أسئلة قانونية إماراتية عامةقرار مجلس الوزراء بشأن اللائحة التنفيذية للقانون الاتحادي في شأن ضمان الحقوق في الأموال المنقولة

Article (1) Definitions The definitions contained in Federal Law No. (4) of 2020 mentioned above shall apply to this Resolution. Otherwise, the following words and expressions shall have the meanings assigned thereto respectively unless the context requires otherwise: Identification Number : The information provided for in Para. (b) of Clause (1) of Article (10) of this Resolution. Control Agreement : A written agreement which is concluded by and between the financial institution, Pledgor, and Pledgee and under which the financial institution agrees to follow the Pledgee's instructions in respect of payment of the amounts deposited in the current account or deposit account without obtaining the Pledgor's consent later. Database of the Register : An electronic database in the Register, containing registration information and any other information

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Cabinet Resolution of 2021, Concerning the Executive Regulations of Federal Law of 2020 on Securing Rights in Movable Assets 2 stipulated under the Law, this Resolution, or the Directives thereunder to be entered in the Register. Registration Documenting Number : The number designated in the database of the Register for each registration after being documented. Client's Account : An account created for the purposes of registration and searching data and information included in the Database of the Register, and for obtaining any other service provided by the Register. Registration Information : The data required to complete the documentation of the registration pursuant to provisions of the Law and this Resolution. Law : Federal Law No. (4) of 2020 Securing the Rights in Movables. Written/ in writing : Includes the information created, transferred, received or stored using electronic media, including those made using modern communication facilities. Organization and Maintenance of the Register

Article (2) Functions of the Register The Register shall: 1. Register rights in accordance with the provisions of the Law, including any amendment or cancellation thereof. 2. Save and classify the registrations in the Database of the Register. 3. Enable the public to search the Database of the Register and to have access to the registrations contained therein. 4. Issue certified paper or electronic reports including information saved in the Database of the Register in accordance with provisions of Law and this Resolution.

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Cabinet Resolution of 2021, Concerning the Executive Regulations of Federal Law of 2020 on Securing Rights in Movable Assets 3 5. Save the certified search reports, date and time of performing searches, and applied search criteria.

Article (5) Procedures for Documenting the Registration 1. In order to document a registration, a person shall have a client account on the Register’s website according to the procedures determined by the Register for this purpose. 2. Registration shall be documented in the Register immediately upon fulfillment of requirements and entry of information provided for in the Law and in this Resolution. 3. The Register shall issue an electronic confirmation upon documenting the registration. The confirmation shall include the registration date, time, and number, and the information contained therein, unless otherwise provided for in this Resolution.

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Cabinet Resolution of 2021, Concerning the Executive Regulations of Federal Law of 2020 on Securing Rights in Movable Assets 4

Article (6) Procedures for Searching the Database of the Register 1. Any person may search the Database of the Register through entry of any of the following search parameters: a. Documentation number; or b. The identification number. 2. Search shall be performed using the parameters set forth in Clause (1) of this Article exclusively. 3. Any person who searches the Database of the Register may print a search report. 4. The information contained in the search report shall include the following: a. Presence of a registration registered in accordance with provisions of the Law and of this Resolution; b. Date and time of documenting the registration; c. The information included in Article (9) of this Resolution; and d. Any other information included in the registration, except for statistical information. 5. The search report may indicate that there is no documented registration according to the search parameters entered.

