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4. Bank Accounts

No: 42066419 Date(g): 1/5/2021 | Date(h): 20/9/1442 Status: In-Force

Effective from 2021-05-01 - Apr 30 2021
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4.1.A bank account must be opened for the debtor subject to one of the bankruptcy procedures outlined in Section (3.1) according to the following requirements:
 1. A request from the trustee or committee, as applicable, to open the account, specifying its purpose.
 2. A decision from the competent court including any of the following:
  A.The initiation of liquidation or liquidation for small debtors for the natural or legal person, and the appointment of a single trustee.
  B.The initiation of liquidation or liquidation for small debtors and the appointment of multiple trustees, specifying their duties and powers, including the opening and management of bank accounts.
  C.The initiation of administrative liquidation and the appointment of the Bankruptcy Committee to manage the procedure.
  D.The suspension of the debtor’s authority and the appointment of the trustee to manage the operations during financial reorganization proceedings.
 3. A copy of the trustee's national ID, or a letter from the committee containing the details of the person authorized to manage the account in administrative liquidation proceedings, along with a copy of their national ID.
 4. A copy of the commercial register, the founding contract, and its appendices for the legal entity subject to bankruptcy proceedings, or the national ID/residence permit for the natural person.
4.2The trustee or committee must be enabled to continue managing the debtor's accounts subject to one of the bankruptcy procedures outlined in Section (3.1) according to the following requirements:Top of Form
 1.A decision from the competent court including any of the following:
  A.The initiation of liquidation or liquidation for small debtors for the natural or legal person, and the appointment of a single trustee.   
  B.The initiation of liquidation or liquidation for small debtors and the appointment of multiple trustees, specifying their duties and powers, including the management of bank accounts.   
  C.The initiation of administrative liquidation and the appointment of the Bankruptcy Committee to manage the procedure.   
  D.The suspension of the debtor’s authority and the appointment of the trustee to manage operations during financial reorganization proceedings.   
 2. A copy of the trustee’s national ID, or a letter from the committee detailing the person authorized to manage the account in administrative liquidation proceedings, along with a copy of their national ID.
4.3A bank account must be opened for the purpose of depositing the proceeds from the sale of the bankruptcy assets securing the debtor’s debt subject to financial reorganization or financial reorganization for small debtors, according to the following requirements:
 1.A request from the trustee to open the account, specifying the purpose and the account’s validity period, which should not exceed the date of issuance of the competent court’s judgment to conclude the proceedings. 
 2.A decision from the competent court initiating the financial reorganization or financial reorganization for small debtors for the natural or legal person and appointing the trustee. 
 3.A copy of the trustee’s national ID. 
 4.The trustee’s acknowledgment to notify the bank immediately upon the court’s decision regarding their dismissal or acceptance of their resignation, and to enable the new trustee to continue managing the account, following the court's decision appointing the new trustee in place of the current trustee, along with a copy of their national ID.