Article Thirteen

No: 42039135

Date(g): 25/1/2021 | Date(h): 12/6/1442

Status: In-Force

Effective from 2021-01-25 - Jan 24 2021
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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 leasing financing 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.

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