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  • Chapter Three: Procedures for Requesting and Issuing the Extract of the Enforcement Instrument for Requesting the Delivery of the Fixed Asset

    • Article Thirteen

      The lessor may apply to the contract registration company to request the issuance of the extract of the enforcement instrument for requesting the delivery of the fixed asset in financing lease contracts in the following cases:

      A. The lessee fails to pay the agreed-upon monthly installments in the financing contract for three consecutive months, or more than five scattered months for seven (7) working days or more for each installment from the date it is due for each five (5) years of the contract term, after the lessor has completed the following steps:
        1- The lessor must notify the lessee through a formal, documented communication about the requirement to settle overdue payments. If the lessee fails to comply, the lessor may request delivery of the fixed asset. The notice of default must include the following information: (details of the overdue payments, how to rectify and address the default, the period granted to the lessee to rectify the default before initiating repossession procedures of fixed asset, which must be no less than (10) ten working days from the date the lessee receives the notice). This notice should be sent in accordance with the "Notices" clause of the contract.
        2-Submission of Request: The request to the Contract Registration Company should be made after failing to reach an agreement with the lessee regarding the settlement of overdue payments, or if the lessee requests early ownership of the asset.
      B. Contract Termination, If the lessee fails to take ownership of or return the asset to the lessor after the following conditions are met:
        1.The contract term has expired.
        2.The lessee has not transferred ownership of the asset to themselves within the agreed timeframe with the lessor.
        3.Failure to execute a handover report for the asset to the lessor.

    • Article Fourteen

      Upon receiving the lessor's request for the issuance of extract of executive bond for the delivery of the fixed asset and verifying the lessor's entitlement, the Contract Registration Company will undertake the following procedures:

      1. Obtain a confirmation from the lessor regarding their right to request the repossession of the asset from the lessee, ensuring that the lease contract permits this, and attach all supporting documentation for the request.
      2. For individual real estate financing contracts, notify any housing support programs at the Ministry of Housing (if applicable) of the lessor's intent to repossess the asset from the lessee and provide them with all required information according to the form approved by the Contract Registration Company. This is to assess whether the lessee (individual) meets the support criteria established by the ministry (if applicable).
      3. If there are no support programs at the Ministry of Housing, or if the lessee (individual) does not meet the support criteria, the Contract Registration Company will issue an executive bond for the repossession of the asset and provide it to the lessor, including the contract number and date, place of payment, place of issuance, date of the bond, lessor's name, lessee’s name, amount due, current payments, and asset ownership details.

       

    • Article Fifteen

      The lessor may present the executive bond for the repossession of the asset to the relevant authority responsible for eviction and repossession and complete the necessary procedures in accordance with applicable regulations.