Article (8) Rejection of Registration or Search Application 1. The Register shall reject to document the registration in the event that any of the data specified in any of the mandatory fields is not provided, or if the information entered is illegible. 2. The Register may reject a search application if the information required to be entered in one of the search parameters is not entered, or if the information entered is illegible. 3. Except for the cases stipulated in Clauses (1) and (2) of this Article, the Register may not reject applications for documenting the registration or search applications. 4. In case of rejection of documenting the registrations or search applications, the Register shall promptly notify the person who made the registration or searcher of the reason of such rejection. 5. The Register may indicate the corrective action required to be taken to accept the registration or search application. Documented Information

Article (10) Identification of Parties 1. Pledgor's data shall be identified through the following: a. Name; b. Identification number as follows: 1. ID Card Number if it is a natural person having the nationality of the State or residing therein; 2. Passport number if it is a natural person not having the nationality of the State or not residing therein; 3. Registering number or registering licence number if it is a legal person registered inside the State; or 4. Nationality and registering number if it is a legal person registered outside the State; or c. Nationality if it is a natural person not having the nationality of the State, or is a legal person not registered inside the State. 2. Pledgee's data shall be identified as follows: a. Name; and b. Address including the email address.

Article (11) Description of the Pledge and Secured Liabilities 1. Description of the Pledge shall be deemed sufficient if the Pledge is reasonably identified through the following: a. Kind, class, or quantity; or insertion of the Pledge into a specific list; b. Presence of a phrase stating that the Pledge includes all the Pledgor's assets, whether current or future; c. Presence of phrase stating that it includes a specific type or class of securities, whether it is current or future, such as "all equipment" or "all current or future accounts receivable".

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Cabinet Resolution of 2021, Concerning the Executive Regulations of Federal Law of 2020 on Securing Rights in Movable Assets 7 The priority of security right extends to all the Pledges covered by the registration recorded in the register; whether it was included as liability of the Pledgor, or it has been or is existent before or after documenting the registration. 2. Security contract shall include a general or specific description of the secured liability in a manner allowing reasonable identification thereof. Description of the secured right shall be deemed sufficient in any of the following cases: a. If a maximum sum or limit is set for the secured liability in respect of which the security right may be enforced; b. If it refers to all liabilities owed to the Pledgee at any time. If the secured liability is described as the whole liabilities owed to Pledgee at any time, the priority of security right shall extend to all secured liabilities including those arising after enforcement of security right against third parties. 3. The registration documented under an order or judgment pursuant to provisions of Article (15) of the Law shall include a description of the Pledge and liabilities under said order or judgment.

Article (13) Entry of Registration into Force 1. Registration for the first time or registration of amendment shall enter into force from the date and time of entry of registration information in the Database of the Register in a manner allowing the registration to appear in case of searching the register; 2. Registration for the first time or registration of amendment shall be deemed non- enforceable in case of presence of wrong entry of identification number in the Database of the Register and said error would result into inability to recover information included in the registration by searching the Database of the Register using the right identification number as a search parameter;

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Cabinet Resolution of 2021, Concerning the Executive Regulations of Federal Law of 2020 on Securing Rights in Movable Assets 8 3. Error leading to non-enforceability of registration against a certain Pledgor in accordance with provisions of Clause (2) of this Article shall not constitute a ground for non- enforceability thereof in respect of other Pledgors whose identification numbers are entered correctly in the registration. 4. Except for the identification number error, errors in information entered in the first time registration or registration of amendments shall not constitute a ground for non- enforcement of registration unless the same results reasonably into misleading the searcher. Amendments After Documentation

Article (14) Registration of Amendments 1. Pledgee may amend the registration by documenting the registration of amendments including the following: a. Number of documenting the registration subject of amendment; and b. Pledgees who agreed to the amendment. 2. Pledgor's approval of documenting the registration of amendment which adds Pledges or Pledgors shall be obtained. 3. Amendment shall be deemed enforceable against Pledgees who approved documenting the registration; 4. Registration of amendment adding new Pledge or new Pledgor shall enter into force from the date on which it becomes possible for the amendment to appear upon searching the register; 5. Non-amendment of registration of any of the following shall not affect security right enforceability against third parties or priority thereof: a. Transfer of security right; and b. Giving security right a lower priority.

