Cabinet Decision No. 5/2018 Concerning the Implementing Regulation of Federal Law No 20/2016 on Mortgaging Moveable Properties to Secure a Debt

The Cabinet:

Pursuant to the perusal of the Constitution,

Federal Law No. 1/1972 on Competencies of the Ministries and Powers of the Ministers and its amendments;

Federal Law No. 20/2016 on Mortgaging Moveable Properties to Secure a Debt and its amendments; and

Based on the proposal of the Minister of Finance and the approval of the Cabinet,

Has issued the following Decision:

Article 1 - Definitions

In application of the provisions of the present Decision, the following words and expressions shall have the meanings assigned thereto, unless the context requires otherwise:

State: United Arab Emirates.

Minister: Minister of Finance.

Lien: A security right giving rise to an accessory real right to keep possession of a movable property to secure the performance of an obligation.

Mortgaged Property: Movable property that is placed as a guarantee to secure the performance of an obligation.

Mortgagee: Lender who benefits from the lien.

Mortgager: Owner of the Mortgaged Property.

Principal: The debtor who owes the secured obligation if he is not the owner of the Mortgaged Property.