Decision No. 13 on Asset Securitization

Decision No. 13
Regarding Asset Securitization

The Chairman of the Capital Markets Authority / Governor of Banque du Liban,

Based on Law No. 161 dated 17/8/2011 concerning Capital Markets, having all the powers of the Capital Markets Authority related to the establishment, operation, and supervision of mutual funds for securitization operations,

Based on Law No. 705 dated 9/12/2005 concerning Asset Securitization,

Having held its sessions on 20 January,

Based on the Capital Markets Authority Council Decision No. [12] dated 26 February, 2015

It has been decided as follows:
Article One: The Capital Markets Authority Council approves the establishment of a securitization fund for assets consisting of tangible or intangible, movable or immovable funds, provided the following conditions are met:

• Providing proof of pre-subscription by ten investors in the bonds that will be issued by the "Fund".
• Providing documents proving the identity of ten subscribers, their financial statements, and a qualified auditor's report.
• Stating the lawful investment purpose of the "Fund".
  The above conditions do not apply to the securitization of intangible assets, rights arising from lease contracts, debts, debt securities, and notes.

Article Two: The Capital Markets Authority Council approves the establishment of a securitization fund for assets consisting of tangible or intangible, movable or immovable funds, provided the entity complies with the provisions and conditions of each of the following decisions:

• Capital Markets Authority Decision No. 4 dated 14/8/2013 concerning Compliance.
• Capital Markets Authority Decision No. 5 dated 14/8/2013 concerning Internal Audit.

Article Three: This decision is published in the Official Gazette and takes effect from 20/3/2014.

Beirut, on 10 February 2014
Chairman of the Capital Markets Authority / Governor of Banque du Liban Riad Toufic Salame