REGISTRATION OF MORTGAGES AND CHARGES
A company that obtains a mortgage or charge from any institution is required to register the said charge or mortgage with the Companies Registry. Statutory prescribed Forms called Particulars of charge or mortgage (Form 31) or Form 32 – ‘Particulars of a Mortgage or Charge Subject to which Property has been acquired’ must be filed.
The Registration fee of a mortgage, debenture or other charge is 1% of the amount been borrowed but in no case shall the fees be less than K295,000 KR295 and in no case shall it be more than K2,045,000 KR2,045.
If the particulars and documents relating to a charge or mortgage are lodged with the Registrar within twenty-one days after the date of the creation of the charge, or after the acquisition of the property, the Registrar shall issue a certificate of the registration of the charge or mortgage stating the date of lodgment and, if applicable, the amount thereby secured, and the certificate shall be conclusive evidence that the requirements of the Companies Act as to registration have been complied with.
Registration of discharge and release from mortgage or charges
The entries of satisfaction and release of property from mortgage or charge must be registered with PACRA. The prescribed form known as Memorandum of satisfaction/discharge and release from mortgage or charges – Form 35, signed on behalf of a company and by the person entitled to charge must be submitted to PACRA. The filing fee for the said Form 35 is K150,000 KR150.
The Notice must state whether the debt for which the charge was given has been paid or satisfied in whole or in part; or whether part of the property or undertaking charged has been released from the charge or has ceased to form part of the company's property or undertaking.