On 11 January 2009, many restrictions on the registered pledge
system were removed.
This will undoubtedly lead to more widespread use of the
registered pledge system and will also require some adjustment to
registered pledge agreements.
Most of the changes are to be welcomed in the current market,
even though the ambiguity of some provisions may create uncertainty
about their meaning and practical application.
The changes include:
- lifting the restrictions on the entities able to secure
receivables by registered pledge
- lifting the restrictions on the appointment of a pledge
administrator when a registered pledge is used to secure owing to
two or more creditors which only applied when a credit facility or
loan was jointly granted
