UAE Law and Practice Contributed by: Abdelhak Attalah and Ghassan Hidar, Attalah Legal Consultancy
Mortgage Over Movable Property Security over movable property is governed by Arti - cles 45–52 of the Commercial Transactions Law and Article 3 of Federal Law No 4 of 2020 on Securing the Rights in Movables. The types of assets that can be pledged include: • receivables; • bank accounts, including both current and deposit accounts; • transferable bonds and documents, including commercial paper, bank deposit certificates, docu - ments of carriage, and goods deposit certificates; • equipment and work tools; • business assets, including both material and moral elements that are governed by commercial trans - action and trade mark law; • inventory and raw materials, including goods intended for sale or rental, raw materials and goods in the process of manufacturing or transformation; • agricultural products, including animals and their products, such as fish and bees; • immovable property by allocation, akin to the con - cept of fixtures in English law; and • other movables capable of being subject to secu - rity, as stipulated by UAE laws. Key takeaways for creditors To ensure claims on assets are validated against third parties, it is crucial that a mortgage over movable property is registered with the Emirates Integrated Registries Company (EIRC). It should be noted that certain movables require the registration of security rights in specific registers according to applicable legislation. These include: • company shares, which should be registered at the relevant Department of Economic Development; • vehicles, which should be registered at the Traffic Department; • ships, which should be registered at the Ship Reg - istration Administration; and • aircraft, which should be registered at the General Civil Aviation Authority (GCAA).
Mortgage Over Ships The maritime mortgages register is an official record managed by the Ministry of Energy and Infrastruc - ture, and access to it is restricted to owners unless authorised by official documentation. Article 24, par - agraph 4, of the Federal Maritime Code requires all legal transactions and rights affecting a ship, including mortgages, to be documented in the Ship Register. The Ministry of Energy and Infrastructure is responsi - ble for maintaining maritime mortgage registrations, as per Article 13, paragraph 1. Article 41, paragraph 3, outlines the procedures for registering a maritime mortgage, even for ships under construction. Article 42 specifies that a ship mort - gage must be accompanied by certified signatures of the parties involved, and that modern technological means can be used for mortgage transactions. Mortgage Over Aircrafts It is possible to register a mortgage over a UAE-regis - tered aircraft. Mortgages must adhere to the general guidelines outlined in Section 3 of the Commercial Transactions Code, titled “Commercial pledge”. The GCAA facilitates the registration of mortgages, leases and financing documents, and the EEIRC serves as the primary registry for registering security interests over aircraft in the UAE. Mortgage Over Immovable Property Pursuant to Articles 1399–1410 and 1412–1447 of the Civil Transactions Code, creditors can secure debts using immovable property (real estate). For the mortgage to be valid, it must be documented with a notarised deed that specifies the debt amount. Law No 14 of 2008 Concerning Mortgages in the Emir - ate of Dubai is a key piece of legislation that regulates the mortgage industry in Dubai. Rights and Remedies Under Article 3 of Federal Law No 4 of 2020 on Secur - ing the Rights in Movables, the pledgees of mova - ble assets listed therein can take possession of the secured property without court assistance. This right to self-help allows the pledgees immediate recourse against the pledged items, as outlined in Articles 27 and 28 of the same law. For the other properties
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