CHATTELS TRANSFER ACT.

ARRANGEMENT OF SECTIONS.

   Section

INTERPRETATION.

   1.   Interpretation.

   2.   Attornment or agreement giving power of distress by way of security to be instrument within meaning of this Act.

REGISTRATION OF INSTRUMENTS.

   3.   Registrar and area registrars.

   4.   Registration of an instrument to be notice to all persons.

   5.   Persons who may present an instrument for registration.

   6.   Mode of registration.

   7.   Limitation of time for registration.

   8.   Register book and index to be kept.

   9.   Registration fee, etc.

   10.   Central Register Book, etc.

   11.   Power to extend time and rectify omissions.

SEARCHES AND OFFICE COPIES.

   12.   Search of register book and instruments.

   13.   Office copies.

EFFECT OF NONREGISTRATION, ETC.

   14.   Attestation and registration.

   15.   Instruments not duly attested and registered to be void, etc.

   16.   Order and disposition.

   17.   Order of priority in case of two registered instruments.

   18.   Form of instrument.

   19.   Instrument to take effect from registration.

   20.   Instrument to have inventory of chattels.

   21.   Instrument not to affect after-acquired chattels.

   22.   Instrument subject to defeasance, etc.

   23.   Chattels acquired in substitution.

   24.   Instrument securing current account.

   25.   Saving of laws prescribing formalities as to execution of instruments or securing rights under the instruments.

INSTRUMENTS COMPRISING STOCK.

   26.   Stock to be described.

   27.   Stock to include increase of stock, etc.

ASSIGNMENT OF BOOK AND OTHER DEBTS.

   28.   Book debts.

   29.   Assignments of monies payable to suppliers of dairy produce.

SECURITIES OVER CROPS.

   30.   Security may be given over crops.

   31.   Rights of landlord or mortgagee.

SECURITIES OVER WOOL.

   32.   Security may be given over wool.

   33.   Wool securities not affected by sale, etc. of sheep.

   34.   Security may be given over wool of mortgaged sheep.

   35.   Further provision as to security given over wool.

MEMORANDUM OF SATISFACTION.

   36.   Filing of memorandum of satisfaction, etc.

   37.   Effect of filing a memorandum of satisfaction.

   38.   Public trustee may sign memorandum of satisfaction.

   39.   Registrar or area registrar may order memorandum of satisfaction to be filed.

SALES.

   40.   Sale of chattels with land.

   41.   Manner of exercising power to sell.

   42.   Grantor's interest in chattels may be sold in execution of judgment against him or her.

   43.   Interpleader process not affected by the Act.

IMPLIED COVENANTS, ETC.

   44.   Covenants for title.

   45.   Covenants, etc. implied in instruments.

   46.   Meaning of abbreviated expressions.

   47.   Covenants to be several as well as joint.

   48.   Covenants to bind executors.

   49.   Covenants may be negatived or varied.

TRANSFERS OF INSTRUMENTS.

   50.   Form of transfer of instrument.

   51.   Registration of transfers.

OFFENCES AND PENALTIES, ETC.

   52.   Defrauding or attempting to defraud grantee.

   53.   Regulations.

      First Schedule   Registration of instruments.

      Second Schedule   Covenants for title.

      Third Schedule   Covenants, provisos and powers implied in instruments.

      Fourth Schedule   Transfer of instruments.

CHAPTER 70
CHATTELS TRANSFER ACT.

Commencement: 12 January, 1978.

   An Act to make provision relating to chattel securities and the transfer of chattels and for other purposes connected therewith.

INTERPRETATION.

