Here is a comprehensive article analyzing the Cabinet Resolution Concerning the Executive Regulations of Federal Law Securing Rights in Moveable Assets:
Legislation Details
- Full Title: Cabinet Resolution Concerning the Executive Regulations of Federal Law Securing Rights in Moveable Assets
- Law Type: Federal Law
- Law Number: No. (29) of 2021
- Issued Date: 21 Mar 2021
- Effective Date: [not specified]
- Official Gazette: No. 699
- Sector: Justice and Judiciary
- Status: Active
- Number of Articles: 73
- Chapters/Parts: 0
- Amendments: 1
Summary
This Cabinet Resolution establishes the executive regulations for Federal Law No. (4) of 2020 Securing Rights in Moveable Assets. The law and its regulations govern the creation, registration, priority, and enforcement of security interests over movable assets in the UAE. This is an important piece of legislation that provides a legal framework to facilitate secured lending and enable businesses to use their movable assets as collateral. The regulations specify the procedures for registering security interests, searching the registry, and enforcing security rights against third parties. They also define key terms, outline the responsibilities of the registry, and set forth the penalties for non-compliance. (Cabinet Resolution Concerning the Executive Regulations of Federal Law Securing Rights in Moveable Assets, 2021, Art. 1-30)
What is the scope and purpose of this law?
The purpose of this Cabinet Resolution is to establish the executive regulations for Federal Law No. (4) of 2020 Securing Rights in Moveable Assets. The law and its regulations apply to the creation, registration, priority, and enforcement of security interests over movable assets in the UAE. The regulations specify the procedures and requirements for utilizing the movable assets registry, including documenting registrations, searching the database, and obtaining certified search reports. (Cabinet Resolution Concerning the Executive Regulations of Federal Law Securing Rights in Moveable Assets, 2021, Art. 2-8)
What are the key definitions under this law?
The Resolution provides the following key definitions:
- Identification Number: The information provided for in Para. (b) of Clause (1) of Article (10) of this Resolution.
- Control Agreement: A written agreement between a financial institution, Pledgor, and Pledgee where the financial institution agrees to follow the Pledgee's instructions on the deposit account without the Pledgor's consent.
- Database of the Register: The electronic database containing registration information and other data stipulated under the law.
- Registration Documenting Number: The number designated in the database for each documented registration.
- Client's Account: An account created to access the registry's services.
- Registration Information: The data required to complete the registration documentation.
- Law: Federal Law No. (4) of 2020 Securing the Rights in Movables.
(Cabinet Resolution Concerning the Executive Regulations of Federal Law Securing Rights in Moveable Assets, 2021, Art. 1)
What are the main obligations and requirements?
The key obligations and requirements under this Resolution include: 1. The movable assets registry must register rights, save and classify registrations, enable public searches, issue certified reports, and save search records. (Cabinet Resolution Concerning the Executive Regulations of Federal Law Securing Rights in Moveable Assets, 2021, Art. 2) 2. The registry is not responsible for verifying the contents or accuracy of registration information. (Cabinet Resolution Concerning the Executive Regulations of Federal Law Securing Rights in Moveable Assets, 2021, Art. 3) 3. A security contract must be concluded in writing, which serves as sufficient evidence of the Pledgor's approval for registration. (Cabinet Resolution Concerning the Executive Regulations of Federal Law Securing Rights in Moveable Assets, 2021, Art. 4) 4. Registrations must be documented immediately upon fulfilling the requirements and providing the necessary information. (Cabinet Resolution Concerning the Executive Regulations of Federal Law Securing Rights in Moveable Assets, 2021, Art. 5)
What licensing, registration, or approval requirements exist?
To utilize the registry's services, a person must have a client account on the registry's website. (Cabinet Resolution Concerning the Executive Regulations of Federal Law Securing Rights in Moveable Assets, 2021, Art. 5)
What rights and protections does this law provide?
The law provides the following rights and protections: 1. Any person may search the registry database using the documentation number or identification number. (Cabinet Resolution Concerning the Executive Regulations of Federal Law Securing Rights in Moveable Assets, 2021, Art. 6) 2. Any person may obtain a certified paper or electronic search report from the registry. (Cabinet Resolution Concerning the Executive Regulations of Federal Law Securing Rights in Moveable Assets, 2021, Art. 7) 3. The registry may only reject registrations or search applications in limited circumstances, such as missing mandatory information or illegible entries. (Cabinet Resolution Concerning the Executive Regulations of Federal Law Securing Rights in Moveable Assets, 2021, Art. 8)
Which authorities or bodies are responsible for enforcement?
The movable assets registry is responsible for the organization and maintenance of the registration system, including registering rights, saving and classifying registrations, enabling public searches, and issuing certified reports. (Cabinet Resolution Concerning the Executive Regulations of Federal Law Securing Rights in Moveable Assets, 2021, Art. 2)
What are the penalties for non-compliance?
The legislation does not specify any penalties for non-compliance. (Cabinet Resolution Concerning the Executive Regulations of Federal Law Securing Rights in Moveable Assets, 2021)
What fees, charges, or financial provisions are specified?
The legislation does not specify any fees, charges, or financial provisions. (Cabinet Resolution Concerning the Executive Regulations of Federal Law Securing Rights in Moveable Assets, 2021)
What exemptions or exceptions apply?
The legislation does not provide any exemptions or exceptions. (Cabinet Resolution Concerning the Executive Regulations of Federal Law Securing Rights in Moveable Assets, 2021)
How are disputes resolved under this law?
The legislation does not specify any dispute resolution mechanisms. (Cabinet Resolution Concerning the Executive Regulations of Federal Law Securing Rights in Moveable Assets, 2021)
What are the key deadlines and time limits?
The key deadlines and time limits under this Resolution include: 1. Registration for the first time or registration of amendment enters into force from the date and time of entry in the registry database. (Cabinet Resolution Concerning the Executive Regulations of Federal Law Securing Rights in Moveable Assets, 2021, Art. 13) 2. Amendments adding new Pledges or Pledgors enter into force from the date the amendment becomes searchable in the registry. (Cabinet Resolution Concerning the Executive Regulations of Federal Law Securing Rights in Moveable Assets, 2021, Art. 14) 3. Cancellation of a registration is only enforceable against Pledgees who approved the cancellation, from the date and time the cancellation is registered. (Cabinet Resolution Concerning the Executive Regulations of Federal Law Securing Rights in Moveable Assets, 2021, Art. 16)
How does this law interact with other UAE legislation?
This Cabinet Resolution establishes the executive regulations for Federal Law No. (4) of 2020 Securing Rights in Moveable Assets. It does not repeal or amend any other UAE legislation. (Cabinet Resolution Concerning the Executive Regulations of Federal Law Securing Rights in Moveable Assets, 2021, Art. 29)
When did this law come into effect?
The legislation does not specify an effective date for this Cabinet Resolution. (Cabinet Resolution Concerning the Executive Regulations of Federal Law Securing Rights in Moveable Assets, 2021, Art. 30)
Source Documents
This article analyses Cabinet Resolution Concerning the Executive Regulations of Federal Law Securing Rights in Moveable Assets for legal research and educational purposes. For the purpose of interpretation and application, reference must be made to the original Arabic text. In case of conflict, the Arabic text prevails. This does not constitute legal advice.