Enforcement of Secured Rights

1. SURVEY Commercial Enforcement and Insolvency Systems Enforcement of Secured Rights Legal Vice Presidency The World Bank

2. Perception ofenforcement procedures • 45% perceived to be designed to enable maximum recovery • 45% enforcement of security is generally considered easy and predictable

3. How often is court involvement required to enforce security interests? 64% 70% 60% 50% 40% 30% 18% 20% 9% 9% 10% 0% 0% Always or Frequently Sometimes Infrequently Never or almost almost never always Court involvement in security interests • 45% secured creditor may sell security without court intervention

4. Judicial Enforcement • 91% law specifies mechanisms for judicial enforcement • 73% law specifies mechanisms for accelerated enforcement of security interests in the event of non-performance

5. Usual timeframe in obtaining judgment for enforcement of security interests 55% 60% 50% 40% 27% 30% 20% 9% 9% 10% 0% Less than 06 06-12 months 12-18 months Longer months

6. Availability of non-judicial enforcement procedures Available Not Available 45% 55% Usual timeframe involved in completing non-judicial processes 71% 80% 70% 60% 50% 40% 30% 14% 14% 20% 0% 10% 0% Less than 06 06-12 months 12-18 months Longer months

7. Non-judicial enforcement • 50% law allows for parties to agree upon their own default remedies