Cabinet Resolution No. (29) of 2021, Issuing the Executive Regulations of Federal Law No. (4) of 2020 Securing Rights in Moveable Assets (justice and juiciary law)

Article (1) 
 Definitions  
The definitions contained in Federal Law No. (4) of 2020 mentioned abov e 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) o f 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   
Cabinet Resolution No. (29) of 2021, Issuing the Executive Regulations of Federal Law on Securing Rights in 
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 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 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:    
Cabinet Resolution No. (29) of 2021, Issuing the Executive Regulations of Federal Law on Securing Rights in 
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 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; and  
5. Save the certified search reports, date and time of performing searches, and applied 
search criteria.

Article (3) Responsibility for The Documentation  Information  
1. The Register may not verify the contents of the registration or search application.  
2. The Register shall not be responsible for the validity or accuracy of the information 
included in the registration or the information entered in the Database of the Register.  
  
Requirements for Utilizing the Register Services

Article (4) Authorization for documenting the Registration  
1. A security contract shall be concluded in writing whether in the form of a formal or 
informal document.  
2. The security contract or any other authorization prior to the conclusion thereof shall be 
deemed sufficient evidence of the Pledgor's approval of the registration.  
3. The Register may not request a proof of the Pledgor's approval of the registration.

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.    
Cabinet Resolution No. (29) of 2021, Issuing the Executive Regulations of Federal Law on Securing Rights in 
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 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.

Article (6) Procedures for Searching the Database of the Register  
1. Any person may searc h 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 (7) Search Report  
1. Any person may submit an application to the Register to obtain a paper or electronic 
search report authentica ted by the Register and issued in accordance with the provisions   
Cabinet Resolution No. (29) of 2021, Issuing the Executive Regulations of Federal Law on Securing Rights in 
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 of article (7) of the Law.  
2. The application for obtaining the report shall be submitted by accessing the reports page 
available at the Register's website and filling in the form designated for this purpose.  
3. The search report shall include the information referred to in Paras. (4) and (5) of Article 
(6) of this Resolution.

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 informatio n 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 reg istration 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 (9) Registration Information  
Registration shall include the following information:  
1. Pledgor's and Pled gee's data pursuant to article (10) of this Resolution;  
2. Description of the Pledge pursuant to article (11) of this Resolution;  
3. Documentation validity period; and    
Cabinet Resolution No. (29) of 2021, Issuing the Executive Regulations of Federal Law on Securing Rights in 
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 4. Any other data required by the Register.

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   
Cabinet Resolution No. (29) of 2021, Issuing the Executive Regulations of Federal Law on Securing Rights in 
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 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".  
2. 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. 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.  
3. 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. 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 (12) Registration Language  
Registration shall be formulated on the Register website in Arabic or in English.

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   
Cabinet Resolution No. (29) of 2021, Issuing the Executive Regulations of Federal Law on Securing Rights in 
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 manner allowing the registration to appear in case of searching the registe r; 
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;  
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 o f 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   
Cabinet Resolution No. (29) of 2021, Issuing the Executive Regulations of Federal Law on Securing Rights in 
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 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 affec t security right 
enforceability against third parties or priority thereof:  
a. Transfer of security right; and  
b. Giving security right a lower priority .

Article (15) Registration of Extension  
1. Pledgee may amend registration for the purpose of extending validity period thereof by 
way of documenting an extension registration including the following:  
a. Documentation number of the registration subject of extension;  
b. Pledgees who approved the extension; and  
c. Date and time of expiry of the documentation.  
2. Extension shall be enforceable against Pledgees who approved the documentation of the 
registration.

Article (16) Registration of Voluntary Cancellation  
1. Cancellation of documented registration shall be enforced only against Pledgees who 
approved cancellation from the date and time of effecting the cancellation registration.  
2. The registration shall remain documented on the Database of the Register available for searching processes unless Pledgees approve cancellation thereof.

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   
Cabinet Resolution No. (29) of 2021, Issuing the Executive Regulations of Federal Law on Securing Rights in 
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 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 m ake 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 regist ration 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, 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 S ecurity Right against Third Party

Article (18) Control  
1. The security right established on credit accounts only may be enforced against third 
parties by way of control;  
2. The security right established on credit accounts shall be enforceable against thir d 
parties in either of the following two cases:  
a. If established in favor of the financial institution holding the credit accounts; and/ or  
b. If the Pledgor, Pledgee and the financial institution holding the credit account 
conclude a control agreement.  
    
Cabinet Resolution No. (29) of 2021, Issuing the Executive Regulations of Federal Law on Securing Rights in 
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 Priorities

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 
of an order or judgment despite that the right arising from the order or judgment 
becomes enforceable against third parties.

Article (20) Notice of Purchase Financing Served by Pledgee Holder of 
Security Right  
Notice of purcha se financing served by Pledgee holder of security right shall be deemed 
sufficient if served to Pledgee who has documented a registration of security right created in 
its favor over accounts receivable and addressed to its address mentioned in said 
registr ation.

