Part One Definitions and General Provisions
Article One
Pursuant to Article 1 of the Law, the following words and phrases, wherever they appear in this Regulation shall have the corresponding meanings, unless the context otherwise indicates:
Law: the Finance Lease Law.
Regulation: the Implementing Regulation of the Finance Lease Law.
SAMA: the Saudi Central Bank*.
Contract: the finance lease contract.
Lessor: a joint stock company licensed to carry out finance lease including commercial banks.
Lessee: a person who owns the benefit of the Leased Asset under the Contract.
Leased Asset: any leasable property, moveable, benefits, services and intangible rights such as intellectual property rights.
Contracts Register: a register for recording finance lease contracts concluded or implemented in the Kingdom of Saudi Arabia, sales contracts ensuing from finance lease, and any amendments thereto in accordance with the provisions of the Law.
Contracts Registration Company: the joint stock company in charge of the registration of the finance lease contracts.
Securitization: Issuance of securities against Lessor’s rights.
* The "Saudi Arabian Monetary Agency" was replaced By the "Saudi Central Bank" in accordance with The Saudi Central Bank Law No. (M/36), dated 11/04/1442H, corresponding to 26/11/2020G.
Article Two
In compliance with Article 2 of the Law, the Finance Companies Control Law, and other applicable laws, the finance lease activity shall be a professional activity upon fulfilment of the following:
1. Acquiring of Leased Asset by the Lessor shall be for the purpose of leasing it to others under a finance lease. 2. The aggregate amount of credit granted annually exceeds the amount determined by SAMA.