The Amendment of Some Articles in the Implementing Regulation of the Finance Lease Law

In the Name of Allah, the Most Gracious, the Most Merciful Saudi Central Bank (SAMA) Headquarters

Office of the Deputy Governor for Supervision
Reference No.: ………………………………
Attachments: ………………………………

Circular

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

Subject: Amendment of Some Articles in the Implementing Regulation of the Finance Lease Law.

With reference to the powers granted to the Saudi Central Bank under the Finance Lease Law issued by Royal Decree No. (4/M) dated 13/8/1433H, and pursuant to Article Twenty-Seven of the Finance Lease Law which stipulates that "the Governor shall issue, in agreement with the Minister of Justice, the implementing regulation for this law within ninety days from its issuance date", and based on the mutual consent with His Excellency the Minister of Justice.

We hereby inform you of the issuance of His Excellency the Governor's Decision No. 93/M Sh T dated 18/10/1441H, amending some articles in the Implementing Regulation of the Finance Lease Law as follows:

First: Amendment of Paragraph (3) of Article Ten of the Implementing Regulation of the Finance Lease Law to read as follows:
"The lessor shall obtain a letter from the Bank indicating its non-objection to finance lease products directed at individuals or microfinance beneficiaries prior to their launch, to ensure the fairness of their terms."

Second: Amendment of Article Seventeen of the Implementing Regulation of the Finance Lease Law to read as follows: "The contract registry clerk shall perform assigned duties at their workplace, and may, upon approval of the head of the contract registry, perform them at the lessor's premises, with the lessor bearing the associated costs."

Third: Amendment of Paragraph (2) of Article Twenty-Five of the Implementing Regulation of the Finance Lease Law to read as follows: "A certified extract of a registered finance lease contract shall constitute an executive instrument, in accordance with Paragraph Eight of Article Nine of the Execution Law, and shall serve as evidence of compliance."

Yours sincerely,
Fahd bin Ibrahim Al-Shathri
Deputy Governor for Supervision

Distribution Scope:

• Banks and investment companies operating in the Kingdom.
• Finance companies operating in the Kingdom.
• Contract registry companies for finance leases operating in the Kingdom.

P.O. Box 2992, Riyadh 11169, Tel: 4662300 - Fax: 4662543

Note:
The image contains a stamp and barcode in the upper section, with document number: 41061552 and date: 1441/10/29, and attachments: "None". These details are included at the beginning of the text as they appeared in the image.