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 partie s. 
2. The security right established on a credit account and enforceable against third parties   
Cabinet Resolution No. (29) of 2021, Issuing the Executive Regulations of Federal Law on Securing Rights in 
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 by virtue of a control agreement shall have priority over competing security rights, 
except for security right of the financial institution provided for in Claus e (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 tran sfer is 
aware that the transfer involves an infringement of Pledgee's rights under the security 
contract.  
  
Execution

Article (22) Notice of Execution  
1. The Pledgee shall include the following in the Notice of Execution mentioned in Article 
(27) of the Law:  
a. Notification of its intent to acquire the Pledge, and execute thereon;  
b. Identification of the Pledgor and Pledge executed thereon;  
c. Method of execution; an d 
d. Time and place of disposal of the Pledge.  
2. The notice mentioned in Clause (1) of this Article shall be deemed sufficient even if it includes additional information or minor errors which would not lead to serious 
misleading of third parties.

Article (23) Report on the Procedures of Sale  
The Pledgee who has executed on a Pledge under the provisions of article (33) of the Law   
Cabinet Resolution No. (29) of 2021, Issuing the Executive Regulations of Federal Law on Securing Rights in 
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 shall deposit the proceeds of execution in the treasury of the Court within whose jurisdiction 
the sale was made within two w orking days, according to the form of report on procedures 
of sale appended to this Resolution.  
  
Law Applicable to Security Rights on Intangible Funds

Article (24) Domicile of Pledgor  
Law of the Domicile of Pledgor shall apply to the establishment of se curity 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.

Article (25) Previous Security Rights  
Rights which became enforceable against third parties through registration on the register 
pursuant to the provisions of Federal Law No. (20) of 2016 on Mortgaging of Movable 
Assets as Security for Debts shall remain enforceable against third parties until expiry of 
enforcement thereof against third parties under the Law.

Article (26) Charges  
In exchange for the services provided by the entity in charge of the Register and specified in 
the schedule appended to this Resolution, the charges assigned to each of these services 
shall be collected by the means determined by the Ministry.

Article (27) Issuance of Resolutions    
Cabinet Resolution No. (29) of 2021, Issuing the Executive Regulations of Federal Law on Securing Rights in 
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 1. The entity responsible fo r managing the Register shall prepare all forms provided for in 
the Law, this Resolution, and the directives issued in implementation thereof; provided 
that the Minister shall issue a Resolution to this effect.  
2. Forms and directives shall be published on the Register's website within (3) three 
working days from the date of issuance thereof by the Minister.

Article (28) Executive Resolutions  
The Minister shall issue the resolutions necessary for implementing the provisions of this 
Resolution.

Article (29) Repeals  
Any provision contradicting or in conflict with the provisions of this Resolution is hereby 
repealed.

Article (30) Publication and Entry of this Resolution into Force  
This Res olution 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 AH.  
Corresponding to: 21 March 2021 AD.  
  
Appended to Cabinet Resolution No. (29) of 2021 Sale Procedures Report   
Cabinet Resolution No. (29) of 2021, Issuing the Executive Regulations of Federal Law on Securing Rights in 
Moveable Assets  15 
 Form  
Name of the 
Pledgor   Name of the 
Pledged person   
Name of the 
Pledgee   Date of security 
contract   
Name of the court 
rendering the 
possession order   Date of possession 
order   
Name and address 
of Pledge acquirer 
if a decision is 
made to place the 
Pledge under 
control of a third 
party   Name and address 
of the person for 
whom an order to 
place the Pled ge 
under his control 
is issued if the 
Pledge is acquired 
by a third party   
Names of other 
persons having 
registered rights 
on the Pledge  
  Owner of the 
moveable to 
which the Pledge 
is attached and 
acquirer of said 
moveable     
Cabinet Resolution No. (29) of 2021, Issuing the Executive Regulations of Federal Law on Securing Rights in 
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 Owner of the 
property wherein 
the Pledge is 
located and 
acquirer thereof if 
the Pledge is a 
fixture   Mortgagee of the 
property wherein 
the Pledge is 
located and name 
of acquirer if the 
Pledge is a fixture  
  
Date of the 
decision to use 
compulsory power 
if a decision is 
made to use 
compulsory power   Summary of the 
sale court order  
  
Minimum price 
set by the court   Maximum price 
set by the court   
Date of 
registration of the 
sale order   Method of sale  
  
Details of 
announcement of 
sale   Date and time of 
sale   
Method adopted  Price of the sale     
Cabinet Resolution No. (29) of 2021, Issuing the Executive Regulations of Federal Law on Securing Rights in 
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 for determination 
of the fair sale 
price   
Name and address 
of the purchaser  
  Relationship 
between the 
purchaser and 
Pledgee   
Number of 
payment receipts 
whereunder sale 
price was 
deposited  
  Date of permitting 
sale of the Pledge 
exposed to 
destruction, 
damage or 
depreciation   
  
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    
Cabinet Resolution No. (29) of 2021, Issuing the Executive Regulations of Federal Law on Securing Rights in 
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 3 
 Amendment of registration  
 AED (100) per 
registration  
4 
 Extension of registration  
 AED (100) per 
registra tion  
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