1.   Interpretation.

   In this Act, except where the context otherwise requires—

   (a)   "chattels" means any movable property that can be completely transferred by delivery, and includes machinery, book debts, stock and the natural increase of stock as hereafter mentioned, crops and wool, but does not include—

      (i)   title deeds, choses in action or negotiable instruments;

      (ii)   shares and interests in the stock, funds or securities of any government or local authority;

      (iii)   shares and interests in the capital or property of any company or other corporate body; or

      (iv)   debentures and interest coupons issued by any government, local authority, company or other corporate body;

   (b)   "crops" includes coffee berries, tea leaves, sisal leaves, sugarcane, cotton, hemp, hop, wheat, maize, wattle, barley, oat and grass (whether for hay or for grain), and all cereal and root crops, fruit and all other crops grown above or below the ground;

   (c)   "executed" means signed by the grantor or his or her attorney;

   (d)   "factory" or "workshop" means any premises on which any manual labour is exercised by way of trade or for purposes of gain in or about the making, altering, repairing, ornamenting, finishing or adapting for sale of any article or part of any article;

   (e)   "grantee" means the party to an instrument to whom chattels referred to in the instrument, or any interest in the chattels, are granted or assigned by the instrument, or agreed so to be, and includes his or her executors, administrators and assigns, and in the case of a company or corporation, includes the successors and assigns of the company or corporation;

   (f)   "grantor" means the party to an instrument who by the instrument grants or assigns, or agrees to grant or assign, chattels referred to in the instrument, or any interest in the chattels, and includes his or her executors, administrators and assigns, and in the case of a company or corporation includes the successors and assigns of the company or corporation;

   (g)   "instrument" means any instrument given to secure the payment of money or the performance of some obligation and includes any bill of sale, mortgage, lien, or any document that transfers or purports to transfer the property in or right to the possession of chattels, whether permanently or temporarily, whether absolutely or conditionally, and whether by way of sale, security, pledge, gift, settlement or lease, and also the following—

      (i)   inventories of chattels with receipt thereto attached;

      (ii)   receipts for purchase money of chattels;

      (iii)   other assurance of chattels;

      (iv)   declaration of trust without transfer;

      (v)   powers of attorney, authorities, or licences to take possession of chattels as security for any debt;

      (vi)   any agreement, whether intended to be followed by the execution of any other instrument or not, by which a right in equity to any chattels, or to any charge or security on or over the chattels, is conferred;

but does not include the following—

   (A)   securities over, or leases of, fixtures (except trade machinery as hereafter defined, when mortgaged or charged apart from the land to which it is attached) when mortgaged, charged or leased in any mortgage, charge or lease of any freehold or leasehold interest in any land or building to which they are affixed, and whether or not the fixtures are specifically included in the mortgage, charge or lease by mention of the fixtures in separate words;

   (B)   assignments for the benefit of the creditors of the person making the assignments;

   (C)   transfers of or agreements to transfer instruments by way of security;

   (D)   transfers or assignments of any ship or vessel or any share of a ship or vessel;

   (E)   transfers of chattels in the ordinary course of business of any trade or calling;

   (F)   debentures and interest coupons issued by any government or local authority;

   (G)   bills of sale of chattels in any foreign parts, or at sea;

   (H)   bills of lading, warehouse-keepers' certificates or warrants;

   (I)   orders  for  the  delivery  of  chattels,  entries  in auctioneers' books or any other document used in the ordinary course of business as proof of the possession or control of chattels, or authorising or purporting to authorise, either by endorsement or delivery, the possessor of the document to transfer or receive the chattels represented by the document;

   (J)   debentures and interest coupons issued by any company or other corporate body and secured upon the capital stock or chattels of the company or other corporate body;

   (K)   mortgages or charges granted or created by a company incorporated or registered under the Companies Act;

   (L)   hire-purchase agreements;

   (h)   "machinery" means the machinery used in or attached to any factory or workshop as hereafter defined, and machinery and plant used in connection with the production, preparation or manufacture of agricultural products, but does not include—

      (i)   the fixed motive powers, such as the waterwheels and steam and other engines and the steam boilers, donkey engines and other fixed appurtenances of the motive powers;

      (ii)   the fixed power machinery (such as the shafts, wheels, drums and their fixed appurtenances) for transmitting the action of the motive powers to the other machinery, fixed and loose; or

      (iii)   the pipes for steam, gas and water;

   (i)   "public trustee" means the public trustee appointed under the Public Trustee Act;

   (j)   "registrar" means the registrar appointed under section 3 and includes an assistant registrar;

   (k)   "registration" means the filing of an instrument with schedules or inventories, or a true copy thereof, with the affidavit hereafter mentioned;

   (l)   "stock" includes any sheep, goats, cattle, horses, pigs, poultry and any other living animals.

