mc_gov_sa · executive_regulation · processed · 18 chunks
[Non-Text] وزاره التحرير Ministry of Commerce VISION d 30 230 دەرەز لەرەز دەرەز Kingdom of Saudi Arabia Implementing Regulations for the Law on Securing Rights with Movable Property Chapter 1: General Provisions Article 1: 1. Wherever used in this Regulation, the following words and phrases shall have the same meaning as provided for in Article (1) of the Law on Securing Interest in Movable Property issued by Royal Decree No. (m/94) dated (15/08/1441). 2. Wherever used in this Regulation, the following words and phrases shall have the meanings ascribed thereto hereunder: - Security Provider's Identifier: The ID number, the commercial registry number, or the Security Provider's name in accordance with paragraph (b) of Article (8) of the Regulation. - VIN: The vehicle identification number (VIN) marked thereon by the manufacturer in a manner that cannot be altered. - Serial-Numbered Vehicle: The vehicle which has its VIN marked thereon and licensed to be used in the Kingdom in accordance with the relevant regulations. - Search Tools are: a. Publicizing Number. b. Security Provider's Identifier. c. VIN, in the event where the Collateral is a Serial-Numbered Vehicle. Article 2: For the purposes of applying the provisions of the Law, a Collateral shall mean any of the following: a. a tangible Movable Property or an instrument transferable by delivery or endorsement that is located in the Kingdom at the time of creation of the interest. b. If the Collateral is a tangible movable property that is ordinarily used in more than one state and was not located in the Kingdom at the time of creation of interest, in any of the following events: 1. If it was destined to the Kingdom or intended to be transferred thereto. 2. If the Security Provider is domiciled in the Kingdom. c. Intangible movable property or receivables and if the domicile of the Security Provider is in the Kingdom, even if the Collateral is not located or payable in the Kingdom. Article 3: 1. Possession shall be considered the only means for enforceability of the security interest toward third parties if the collateral is any of the following: a. Written instruments transferable by delivery or endorsement, where possession shall be through endorsement to the Secured Party or delivery to him or to a trustee (adel). b. Credit accounts at banks and other financial institutions, including deposit, current and saving accounts. c. Cash amounts unless they were proceeds of the Collateral towards Security Interests which are enforceable toward third parties. 2. Security Interest shall not become enforceable towards third parties – in accordance with paragraph (1) of this Article- through publicizing. +966 11 294 4444 | Riyadh 11162 لارياض Kingdom of Saudi Arabia | المملكه العربيه السعوديه A © SaudiMCI www.mci.gov.sa 1 وزاره التجاره Ministry of Commerce VISION 230 دوله عمارات الدوله العربيه الدوله العربيه الدوله العربيه الدوله العربيه الدوله العربيه الدوله العربيه الدوله العربيه الدوله العربيه الدوله العربيه الدول Article 4: Upon non-judicial enforcement on the collateral in accordance with Article 23 of the Law, the Secured Party shall observe the need to notify the Security Provider upon default to discharge the secured obligation as agreed between them provided that sale of the collateral is effected against the fair price. Article 5: 1. A security interest enforceable toward third parties shall automatically extend to the proceeds if such proceeds are described in the Notice or identifiable cash. 2. A security interest enforceable toward third parties shall automatically extend to proceeds of the collateral other than those stated in paragraph (1) of this Article for a period of fifteen days as of the proceeds were received by the security provider, such effectiveness shall cease after the lapse of that period unless the Security Interest was enforced through these proceeds prior to the lapse of that period. Chapter 2: Registry's Provisions Article 6: Registry Services listed under this Implementing Regulations shall be offered electronically via the Registry's website. Article 7: 1. Whoever shall use the Registry's services must fulfill the requirements set out for such services. 2. Data and Information shall be listed in the Registry in Arabic; however, it can be listed in English – whenever necessary. Article 8: 1. The Secured Party shall publicize the Security Interest in the Registry; provided that publicizing shall include the following: a) The name of the Security Provider and his details. b) Security Provider's Identifier, as follows: 1) If he/she is a Saudi natural person, whether the security interest was provided by him/her or through his/her enterprise: The National Identification Number the national number of the establishment for the said sole proprietorship may not be used. 2) If he/she is a non-Saudi natural person who is resident in the kingdom: The Residency Identification Number. 3) If he/she is a non-Saudi natural person who is not resident in the kingdom: Passport number and the Country which issued it. 4) If it is a Saudi juridical person: Registration number or the Establishment's National Number – depending on its type. 5) If it is a non-Saudi juridical person: Name in English. 6) If it is a Saudi juridical person which does not have a commercial registration number or an establishment number: Name in Arabic. c) Secured Party's name and details. d) Description of the Collateral and such requirement may be satisfied if the description of the collateral indicates that the collateral consists of all of the Security Provider's movable property, or it is within a certain or general category or class, and if the Collateral is serial numbered vehicles, the VIN assigned to it may be included. e) The termination date of the Notice. f) Any other details required by the Registry. 2. . In the event where he/she is a Saudi natural or juridical person, the name of the Security Provider and the Secured Party shall be listed in Arabic according to the official documents, apart from that names shall be listed in English according to official documents. 