Decision of the Chairman of the Financial Regulatory Authority No. 869 of 2021

56 Egyptian Gazette - No. 135 on June 17, 2021

General Authority for Financial Supervision Decision No. 869 of 2021 Dated 2021/6/1 Regarding Consumer Financing Contract Models

Chairman of the General Authority for Financial Supervision Having reviewed Law No. 10 of 2009 regulating supervision over non-banking financial markets and instruments; And Law No. 18 of 2020 issuing the law regulating consumer financing activities; And Presidential Decree No. 192 of 2009 issuing the Basic Law of the General Authority for Financial Supervision; And the Board of Directors' Decision No. 56 of 2020 regarding the conditions and controls for establishing and licensing consumer financing activities, and licensing criteria for consumer financing providers; And the Chairman's Decision No. 457 of 2020 dated 2020/4/8 regarding the model consumer financing contract concluded between licensed companies and their clients;

HAS DECIDED:
(Article One)
Licensed companies authorized by the Authority to conduct consumer financing activities must, when concluding contracts with their clients, comply with the provisions set forth in the attached contract models as a minimum standard, provided that the provisions of Law No. 18 of 2020 and the decisions issued in implementation thereof complement its provisions.

(Article Two)
This Decision and the attached contract models shall be published in the Egyptian Gazette and on the Authority's electronic website, and shall take effect from the day following its issuance. Competent authorities are tasked with implementing it according to their respective jurisdictions, and any provision contradicting its provisions is hereby repealed.

Chairman of the Board of Directors
General Authority for Financial Supervision
Dr. Mohamed Omran

57 Egyptian Gazette - No. 135 on June 17, 2021

Model Contract for a Single Financing Transaction Consumer Financing Contract In accordance with the provisions of Law No. 18 of 2020 regarding the regulation of consumer financing activities

On this day .................... corresponding to .... / .... / 2020, This contract is concluded between:
1- Company: ....................................................................................................................................................
With its headquarters located at: .................................... Commercial Registration No. (....................................), Financial Regulatory Authority License No. (.....) of 20...., and its authorized signatory for this contract, Mr./Ms. .................................... in the capacity of: ....................................
2- Mr./Ms.: ....................................................................................................................................................
Identity verified by (National ID/Passport) No. ....................................................................................
Resident at: ....................................................................................................................................................

Preamble
Whereas (Party One) is a company licensed to conduct consumer financing activities within the Arab Republic of Egypt, holding License No. (......) of 2020 dated .... / .... / 2020 issued by the General Authority for Financial Supervision. And whereas Party Two (the Client) wishes to benefit from the financing services provided by the Company for purchasing goods and services eligible for financing under the provisions of Consumer Financing Law No. 18 of 2020. And after both parties have confirmed their full legal capacity to contract and transact, the following has been agreed upon:

Clause One
Definitions
The following terms, wherever used in the contract and its appendices, mean:
Company: Party One to this contract.
Client: Party Two to this contract.
Authority: The General Authority for Financial Supervision.
Law: Law No. 18 of 2020 and its executive regulations, and decisions issued by the Authority's Board of Directors in implementation or interpretation thereof.

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Clause Two
Provisions of the Preamble, Appendices, Attachments, and Correspondence The aforementioned preamble is considered an integral part of this contract and complements all its conditions. Furthermore, the provisions of Law No. 18 of 2020 and decisions issued by the General Authority for Financial Supervision in implementation or interpretation thereof are considered complementary to this contract, and their provisions apply where no specific provision exists. In case of conflict with other contractual conditions, the Law and decisions issued by the Authority take precedence in application. All appendices to this contract, as well as official correspondence between the parties, are considered an integral part of this contract and complementary conditions.

Clause Three
Subject Matter of the Contract
The Company provides the necessary financing for purchasing consumer goods or services eligible for financing under the provisions of the Consumer Financing Law and decisions issued by the Authority, upon the Client's request.

