About the publicationThis book examines the Malawian Personal Property Security Act (PPSA) of 2013 that is based on the United Nations Commission of International Trade Law’s Legislative Guide on Secured Transactions. The PPSA is the first of its kind in Africa but there are several countries, including Ghana, Kenya, Liberia, South Sudan and Zambia that are in the process of undertaking similar reforms. One of the authors is directly involved as a consultant to the International Finance Corporation of the World Bank Group in all of these countries. Secured transactions have already become an important area of law introducing new concepts for the legal profession, lenders and borrowers in Africa. The book provides commentaries on individual sections of the PPSA that include practical examples, hypotheticals, illustrations of lending practices, relevant scholarly writings, and case law from the jurisdictions that inspired this reform, including Australia, Canada, New Zealand and the United States. This book seeks to provide an easy to read guide that is accessible to lawyers, judges and creditors who will use the law on a daily basis but also to foreign policymakers considering a similar reform. The IFC is about to launch a reform initiative of this kind in South Africa.This remarkable work offers a rare, broad and comprehensive examination of the law relating to secured transactions in Malawi. It comes at the right moment as it focuses on the newly enacted Personal Property Security Act. The authors have succeeded in covering an impressive number of intricate legal questions on the subject with great ease and clarity. The book brings together topics that frequently raise problems in this area of law but which are rarely analysed together and it enriches the perspectives of the reader with a lot of cross -jurisdictional references. It is a’ must have’ for lenders, borrowers and their respective legal advisors. It is also a useful eye opener on the subject for the discerning law student.Kalekeni KaphaleAttorney General, Lilongwe, MalawiComments:Modernisation of law or law reform in the area of Personal Property Security Law has always been thought as a romantic and an abstract goal. The recent reform in Malawi in this field is a good example of how modernisation of law can be achieved. This book does an excellent job in picking out the principal issues in and challenges associated with the law reform in the area of Personal Property Security Law by an insightful and incisive analysis of the emerging policy questions in Malawian Law.Dr Orkun Akseli DurhamUniversity Law School, UKThis book offers clear and concise commentary on the Malawian law of secured transactions – the Personal Property Security Act (PPSA). It explains the fundamental concepts underlying the PPSA, such as that of unitary and functional security interest, illustrates the application of its provisions in hypothetical situations, references similar laws in Australia, Canada, New Zealand and the United States and overall provides useful guidance to the users. It is unique in that it provides insights into the drafting of the PPSA itself in which both authors were actively involved. In view of the fact that the PPSA of Malawi implements to a large extent the recommendations of the UNCITRAL Legislative Guide on Secured Transactions, the authors included numerous references to the relevant recommendations of the Guide and its commentaries to direct the user to an invaluable source for further guidance and interpretation. So, this book is yet another testament of the growing influence of the UNCITRAL Legislative Guide on Secured Transactions on both the drafting of secured transactions legislation and its interpretation. This book will not only provide indispensable guidance to the users of the Malawian PPSA but could become an important tool in the implementation of similar reforms in the Sub-Saharan African countries that have already undertaken or contemplate PPSA-like reforms.Spyridon V BazinasSenior Legal OfficerInternational Trade Law Division, Office of Legal Affairs (UNCITRAL Secretariat)About the Editor:Marek Dubovec is Senior Research Attorney at the National Law Center for Inter-American Free Trade, Arizona, United StatesCyprian Kambili is Legal Specialist at the Ministry of Industry and Trade, Lilongwe, MalawiTable of ContentsForewordIntroductionUsing the UNCITRAL Legislative Guide as a tool for a secured transactions reform in sub-Saharan Africa: The case of Malawi1 Introduction2 A critical review of the current laws on secured transactions in Malawi2.1 The Bills of Sale Act2.2 The Farmers’ Stop-Orders Act2.3 The Commercial Credits Act2.4 The Hire-Purchase Act2.5 The Companies Act3 General problems with the legal regime for secured transactions in Malawi4 Comparative search for legislative solutions to secured transactions in Malawi5 Final remarksThe key concepts, definitions, scope and interpretation1 Security interest2 Floating security3 Definitions4 Scope of the PPSACreation of a security interest1 Conditions for creation of a security interest2 Description of collateral2.1 Description of proceeds2.2 Description of after-acquired property3 Giving value4 Rights in the collateral or power to encumberPerfection of a security interest1 Registration2 Possession3 Control4 Special provisions of the PPSA on perfectionPriority of security interests1 General priority rules2 Priority of purchase money security interests3 Priority in accessions and manufactured or commingled goods4 Transfers of collateral and priority5 Special priority rulesRegistration system1 Establishment of, features and functions of the registry2 Content of financing statements: Registration information2.1 Identification of the debtor2.2 Identification of the secured party2.3 Description of the collateral2.4 The maximum amount secured2.5 Other data3 Rejection of a financing statement4 Time of effectiveness, authorisation for registration and its verification5 Impact of errors on the effectiveness6 Duration of registration7 Amendment to and discharge of registration8 Searches of the registry9 Duty of the secured party to provide informationDefault and remedies1 Application of Part VIII2 Secured party’s right to take possession after default3 Disposal of collateral4 Notice of sale5 Legal effect of disposal6 Proposal of secured party to retain collateral7 Enforcement of security interests in accessions8 Right to redeem collateral and reinstate security agreement9 Statutory remedyTransitional matters and applicable laws1 Applicable laws2 Transition2.1 Repealed acts2.2 Preservation of pre-PPSA security interestsBibliography

This book is included in DOAB.