Collateral Registry

About the Collateral Registry Office

What is this website for?

This website is where you find the Collateral Registry for the Republic of Afghanistan. It is where you come to register notices of securing charge in movable property (collateral) and to search for notices of other existing securing charge. If you have agreed to take a securing charge in movable property of someone (the chargor) to secure their obligation to you (usually an obligation to repay money) you may register a notice here to inform others of your securing charge. In order to check for prior securing charges in collateral that is offered to you as security for an obligation, you may search the Collateral Registry’s records through this website.

In a typical situation under the Act, a business or an entrepreneur (the chargor) contacts a lender (chargeholder) to apply for a loan or an operating line of credit for the business. The chargor may offer the chargeholder a securing charge in the business’ equipment, its inventory, accounts receivable or other assets. The lender searches the records of the Collateral Registry of Da Afghanistan Bank via the internet to see whether the assets being offered as collateral are subject to a prior securing charge or lien. The search is generally made on the identification number of the chargor, though if the proposed collateral is a motor vehicle the search may be made on the serial number. If there is no prior notice of a securing charge in the proposed collateral, the chargeholder may immediately register a notice of its prospective interest in this chargor’s collateral via this website to secure their priority position in the collateral. The chargeholder can then enter the loan agreement with the chargor with confidence of its priority in the collateral against other lenders.

If the potential lender finds in its search that a notice of securing charge in the proposed collateral has already been registered by another person, it has several options. The potential lender may contact the prior chargeholder to determine if the existing obligation is small enough that there is sufficient excess value in the collateral to secure the proposed loan, and then register its own notice of securing charge (in this case, the second-to-file would have secondary priority in the collateral). Or the chargeholder may simply decide not to lend based upon the asset because the risk of the prior securing charge is too great.

Why register and search?

The reason for registering a notice of a securing charge is to establish a creditor’s (or chargeholder’s) rights in a chargor’s collateral. The registering of the notice will warn prospective creditors (and buyers) of collateral whether there is a pre-existing securing charge in the property, and the holder of that prior notice most likely has priority in the property. If this is the case, then the current prospective creditor (or buyer) may not obtain priority (or clean title) in the movable property being pledged as collateral (or sold) and may wish to reconsider their business transaction. Therefore, the reason for searching Collateral Registry records is to discover whether there may be a pre-existing securing charge in the property of a chargor.

Where is the Collateral Registry?

The Collateral Registry is organized under the Da Afghanistan Bank. The DAB is the implementing agency for the Collateral Registry. However, in reality all business (other than payment) with the Collateral Registry is conducted on-line through this website and the Da Afghanistan Bank has only administrative responsibilities. If you have questions or need help with navigating the website, you may contact the Tech Support Desk by clicking the Technical Support link on the Welcome page on the website. The Tech Support Desk is manned Saturday – Wednesday, from 8:00 AM till 4:00 PM, and will respond to inquiries overnight if they are made at other times.