1. Wherever used in this Regulation, the following words and phrases shall have the same meaning as provided for in Article (1) of the Law on Securing Interest in Movable Property issued by Royal Decree No. (m/ 94 ) dated (15/08/1441 ).

2. Wherever used in this Regulation, the following words and phrases shall have the meanings ascribed thereto hereunder: 

• - Security Provider’s Identifier: The ID number, the commercial registry number, or the Security Provider’s name in accordance with paragraph (b) of Article (8) of the Regulation.

• - VIN: The vehicle identification number (VIN) marked thereon by the manufacturer in a manner that cannot be altered.

• - Serial-Numbered Vehicle: The vehicle which has its VIN marked thereon and licensed to be used in the Kingdom in accordance with the relevant regulations.

• - Search Tools are:

  • a. Publicizing Number.

  • b. Security Provider’s Identifier.

  • c. VIN, in the event where the Collateral is a Serial-Numbered Vehicle.

For the purposes of applying the provisions of the Law, a Collateral shall mean any of the following:

• a. a tangible Movable Property or an instrument transferable by delivery or endorsement that is located in the Kingdom at the time of creation of the interest.

• b. If the Collateral is a tangible movable property that is ordinarily used in more than one state and was not located in the Kingdom at the time of creation of interest, in any of the following events:

  • 1. If it was destined to the Kingdom or intended to be transferred thereto.

  • 2. If the Security Provider is domiciled in the Kingdom.

c. Intangible movable property or receivables and if the domicile of the Security Provider is in the Kingdom, even if the Collateral is not located or payable in the Kingdom.

1. Possession shall be considered the only means for enforceability of the security interest toward third parties if the collateral is any of the following:

• a. Written instruments transferable by delivery or endorsement, where possession shall be through endorsement to the Secured Party or delivery to him or to a trustee (adel).

• b. Credit accounts at banks and other financial institutions, including deposit, current and saving accounts.

• c. Cash amounts unless they were proceeds of the Collateral towards Security Interests which are enforceable toward third parties.

2. Security Interest shall not become enforceable towards third parties – in accordance with paragraph (1) of this Article- through publicizing.

Upon non-judicial enforcement on the collateral in accordance with Article 23 of the Law, the Secured Party shall observe the need to notify the Security Provider upon default to discharge the secured obligation as agreed between them provided that sale of the collateral is effected against the fair price.

1. A security interest enforceable toward third parties shall automatically extend to the proceeds if such proceeds are described in the Notice or identifiable cash.

2. A security interest enforceable toward third parties shall automatically extend to proceeds of the collateral other than those stated in paragraph (1) of this Article for a period of fifteen days as of the proceeds were received by the security provider, such effectiveness shall cease after the lapse of that period unless the Security Interest was enforced through these proceeds prior to the lapse of that period.

Registry Services listed under this Implementing Regulations shall be offered electronically via the Registry’s website.

1. Whoever shall use the Registry’s services must fulfill the requirements set out for such services.

2. Data and Information shall be listed in the Registry in Arabic; however, it can be listed in English – whenever necessary.

1. The Secured Party shall publicize the Security Interest in the Registry; provided that publicizing shall include the following:

• a) The name of the Security Provider and his details.

• b) Security Provider’s Identifier, as follows:

  • 1) If he/she is a Saudi natural person, whether the security interest was provided by him/her or through his/her enterprise: The National Identification Number the national number of the establishment for the said sole proprietorship may not be used.

  • 2) If he/she is a non-Saudi natural person who is resident in the kingdom: The Residency Identification Number.

  • 3) If he/she is a non-Saudi natural person who is not resident in the kingdom: Passport number and the Country which issued it.

  • 4) If it is a Saudi juridical person: Registration number or the Establishment’s National Number – depending on its type.

  • 5) If it is a non-Saudi juridical person: Name in English.

  • 6) If it is a Saudi juridical person which does not have a commercial registration number or an establishment number: Name in Arabic.

• c) Secured Party’s name and details

• d) Description of the Collateral and such requirement may be satisfied if the description of the collateral indicates that the collateral consists of all of the Security Provider’s movable property, or it is within a certain or general category or class, and if the Collateral is serial numbered vehicles, the VIN assigned to it may be included.

• e) The termination date of the Notice.

• f) Any other details required by the Registry.

2. . In the event where he/she is a Saudi natural or juridical person, the name of the Security Provider and the Secured Party shall be listed in Arabic according to the official documents, apart from that names shall be listed in English according to official documents.

3. No evidence is required to be submitted to the Registry related to the interest to be publicized, including the Security Provider’s authorization.