The Central Bank of Egypt (CBE) has issued an important circular on August 7, 2024, addressing the procedures for banks operating in Egypt regarding the opening of…
Important Announcement regarding Egyptian Law No. 115 of Year 2015 Regulating Movable Securities
The Egyptian Collateral Registrar has issued an announcement in relation to the application of the above Law declaring the establishment of the electronic movables security registrar as follows:
The Content of the Announcement
As of 11th March 2018, The Egyptian Collateral Registrar has been activated in accordance with the provisions of the said Law and its Executive Regulation,
The creditors are granted a grace period of 3 months (Starting from 11th March 2018 till 10th June 2018) to register their collaterals created over movables prior to the promulgation of the Law.
Definition of movables/assets
As per Article (1) of the Law, the movable/asset is defined as follows:
“Every movable whether existing or future, tangible or existing intangible assets, owned by the debtor, the guarantor or the creditor, used to guarantee an obligation, a debt, a finance or a credit facility, in accordance with the regulations of the Executive Regulations.”
Article (2) of the Law states that the provisions thereof are applied on secured rights by a movable possessed by the debtor/guarantor, as agreed by the parties in the agreement that would be registered.
Moreover, the Law outlines the assets/movables, over which the collaterals may be created, to include without limitation:
- Bank deposits and accounts, including deposits and current accounts
- Movable assets ancillary to land
- Intellectual Property rights and patents
- Fungible assets (Oil, metal, food, etc…)
- Receivables and credit notes
- Timber, agriculture productions, crops and animals
Benefits and risks
The banks that will register their collaterals during the before mentioned grace period shall maintain a priority right among the remaining creditors over these movables/assets as of the date of creating of such right.
However, failing to undertake the registration procedures during the said grace period puts the banks at the risk of not enjoying a ranking priority from the date of the security creation. Consequently, the criterion of creditors’ priority will change and will be determined as of the date of the security registration in the Registrar.
In light of the above, Banks need to register all their security rights created over the relevant movables/assets (notwithstanding the date of the creation of such security) as soon as possible before the 10th of June 2018 in the Registrar so they enjoy the benefit and avoid the risk.
The professional assistance we offer
Our team of experts would be delighted to help your good selves with the following matters:
Any advice regarding the required data for the valid registration of the created collaterals;
Any required legal advice regarding the Law, its Executive Regulations and practice; Proceeding with the required procedures for duly registering any collateral at the Registrar; Challenging any registration deemed invalid by the Registrar; Reviewing the validity of the registration documents at the Registrar. For further information about this regulation, please do not hesitate to contact us with any enquiries at our main mail address [email protected].The Egyptian Collateral Registrar has issued an announcement in relation to the application of the above Law declaring the establishment of the electronic movables security registrar as follows:
The Content of the Announcement
As of 11th March 2018, The Egyptian Collateral Registrar has been activated in accordance with the provisions of the said Law and its Executive Regulation,
The creditors are granted a grace period of 3 months (Starting from 11th March 2018 till 10th June 2018) to register their collaterals created over movables prior to the promulgation of the Law.
Definition of movables/assets
As per Article (1) of the Law, the movable/asset is defined as follows:
“Every movable whether existing or future, tangible or existing intangible assets, owned by the debtor, the guarantor or the creditor, used to guarantee an obligation, a debt, a finance or a credit facility, in accordance with the regulations of the Executive Regulations.”
Article (2) of the Law states that the provisions thereof are applied on secured rights by a movable possessed by the debtor/guarantor, as agreed by the parties in the agreement that would be registered.
Moreover, the Law outlines the assets/movables, over which the collaterals may be created, to include without limitation:
- Bank deposits and accounts, including deposits and current accounts
- Movable assets ancillary to land
- Intellectual Property rights and patents
- Fungible assets (Oil, metal, food, etc…)
- Receivables and credit notes
- Timber, agriculture productions, crops and animals
Benefits and risks
The banks that will register their collaterals during the before mentioned grace period shall maintain a priority right among the remaining creditors over these movables/assets as of the date of creating of such right.
However, failing to undertake the registration procedures during the said grace period puts the banks at the risk of not enjoying a ranking priority from the date of the security creation. Consequently, the criterion of creditors’ priority will change and will be determined as of the date of the security registration in the Registrar.
In light of the above, Banks need to register all their security rights created over the relevant movables/assets (notwithstanding the date of the creation of such security) as soon as possible before the 10th of June 2018 in the Registrar so they enjoy the benefit and avoid the risk.
The professional assistance we offer
Our team of experts would be delighted to help your good selves with the following matters:
Any advice regarding the required data for the valid registration of the created collaterals;
Any required legal advice regarding the Law, its Executive Regulations and practice; Proceeding with the required procedures for duly registering any collateral at the Registrar; Challenging any registration deemed invalid by the Registrar; Reviewing the validity of the registration documents at the Registrar.
For further information about this regulation, please do not hesitate to contact us with any enquiries at our main mail address [email protected].
