matters concerning the operation of the Registry to the NBE until such time of the establishment of an autonomous Collateral Registry Office by regulation.
Main objectives of the registration are:
- To give notice of the secured creditors right in the pledged assets to third parties;
- To establish the secured creditors priority by time of registration of the notice.
Electronic registry - uses best practices
- Accessible to all via Internet
- Automated acceptance or rejection
- Reliable, fully automated search process
- No unnecessary formalities for registration
- Uniform treatment of notices of all types
- Automated fee payment system
- Secure from tampering and corruption
To Use the EMCR
To effectively use the register, you need to understand some of the technical terms explained and illustrated below:
- <span style="font-style: italic; font-weight: bold">The Register</span> called EMCR is a public notice board listing security rights over movable property and business assets as specified by the Proclamation.
- These movable assets may be owned by a company or an individual.
- A company or an individual can use these movable assets as <span style="font-style: italic; font-weight: bold">collateral</span> to raise finance. Collateral can include consumer goods, accounts receivable, plant and machinery, equipment, motor vehicles, crops and livestock, etc...
- In such cases the lender or any secured creditor has a security right over the collateral. This right must be registered on EMCR to ensure that this right is protected.
- The Tech Support desk can be contacted
o Monday - Friday, from 8:30am - 4:00 pm at telephone No. 251-115-517430 or
o Through an email: <a href="mailto:firstname.lastname@example.org">email@example.com</a> or <a href="mailto:firstname.lastname@example.org">email@example.com</a>
The EMCR holds a number of functionalities for both registered and public users:
- Client user account registration;
- Processing of search requests;
- Registration of security right;
- Amendment of security right;
- Cancellation of security right; and
- Generation of reports.
Benefits for Lenders or Secured Creditors
New Product Opportunities
Generic collateral description, future property and automatic proceeds coverage enable:
Inventory and raw goods financing
o Crop and livestock financing
o Simplified financing of equipment
Adding intangibles to that mix enables use of:
o Accounts receivable
o Other rights, e.g. intellectual property
- General description of obligations enables line of credit financing
- Faster enforcement process permits use of more types of inventory as collateral; i.e. items with a limited shelf life
- Rule for attachments to other movables enables financing of replacement parts in equipment, e.g. motors, transmissions, etc.
- Commingled goods rule enhances security in fungible goods (e.g. crops or oil) by continuing priority when put into common storage
Benefits for Borrowers or debtors
- If you are buying goods, EMCR will give you information whether there are any potential rights exists in the goods you want to buy. So you cannot get taken for a ride.
- If you are selling or leasing goods, an EMCR registration shows searchers that you have a title or right in the goods which have been given on consignment or lease to a third party.
- When you sell on retention of title or hiring or leasing, proper registration on EMCR will protect your right.
- Retention of title clause in your contract or invoice may not be enough to protect you. Make sure you back up your contracts by registering your right.
- Making a <b>registration</b> helps protect your right in your goods when they are not in your possession or not under your control.