Regulatory Alerts2017-08-31
Draft Secured Transactions Law
The Kingdom of Bahrain has enacted the 2017 Secured Transactions Law to establish a comprehensive legal framework for creating, perfecting, and enforcing security rights over movable assets. The legislation standardizes the creation of security agreements through written documentation, defines precise scopes for encumbered assets and secured obligations, and mandates registration-based perfection against third parties while recognizing possession as an alternative method. By prioritizing party autonomy, aligning with UNCITRAL standards, and clarifying priority rules for proceeds, mixed assets, and future interests, the Law significantly enhances credit availability and commercial certainty for financial institutions and businesses.
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