The following words and phrases - wherever they appear in this Law - shall have the meanings set forth opposite them, unless the context requires otherwise:
Law: Commercial Mortgage Law.
Minister: Minister of Commerce.
Regulation: Implementing Regulation of the Law.
Mortgage Contract: An agreement whereby the debtor or his guarantor designates movable property as security for a debt, including any amendments or additions thereto.
Movable Property: Current or future movable property, or a future right.
Future Property: Potentially existing or existing assets that the mortgagor has not fully acquired at the time of the mortgage contract, such as assets contracted for construction, or movable assets under construction, or assets that did not have the status of movable property at the time of the mortgage contract.
Future Right: A debt that a person is obligated to pay to the mortgagor within a specified period, or a debt whose payment term has expired and has not been collected, including debts whose existence is contingent upon a condition related to another party for the mortgagor, or whose existence is probabilistic in relation to another party.
Mortgaged Property: The movable property provided or agreed to be provided as security for a debt.
Debt or Secured Debt: The debt, or part of the debt, for which the mortgaged property has been provided as security, including all types of obligations, current and future, whether fixed or contingent, monetary or non-monetary.
Mortgagor: The provider of the mortgage, whether he is the debtor or a collateral guarantor.
Mortgagee: The person - or persons as the case may be - to whom the mortgage has been provided for their benefit.
Trustee: A person agreed upon by the mortgagor and the mortgagee to hold the mortgaged property, or to maintain, invest, develop, or enhance it, or to collect its proceeds.
Holder: The person who has the mortgaged property in their possession, whether the mortgagor, the mortgagee, or the trustee.
Economic Entity: An entity that engages in commercial, professional, or other activities aimed at achieving profit.

• 1- The provisions of the Law apply to the written mortgage contract on movable property as a guarantee for a debt.

• 2- A mortgage contract is considered written if it includes the following data:

  • A- The names of the mortgagor, mortgagee, and debtor (if the mortgagor is a collateral guarantor), the notary if available, the identification of the holder among them, their addresses, and means of communication.

  • B- A description of the mortgaged property, its condition, and its value at the date of contracting, and for future property, a specification of its expected characteristics, the approximate date of its existence, and its approximate value.

  • C- A general description of the secured debt, or its amount, or the maximum limit to which it may extend, as applicable.

  • D- The date of the mortgage contract.

  • E- The due date of the secured debt, or the expected due date for the debt not established in the debtor's liability.

A mortgage may be established as a guarantee for a debt that is not fixed in the debtor's liability, including conditional debt or probable debt. The mortgage is considered valid from the date of the mortgage contract, not from the date of the debt's establishment.

The mortgage contract is effective against third parties through registration or by the transfer of possession of the mortgaged property to the mortgagee or the assignee, in accordance with the provisions of the Law on Securing Rights in Movable Property.

1- The judge may not be changed except by the agreement of the Mortgagor and the Mortgagee, and the judge has the right to claim Compensation for any damages resulting from this change.
2- Deleted.
3- Deleted.
4- Deleted.

A pledge contract that is not effective against a third party shall remain valid and effective between the pledger and the pledgee.