Clause Four
Financing Amount and Return Rate

Financing Amount Details (Total Payable Amount)	Amount / EGP	Type of Financing
Financing Amount		Contract Duration (Months/Years)
Financing Costs and Expenses		Annual/Monthly Return Rate
Administrative Fees		Number of Financing Installments
Other Fees		Monthly Installment Value
Total Payable Amount		First Installment Date
		Last Installment Date

The Client may request Party Two to issue any of the following commercial instruments: (promissory notes/bills of exchange/checks) payable (monthly/quarterly/annually) and distributed over the contract duration. Party One is obligated to deliver the commercial instrument to Party Two immediately upon settlement of each installment.

Clause Five
Contract Duration
1-5 The duration of this contract is the period specified in Clause No. (4) to settle the full financing amount.
2-5 In all cases, the contract is not terminated until the indebtedness arising from this contract is settled. Party One is obligated to deliver a final clearance certificate confirming the settlement of all financial dues owed by the Client.

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Clause Six
Subject of Financing
1-6 Description of the Goods/Services (definite description) ....................................
2-6 Price of the Goods/Services ....................................
3-6 Amount paid by the Client at contracting ....................................
4-6 Remaining amount (subject of financing) ....................................

Clause Seven
Contract Amendment
This contract may not be amended except by written consent of both parties.

Clause Eight
Financing Guarantees
1-8 The Company may register the rights established in its favor under this contract against movable assets subject to financing in the Movable Assets Register established pursuant to the Law Regulating Movable Assets (Law No. 115 of 2015), with the registration cost borne by Party ........ of this contract. 2-8 The Client is prohibited from disposing of the movable assets subject to financing until full settlement of financing installments and obtaining a final clearance certificate from the Company.

Clause Nine
Administrative Fees
The Client bears all the following administrative fees:
(Details of all administrative fees borne by the Client)

Clause Ten
Early Settlement
The Client has the right to settle all or part of the financing installments from the date of the second installment's due date, provided that such intention is expressed in writing at least thirty (30) days prior to the targeted settlement date. The remaining indebtedness shall be settled according to the agreed payment schedule attached to this contract, with an early settlement commission of ..% calculated on the remaining balance of the financing amount.

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Clause Eleven
Sale or Discounting of Due Debts
It is agreed between the parties that the Company (Party One) has the right to securitize its debt portfolio with third parties or discount it in accordance with laws and decisions issued by the Authority's Board of Directors, without objection from Party Two.

Clause Twelve
Confidentiality
1-12 The Company is obligated to respect the confidentiality of all Client transactions. This confidentiality obligation does not apply to information generally available to third parties, made available by the Client, or required to be published or disclosed pursuant to law, a judicial order, or a governmental order. 2-12 The Client is obligated to disclose income data and any guarantees required for concluding the financing contract to the Company. 3-12 It is agreed between the parties that the Company has the authority to disclose financing data, volume, and duration to the Authority and credit reporting agencies, without violating the principle of client confidentiality.

Clause Thirteen
Correspondence, Notices, and Announcements 1-13 The addresses stated alongside each party's name at the beginning of this contract constitute legal domiciles for service. Accordingly, all judicial announcements, correspondence, notices, and notifications served thereunder in accordance with this contract are valid and legally effective. Both parties are obligated to notify the other party in writing of any changes thereto. 2-13 It is well known that telephone/fax numbers and email addresses stated in the attached Client Data Form are verified by the Company. Accordingly, the Company may send all promotional messages, execution notices, and notifications under this contract to them. The Client is obligated to notify the Company in writing of any changes thereto.

Clause Fourteen
Applicable Law and Dispute Resolution
1-14 The provisions of laws in force in the Arab Republic of Egypt and implementing decisions, particularly Law No. (18) of 2020 issuing the Consumer Financing Activity Regulation Law, as well as decisions, circulars, and instructions issued by the General Authority for Financial Supervision, apply to this contract. 2-14 The .................... Economic Court (according to its monetary and subject-matter jurisdiction) has exclusive competence to resolve disputes arising from the execution or interpretation of this contract and its appendices. OR/ Agreement to resolve disputes through arbitration, in which case jurisdiction shall be exclusive and expressly stipulated between the parties, in accordance with laws in force in the Arab Republic of Egypt.

