The Department of Finance (DOF) is seeking public comments on the draft regulation that will set the fees for the use of the country’s unified and centralized national collateral registry.
More two-years since the enactment of the Personal Property Security Act (PPSA), the draft regulation that sets the electronic registry’s fees is now posted online through the DOF website, the department announced on Tuesday, April 3.
The finance department is now asking the public and stakeholders to submit comments on or before April 22 to [email protected].
The DOF, Land Transportation Authority (LRA) and the National Tax Research Center (NTRC) are tasked to work together in determining the fee structure and feasible rates of fees to be imposed for the use of the PPSA Electronic Registry.
“These three government agencies had determined that a single-rate fee structure is consistent with cost recovery, which is the basic principle behind the imposition of fees and charges,” DOF said.
"It is assumed that the same cost of service is incurred regardless of the amount of security interest being registered and/or certified,” it added.
According to the DOF, a single-rate fee structure is easy to implement and will not be burdensome to either lender or grantor, which is the primary directive of the law.
Enacted on August 17, 2018, PPSA or Republic Act (RA) No. 11057 aims to promote economic activity by increasing access to least cost credit, particularly for small businesses, by establishing a modern framework for securing obligations with personal property.
Section 38 of the PPSA mandates that the fees for registering a notice and for requesting a certified search report shall be by regulation issued by the DOF for the recovery of reasonable costs of establishing and operating the PPSA Electronic Registry.
PPSA was conceived to strengthen the secured transaction legal framework and provided for the creation, perfection, determination of priority and enforcement of security interests in personal property.
The unified and centralized national collateral registry lodged in the LRA aims to reduce the risks involved in accepting movable collaterals.