3. No evidence is required to be submitted to the Registry related to the interest to be publicized, including the Security Provider's authorization. +966 11 294 4444 | Riyadh 11162 ليراش Kingdom of Saudi Arabia | عياده السعوديه A © SaudiMCI www.mci.gov.sa 2 [Non-Text] وزاره التحرير Ministry of Commerce VISION 23:30 دوقد لدول لدول Kingdom of Saudi Arabia Article 9: 1. Notwithstanding the provisions of the Law and this Implementing Regulations, a Notice shall be considered completed upon satisfying all the conditions required in the Registry and once it becomes discoverable in the Registry's records. 2. The Registry shall indicate completion of publicizing, through date, time, number and all other details listed therein. 3. A Notice shall be ineffective in the event of an error in the identifier in such a way that it cannot be retrieved upon searching in the registry. 4. In case of multiple security providers, an error in the identifier of one of the security providers which renders the notice ineffective with respect to that security provider shall not render the notice ineffective with respect to the other security providers or debtors correctly identified in the notice. 5. In case of multiple Collaterals, an error in the description of one of the Collaterals which renders the notice ineffective with respect to that Collateral shall not render the notice ineffective with respect to the other Collaterals which are correctly described; Collateral's possession where the error in description occurred shall be transferred to the buyer free from any security interest. Article 10: 1. A notice may include several security interests from the same Security Provider to the same Secured Party pursuant to the same Contract or one transaction or more. 2. A security interest may be publicized prior to signing its contract. Article 11: 1. Registration of any Notice of interest, any amendment that adds a new collateral, amends an existing collateral, adds another Security Provider, or extends the validity thereof shall not be effective except with the written approval of the Security Provider. 2. A written creation or amendment of interest contract shall be considered as evidence to the Security Provider's approval on publicizing or amending – as the case may be- unless agreed otherwise. Article 12: 1. The Secured Party may amend the Notice after the requirements set in the Registry are fulfilled. 2. If the Notice is amended by adding a Collateral, priority of the Security Interest shall be as of the date of such amendment. 3. In case of amending the security contract by deleting a specific collateral, or amending the collateral's description in a publicized security interest, the secured party must register an amending notice deleting or amending any collaterals described in the notice within 15 days as of the date on which the contract is amended. Article 13: 1. A Notice may be terminated by the secured party prior to the date of its expiry, provided that requirements set for this purpose in the Registry are fulfilled. 2. The Secured Party shall terminate the Notice upon the Security Provider's request within 15 days as of from the date of the request and that is in the case of not signing a security interest contract. +966 11 294 4444 | Riyadh 11162 لارياض Kingdom of Saudi Arabia | المملكه العربيه السعوديه A © SaudiMCI www.mci.gov.sa 3 [Non-Text] وزاره التجار Ministry of Commerce VISION 23:30 دوكارد لدوكارد KINGDOM OF SAUDI ARABIA Article 14: 1. Should an amending notice or termination notice not be registered by the Secured Party in accordance with the Law and this Implementing Regulations, then the Security Provider may resort to the competent courts to obtain a decision to this effect. 2. If the Court orders the amendment of termination of Notice, the Notice shall be amended or terminated in the Registry upon receipt of such order and attached therein. Article 15: 1. Any person may search the Registry records using any of the Search Tools. 2. The search report shall include the following: a. The type of the search tool used. b. Date and time of Search. c. The details listed in the effective Notice or Notices in the Registry – depending on the search tool used-, the amendments made on the Notices, terminated Notices –prior to its termination date or judicial order-, the date and time of each, in chronological order. The report shall not include statistical data listed in the Notice 3. If the search does not show any data, the search report shall include the following: a. The type of the search tool used. b. Date and time of Search. c. Search result. 4. The search report may be printed, and a Certified Search Report may be issued under a specific number provided it includes the date and time for its issuance. 5. The Certified Search Report shall be electronically saved in the Registry system, and the searcher, any interested party, or the competent court may obtain a copy thereof from the Registry. The Certified Search Report that purports to have been issued by the Registry shall be considered a proof of the content included in the report. Article 16: 1. The financial consideration for the registry services shall be in accordance to the schedule fees attached to this Implementing Regulations. 2. The applicant shall bear the financial consideration for the requested service. Article 17: This Implementing Regulations shall be published in the Official Gazette and effective from the date of publication. +966 11 294 4444 | Riyadh 11162 لارياض Kingdom of Saudi Arabia | المملكه العربيه السعوديه SaudiMCI www.mci.gov.sa 4 [Non-Text] وزاره التحراج Ministry of Commerce VISION 230 العربيه المطبيه وسمح KINGDOM OF SAUDI ARABIA Annex: Schedule of Financial Consideration for Registry Services <table><tr><td>SN</td><td>Service</td><td>Price</td></tr><tr><td>1</td><td>Security Interest Notice</td><td>200 Riyal</td></tr><tr><td>2</td><td>Security Interest Notice Amendment</td><td>100 Riyal</td></tr><tr><td>3</td><td>Security Interest Notice Termination</td><td>100 Riyal</td></tr><tr><td>4</td><td>Security Interest Notice Amendment by a Court Order</td><td>Free of charge</td></tr><tr><td>5</td><td>Security Interest Notice Termination by a Court Order</td><td>Free of charge</td></tr><tr><td>6</td><td>Certified Search Report</td><td>400 Riyal</td></tr></table> +966 11 294 4444 | Riyadh 11162 لارياض Kingdom of Saudi Arabia | المملكه العربيه السعوديه A © SaudiMCI www.mci.gov.sa 5