Regulatory Alerts2024-03-04 | CBE4.7Added · Updated
CBE Regulation Book 4.7 - Controls on Mortgage of Securities
The Central Bank of Egypt mandates specific controls and procedures for the mortgage of securities to ensure market stability and protect bank and client rights. The regulation defines principles for verifying ownership, requires written mortgage agreements detailing collateral and rights, and specifies the exact documents needed for registering, releasing, or selling pledged securities. It outlines two distinct legal pathways for selling collateral upon default: one under the Commercial Law requiring a court order, and another under the Central Bank Law based on a prior agreement between the bank and the mortgagor. Additionally, it establishes procedures for transferring pledged securities between custodians or to another secured creditor.