2.   Attornment or agreement giving power of distress by way of security to be instrument within meaning of this Act.

   (1) An attornment or agreement (not being a mining lease) by which a power of distress is given or agreed to be given by one person to another by way of security for any present, future or contingent debt or advance, and by which any rent is reserved or made payable as a means of providing for the payment of interest on that debt or advance, or otherwise for the purpose of such security only, shall be deemed to be an instrument within the meaning of this Act so far as regards any chattels which may be seized or taken under the power of distress.

   (2) Where a mortgagee of any interest in land, after entering (under the powers contained or implied in the mortgage) into possession of the mortgaged land or into receipt of the rents and profits of that land, demises the land or any part of it to the mortgagor at a fair and reasonable rent, the instrument by which the demise is effected shall not be deemed to be an instrument within the meaning of this Act.

REGISTRATION OF INSTRUMENTS.

3.   Registrar and area registrars.

   The Minister shall, for the purposes of this Act, appoint a registrar for the whole of Uganda and area registrars for each area.

4.   Registration of an instrument to be notice to all persons.

   All persons shall be deemed to have notice of an instrument and of the contents of the instrument when the instrument has been registered as provided by this Act.

5.   Persons who may present an instrument for registration.

   An instrument shall be presented for registration either by the grantor or grantee or by the agent of that person to the registrar or the area registrar, as the case may be, of the area where the chattels comprised in the instrument are wholly or in part situated.

6.   Mode of registration.

   Registration of an instrument shall be effected—

   (a)   by filing the instrument and all schedules endorsed on, annexed to or referred to in the instrument; or

   (b)   by filing a true copy of the instrument and the schedules and an affidavit in Form 1 of the First Schedule to this Act or to the like effect,

in the office of the registrar or the area registrar, as the case may be.

7.   Limitation of time for registration.

   (1) The period within which an instrument may be registered is 21 days from the day on which it is executed; except when the time for registering an instrument expires on a day on which the registrar's or area registrar's office is closed, the registration shall be valid if made on the next following day on which the office is open.

   (2) If there are more grantors than one, the date of execution of an instrument shall be deemed to be the date of the execution by the grantor who last executes the instrument.

   (3) The day on which an instrument is executed shall not be included in the period within which the instrument may be registered under subsection (1) although it may be registered on that day.

8.   Register book and index to be kept.

   (1) The registrar or the area registrar, as the case may be, shall—

   (a)   cause every instrument registered in his or her office under this Act to be numbered;

   (b)   mark on every instrument so registered, or on the filed copy of the instrument, the date of registration and the number; and

   (c)   at the time of registration, enter, in a register to be kept for the purpose in his or her office, the particulars of the instrument as registered in Form 2 of the First Schedule to this Act.

   (2) The registrar or the area registrar, as the case may be, shall keep an index of the names of grantors and grantees of instruments and shall refer in the index to the entries in the register book of the instruments given by each grantor.

   (3) The index shall be arranged in divisions corresponding with the letters of the alphabet, so that all grantors and grantees whose surnames begin with the same letter (and no others) shall be comprised in one division, but the arrangement within each division need not be strictly alphabetical.

   (4) Where the instrument describes the residence of the grantor to be in some place outside the area in which the registry is situated or where the instrument describes a part of the chattels enumerated in the instrument as being in some place outside that area, the registrar or the area registrar, as the case may be, shall forthwith and within three clear days after registration in the registry, and in accordance with the prescribed directions, transmit an abstract in the prescribed form of the contents of the instrument to the registrar or the area registrar, as the case may be, in whose area those places are situate, and, if those places are in more areas than one, to each such registrar or the area registrar, as the case may be.

   (5) Every abstract so transmitted shall be filed, kept and indexed by the registrar or the area registrar, as the case may be, concerned.

   (6) Any person may search, inspect, make extracts from and obtain copies of the abstract so registered in the like manner and upon the like terms as to payment or otherwise as in the case of instruments registered by the registrar or the area registrar, as the case may be.

9.   Registration fee.

   (1) Upon the registration of every instrument, there shall be paid to the registrar o

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