Regulatory Alerts2005-01-28
Law No. 2004-052 of January 28, 2005 on Financial Leasing
Issued by the Malagasy legislature, Law No. 2004-052 establishes the comprehensive legal framework for financial leasing operations in Madagascar, defining the transaction as a distinct financial service where the lessor retains ownership while the lessee bears all risks and liabilities. The statute mandates regulatory approval from the Banking and Financial Supervision Commission, requires mandatory registration and public disclosure of all leasing contracts to protect third-party rights, and outlines specific variants such as lease-back, leveraged leasing, and sub-leasing. It further codifies the precise rights, obligations, and liabilities of lessors, lessees, and suppliers regarding asset delivery, maintenance, default remedies, and the eventual transfer of ownership.