萬國法律事務所

In order to stimulate lenders to provide capitals in the loan market, the Financial Supervisory Committee will abolish the “ Classification Chart of the Subject for Personal Property Secured Transaction” so as to increase the classes of property eligible for collaterals under the amended regulation.

The National Development Committee pointed out that the Financial Supervisory Committee will propose an amendment to the Personal Property Secured Transaction Act and enlarge the scope of the subject property of personal property secured transactions to include but not limited to the future IPRs and royalty. The committee also pointed out that enlarging the scope of the property secured is an international trend. In the past, due to the national law, the items for secured transaction are nearly 95% all real estate, with the remaining 5% are personal properties.

The official states that the government will abolish the positive listing for the subject of property secured. This would also increase the speed for the authorities concerned in the scrutiny proceeding for the property secured transaction.

As to the amendment of the Personal Property Secured Transaction Act, it will adopt the “floating charge” mechanism, allowing the borrower to use the “future property e.g. the future IPRs” “ as the property secured for load agreements. This change will facilitate the small and middle sized enterprises and audio-visual industries to use account receivables as the property secured to gain capitals for investment.

The National Development Committee will also activate the “online registration for personal property secured transaction” and to cancel the “post delivery” and “ over-the-counter registration”.