Further, Diokno said thepassage of the Personal Property Security Act will enhance the access of MSMEs to business and consumer credit by enabling the use of alternative collateral, such as equipment, inventory and warehouse receipts
. Signed into law last year, the implementing rules and regulations of Republic Act 11507 have not yet been completed.
These platforms will also be used for the trading of electronic warehouse receipts
, offering greater financial inclusion for the farming community through Collateral Management system.
In doing so, a CMC, through its electronic warehouse receipt
system, will issue warehouse receipts
which can be used by farmers/depositors of agricultural commodity for financing from financial institutions and trading of electronic warehouse receipt
at the exchange.
RA 11057 is considered a landmark law as it simplified and harmonized the Chattel Mortgage law of 1906 and other fragmented and outdated financing regulations in the country by enabling borrowers to secure financing using non-traditional collateral such as account receivables, inventory, warehouse receipts
, crops, livestock, machinery and equipment.
The government should speed up adoption and implementation of the Warehouse Receipts
System Bill if the country wants to achieve its goals on food security.
As per details, collateral management companies will provide storage and preservation services for a range of agricultural commodities and will issue credible warehouse receipts
for agricultural commodity financing.
Among these functions are the licensing and registration of persons and entities engaged in the grains business, collection of regulatory fees, issuance of negotiable warehouse receipts
, warehouse inspection, authority to seize hoarded stocks and enforce rules and regulations in the grains business.
Under the terms of the MoU, ADB would provide a range of financial services, including warehouse receipts
financing, aggregation financing, and settlement of trades.
'The present Senate has worked to grow our economy by passing Bills like the Companies and Allied Matters Act (CAMA), the Secured Transactions in Movable Assets Act, the Credit Bureau Reporting Act and the Warehouse Receipts
proZiddu's solutions, empowered by blockchain technology, offer lending against collateralised warehouse receipts
in the form of Ziddu coins.
First is giving cash transfer directly to the bottom 60 percent of rice farmers, coupled with enabling the farmers the right to opt for paying their creditors/traders with cash from the loan proceeds using the warehouse receipts
; or giving up their rice to traders in payment for their debt obligation as now practiced.