Law No. 2011-052 on the Recovery of Debts

Source JO N° 1252 of November 30, 2011 Page 1
Islamic Republic of Mauritania
Honor – Fraternity - Justice
Law No. 2011-052 of November 23, 2011
Repealing and replacing
Law No. 93-022 of January 26, 1993
Establishing a special regime for the recovery of debts by banks and financial institutions.
Published in the Official Journal of the Islamic Republic of Mauritania No. 1252 of November 30, 2011

Source JO N° 1252 of November 30, 2011 Page 2
The National Assembly and the Senate have adopted; The President of the Republic promulgates the law as follows:
CHAPTER I: GENERAL PROVISIONS
Article 1: Purpose
The recovery of debts by banks and financial institutions operating in the Islamic Republic of Mauritania is governed by the provisions of this law.
Article 2: Amount of Debts
The amount of debts owed by banks and financial institutions includes the principal plus interest, fees, commissions, and taxes.
The taxes are those imposed on the client by the finance law and collected from banks and financial institutions.
In the absence of a written credit agreement between the client and the bank or financial institution, the debt amount is determined by reference to the client's account statement and the effective global rate set by current regulations.
Article 3: Debt Schedule
The debt schedule is that fixed by the credit agreement or any other act accepted by the parties.
When there is no agreement or when it does not specify a schedule, the credit is presumed to have been granted for a duration of one year from the date it was made available to the client.

Source JO N° 1252 of November 30, 2011 Page 3
CHAPTER II: RECOVERY PROCEDURE FOR DEBTS
Article 4: Time Limit for Formal Demand
As soon as a credit installment is unpaid, and if the conventional interest rate is lower than the effective global rate authorized by current credit regulations, the interest rate applied to the debt as fixed at that installment automatically becomes the effective global rate. The bank or financial institution may then notify the debtor, via a bailiff's deed, a formal demand to pay the due amount. If this formal demand remains unfulfilled for thirty (30) days from the notification date, the bank or financial institution may petition the competent court to recover its debt through judicial means.
Article 5: Effects of Formal Demand
Following the formal demand provided for in Article 4 above, the debt continues to accrue interest at the effective global rate set by current regulations until a lawsuit is filed on the merits. The competent court may order the debtor to reimburse the bank or financial institution for all costs incurred and justified in the recovery procedure.
Article 6: Preservative Seizure
Upon notification of the formal demand provided for in Article 4 above, the bank or financial institution may request that the competent court order a preservative seizure of movable and immovable property belonging to the debtor, intended as security for the debt, up to its amount. If the bank or financial institution proves, by all legal means leaving no doubt, before the competent court that its debtor has transferred part or all of its property to its spouse, descendants, ascendants, brothers, or sisters in order to declare itself unable to honor its obligations vis-à-vis the bank or financial institution, the judge may order that these properties be subject to a preservative seizure pending a final ruling on the matter.
Article 7: Decision Time Limits
Upon receiving the petition from the bank or financial institution, the competent court must rule without delay on requests for preservative seizure, realization of security, and forced execution of enforceable instruments. Cases involving a petition seeking a judgment on the merits are scheduled according to current procedures.
Article 8: Right of Pursuit
Banks and financial institutions have a right of pursuit over the movable and immovable property of their debtor that was pledged as security, up to the value of their debts, in accordance with common law provisions.
Article 9: Judicial Pledge and Mortgage
A bank or financial institution whose debts are secured by private deeds may request that the competent court order the final registration of judicial pledges or mortgages on movable or immovable property belonging to the debtor. In this case, the administrations responsible for land registry, merchant marine, and vehicle registration must provide in writing, following an order from the President of the competent court upon request by the bank or financial institution, a list of the debtor's property along with any existing encumbrances, within a period not exceeding fifteen (15) days from the request date. Based on the file submitted by the bank or financial institution, the President of the competent court rules on the accuracy of the mortgage or judicial pledge amount and the properties on which they must be registered.
Article 10: Judicial Registration Procedure
If the bank or financial institution has precise information about one or more properties belonging to the debtor that are not yet registered in the land registry, it may file a petition with the competent court to obtain a decision ordering the establishment of the title deed for the property/properties in question and the registration of the judicial mortgage. The costs for establishing the title deed and registering the mortgage are borne by the debtor, and the bank or financial institution pays them to the administration and debits the client's account.

