Overview

This bill introduces a new type of loan security called a "goods mortgage," allowing individuals to borrow money using their goods as collateral without giving up possession. It also repeals outdated laws concerning similar arrangements.

Description

The Goods Mortgages Bill establishes a legal framework for "goods mortgages," a non-possessory security interest in movable property. Individuals can use qualifying goods (excluding items like aircraft and currency) as collateral for loans. The mortgage must be in writing, meet specific requirements, and be registered with the Secretary of State. The bill outlines the rights and duties of both the borrower (mortgagor) and the lender (mortgagee), including provisions for taking possession of the goods, and sale of the goods if the borrower defaults. Important protections are included for mortgagors, such as notice periods before repossession, and the right to terminate the mortgage under certain circumstances. Crucially, the bill repeals the Bills of Sale Acts 1878 and 1882, which are now considered outdated and insufficient for modern lending practices. The bill also includes provisions for dealing with co-owners of goods and scenarios involving further advances and the bankruptcy of the mortgagor.

Government Spending

The bill doesn't directly specify government spending figures. However, it will likely incur costs related to the establishment and maintenance of the register of goods mortgages, as well as regulatory oversight. The exact amount is not specified within the bill text.

Groups Affected

• Individuals: Individuals who borrow money using goods as collateral will be directly affected. The bill provides safeguards to protect them from unfair practices by lenders.
• Lenders: Lenders will have a new legal tool to secure loans. The bill's framework will shape their lending practices.
• Businesses: Businesses involved in lending or related finance could be impacted by the changes, potentially requiring adjustments to their operations and legal processes.
• Courts: Courts will need to interpret and enforce the provisions of this new law.

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