Region

Jurisdiction

Regulator

2018-01-01

Decision of the Board of Directors of the Financial Regulatory Authority No. 139 of 2018 on the Provisions and Procedures for Registration in the Financial Leasing Contracts Register

The Financial Regulatory Authority (FRA) of Egypt issued Decision No. 139 of 2018 to establish a mandatory registration register for financial leasing contracts, associated sale contracts, and their amendments concluded in or performed within Egypt. The regulation mandates specific applicant and asset data for registration, outlines procedures for contract assignment, amendments, and deletion due to expiration, mutual agreement, court orders, or lessee default or bankruptcy, and sets standardized fees ranging from 50 to 500 Egyptian pounds per registration or endorsement. It further grants interested parties access to register extracts and certificates upon payment of a 50-pound fee, with the decision taking effect the day after its publication in the Egyptian Gazette.

Egypt

Financial Regulatory Authority Egypt

Financial Regulatory Authority

FINANCIAL REGULATORY AUTHORITY

Chairman of the Authority

Decision of the Board of Directors of the Financial Regulatory Authority

No. (139) for the year 2018 dated 13/9/2018

Regarding the Provisions and Procedures for Registration in the Financial Leasing Contracts Register

The Board of Directors of the Financial Regulatory Authority

Having reviewed Law No. (10) of 2009 concerning the regulation of supervision over non-banking financial markets and instruments;

and Law No. (176) of 2018 issuing the law regulating the activities of financial leasing and factoring;

and Presidential Decision No. (192) of 2009 issuing the Basic Statute of the Financial Regulatory Authority;

and the approval of the Authority's Board of Directors in its meeting held on 13/9/2018.

It is hereby decided

(Article One)

A register is established at the Authority for the registration of financial leasing contracts concluded between a lessor licensed to practice the activity in accordance with the provisions of the aforementioned Financial Leasing and Factoring Regulation Law, and the lessee, whenever the contract is concluded in the Arab Republic of Egypt or its performance is to take place therein, along with the sale contracts associated with and based on these contracts, as well as any amendments to these contracts.

(Article Two)

The application for registration of financial leasing contracts shall be submitted on the form prepared for this purpose, and shall include the following data:

Data of the registration applicant.
Data of the contract parties, specifically as follows:

(a) The legal form of the lessor, its founding document, and the name of its legal representative or authorized proxy.

(b) The name, national ID number, and activity of the lessee if a natural person, and their name, legal form, founding document, activity, and name of legal representative or authorized proxy if a legal entity.

Data of the leased asset, which shall be accurately described if movable, and the agreed method or mechanism for its delivery shall be stated. If immovable, its location, area, and boundaries shall be specified, and for agricultural land, the name of the district, basin, and plot number shall be stated, while for vacant land and built properties, the section name, street, and number shall be stated, if applicable.
The contract commencement date and duration.

(Article Three)

The sale contracts of the leased asset upon the lessee exercising their right to purchase the asset after financial leasing, or the registration of the contract transferring the usufruct right to the lessee, as applicable, shall be recorded in the Financial Leasing Contracts Register. The registration application shall specifically include the following data:

Data of the registration applicant.
Data of the contract parties, specifically as follows:

(a) The legal form of the lessor, its founding document, and the name of its legal representative or authorized proxy.

The legal instrument granting the lessor the right to dispose of the leased asset or transfer the usufruct right to the lessee.
The price of the leased asset and the method or mechanism through which ownership of the leased asset or the usufruct right is transferred to the lessee.

The following documents shall be attached to the application for registration of the aforementioned sale contract:

A copy of the sale contract or the contract transferring the usufruct right.
A copy of the documents granting the lessor the right to sell or transfer the usufruct right to the lessee.

(Article Four)

The lessor shall submit an application to the Authority to assign the financial leasing contract to another lessor, using the form prepared for this purpose, and shall attach the following documents:

A copy of the assignment contract between the lessor and the new lessor.

(Article Five)

Interested parties may submit an application to amend any terms or provisions of the contracts registered in the register, using the form prepared for this purpose. The application shall include data regarding the requested amendment, accompanied by supporting documents.

(Article Six)

The registration shall be deleted from the register in any of the following cases:

Expiration of the contract term without renewal.
Upon agreement of the contract parties.
Issuance of a final judicial ruling or arbitral award ordering the deletion of the registration.
Termination of the contract in any of the following cases:

(a) Failure of the lessee to pay the agreed rent at the stipulated times and in accordance with the contract terms, despite the lessor notifying them of the payment reminder, and thirty days elapsing since the due dates, unless the leasing contract stipulates otherwise.

(b) Death of the lessee or the jointly liable partner in a partnership lessee, unless the heirs or the new jointly liable partner request to complete contract performance within thirty days from the date of death.

(c) Notification of the lessee's bankruptcy or declaration of insolvency, or dissolution of the lessee company for any legally prescribed reason. However, the bankruptcy trustee or restructuring expert may notify the lessor via registered letter within thirty days from the date of the ruling declaring bankruptcy/insolvency or company dissolution of their wish to continue the contract. In this case, the contract shall continue, provided that the lessor's rights stipulated in the contract are not violated, particularly the payment of rent at its due dates.

(d) Any other case stipulated in the financial leasing contract.

(Article Seven)

The Authority shall charge a fee of one percent of the contract value, with a minimum of fifty pounds and a maximum of five hundred pounds, in the following cases:

Registration of a financial leasing contract.
Registration of a sale contract based on a financial leasing contract.
Endorsement of assignment of a financial leasing contract.
Endorsement of termination of a financial leasing contract.

The Authority shall also charge a fee of one hundred pounds for any amendment made to contracts registered in the register.

(Article Eight)

Any interested party may obtain an extract, data certificate, or negative certificate from the register or from the list of companies licensed to practice financial leasing activities, against payment of a fee of fifty pounds per extract or certificate. The application shall be submitted with proof of payment of the prescribed amount via any of the Authority's designated payment methods.

(Article Nine)

This Decision shall be published in the Egyptian Gazette and on the Authority's website, and shall take effect from the day following its publication in the Egyptian Gazette.

Chairman of the Board of Directors of the Authority
Dr. Mohamed Omran
47076

Smart Village, Building No. B-136, Giza, Egypt
Postal Code: 12577
Tel.: +202 35345350 - Fax.: +202 35370036
info@fra.gov.eg