Ethiopian Law of Security Rights in Movable Property : Possessory Security Rights

PrefaceIn 2019, Ethiopia enacted its first comprehensive law of security rights — the Movable Property Security Rights Proclamation (MPSRP) — drafted under the aegis of the International Finance Corporation (IFC). Although the official narrative is that the MPSRP is based on the UNCITRAL Legislative Guide on Secured Transactions Law, the MPSRP is dominantly influenced by Article 9 of the Uniform Commercial Code (UCC Article 9) — the model law governing security rights (secured transactions) in the United States (US). Thus, the reform in Ethiopia is a radical departure from the French Civil Code-based Ethiopian law of security rights that has been in place since 1960. The reform effort in Ethiopia is commendable as the country abandoned an obsolete law, unfit for modern secured financing schemes. Nonetheless, the MPSRP is not without flaws. The underlying policies of some of its provisions appear unsuitable for the Ethiopian legal and commercial/economic contexts while some provisions present interpretive dilemmas. This book provides an early interpretive and policy analysis by explaining the key principles, policies, and rules of the MPSRP and highlighting some of the potential challenges around its implementation and interpretation.This is chapter four of "Ethiopian Law of Security Rights in Movable Property, a thirteen chapter book the provides detailed analysis of the new law based on examples and comparative analysis. The whole book can be freely accessed at http://www.asressgikay.org/2021/08/07/ethiopian-law-of-security-rights-in-movable-property-3/?fbclid=IwAR3VQ_SCO8U8UR5YQkJKRGXjGU1nPaq_OdulXsMDGs7pghFIyUIoPEx40Vs#dearflip-df_755/39