rolling stock title security presenter: claire van zuylen

ROLLING STOCK TITLE SECURITY

PRESENTER: CLAIRE VAN ZUYLEN

ROLLING STOCK TITLE SECURITY:South Africa

• Under South African law, movable assets are classed as

– Corporeal (eg vehicles, equipment, aircraft, computers) or– Incorporeal (eg receivables, shares, credit balances in bank

accounts)

• The forms of real security available and recognised on insolvency for corporeal movable assets are:

– Liens (right of retention)– Pledges– Notarial bonds (special and general) registered in Deeds

Office– Reservation of ownership

ROLLING STOCK TITLE SECURITY:South Africa

• There is no central registry of pledges, liens or reservations of title.

• Where a corporeal movable asset is secured by means of a special or general notarial bond, the notarial bond is registered in the Deeds Office for the jurisdiction in which the debtor carries on business, the security interest is registered.

• In certain cases there are national registries that record and identify corporeal movable assets per national asset serial numbers, and in some cases, also record security interests:

– Motor vehicles (eNatis)– Aircraft (Civil Aviation Authority Register)– Ships (Shipping Register)

ROLLING STOCK TITLE SECURITY:South Africa

• There is no central registry of rolling stock.

• Individual owners of rolling stock keep their own asset registers:

– Transnet Freight Rail keeps an updated centralised asset register of its rolling stock.

– Heritage organisations such as Friend of the Rail, Steam in Action, and the Heritage Rail Association of South Africa keep their own registers of rolling stock under their control.

ROLLING STOCK TITLE SECURITY:South Africa

• Rolling stock is either secured by means of a reservation of title (no central registry) or a special notarial bond registered in the Deeds Office.

• Special notarial bond v general notarial bond.

• Problems if rolling stock cross borders of South Africa:– Form of security may not be recognised;– Local insolvency and bankruptcy laws may not recognise

title or ranking of security.

ROLLING STOCK TITLE SECURITY:South Africa

Questions?

Contact:

Claire van ZuylenBowman Gilfillan attorneysEmail: c.vanzuylen@bowman.co.zaDirect landline: +27 11 6699406Website: www.bowman.co.za