Secured transactions :: eRegulations RWANDA

A secured transaction is any loan or credit agreement in which the creditor aquires a security interest on collateral (property) owned by the borrower. As a result of this interest, the creditor may repossess the property in case of the borrower's default.

Under Rwandan law, all secured transactions must be registered at the office of the Registrar General. This registration is divided into two parts; the registration of mortgages and the registration of security interests in movable property.

Register a mortgage	A mortgage loan is a loan whose performance is secured by real property (immovable property such as a house or land). The mortgage provides guarantees to the creditor who will be allowed to take ownership of the property in the event of payment default.

Register a security interest in movable property	Registering a security interest in movable property means that the debtor provides movable personal property such as motor vehicles, machinery or furniture as collateral for obtaining a loan. In the event that the debtor fails to repay the loan, the creditor may take over the ownership of the property.