Cabinet Resolution Concerning the Executive Regulations of Federal Law Securing Rights in Moveable Assets

The definitions contained in Federal Law No. (4) of 2020 mentioned above shall apply to this Resolution. Otherwise, the following words and expressions shall have the meanings assigned thereto respectively unless the context requires otherwise:

The Register shall:

1. The Register may not verify the contents of the registration or search application.

1. A security contract shall be concluded in writing whether in the form of a formal or informal document.

1. In order to document a registration, a person shall have a client account on the Register's website according to the procedures determined by the Register for this purpose.

1. Any person may search the Database of the Register through entry of any of the following search parameters:

1. Any person may submit an application to the Register to obtain a paper or electronic search report authenticated by the Register and issued in accordance with the provisions of Article (7) of the Law.

1. The Register shall reject to document the registration in the event that any of the data specified in any of the mandatory fields is not provided, or if the information entered is illegible.

Registration shall include the following information:

1. Pledgor's data shall be identified through the following:

1. Description of the Pledge shall be deemed sufficient if the Pledge is reasonably identified through the following:

Registration shall be formulated on the Register website in Arabic or in English.

1. Registration for the first time or registration of amendment shall enter into force from the date and time of entry of registration information in the Database of the Register in a manner allowing the registration to appear in case of searching the register;

1. Pledgee may amend the registration by documenting the registration of amendments including the following:

1. Pledgee may amend registration for the purpose of extending validity period thereof by way of documenting an extension registration including the following:

1. Cancellation of documented registration shall be enforced only against Pledgees who approved cancellation from the date and time of effecting the cancellation registration.

1. In the event that Pledgee does not document the cancellation registration pursuant to provisions of Article (16) of the Law, the person whose name is mentioned as a Pledgor in a registration may send a written letter indicating its identity, first time registration, or the registration of amendment desired to be canceled. Pledgee may not make Pledgor bear any fees or expenses as a result of compliance with Pledgor's request for cancellation.

1. The security right established on credit accounts only may be enforced against third parties by way of control;

1. Priority of right established on the Pledge over tangible movables in accordance with an order or judgement issued to impose the precautionary or executive attachment on Pledge shall be specified from the date and time of registration of the order or judgement on the register pursuant to Clause (2) of Article (15) of the Law, or from the date and time of possession of the Pledge by seizure thereof, or on the date and time of defendant's debtor's or prevailing party's receipt of the attachment notice, whichever is earlier.

Notice of purchase financing served by Pledgee holder of security right shall be deemed sufficient if served to Pledgee who has documented a registration of security right created in its favor over accounts receivable and addressed to its address mentioned in said registration.

1. The security right established on a credit account in favor of the financial institution holding the account shall have priority over competing security rights enforceable against third parties.

1. The Pledgee shall include the following in the Notice of Execution mentioned in Article (27) of the Law:

 a. Notification of its intent to acquire the Pledge, and execute thereon;

 b. Identification of the Pledgor and Pledge executed thereon;

 c. Method of execution; and

 d.Time and place of disposal of the Pledge.

2. The notice mentioned in Clause (1) of this Article shall be deemed sufficient even if it includes additional information or minor errors which would not lead to serious misleading of third parties.

The Pledgee who has executed on a Pledge under the provisions of Article (33) of the Law shall deposit the proceeds of execution in the treasury of the Court within whose jurisdiction the sale was made within two working days, according to the form of report on procedures of sale appended to this Resolution.

Law of the Domicile of Pledgor shall apply to the establishment of security right, its enforcement against third parties, the priority and execution of security right on the Pledge if it is an intangible movable; provided that domicile of Pledgor shall be determined as follows:

Rights which became enforceable against third parties through registration on the register pursuant to the provisions of Federal Law No. (20) of 2016 on Mortgaging of Movable Assets as Security for Debts shall remain enforceable against third parties until expiry of enforcement thereof against third parties under the Law.

In exchange for the services provided by the entity in charge of the Register and specified in the schedule appended to this Resolution, the charges assigned to each of these services shall be collected by the means determined by the Ministry.

1. The entity responsible for managing the Register shall prepare all forms provided for in the Law, this Resolution, and the directives issued in implementation thereof; provided that the Minister shall issue a Resolution to this effect.

The Minister shall issue the resolutions necessary for implementing the provisions of this Resolution.

Any provision contradicting or in conflict with the provisions of this Resolution is hereby repealed.

This Resolution shall be published in the Official Gazette and shall enter into force from the day following the date of publication hereof.