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Cabinet Resolution of 2021, Concerning the Executive Regulations of Federal Law of 2020 on Securing Rights in Movable Assets 9

Article (17) Mandatory Registration 1. In the event that Pledgee does not document the cancellation registration pursuant to provisions of Article (16) of the Law, the person whose name is mentioned as a Pledgor in a registration may send a written letter indicating its identity, first time registration, or the registration of amendment desired to be canceled. Pledgee may not make Pledgor bear any fees or expenses as a result of compliance with Pledgor's request for cancellation. 2. In case of repayment of secured liabilities under provisions of Article (16) of the Law, the person whose name is mentioned as a Pledgor in a registration may not request the documentation of the amendment registration or the cancellation if the Pledgee is committed to pay any consideration to the Pledgor or the debtor. 3. In the event that Pledgee fails to comply with the application submitted under provisions of Clause (1) of this Article within (7) seven working days from the date of receipt thereof,

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Cabinet Resolution of 2021, Concerning the Executive Regulations of Federal Law of 2020 on Securing Rights in Movable Assets 10 the affected person may request the court to make a decision to register the amendment or the cancellation. 4. If a court order is made to document an amendment or cancellation of registration in accordance with provisions of Clause (3) of this Article, the Register shall document the registration promptly upon receipt of the application accompanied by a copy of the relevant order. Enforcement of the Security Right Against Third Party

Article (19) Priority of Rights Established Under Court Rulings 1. Priority of right established on the Pledge over tangible movables in accordance with an order or judgement issued to impose the precautionary or executive attachment on Pledge shall be specified from the date and time of registration of the order or judgement on the register pursuant to Clause (2) of Article (15) of the Law, or from the date and time of possession of the Pledge by seizure thereof, or on the date and time of defendant's debtor's or prevailing party's receipt of the attachment notice, whichever is earlier. 2. Security right for financing purchase which has been registered on the register pursuant to provisions of Article (19) of the Law shall have priority over the right arising as a result

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Cabinet Resolution of 2021, Concerning the Executive Regulations of Federal Law of 2020 on Securing Rights in Movable Assets 11 of an order or judgment despite that the right arising from the order or judgment becomes enforceable against third parties.

Article (21) Priority In Respect of Credit Accounts 1. The security right established on a credit account in favor of the financial institution holding the account shall have priority over competing security rights enforceable against third parties. 2. The security right established on a credit account and enforceable against third parties by virtue of a control agreement shall have priority over competing security rights, except for security right of the financial institution provided for in Clause (1) of this Article. 3. Priority of competing security rights over a credit account which became enforceable against third parties by virtue of conclusion of control agreements shall be determined based on date and time of conclusion of the same. 4. Receiver of amounts from the credit account under a bank transfer issued from the credit account under the Pledgor's order shall acquire its rights to said amounts free from the security right established on the credit account; unless receiver of the bank transfer is aware that the transfer involves an infringement of Pledgee's rights under the security contract.

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Cabinet Resolution of 2021, Concerning the Executive Regulations of Federal Law of 2020 on Securing Rights in Movable Assets 12 Execution

Article (24) Domicile of Pledgor Law of the Domicile of Pledgor shall apply to the establishment of security right, its enforcement against third parties, the priority and execution of security right on the Pledge if it is an intangible movable, provided that domicile of Pledgor shall be determined as follows: 1. The State wherein the head office of its business is located; 2. The State wherein the administrative office is located in case that the Pledgor has offices in more than one country; or 3. The State where it usually resides if it does not have headquarters.

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Cabinet Resolution of 2021, Concerning the Executive Regulations of Federal Law of 2020 on Securing Rights in Movable Assets 13

Article (30) Publication and Entry into Force This Resolution shall be published in the Official Gazette and shall enter into force from the day following the date of publication hereof. Mohammed Bin Rashid Al Maktoum Prime Minister Issued by Us On: 7 Sha'ban 1442 A.H. Corresponding to: 21 March 2021 AD.

