Ensure that the Recovery of Movable Assets from the Lessee, in Cases where the Contract Between the Two Parties Grants the lesser the Right to Recover them, is Conducted Exclusively through the Competent Authorities
| No: 361000115987 | Date(g): 14/6/2015 | Date(h): 27/8/1436 | Status: In-Force |
Translated Document
Based on Paragraph (2) of Article (25) of the Finance Lease Law which stated that "Pursuant to the provisions of this Law, the lessor may repossess movable assets from the lessee in the events where such right of repossession is stipulated in the contract between the two parties. Repossession shall be overseen by specialized firms licensed by the Ministry of Justice in accordance with the Enforcement Law." Referring to the instructions of the Ministry of Interior prohibiting the recovery of vehicles in cases where the contract between the parties includes the lessor's right to recover them except through the competent authorities.
Therefore, licensed financing entities engaged in the activity of financial leasing must comply with the Ministry of Interior's regulations on this matter until the Ministry of Justice licenses specialized companies to perform this task, pursuant to the provisions of the aforementioned article. Additionally, we clarify that anyone who attempts to recover movable assets from the employees of the financing entities without referring to the competent authorities will be subject to legal prosecution.