Responsibilities of the Head of the Contracts Register and the Registrars

In the name of Allah, the Most Gracious, the Most Merciful Saudi Central Bank Headquarters

General Directorate for Supervision of Financing Companies Reference No.:
Attachments: 1

Subject: Regarding the issuance of the decision on the responsibilities of the Head of the Contracts Register and the Registrars

To:
His Excellency the Chief Executive Officer
Saudi Company for Leasing Contracts Registration "Sijil"

Peace, mercy, and blessings of Allah be upon you...

Reference is made to the decision of His Excellency the Governor No. (81/M Sh T) dated 9/01/1441 AH, which includes the approval of the responsibilities of the Head of the Contracts Register and the Registrars, based on the authorities delegated to him under the Financial Leasing System issued by Royal Decree No. (48/M) dated 13/8/1433 AH, and its Executive Regulations issued by the decision of His Excellency the Governor No. (1/M Sh T) dated 14/4/1434 AH, and in implementation of paragraph (4) of Article Fifteen of the Executive Regulations of the Financial Leasing System, which stipulates "The Bank shall issue a decision determining the responsibilities of the Head of the Contracts Register and the Registrars."

Attached to your Excellency is the decision on the responsibilities of the Head of the Contracts Register and the Registrars for implementation and action in accordance with it.

Accept my regards,

Badr bin Hazaa Al-Otaibi
General Director of Supervision of Financing Companies

P.O. Box 2992, Riyadh 11169, Phone: +966 1 4662020, Fax: +966 1 4662488

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Decision on Determining the Responsibilities of the Head of the Contracts Register and the Registrars Muharram 1441 AH / September 2019 AD

This decision is issued based on the Financial Leasing System issued by Royal Decree No. (48/M) dated 13/8/1433 AH, and its Executive Regulations issued by the decision of His Excellency the Governor No. (1/M Sh T) dated 14/4/1434 AH, and in implementation of paragraph (4) of Article Fifteen of the Executive Regulations of the Financial Leasing System, which stipulates "The Bank shall issue a decision determining the responsibilities of the Head of the Contracts Register and the Registrars."

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Article One: General Provisions

• 1- Without prejudice to the provisions of Article Sixteen of the Executive Regulations of the Financial Leasing System, the appointment of the Head of the Contracts Register and the Registrars shall be made after obtaining a letter from the Bank indicating no objection.
• 2- The Head and Registrars of the Register are subordinate to the Chief Executive Officer of the Contracts Registration Company, or his deputy.
• 3- The Bank may dismiss the Head and Registrars of the Contracts Register by a reasoned decision in case of breach of their statutory or professional duties.
• 4- In the event that a Registrar of the Contracts Register refuses to draft or authenticate any document, interested parties may appeal against this to the Company, and then to the Bank. In the event of rejection of the appeal, they have the right to resort to the competent court.

Article Two: Responsibilities of the Head and Registrar of the Register

• 1- The Head of the Contracts Register is responsible for registration activities in the Register, receives the application for registration and any amendments thereto, refers it to one of the Registrars of the Contracts Register, and carries out the registration in accordance with the Financial Leasing System, its Executive Regulations, and this decision.
• 2- The Head of the Register and the Registrar of the Register are each responsible, according to their respective responsibilities, for the integrity and accuracy of the registration of all financial leasing contracts and the content of the data and documents submitted, unless the error results from a third party. The aggrieved party may resort to the competent authorities in the event that it is proven that they breached their obligation to verify the accuracy of the data or failed to register it in the prescribed manner.
• 3- The Head of the Contracts Register is directly responsible for the records and registers for a period of at least ten years from the date of expiration of the obligations arising from the contract.
• 4- An official seal is designated for each Registrar of the Contracts Register to stamp the transactions they conduct, and approved electronic means may be used for this purpose.

Article Three: Obligations of the Head and Registrar of the Register The Head and Registrar of the Contracts Register are obliged to comply with the following:

• 1- Perform the tasks assigned to them at their place of work, and performing tasks at the lessor's place of work is permitted, with the lessor bearing the associated costs.

• 2- Verify the identity of the contracting parties or their representatives based on official documents approved for proving identity issued by the competent authority.

• 3- Verify the capacity, sanity, and competence of the contracting parties or their representatives to conclude contracts.

• 4- Verify that the documents and declarations issued by them are written in Arabic. Authentication of a document in a language other than Arabic is permitted after it is translated into Arabic by a certified translator, and in this case, authentication applies to both the original document and its translation.

• 5- Maintain all necessary contract registers to record transactions and classify them as determined by the Bank.

• 6- Preserve and secure the registers in a safe place to protect them from all interference or anything that affects their integrity and continuity, and this shall be in designated places.

• 7- Stamp the original ownership document and the contract with the registration number, or take necessary measures regarding documents that cannot be stamped, such as real estate ownership deeds. Approved electronic means may be used for this purpose.

• 8- Comply with the Financial Leasing System, its Executive Regulations, this decision, and any instructions issued by the Bank or the competent authorities on this matter.

Article Four: Enforcement
This decision shall be effective from the date of its issuance.