The Registration of Special Notarial Bonds under the Security by Means of Movable Property Act and the Publicity Principle: Lessons from Developments in Belgium
DOI:
https://doi.org/10.17159/1727-3781/2018/v21i0a2389Keywords:
delivery, electronic pledge register, movable property, pledge, real security right, publicity principle, registration, special notarial bondAbstract
Many people do not own immovable property to offer as security but do have movable property which can be offered as security for the repayment of a debt. In today’s world where the costs of a motor car can exceed that of a house, the increasing value of movable things makes it a popular and appropriate security object. Under the common law pledge, delivery of the movable property from the pledgor (debtor) to the pledgee (creditor) has to take place in order for the pledgee to acquire a real security right in the property. Delivery of the property is aimed at ensuring compliance with the publicity principle. The principle of publicity entails that the existence of a real security must be known to the public. With the aim to promote commerce, certain countries have taken the initiative in reforming their laws on pledge to allow the debtor to retain possession of the movable property that serves as security. Furthermore, technology has advanced to a level where national registration systems which can be accessed easily and at minimal costs can be established. The South African legislature enacted the Security by Means of Movable Property Act 57 of 1993 which makes provision for a pledge without possession. This Act deemed a duly registered notarial bond over specified movable property to have been delivered as if delivery has in fact taken place thereby substituted the common law delivery requirement with registration in the Deeds Office. On 30 May 2013, the Belgian House of Representatives adopted a Belgian Pledge Act which allows for a non-possessory pledge on movable property subject to registration in a newly created public register called the Electronic Pledge Register. This article therefore examines the efficacy of the registration system of special notarial bonds in South African law and whether this form of registration complies with the publicity principle looking at the developments of a computerised registration system taking place in Belgium.
Downloads
References
Literature
Badenhorst, Pienaar and Mostert Law of Property
Badenhorst PJ, Pienaar JM & Mostert H Silberberg and Schoeman's The Law of Property 5 ed (LexisNexis 2006)
Brits 2015 SA Merc LJ
Brits R "Two decades of special notarial bonds in terms of the Security by Means of Movable Property Act" 2015 SA Merc LJ 246-74
Dirix 2014 Int Insolv Rev
Dirix "The New Belgian Act on Security Interests in Movable Property" (2014) Int Insol Rev 171-80
Dirix & Sagaert 2014 EPLJ
Dirix E & Sagaert V "The new Belgian Act on security rights in movable property" (2014) EPLJ 231-55.
Eidenmuller & Kieninger Secured Credit
Eidenmuller H & Kieninger EM The future of secured creditors in Europe: European Company and Financial Law
Review Vol 2 (De Gruyter Recht 2008)
Hamwijk DJY Publicity in Secured Transactions
Hamwijk DJY Publicity in Secured Transactions Law: Towards a European public filing system for non-possessory security rights in movable assets? (Optima Grafische Communicatie Rotterdam 2014)
Kleyn and Boraine Law of Property
Kleyn DG & Boraine A Silberberg and Schoeman’s The Law of Property 3 ed (Butterworth Durban 1992)
LAWSA Vol 17(2)
Lubbe GF "Mortgage and pledge" rev Scott TJ in Joubert WA & Faris JA (eds) LAWSA Vol 17(2) (LexisNexis Durban 2008) 324-404
Lubbe & Van der Walt 1988 TSAR
Lubbe GF & Van der Merwe CG "Die sekuriteitswaarde van notariële verbande in medelinging met sessie in securitatem debitiˮ (1988) TSAR 554-59
Locke 2008 CILSA
Locke N "Security granted by a company over its movable property: The floating charge and the general notarial bond" (2008) XLI/1 CILSA 136-54
Mostert and Pope Property law
Mostert H & Pope A (eds) The principles of the law of property in South
Africa (Oxford University Press 2010)
Reid 1997 Acta Juridica
Reid K "Obligations and Property: Exploring the Border" (1997) Acta Juridica 225-45
Sacks 1982 SALJ
Sacks P "Notarial bonds in South Africa" (1982) 99 SALJ 605-36
Scott 1981 De Jure
Scott TJ "Aspekte van Sekerheidstelling deur middle van roerende sake" (1981) De Jure 142-59.
