Personal Property Security Registry, Malawi
Welcome to the web-based online personal property security registry system. This government e-service site is where you find the Security Interests in movable property registered in the Personal Property Registry System for Malawi. The purpose of this on-line service is to provide a facility for lenders interested in taking collateral as security to both check (search) if the proposed collateral has an existing security interest registered against it and to register its’ security interest against that collateral to protect their priority status as outlined in the Personal Property Security Act.
On this service you will register notices of security interests in movable property (collateral) and will be able to search for notices of other existing security interests. If you have agreed to take a security interest (a pledge or a charge) in movable property over an individual or company’ collateral (the debtor) to secure their obligation to you, as creditor, (usually an obligation to repay money) you may register a notice here to inform others of your security interest. The service provides you with the facility to search for prior security interests in collateral that are offered to you as security for an obligation. You may conduct a search in the Registry's records through this online web service as well.
In a typical situation under the Act, a person borrower (/the debtor) contacts a lender (secured party/creditor) to apply for a loan or an operating line of credit. The debtor may offer the secured party a security interest in the person’s equipment, its inventory, accounts receivable or other assets. The lender would first search the records of the Personal Property Security Registry (PPSR) via the internet to see whether the assets being offered as collateral are subject to a prior security interest. The search is generally made on the name of the debtor, though if the proposed collateral is a motor vehicle the search should also be made on the motor vehicle Chassis number or VIN. If there is no prior notice of a security interest against the proposed collateral, the secured party can then enter the financing statement information with the debtor’s consent. The secured party will have confidence of its priority status in the collateral against other lenders. It is good practice for the secured party to register its notice of a security interest over the collateral prior to disbursing the loan proceeds.
If the potential lender finds in its search that a notice of security interest in the proposed collateral has already been registered by another entity, it has several options. The potential lender may contact the prior secured party to determine if the existing obligation is small enough that there is sufficient excess value in the collateral to secure the proposed loan, and then register its own notice of security interest (in this case, the second-to-file would have secondary priority in the collateral). Conversely, the potential lender may try to obtain an agreement with the prior secured party to subordinate (make second) the prior interest to the current secured party’s security interest, and then register a notice. Or the secured party may simply decide not to lend based upon the presence of the prior notice because the credit risk of the prior security interest is too great.
Consumers should also use the Registry when buying an item of personal property - especially if you are buying something second hand. If you purchase personal property (e.g. motor vehicle) that is subject to a security interest, the secured party (lender) may be able to repossess the goods from you if the loan obligation has not been repaid.
When you buy personal property on hire purchase, or use personal property as security for a loan or another type of credit providing transaction, the secured party will probably register details of the security interest in the Personal Property Security Registry (PPSR). Those details include basic personal details, as the debtor. In particular the registration will include your name and address and contact details.
The information registered will also include a description of the personal property (collateral). The PPSR does not record financial details of the transaction, for example, the terms and conditions of the loan or the value of the personal property.
Rationale for Registration and Search
The rationale for registering a notice of a security interest is to establish a creditor’s priority rights in a debtor’s collateral. The first creditor to register a notice according to rules set out in the Personal Property Security Act and Regulations will almost always have priority in the collateral over all other creditors should the debtor (borrower) default. Because of this, if a prior security interest is registered, then a current prospective creditor (or buyer) may not obtain priority (or clean property right) in the movable property being pledged as collateral (or sold) and may wish to reconsider their business transaction. Therefore, the reason for searching PPSR records is to discover whether there may be a pre-existing security interest in the property of a debtor.
Type of users of the PPSR website
The PPSR system online service is to provide access to three main user groups:
Frequent users, infrequent users and public user. The kind of access to the personal property registry system that you require depends on the kind of transaction to be undertaken. It also depend on whether you are an institution or an individual going to use it to register a security interest (a pledge or a charge) regularly or infrequently or a Public user who only search the registry system or generate certified search report one time.
Options for Access to the PPSR
Option 1: Subscription Client Account Access
If you represent a bank or a registered micro finance company with a microfinance code from the Reserve Bank of Malawi, and you will be registering or searching the PPRS on a regular basis, it is recommended that you open a client account on the PPSR system. You must pay the required fee and request to be a subscribed user. This will allow the institution through its authorized users to log in to the system to register notices or charges and to request for certified search reports.
Option 2: Prepaid Client Account Access
If you represent a bank or a registered micro finance company (with an assigned microfinance code by the Reserve Bank of Malawi) which will register a security interest (a pledge or a charge) infrequently, or if your institution is not bank or a microfinance company regulated by the Reserve Bank of Malawi, you must still pay the fees in advance. You should first determine how many notices you want to register and how many certified search reports you need. Return to the Welcome screen and select the Fees option under HELP to view the fee schedule. Determine the total amount of fees for all the services you want to do. Then pay that amount at the MSB bank payment outlet after generating Payment Voucher from the PPSRS. Verify payment into your wallet in the registry system using the PPSRS payment Voucher and the MSB payment receipt number. Payable transaction will now be debited to the account of the individual or institution. Please note that all transactions must be paid for in advance for prepaid users.
Option 3: Public Access
If all you want to do is to search for existing Security Interest, Click Search menu on the Home Page to choose Search menu to go to the Search screen. In that case, there is no need to log in, and no fees are charged for obtaining uncertified search report but fees will be charged for obtaining certified search report which may be printed or saved as a PDF document.
The Department of Registrar General (DRG) is the appointed Registrar for the Personal Property Security Registry and has mandated administrative responsibilities under the Personal Property Security Act. If you have questions or need help with navigating the website, you may contact the Technical Support Desk located at the DRG office. For on-line technical support, click the Technical Support link on the Welcome page on the website or for administrative relative queries please contact the DRG office.
The Tech Support Desk Time
Technical Support Desk: If you are experiencing technical issues, or need assistance, you may send an email to the Technical Support team.
The technical support Help Desk is manned at times below but telephonic support is provided 24/7 hours:
Monday to Friday from 8:30am to 4:30pm
All queries will be responded to within 48 hours.
IT MUST BE NOTED THAT THIS IS A NOTICE REGISTRY ONLY. THAT MEANS THAT THE REGISTRAR IS NOT RESPONSIBLE FOR VERIFYING OR GUARANTEEING THE ACCURACY OF ANY OF THE DATA ENTERED IN PPSR SYSTEM. WHEN A CERTIFIED SEARCH REPORT IS REQUESTED, THE REGISTRAR IS ONLY CERTIFYING THAT THE INFORMATION IS ON THE REGISTER NOT THAT IT IS ACCURATE/FREE OF DEFECT. THE REGISTRAR HAS NO LIABILITY FOR INCORRECT/FRAUDULENT INFORMATION SUBMITTED ON THE REGISTRY SYSTEM.