Chapter Eight Register of Expertise Houses Capable of Participation in Evaluating Collateral Provided to Banks

Article 68 of Law No. 88 of 2003 Issued Concerning the Central Bank, the Banking System and Currency, as well as Articles 22, 23, 24, and 25 of the Executive Bylaw of the aforementioned Law, have organized the rules, conditions, and procedures for registering expertise houses capable of participating in evaluating the collateral provided to banks in the current stage. It also determines the obligations of those undertaking this task, and these houses shall be liable for what appears in the evaluation reports as follows:

1. The Central Bank shall register expertise houses capable of participating in evaluating the collateral provided to banks in the current stage by collecting the following data: a) The name of the expertise house, its legal form, and the address of its headquarters. b) The number and date of its registration in the Commercial Register or the Professional Syndicate. c) Fields of specialization. d) The date of commencing the activity. e) The names of the persons responsible for managing the expertise house, their qualifications, and those authorized to sign the evaluation reports issued by it. f) The number of experts and their specializations. g) Their previous experience.

2. The registration of expertise houses in the Register referred to in item 1 shall be based on applications submitted on the forms provided in this Chapter, accompanied by the following documents: a) An extract of the expertise house's registration in the Commercial Register or a certificate of registration with the Professional Syndicate. b) A copy of the National ID card. c) A copy of the personal ID cards of the owner of the expertise house, or the partners, or the members of the management board, if applicable. d) A statement of the CVs of the persons responsible for managing the expertise house and those authorized to sign the evaluation reports. e) A statement of the names, qualifications, and previous experience of the full-time and part-time experts employed by the expertise house. f) A copy of the partnership agreement or its statutes, for an expertise house that takes the form of a partnership. g) An undertaking from the persons responsible for managing the expertise house to refrain from undertaking collateral evaluation work for the Bank in the event of a conflict between the interests of the expertise house and that Bank. h) A statement of the evaluation experience undertaken by the expertise house during the previous five years. i) A statement of any relationship the expertise house has with any foreign or international expertise houses or institutions.

3. The application for registration shall be submitted to the Board of Directors of the Central Bank, which shall issue a decision regarding it within fifteen days from the date of its submission with the required documents. The expertise house shall be notified of the Board's decision by registered mail with a return receipt, accompanied by a copy of the request, within fifteen days from the date of its issuance.

4. The following conditions must be met by each of the persons responsible for managing the expertise house and those authorized to sign the evaluation reports issued by it: a) That they hold a university degree. b) That they have specialized and distinguished experience of no less than ten years in the field of evaluation. c) That they have good repute, and no final judgment has been issued against them for a crime involving moral turpitude or fraud, or for any of the crimes stipulated in the Law or in the Law on Combating Money Laundering, or that they have not been declared bankrupt by a final judgment. d) That they are not banned from working with the banks operating in Egypt. e) That they are registered with the Appraisal Experts Body of the Egyptian Financial Regulatory Authority, with respect to real estate collateral.

5. The expertise house shall be responsible for exercising due care in preparing the evaluation reports issued by it. It is prohibited for the expertise house and for each of the persons responsible for its management, or its shareholders or partners, or the experts within it, to conduct collateral evaluations if any of them or any of their related parties have a conflict of interest therein. It is also prohibited for them to purchase the collateral after its evaluation.

6. When conducting an audit on the data of the expertise house, the Auditor shall request the submission of data verification on the forms attached to this Law, accompanied by the supporting documents for that.