Clause Fifteen
Contract Copies
This contract is executed in two copies, with each party holding one copy for implementation.

Client Signature
....................................................

On behalf of the Company
....................................................

62 Egyptian Gazette - No. 135 on June 17, 2021

Model Contract for Multiple Financing Transactions under a Single Contract Consumer Financing Contract (Service provision through commercial payment cards or one of the payment methods approved by the Central Bank) In accordance with the provisions of Law No. 18 of 2020 regarding the regulation of consumer financing activities

Preamble
Whereas Party One is a company licensed to conduct consumer financing activities within the Arab Republic of Egypt, holding License No. (......) of 2020 dated .... / .... / 2020 issued by the General Authority for Financial Supervision. And whereas Party Two (the Client) wishes to benefit from the financing services provided by the Company for purchasing goods and services eligible for financing under the provisions of Consumer Financing Law No. 18 of 2020. And after both parties have confirmed their full legal capacity to contract and transact, the following has been agreed upon:

Clause One
Definitions
The following terms, wherever used in the contract and its appendices, mean:
Company: Party One to this contract.
Client: Party Two to this contract.
Authority: The General Authority for Financial Supervision.
Goods/Services Providers Network: Sellers and service providers contracted with the Company to supply goods and services eligible for financing under the provisions of the Law.
Law: Law No. 18 of 2020 and its executive regulations, and decisions issued by the Authority's Board of Directors in implementation or interpretation thereof.

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Clause Four
Financing Amount, Return Rate, and Payment Methods
1-4 Maximum financing amount: ....................................................................................................................
2-4 Return rate: .................................................................................................................... (Fixed/Variable).
3-4 The Company is obligated, upon accepting each financing transaction, to provide the Client with a statement detailing the financing amount, number of installments, value of each installment, and due date.
4-4 The Client is obligated to pay financing installments at the agreed dates to the Company through commercial payment cards or one of the payment methods approved by the Central Bank.
5-4 The Client may request Party Two to issue any of the following commercial instruments: (promissory notes/bills of exchange/checks) payable (monthly/quarterly/annually) and distributed over the contract duration. Party One is obligated to deliver the commercial instrument to Party Two immediately upon settlement of each installment.

Clause Five
Contract Duration
1-5 The duration of this contract is one calendar year starting from the date of execution, and renews for a similar or multiple periods unless either party notifies the other of non-renewal at least one month prior to the expiration of the current period. 2-5 In all cases, the contract is not terminated until the indebtedness arising from this contract is settled and Party Two receives a final clearance certificate confirming full settlement of installments.

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Clause Six
Subject of Financing and Goods/Services Providers Network 1-6 The Company is obligated, upon accepting each financing transaction, to provide the Client with a statement detailing the Goods/Services (definite description), price, and amount prepaid by the Client. 2-6 The Company is obligated to notify the Client of any changes to the Goods/Services Providers Network throughout the contract period.

Clause Seven
Contract Amendment
1-7 The Company has the right at any time to notify the Client of its intention to amend contract conditions or any specific appendix via a registered letter with acknowledgment of receipt. If the Client does not object within (15) days from the date of receipt, such omission constitutes acceptance of these amendments. 2-7 In case of objection, it must be made through the methods agreed upon between the Client and the Company. In this case, requests for new financing transactions are suspended without affecting existing financing transactions. The contract terminates upon completion of the last outstanding transaction, after which the Company has the right to terminate the agreement and settle the Client's account without any liability on the Company, with the Client obligated to immediately settle any outstanding indebtedness and bear any costs associated with account closure.

Clause Nine
Administrative Fees
The Client bears all the following administrative fees:
(Details of all administrative fees borne by the Client)

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Clause Fifteen
Contract Copies
This contract is executed in two copies, with each party holding one copy for implementation.

Client Signature
....................................................

On behalf of the Company
....................................................

Decision of the Chairman of the Financial Regulatory Authority No. 869 of 2021

Lineage: In force

Timeline