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  • Part Three Contracts Register

    • Article Twelve

      1.
             		After obtaining the consent of SAMA, Lessors shall establish a joint stock company, or more, for the purpose of registering finance lease contracts in accordance with the most advanced means and the best practices, enabling secure access to the data in the Contracts Register according to the provisions of the Law and this Regulation.
       
      2.
             		Subject to the requirements under the Companies Law, the capital of the Contracts Registration Company shall be determined by SAMA. SAMA may require the founders to provide a study setting out the capital requirements of the company.
       
      3.
             		Subject to the Companies Law and the Capital Market Law and their regulations, the ownership of the shares of the Contracts Registration Company shall be divided between the Lessors as determined by SAMA. Shares of Lessors who lose their licenses shall be divided between existing Lessors based on the fair share value of shares at the time of every adjustment. The capital of the Contract Registration Company may be increased or decreased, upon a written approval of SAMA.
       
      4.
             		Entry and withdrawal of partners shall be only with a non-objection letter from SAMA.
       
      5.
             		Appointment of the Chairman and members of the Board of Directors, senior executives, the head of the Contracts Register, and registrars shall be upon a prior non-objection letter from SAMA, and they may be released from their posts in case of substantial breach of their legal or professional duties by a justified decision by SAMA.
       

    • Article Thirteen

      The Contracts Registration Company shall distribute its dividends in accordance with the Companies Law after obtaining a written non-objection letter from SAMA.

    • Article Fourteen

      The fees for the services of the Contracts Registration Company shall be determined by a resolution issued by SAMA based on a proposal by the Company based on a detailed technical study showing the economic and commercial bases for determining such fees.

    • Article Fifteen

      1.
             		The Contracts Registration Company shall prepare a Contracts Register in accordance with the Law and this Regulation.
             		 
      2.
             		The Lessor shall register the Contract and any amendments thereto at the Contracts Register within (10) business days from the date of concluding the contract or the amendment thereof. All transactions affecting the contractual rights of the Lessor and the Lessee shall also be registered.
             		 
      3.
             		The Contracts Registration Company serves to:
             		 

             		(a)
             		Register contracts and amendments thereto.
       

             		(b)
             		Register the transfer of the rights of finance lease contracts through securitization transactions.
       

             		(c)
             		Disclose Contracts Register data to licensed finance bodies, upon a written consent of the Lessor.
       

             		(d)
             		Register ownership contracts resulting from the finance lease contracts upon certification of ownership transfer – if the least asset is a real estate – at the bodies entrusted with real estate registration (courts and notary publics).
       
      4.
             		SAMA shall issue a resolution determining the powers of the head of the Contracts Register and the registrars.
             		 

    • Article Sixteen

      The head and a registrar of the Contracts Register shall satisfy the following requirements:

      1.
             		Be a Saudi national.
       
      2.
             		Have not been convicted of a crime that breaches trust.
       
      3.
             		Have not been terminated from any prior service by a court ruling or a final disciplinary decision, unless being rehabilitated in accordance to the applicable laws.
       

    • Article Seventeen

      The contracts registrar shall carry out the assigned duties at the workplace, except in cases where the head of the Contracts Register permits the contracts registrar to perform his duties at the Lessor’s location and at the Lessor’s expense.

      This Article has been amended in accordance with His Excellency the Governor's Decision No. 93/M SH T dated 18/10/1441H.

    • Article Eighteen

      All documents and representations issued by a contracts registrar shall be in Arabic language. A document written in a language other than Arabic may be attested, after being translated by an accredited translator; the original document and the translation, in such case, shall be attested together.

    • Article Nineteen

      The Contracts Registration Company shall keep all Contract Registers necessary for the recording of transactions and classify them as determined by SAMA.

    • Article Twenty

      Electronic means may be utilized and relied upon in registering Contracts. SAMA may determine any other procedures or means for Contracts registration.

    • Article Twenty-One

      The head of the Contracts Register shall be in charge of the registration works on the Register. Application for registration and any amendment thereto shall be submitted to the head of the Contracts Register, who shall refer such to one of the registrars for processing. Registration shall be processed in accordance with the Law and this Regulation. If a registrar refuses to execute, document, or to certify a document, the concerned parties may file a complaint to the Contracts Registration Company, and then to SAMA. In case of refusal, they may revert to a competent court.

    • Article Twenty-Two

      1.
             		For the purposes of this Regulation, the following documents shall be deemed proof of ownership of the Leased Asset:
             		 

             		(a)
             		Real estate title deed.
       

             		(b)
             		Asset ownership document.
       

             		(c)
             		Customs card.
       

             		(d)
             		Intellectual property registration certificate.
       

             		(e)
             		Purchase invoice.
       
      2.
             		Further documents may be approved as proof of ownership and other requirements may be imposed by SAMA.
             		 

    • Article Twenty-Three

      To evidence registration of the ownership document, the contracts registrar shall record the registration number and affix the stamp on the original ownership document and the Contract. In case of the documents that cannot be stamped, such as real estate title deeds, the registrar shall take the appropriate procedures.

    • Article Twenty-Four

      The following information shall be included in the Contracts Register:

      1.
             		Details of all Contracting parties and their attorneys-in-fact, and their official addresses, including the full name of the Lessee, personal data, name of the Lessor, contact and license details;
       
      2.
             		Detailed description of the Leased Asset, including its name, serial number, production date and country of origin, as applicable and details of asset title deed;
       
      3.
             		Information about the insurance coverage of the Leased Asset, if any;
       
      4.
             		Contract term;
       
      5.
             		Lease payment, its method of calculation, and the method of repayment;
       
      6.
             		Written consent of the parties for disclosure of Contracts Register information;
       
      7.
             		Ownership and possession of the Leased Asset provisions.
       

    • Article Twenty-Five

      1.
             		The head of Contracts Register shall issue an official certificate evidencing the contents of the Contracts Register, known as the Registered Finance Lease Contract.
       
      2.
             		The enforcement document extract of the registered Finance Lease Contract serves as an enforcement document pursuant to Clause 8 of Article 9 of the Enforcement Law and requires adherence thereto.*
       

      * This paragraph has been amended in accordance with His Excellency the Governor's Decision No. 93/M SH T dated 18/10/1441H.

    • Article Twenty-Six

      Upon securitization of the rights arising out of the Contract, the Lessor shall record the number of the approval of the Capital Market Authority on the securitization transaction at the Contracts Register. A copy of the approval shall be kept as a reference for the notary public remarks.

    • Article Twenty-Seven

      The Contracts Register, including all information therein, is the property of SAMA.

    • Article Twenty-Eight

      If SAMA licenses more than one company to register contracts, such companies shall take the necessary measures, under the supervision of SAMA, to ensure unity of information, exchange of information, protection and maintenance of the Contracts Register information.

    • Article Twenty-Nine

      Records shall be kept in the Contracts Register for a period of no less than ten years after the date of expiration of all obligations under the Contract.

    • Article Thirty

      Subject to the Law and this Regulation, the Minister of Justice and the Governor shall issue a resolution stipulating procedures for registration in the register, details required for registration, and provisions and procedures for access to the Contracts Register by third parties.

    • Article Thirty-One

      The Finance Lease Contract, in the event of extending credit for owning residence by a natural person, shall be governed by the provisions of the Law and the Real Estate Finance Law and their Regulations.

    • Article Thirty-Two

      This Regulation shall come into force on the date of its publication in the official gazette.