by MMA Banking Team
23 March 2017
Is the process for enforcement of registered local law security, a court led process or can it be done out of court?
Enforcement can be done out of court, provided that the security documentation provides for express powers of sale without recourse to court.
Is the creditor able to appropriate the asset that has been secured?
Under Ugandan law, the asset must be sold to a third party to recover the sums owed.
Is an auction process required or is the creditor able to sell the asset without using an auction process?
The sale can be by auction or by private treaty where the security documentation provides for it.
Can enforcement be carried out directly by a creditor?
A creditor with capacity to directly take enforcement measures on its own behalf can do so.
Can a party appoint a local agent when enforcing security?
A creditor may engage the services of counsel and/or a local auctioneer to oversee the sale of secured assets.
Is notice required to enforce security?
Yes notice is required to be issued to the Borrower prior to enforcement of security.
Is it possible to appoint a receiver or manager for the secured property?
Yes, a receiver or manager may be appointed pursuant to the provisions of the security document and the law.