Registration and search fees

The Secured Transactions Guide recommends that registration and search fees should not be used to raise revenue for the enacting State but rather be set purely on a cost-recovery basis (see Secured Transactions Guide, chap. IV, para. 37, and rec. 54, subpara. (i)). The reason for this approach is that excessive fees and transaction taxes will significantly deter utilization of the registry, thereby undermining the overall success of the enacting State’s Law. In assessing the level of revenue from registry fees needed to achieve cost recovery, account should be taken not only of the initial start-up costs related to the establishment of a registry but also of the costs necessary to fund its operation, including the costs of: (a) the salaries of registry staff; (b) upgrading and replacing hardware and software; (c) ongoing staff training; and (d) promotional activities and training for registry users.

Related Subject(s): Peacekeeping and Security