In Bangladesh, for any loan, bank usually ask for security. Usually, immovable property are considered as most secured form of security and most sought by bank. When banks consider other movable property as security, they faced a number of problems. To address those, on November 13, 2023 parliament has passed the Secure Transactions of (Moveable Assets) Act, 2023.

This Act is designed to facilitate lending against immovable property as collateral and provide legal protection to such lending transactions between lenders and borrowers. It applies to banks, financial institutions, insurance companies, microfinance institutions, money lenders, and any other entities that engage in such lending.

The Act specifies the types of immovable properties that can be used as collateral. It also sets guidelines for valuation of collateral, loan application process, and registration of financing statements.

The Act has provisions for establishing a Registration Authority to maintain an electronic database of registered financing statements related to immovable property collateral. It outlines the information to be provided in financing statements and the process for registration, search, correction etc.

The Act describes the process for creation, perfection, fulfillment and priority of security interests in immovable collateral. Registration generally determines priority, with some exceptions. There are provisions for priority of court orders/decrees.

The rights and duties of secured parties and debtors are outlined, especially in case of default. The parties can settle disputes through negotiations and compromise. Settlement through courts is also possible.

There are stipulations regarding preservation of registration records, issuance of certificates, termination of registration, treatment of proceeds and income from collateral etc.

The Act provides rule making powers to the Government and regulation making powers to the Registration Authority. The schedules can also be amended by the Government through notifications.

With the introduction of the act, it is expected that more people will be able to obtain loan by using their movable assets as security.