Regulatory Alerts2022-11-30
Lessors are responsible for the correctness of the data provided when requesting the issuance of extracts of the executory deed of the registered financial lease contract
The Saudi Central Bank confirms that lessors bear full responsibility for the accuracy of data submitted when requesting executory deed extracts for registered financial lease contracts. This obligation requires lessors to provide evidence meeting the stipulated procedural rules, ensuring that any data inaccuracies do not prejudice lessees' rights. Contract registration companies retain their verification duties and must obtain formal declarations from lessors confirming compliance with applicable regulations prior to issuing the extracts.
Saudi Central Bank
Ref No.: 44039029 Date: 1444/05/06 Attachments: None
Circular
Dear Sirs, Peace, mercy and blessings of God be upon you.
Subject: Confirmation of lessors' responsibility for the correctness of data provided when requesting the issuance of extracts of the executory deed of the registered financial lease contract.
Based on the powers granted to the Saudi Central Bank under the Financial Leasing System, issued by Royal Decree No. (M/48) dated 13/08/1433 AH, and its Executive Regulations issued by the Governor's Decision No. (1/M Sh T) dated 14/04/1434 AH, and referring to the rules and procedures for requesting and issuing extracts of the executory deed of the registered financial lease contract issued by SAMA Circular No. (42039135) dated 12/06/1442 AH, and to ensure the accuracy and reliability of executory deed extracts issued by financial lease contract registration companies.
The Saudi Central Bank wishes to confirm the obligation of lessors to provide data proving that one of the cases stipulated in the rules and procedures for requesting and issuing extracts of the executory deed of the registered financial lease contract is met when applying to the contract registration company for the issuance of such extracts. The lessor bears responsibility for the correctness of the data provided to financial lease contract registration companies and any potential impact on lessees' rights, without prejudice to the responsibility of contract registration companies in verifying the lessor's entitlement to request the issuance of executory deed extracts, and obtaining necessary declarations from the lessor regarding their commitment to the stipulated rules, systems, and instructions prior to issuing these extracts.
For information and necessary action.
Yours sincerely,
Yazed bin Ahmed Al-Sheikh Deputy Governor for Supervision
Distribution Scope:
- Banks and commercial banks operating in the Kingdom.
- Financing companies operating in the Kingdom.
- Financial lease contract registration companies licensed by the Saudi Central Bank.