Security interest in Zimbabwe

The Movable Property Security Interests Act [Chapter 14:35] deals with security interests in Zimbabwe. A security interest in Zimbabwe is defined as a property right in a movable asset which is created by way of a written agreement to secure payment or other performance of an obligation, regardless of whether the parties have denominated it as a security interest, and regardless of the type of asset, the status of the debtor or secured creditor, or the nature of the secured obligation.

In Zimbabwe a security interest may be created by means of a charge, chattel mortgage, hypothec, financial lease agreement, notarial bond, note of hand, trust indenture, trust receipt, pledge, secured debenture or other transaction that secures payment or performance of an obligation.

A notice of security interest in Zimbabwe is registered with the Collateral Registry within the Reserve Bank of Zimbabwe. A notice of security interest may be registered in a future asset, in an undivided interest in a moveable asset or movable property or in part of a movable asset or movable property. Of interest is the fact that security interests in Zimbabwe may be perfected by way of formal or informal modes which are recognised by the common law.

The Movable Property Security Interests Act [Chapter 14:35] does not regulate security interests that apply to:

Security interest, including a mortgage in a vessel, subject to the Inland Waters Shipping Act [Chapter 13:06];

Security interest in an aircraft subject to the Civil Aviation Act [Chapter 13:16];

Security interest in proceeds of collateral if the proceeds are a type of asset lying outside the scope of the Movable Property Security Interests Act [Chapter 14:35] or to the extent that other laws apply to securities in those types of assets;

Book entry securities held through the Central Securities Depository under the Securities and Exchange Act [Chapter 24:25];

Creation and transfer of an interest in land, excluding a right to payment that arises in connection with an interest in a lease of land.