By GEDION TIMOTHY
BANK of South Pacific chief executive officer Robin Fleming says the new Personal Property Security Act and governing laws are enabling the bank to update its security documents with confidence.
BSP welcomed the launching of the Act and online registry of personal properties by Treasurer Patrick Pruaitch in January.
The launching was followed by the activation of the online registry at the Investment Promotion Authority (IPA) website in May.
The online registry is main implementation part of the act.
The purpose of the Act is to make it easier for consumers to obtain finance from lending institutions.
When lending, financial institutions generally require security and traditionally look to a mortgage over land.
But this is difficult in Papua New Guinea because most land is customarily-owned.
The Act not only makes it easier for the bank to obtain security over “personal moveable assets” but also makes it more certain that this security will be available to the bank should the borrower default.
“The Bank of South Pacific started working on the compliance requirements proactively and well before the launch active date,” Fleming told The National yesterday.
“We were able to re-register all our needed existing security interest within the six months’ timeline as set by IPA.
“We also took the opportunity to update our security documents for use on Day One to be in line with the new Personal Property Security Act (PPSA) and the governing laws.
“Thanks to the new PPSA and registry, we are now able to register and with confidence other security interest types that previously were not registrable in Papua New Guinea. Bank of South Pacific uses the new registry daily to conduct security searches, perform new registrations and also security releases.
“The new registry is very user friendly with action performed from within our office space, no longer requiring daily visits to IPA and the other registry offices around Port Moresby.”
By GEDION TIMOTHY