South African companies should carefully review their existing security arrangements before granting additional security and consider how to properly rank or prioritize multiple security interests in accordance with each company’s obligations.
Sometimes, a company may grant security to multiple lenders without ensuring that each lender's security interest is properly ranked or prioritized.
This can sometimes lead to overlapping security and disputes over the rights of each lender in the event of a default or insolvency.
Apart from the Deeds Registry where all types of bonds are registered and recorded, it should be borne in mind that South Africa does not have any central registration of securities.