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Borrowing and security: the Borrowers and Lenders Act, 2020

How a lender takes security in Ghana, why registration at the Collateral Registry decides priority, and what borrowers are owed.

· 1 min read

The Borrowers and Lenders Act, 2020 (Act 1052) governs credit agreements and security over property. It replaced the Borrowers and Lenders Act, 2008.

The Collateral Registry

Security interests over movable and immovable property must be registered with the Collateral Registry, operated by the Bank of Ghana. As a rule, a registered interest ranks ahead of later ones, so lenders register promptly.

Disclosure to borrowers

Lenders must give borrowers clear information about the cost of credit, including interest and charges, before the agreement is signed.

Enforcing security

If a borrower defaults, the Act sets out how a lender may enforce, including notice to the borrower before the collateral is sold.

Sources

  1. Borrowers and Lenders Act, 2020 (Act 1052)
  2. Bank of Ghana, Collateral Registry
  3. GhaLII, Ghana Legal Information Institute (texts of Ghanaian statutes and judgments)

This article is general information about Ghanaian law, not legal advice. Speak to a lawyer about your own situation.

This article is general information, not legal advice. Please contact us about your own situation.

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