Scott & Dirix 2009 THRHR
Scott S & Dirix E "Calling-up a mortgage bond of immovable property" (2009) THRHR 575-98
Scott 2010 CILSA
Scott S "A comparison between Belgian, Dutch and South African law dealing with pledge and execution measures" (2010) 43/1 CILSA 93-117
Scott 1995 THRHR
Scott S "Notarial bonds and insolvency" (1995) 58 THRHR 672-84
Scott 1989 THRHR
Scott S "Pledge of personal rights and the principle of publicity Britz v Siegocki, Hawthorne and Hoffman 1987 case no 1799 (D) (unreported)" (1989) 52 THRHR 458-62
Scott Commerce
Scott J (eds) The Law of Commerce in South Africa (Oxford University Press 2009)
Stevenson & Waite Conscise Oxford English Dictionary
Stevenson A and Waite M (eds) Concise Oxford English Dictionary (Oxford University Pres 2011)
Sonnekus 2005 De Jure
Sonnekus JC "Omskrywing van Sekerheidsobjekte vir die Doeleindes van die Wet op Sekerheidstelling deur
Middel van Roerende Goed 57 van 1993’’ (2005) De Jure 133-44
Sonnekus 1989 TSAR
Sonnekus JC "Besitlose pand-ideale sekerheidsreg op roerende goed ook met inagneming van die beginsels van die insolvensiereg?ˮ (1989) TSAR 523-552
Sonnekus 1993 TSAR
Sonnekus JC "Die Notariele Verband, 'n Bekostigbare Figuur teen Heimlike Sekerheidstelling in Suid Afrika" (1993) TSAR 110-38
Sonnekus & Neels Sakereg Vonnisbundel
Sonnekus JC and Neel JL Sakereg Vonnisbundel 2 ed (Butterworth 1994)
Schutte 2012 PELJ
Schutte PJW "The Characteristics of an Abstract System for the Transfer of Property in South African Law as distinguished from a Causal System" (2012) 15/3 PELJ 120-151
Stevenson & Waite Concise Oxford English Dictionary
Stevenson A and Waite M (eds) Concise Oxford English Dictionary (Oxford University Pres 2011)
Van der Merwe and Du Bois Introduction
Van der Merwe CG & Du Plessis JE Introduction to the Law of South Africa (Kluwer Law International The Hague 2004)
Van der Merwe Sakereg
Van der Merwe CG Sakereg 2 ed (Butterworths Durban 1989)
Van der Walt, Pienaar and Louw 1994 THRHR
Van der Walt CG, Pienaar G & Louw C "Sekerheidstelling deur middel van roerende goed-nog steeds onsekerheidˮ (1994) 57 THRHR 614-23
Wood Security and Guarantees
Wood PR Comparative law of security and guarantees (Sweet and Maxwell 1995)
Zimmerman, Visser & Reid Mixed Legal Systems
Zimmerman A, Visser D & Reid K (eds) Mixed Legal Systems in a Comparative Perspective, Property and Obligations in Scotland and South Africa (Juta Cape Town 2005)
Cases
Cooper v Die Meester 1992 3 SA 60 (A)
Case 29 March 1990, RW 1990-1991
Ikea Trading und Design v BOE Bank 2005 2 SA 7
Frankel Pollak Vinderine v Stanton 2000 1 SA 425 (W)
Rosenbach and Co (Pty) Ltd v Dalmonte 1964 2 SA 195 (N) 204G-205A
Legislation
Belgian Pledge Act 11 July 2013
Deeds Registry Act 47 of 1937
Financial Collateral Act 15 December 1851
Insolvency Act 24 of 1936
Mortgage Act 16 December 2004
Notarial Bond (Natal) Act 53 of 1932
Security by Means of Movable Property Act 53 of 1993
Reports
South African Law Commission Report on the giving of security by means of movable property, 1991 Vol 46.
Electronic sources
e-Deeds Bill Available at http://www.ghostdigest.com/articles/e-deeds-bill-published/55006 (date of use: 6 January 2017).
New law on security over movable assets- Significant impact on financing transactions available at https://www.google.co.za/#q=New+law+on+security+over+movable+assets-+Significant+impact+on+financing+transactions (date of use: 22 December 2015).
UNCITRAL Model Law on Secured Transactions available at www.ebrd.com...and /pdf-model-law-on-secured-transactions.pdf (date of use: 8 December 2014).
Patrimonial documents are controlled by the Federale Overheidsdienst Financien. Available at http://financien.belgium.be/nl/over_de_fod/structuur_en_diensten/algemene_administraties/patrimoniumdocumentatie (date of use: 25 July 2016).
http://www.peeters-law.be/documents/analyse-items/70-securities-on-movables.xml?lang=nl (date of use: 1 August 2016).
LIST OF ABBREVIATIONS
CILSA Comparative and International Law Journal of Southern Africa
EPLJ Environmental and Planning Law Journal
EPR Electronic Pledge Register
Intel Insol Rev International Insolvency Review
LAWSA Law of South Africa
PELJ Potchefstroom Electronic Law Journal
SA Merc L South African Mercantile Law Journal
SALJ South African Law Journal
SMPA Security by Means of Movable Property Act
THRHR Tydskrif vir Hedendaagse Romeins-Hollandse Reg
TSAR Tydskrif vir die Suid-Afrikaanse Reg
Published
How to Cite
Issue
Section
License
Copyright (c) 2018 Lefa Sebolaisi Ntsoane
This work is licensed under a Creative Commons Attribution 4.0 International License.
.png){kind=spacer}