Regulatory Alerts2016-01-01
Circular No. 107 of 2016: Security Rights in Movable Property
The Palestine Monetary Authority issued Circular No. 167/2016 to enforce Law Decree No. 11 of 2016, which establishes a unified legal framework for creating, perfecting, and enforcing security interests in movable property throughout Palestine. The decree mandates that security interests arise upon written agreement and value provision, become enforceable against third parties through notice registration, possession, or automatic perfection for consumer goods, and automatically extend to proceeds unless otherwise agreed. It further codifies priority rules, granting purchase-money security interests super-priority under strict ten-day registration windows, while detailing tracing rights, assignment procedures, and the conditions under which existing or competing claims take precedence.