Overview

This bill introduces a new type of non-possessory security, called a "goods mortgage," allowing individuals to use their goods as collateral for loans or other obligations. It also repeals the outdated Bills of Sale Acts 1878 and 1882.

Description

The Goods Mortgages Bill establishes a legal framework for goods mortgages, where an individual can borrow money using their movable possessions as security without giving up possession. Key features include:

• Creation of Goods Mortgages: Individuals can create a goods mortgage over qualifying goods (tangible, movable property, excluding certain items like aircraft and currency) through a written agreement meeting specific requirements.
• Registration: A central register will track goods mortgages, determining priority in case of multiple mortgages on the same goods. Registration is valid for 10 years, renewable upon application.
• Rights of Mortgagors and Mortgagees: The bill outlines the rights and duties of both the borrower (mortgagor) and the lender (mortgagee) regarding possession, sale of goods, and default procedures. Significant mortgagor protections are included, such as the requirement for a possession notice before the lender can take the goods.
• Third-Party Rights: The bill addresses the position of third parties who might purchase the mortgaged goods. It defines the duty of the owner to disclose the existence of a goods mortgage before selling or transferring ownership.
• Repeal of Existing Acts: The Bill repeals the Bills of Sale Acts 1878 and 1882, replacing them with the modern goods mortgage system.

Government Spending

The bill's impact on government spending is not explicitly stated within the provided text. The creation of the register and its maintenance will likely involve some administrative costs for the government. No specific figures are provided.

Groups Affected

• Individuals: Individuals may benefit from easier access to credit using their goods as collateral. However, they also face the risk of losing their goods if they default on their loan.
• Lenders: Lenders gain a new avenue for securing loans, improving their ability to offer credit. However, they must adhere to the bill’s regulations on repossession and other procedures.
• Purchasers of Goods: Purchasers must be aware of the potential for goods they are buying to be subject to a goods mortgage. The Bill aims to protect purchasers who act in good faith and without knowledge of a mortgage.
• Courts: Courts will have a role in resolving disputes between mortgagors and mortgagees. The bill provides additional powers to courts in handling possession and termination cases.

Powered by nyModel