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  • Chapter Two: Procedures for Requesting and Issuing the Extract of the Enforcement Instrument for the Recovery of Movable Assets

    • Article Four

      The lessor is prohibited from recovering movable assets except through specialized companies.

       

    • Article Six

      The lessor may apply to the contract registration company to issue an extract of the enforcement instrument for the recovery of the movable asset in the following cases:

      1-The lessee fails to pay the agreed-upon monthly installments in the financing contract for three consecutive months, or more than five scattered months throughout the contract period, after the lessor has completed the following steps:
        1.Notify the lessee through documented communication of the obligation to pay the overdue installments, otherwise, the lessor has the right to recover the movable asset.
        2.Submit the request to the contract registration company after fifteen days from the notification to the lessee mentioned in Paragraph (1) above.
      2-The contract expires, and the lessee does not either take ownership of the movable asset or return it to the lessor, after the following conditions are met
        1.The contract term has ended.
        2.The transfer of ownership of the movable asset to the lessee is not possible.

    • Article Seven

      Upon receiving the lessor’s request for the issuance of the extract of the enforcement instrument for the recovery of the movable asset, and verifying the lessor’s right to do so, the contract registration company shall carry out the following procedures:

      1. Issue the extract of the enforcement instrument, including the contract number and date, place of payment, place of issuance, date of the extract, name of the lessor, name of the lessee, amount due, and current installments.

      2. Notify one of the specialized companies – chosen by the lessor – of the lessee’s breach of contract terms and the lessor’s desire to recover the movable asset, providing it with all the details of the movable asset according to the form approved by the contract registration company.

       

    • Article Eight

      The contract registration company shall provide the Ministry with a monthly statement including all lessors' requests related to issuing the extract of the enforcement instrument for the recovery of the movable asset, along with details of the specialized companies to which these requests were referred.

       

    • Article Nine

      The lessor must directly notify the lessee of the recovery of the movable asset through documented communication, which must include at a minimum the following:

      1. The name of the lessor and the entity responsible for collecting overdue amounts.
      2. Contact number for the relevant department and/or third party.
      3. Working hours of the relevant department and/or third party.
      4. The lessor must include the name of the employee, the name of the lessor, and/or the third party if the communication is by phone.

       

    • Article Eleven

      The lessor must not dispose of the movable asset (For example but not limited to: selling the asset, transferring it to another party, or closing the contract) before the expiration of fifteen (15) days from the date of recovery of the asset, with notification to the lessee of the amounts due and the necessary documents for returning the movable asset.

    • Article Twelve

      Except for the cases mentioned in Article Six of these regulations and procedures, the lessor may apply to the competent court to request the termination of the contract and the recovery of the movable asset in financing lease contracts.