LRA to launch centralized notice of registry

MANILA, Philippines — The Land Registration Authority (LRA) is targeting to launch by mid-May next year a centralized notice of registry by mid-May next year.

In a press briefing, LRA deputy administrator Ronald Ortile said the agency is currently developing the registry of notices of security interest, in compliance with Republic Act 11057 or the Personal Property Security Act.

He said while the law provides the LRA a nine-month period to create the database, the agency is aiming for the registry to go live earlier, or only six months from the effectivity of the IRR which was issued on Nov. 18.

“Our target is on the sixth month from the promulgation of the IRR. We envision to roll out the new registry and upon roll out, users can now start enrolling,” Ortile said.

The LRA official said the registry is an offshoot of  an existing platform, which was created under the agency’s Land Titling Computerization Project.

RA 11057, which was signed into law by President Duterte in August last year, aims to increase access to credit, particularly for MSMEs, farmers and fisherfolk, by establishing a unified and modern legal framework for securing obligations with personal property. 

Under the law, these sectors are allowed to secure loans from banks using non-traditional collateral, such as account receivables, inventory, negotiable instruments, electronic securities, crops, livestock, consumer goods, machinery, equipment as well as intellectual property rights.

The law also provides for the establishment of a registry where the public can access notices of security interest.

But despite the absence of the registry, Ortile clarified that the provisions of the PPSA is already under enforcement.

Finance Undersecretary Gil Beltran said the law, which sets up a secured transactions system, aims to ease the access to credit, especially of the MSME sector.

He said MSME financing in the Philippines at P550 billion equivalent to six percent of the total loans in the banking system. But with the PPSA law in effect, Beltran expressed confidence that the country would be able to expand this to become at par with Thailand, which is currently at 42 percent.

“With this law, we expect to move towards the same level as what Thailand has today. We hope we can get that in five to 10 years,” Beltran said.

Earlier, Finance Secretary Carlos Dominguez said the enactment of the PPSA would help propel the Philippines to a higher ranking in the World Bank’s Ease of Doing Business Index for 2021.