Regulatory Alerts2021-01-25
Controls and Procedures for Requesting and Issuing Extracts of the Executive Document for Registered Financial Lease Contracts
The Saudi Central Bank (SAMA) issued these Controls and Procedures to regulate the request and issuance of executive document extracts for registered financial lease contracts, superseding previous circulars on movable asset recovery. The document mandates that lessors must utilize licensed contract registration companies and specialized recovery firms for all asset recovery requests, specifying strict default thresholds, notification protocols, and documentation requirements for both movable and fixed assets. It further establishes standardized procedures for issuing financial execution certificates for overdue payments, delay compensation, and recovery costs, while requiring lessors to align internal policies with these regulations and ensuring all processes are conducted electronically.