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Cabinet Resolution of 2021, Concerning the Executive Regulations of Federal Law of 2020 on Securing Rights in Movable Assets 15 Appendix (1) Appended to Cabinet Resolution No. (29) of 2021 Sale Procedures Report Form SN. Service Description Registration Timeframe Fees (in AED) 1 Issuance of certified paper or electronic report Not applicable AED (200) per registration 2 Registration of a right over a movable asset Less than 12 months AED (100) per registration 12 months to 24 months AED (150) per registration 2 years to 5 years AED (400) per registration 5 years to 10 years AED (800) per registration 10 years or more AED (1,000) per registration 3 Registration of an amendment to a right over a movable asset Less than 12 months AED (100) per registration 12 months to 24 months AED (150) per registration 2 years to 5 years AED (400) per registration 5 years to 10 years AED (800) per registration 10 years or more AED (1,000) per registration 4 Registration of an extension to the right over a movable asset Less than 12 months AED (100) per registration 12 months to 24 months AED (150) per registration 2 years to 5 years AED (400) per registration 5 years to 10 years AED (800) per registration 10 years or more AED (1,000) per registration 5 Less than 12 months AED (100) per registration

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Cabinet Resolution of 2021, Concerning the Executive Regulations of Federal Law of 2020 on Securing Rights in Movable Assets 16 Registration of an Objection to the Possession Resolution 12 months to 24 months AED (150) per registration 2 years to 5 years AED (400) per registration 5 years to 10 years AED (800) per registration 10 years or more AED (1,000) per registration 6 Registration of a Seizure on a Subject of a Mortgage Not Applicable AED (200) per registration 7 Registration of an Amendment to a Seizure on a Subject of a Mortgage Not Applicable AED (200) per registration 8 Registration of a Cancellation of Seizure on a Subject of a Mortgage Not Applicable AED (200) per registration 9 Registration of an Amendment to a Prior Right over a Movable Asset Less than 12 months AED (100) per registration 12 months to 24 months AED (150) per registration 2 years to 5 years AED (400) per registration 5 years to 10 years AED (800) per registration 10 years or more AED (1,000) per registration 10 Registration of an Extension of a Prior Right over a Movable Asset Less than 12 months AED (100) per registration 12 months to 24 months AED (150) per registration 2 years to 5 years AED (400) per registration 5 years to 10 years AED (800) per registration 10 years or more AED (1,000) per registration 11 Registration of an Objection Against a Prior Right over a Movable Asset Less than 12 months AED (100) per registration 12 months to 24 months AED (150) per registration 2 years to 5 years AED (400) per registration 5 years to 10 years AED (800) per registration

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Cabinet Resolution of 2021, Concerning the Executive Regulations of Federal Law of 2020 on Securing Rights in Movable Assets 17 10 years or more AED (1,000) per registration 12 Registration of the Cancellation of an Objection Against a Possession Resolution Less than 12 months AED (100) per registration 12 months to 24 months AED (150) per registration 2 years to 5 years AED (400) per registration 5 years to 10 years AED (800) per registration 10 years or more AED (1,000) per registration 13 Registration of the Cancellation of an Objection Against a Prior Right over a Movable Asset Less than 12 months AED (100) per registration 12 months to 24 months AED (150) per registration 2 years to 5 years AED (400) per registration 5 years to 10 years AED (800) per registration 10 years or more AED (1,000) per registration 14 Registration of an Authorization to Sell a Movable Asset Less than 12 months AED (100) per registration 12 months to 24 months AED (150) per registration 2 years to 5 years AED (400) per registration 5 years to 10 years AED (800) per registration 10 years or more AED (1,000) per registration 15 Registration of an Application for Possession of a Right over a Movable Asset Less than 12 months AED (100) per registration 12 months to 24 months AED (150) per registration 2 years to 5 years AED (400) per registration 5 years to 10 years AED (800) per registration 10 years or more AED (1,000) per registration

