Ensure that the recovery of movable assets from the tenant, in cases where the contract between the two parties grants the landlord 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
Effective from 2015-06-14 - Jun 13 2015
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Based on Paragraph (2) of Article (25) of the Finance Lease System which stated that "The landlord, in accordance with the provisions of this system, has the right to recover movable assets from the tenant in cases where the contract between the two parties grants the landlord the right to do so. The recovery of the asset from the tenant shall be supervised by specialized companies licensed by the Ministry of Justice in accordance with the Execution System." Referring to the instructions of the Ministry of Interior prohibiting the retrieval of vehicles in cases where the contract between the parties includes the lessor's right to reclaim 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 any personnel from financing entities who proceed to recover movable assets without consulting the relevant authorities will be subject to legal prosecution.
For your information and compliance accordingly.