Cabinet Decree No. 32 of the year 2024 Amending Certain Provisions of the Executive Regulations of the Mortgage Finance Law Promulgated By Prime Minister Decree No. 1 for the Year 2001 = قرار مجلس الوزراء رقم 32 لسنة 2024 بتعديل بعض أحكام اللائحة التنفيذية لقانون التمويل العقاري الصادرة بقرار مجلس الوزراء رقم 1 لسنة 2001

Abstract

Article 1: The texts of the first paragraph of article (27) and item “4” of article (35) of the Executive Regulations of the Mortgage Finance Law, referred to, shall be substituted with the following texts: (Article 27 - first paragraph): The company licensed to practice the mortgage finance activity shall take the form of an Egyptian joint stock company. The issued and paid-up capital thereof shall not be less than one hundred million pounds in cash or their equivalent in foreign currencies at the exchange rate announced by the CBE, on the date of incorporating the company. (Article 35 - item “4”): 4- The cash liquid funds and the like, the bank certificates of deposit and savings certificates, the government treasury bills, instruments of the money market funds and the debt instrument funds proportional to the net cash outflows, within thirty calendar days, shall not be less than 100%. Article 2: Two new paragraphs; third and fourth, shall be added to article (26 Bis) of the Executive Regulations of the Mortgage Finance Law, referred to, reading as follows: Article (26 Bis) - third and fourth paragraphs): In cases where the real estate guarantee contained in the finance agreement is not registered in favor of the financier, cases of temporary waiver of the allocation in favor of the financier as per article (2) of these regulations, as well as cases of leasing, participation and Murabahah, the financier may, in the event that the investor does not pay the amounts owed to him and thirty days have passed from their due date, address a warning to the investor to pay within sixty days. The warning shall include the particulars prescribed by article (17) of these regulations. In the event that the investor does not pay the amounts due within the period referred to in the previous paragraph, the financier may request the execution judge in whose jurisdiction the guarantor property is located to order the execution on that property, and to appoint a real estate agent from among the agents registered with the Authority, to proceed with selling the property, under the direct supervision of the execution judge. The following procedures shall be followed to obtain his dues: (A) Determining the market value of the property by two real estate appraisal experts registered with the Authority. (B) Selling the property at the highest available price, taking into account the evaluations of the two real estate appraisal experts and the financier’s receipt of his dues, in addition to delay fines besides all expenses and costs incurred thereby till the date of sale. The amount remaining from the sale proceeds shall be refunded in full to the investor.