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Cabinet Resolution of 2021, Concerning the Executive Regulations of Federal Law of 2020 on Securing Rights in Movable Assets 18 16 Registration of an Offer to Own a Subject of a Mortgage Less than 12 months AED (100) per registration 12 months to 24 months AED (150) per registration 2 years to 5 years AED (400) per registration 5 years to 10 years AED (800) per registration 10 years or more AED (1,000) per registration 17 Registration of an Offer to Clear Subject of a Mortgage from Liabilities Less than 12 months AED (100) per registration 12 months to 24 months AED (150) per registration 2 years to 5 years AED (400) per registration 5 years to 10 years AED (800) per registration 10 years or more AED (1,000) per registration 18 Registration of Accepting the Offer to Clear Subject of a Mortgage Less than 12 months AED (100) per registration 12 months to 24 months AED (150) per registration 2 years to 5 years AED (400) per registration 5 years to 10 years AED (800) per registration 10 years or more AED (1,000) per registration 19 Registration of a Sale of Asset or Movable Asset of a Prior Right Over a Movable Asset Less than 12 months AED (100) per registration 12 months to 24 months AED (150) per registration 2 years to 5 years AED (400) per registration 5 years to 10 years AED (800) per registration 10 years or more AED (1,000) per registration 20 Less than 12 months AED (100) per registration

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Cabinet Resolution of 2021, Concerning the Executive Regulations of Federal Law of 2020 on Securing Rights in Movable Assets 19 Registration of an Application of Possession of a Prior Right over a Movable Asset 12 months to 24 months AED (150) per registration 2 years to 5 years AED (400) per registration 5 years to 10 years AED (800) per registration 10 years or more AED (1,000) per registration 21 Offer to Own a Subject of Right over a Movable Asset to Register a Prior Right over a Movable Asset Less than 12 months AED (100) per registration 12 months to 24 months AED (150) per registration 2 years to 5 years AED (400) per registration 5 years to 10 years AED (800) per registration 10 years or more AED (1,000) per registration 22 Offer to Clear a Subject of Right over a Movable Asset from Liabilities to Register a Prior Right over a Movable Asset Less than 12 months AED (100) per registration 12 months to 24 months AED (150) per registration 2 years to 5 years AED (400) per registration 5 years to 10 years AED (800) per registration 10 years or more AED (1,000) per registration 23 Acceptance of the Offer to Clear a Subject of Right over a Movable Asset from Liabilities to Register a Prior Right over a Movable Asset Less than 12 months AED (100) per registration 12 months to 24 months AED (150) per registration 2 years to 5 years AED (400) per registration 5 years to 10 years AED (800) per registration 10 years or more AED (1,000) per registration 24 Registration of a Possession Order for a Prior Right over a Movable Asset Less than 12 months AED (100) per registration 12 months to 24 months AED (150) per registration

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Cabinet Resolution of 2021, Concerning the Executive Regulations of Federal Law of 2020 on Securing Rights in Movable Assets 20 2 years to 5 years AED (400) per registration 5 years to 10 years AED (800) per registration 10 years or more AED (1,000) per registration 25 Registration of a Possession Order for a Prior Right over a Movable Asset Less than 12 months AED (100) per registration 12 months to 24 months AED (150) per registration 2 years to 5 years AED (400) per registration 5 years to 10 years AED (800) per registration 10 years or more AED (1,000) per registration

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Cabinet Resolution of 2021, Concerning the Executive Regulations of Federal Law of 2020 on Securing Rights in Movable Assets 21 Appendix (2) Appended to Cabinet Resolution No. (29) of 2021 Schedule of Charges for the Register’s Services Sr. Service Description Charges in AED 1 Registration of rights established before enactment of the Law AED (50) per registration 2 Registration of a right AED (100) per registration 3 Amendment of registration AED (100) per registration 4 Extension of registration AED (100) per registration 5 Registration of attachment AED (200) per registration 6 Registration of amendment of attachment AED (200) per registration 7 Registration of revocation of attachment AED (200) per registration 8 Issuance of certified paper or electronic report AED (200) per registration

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