Registration and Management Procedures for the Movable Collateral Register

BANQUE CENTRALE DE DJIBOUTI

INSTRUCTION N° 2018-02 REGISTRATION AND MANAGEMENT PROCEDURES FOR THE MOVABLE COLLATERAL REGISTER

The Governor of the Central Bank of Djibouti,

Having regard to Law No. 118/AN/11/6th L of 22 January 2011 establishing the Statutes of the Central Bank of Djibouti;

Having regard to Law No. 119/AN/15/7th L of 16 July 2016 establishing a credit information system;

Having regard to Law No. 119/AN/11/6th L of 22 January 2011 concerning the establishment and supervision of credit institutions and financial auxiliaries;

Having regard to Law No. 110/AN/11/6th L of 25 May 2011 concerning the fight against the financing of terrorism.

Having regard to Law No. 116/AN/ 11/6th L of 22 January 2011 concerning the establishment of Islamic Banks in Djibouti

Having regard to Law No. 112/AN/11 6th L of 25 May 2011 supplementing Law No. 196/AN/02/4th L on money laundering, confiscation, and international cooperation regarding proceeds of crime;

Having regard to Law No. 001/AN/18/8th L amending and supplementing the Commercial Code;

Having regard to Decree No. 2013-009/PRE of 29 January 2013 appointing the Acting Governor of the Central Bank of Djibouti.

Decrees:

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Article 1: Objective This instruction sets forth the procedures for registering movable collateral at the General Register Office of the Central Bank of Djibouti and the procedures for managing the movable collateral register.

Article 2: Application for Registration of a Movable Collateral Registration of a movable collateral is carried out by the financial institution, the secured creditor, or their duly authorized representative through the computer application maintained by the Central Bank of Djibouti.

Article 3: Format of the Registration Application Form The registration form is accessible online for financial institutions and other secured creditors. The registration form shall contain at least the following information:

• debtor's name;
• debtor's address;
• type of movable collateral;
• a general or specific description of the collateralized asset and its value.

Article 4: Documents to be Attached to a Registration Application A registration application submitted by natural persons must be accompanied by the following documents:

• a copy of the identity card;
• a receipt for the payment of registration fees, where applicable.

Article 5: Registration of a Movable Collateral Registration is performed directly online, and a registration number is automatically assigned, with the option to print a registration certificate if necessary.

Article 6: Transfer of Movable Collateral Upon agreement between the parties, the secured creditor may assign their rights in the encumbered asset to a third party. The assignee immediately acquires the rights and obligations of the original assigning creditor from the date of their registration in the movable collateral register.

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Article 7: Modification of a Movable Collateral Registration Modification of a registration is performed directly online by accessing the initial registration using the corresponding registration number and applying the required modification to one or more fields of the form. The modification is notified to the registrar, and the register maintains a history of modification actions.

Article 8: Search for a Movable Collateral A search may be conducted in the public register file based on:

• the constituent's identifier;
• the registration number of the movable collateral When a search request is submitted, the register provides a result listing all information from each registered entry containing elements that exactly match the search criterion, or indicates that no registered entry contains information exactly matching the search criterion.

Article 9: Access to a Movable Collateral Record Any person, after presenting their identity to access the register, has the right to consult the register online and print a paper copy of the obtained results. Searches must be accessible to the general public and also cover secured assets. The consultable content of the register covers the following points:

• the debtor's name;
• the specific number assigned to the encumbered asset;
• the registration number of the collateral;
• the secured assets.

Article 10: Termination of Movable Collateral Movable collateral terminates following one of the following causes:

• cessation of the reasons for which the collateral was created;
• exemption from credit repayment or release of the asset from collateral;
• enforcement of the collateral in case of debtor's payment default

Article 11: De-registration of Movable Collateral Collateral may be de-registered from the register for one of the following reasons:

• termination of the collateral as provided in Article 13 of these instructions;
• failure to fulfill the obligations for which the collateral was registered.

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De-registration of the collateral from the register is carried out upon request by any interested party upon presentation of documents attesting that the movable asset in question is no longer encumbered.

Article 12: Register Maintenance Fees For financial institutions, registration, modification, search, consultation, and de-registration fees are free of charge during the first implementation year of 2018. For subsequent years, the Central Bank will estimate the annual fee to be paid by each Financial Institution to cover the maintenance and operational costs of the register.

Article 13: Repeal Clause All prior provisions contrary to these instructions are hereby repealed.

Article 14: Entry into Force This Central Bank instruction takes effect on its date of signature.

MR. AHMED OSMAN [Signature] [Stamp: CENTRAL BANK OF DJIBOUTI - The Governor - REPUBLIC OF DJIBOUTI]