Source JO N° 1252 of November 30, 2011 Page 4
Article 11: Realization of Security
After the expiration of the formal demand period and in the absence of an agreement between the parties, the bank or financial institution may request that the competent court order the realization of security when its debt is secured by a mortgage or pledge. The President of the competent court rules on the realization of security according to expedited procedures.
Article 12: Auction Sale
When the court orders the realization of security, the creditor may proceed to auction the pledged or mortgaged property via a bailiff's deed; the initial bid amount cannot be lower than that of the mortgage or pledge.
Article 13: Bid Time Limits
If the property put up for sale finds no buyer, the President of the competent court orders a second bid within 15 (fifteen) to 30 (thirty) days.
If the second auction remains unsuccessful, the mortgaged property is awarded to the bank or financial institution at its mortgage or pledge value.
CHAPTER III: EFFECTS OF THE DEBT RECOVERY PROCEDURE
Article 14: Body Attachment (Contrainte par corps)
When the execution of a judgment against a debtor proves impossible because his property could not be identified or obstacles prevent execution, body attachment may be ordered against him.
Article 15: Fraud/Deceit
When the non-repayment of credit granted by a bank or financial institution is accompanied by the debtor's bad faith, the latter may be prosecuted for fraud notwithstanding recovery proceedings. The same sanctions are applied to accomplices of these acts.
Article 16: Banker Complicity
Managers and employees of banks and financial institutions may be criminally prosecuted if it is established that they are accomplices to debtors acting in bad faith.
Article 17: Credit Ban
Any debtor listed on the frozen debts list of the banking system published by the Central Bank of Mauritania cannot benefit from bank credits until his debts, attested by the Central Bank of Mauritania, are repaid.

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Article 18: Means of Proof
The following means of proof, presented by banks, are valid until proven otherwise:

• Agreement/Contract,
• Account Statement
• Check
• Transfer Order
• Promissory Note
• Swift Transfer.
  CHAPTER IV: SALARY Domiciliation
  Article 19: Effect of Domiciliation
  Any employer, natural or legal person, who signs an irrevocable salary domiciliation for his employee in favor of a bank or financial institution, is bound to respect said domiciliation.
  Article 20: Bank Compensation
  In case of non-compliance by the employer with the irrevocable salary domiciliation, he is required to pay to the bank or financial institution all sums that should have been paid in accordance with said domiciliation.
  Article 21: Modification of Salary Domiciliation
  The employer may not accept any modification to the irrevocable salary domiciliation agreement without first receiving written consent from the Bank or financial institution.
  Article 22: Payment of Indemnities
  In case of dismissal, voluntary departure of the employee, or termination of the employment contract for any other cause, the domiciliary bank or financial institution is notified by the employer, who is required to pay any applicable indemnities in accordance with the irrevocable salary domiciliation.

Source JO N° 1252 of November 30, 2011 Page 6
CHAPTER V: TRANSITORY PROVISIONS.
Article 23: Transfer/Mutation Fees of Priority
The mutation fees for property rights acquired by banks and financial institutions, in compensation for their debts, are subject to the rates defined by current laws in this field.
Article 24: Land Conservation Fees
The land conservation fees related to the registration of conventional or judicial mortgages and their cancellation in favor of the bank or financial institution are fixed according to the rates defined by current laws in this field.
Article 25: Notary Fees
Notary fees related to the authentication of agreement protocols, guarantees, pledges, mortgages, mortgage cancellation, transfer or adjudication are fixed in accordance with the decree on notary fees.
Article 26: Expert Fees
If an expert appraisal is ordered by the President of the competent court, the expert's fees, which amount to 2% of the debt amount without exceeding a ceiling of one million five hundred thousand ouguiyas (1,500,000), are borne by the party requesting the appraisal. If neither of the two parties requests the appraisal or if both request it, the expert's fees are shared equally by both parties.
Article 27: Bailiff Fees
The fees for bailiffs, appointed in the context of recovering debts by banks and financial institutions, are fixed in accordance with their governing decree.
CHAPTER VI: FINAL PROVISIONS
Article 28: Effect of the Law
This law repeals and replaces all prior contrary provisions, notably Law No. 93-022 of January 26, 1993 establishing a special regime for the recovery of debts by banks and financial institutions.
Article 29: Publication
This law shall be executed as a law of the State and published in the Official Journal of the Islamic Republic of Mauritania.
Done at Nouakchott, on November 23, 2011
MOHAMED OULD ABDEL AZIZ (President of the Republic) THE PRIME MINISTER Dr. MOULAYE OULD MOHAMED LAGHDAF THE MINISTER OF JUSTICE Me ABIDINE OULD ELKHAIR