Regulatory Alerts2017-01-01
Circular No. (279/2017) Requirements for Borrowers' Life Insurance
The Palestine Monetary Authority issued Circular No. (279/2017) to clarify the life insurance requirements for borrowers under its Responsible Lending Instructions. The circular permits banks to waive the life insurance mandate only if borrowers provide 100% cash collateral and sign a written declaration accepting full responsibility for the decision, while strictly prohibiting the release of such collateral until the loan is fully repaid. Additionally, the circular explicitly forbids waiving life insurance requirements for any facility or financing once the remaining repayment term falls below 48 months.
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