Federal Law No 20 of 2016 is a significant legislative development regarding Mortgage of Moveable Assets to Secure Dept that substantially changes the method in which moveable assets are charged. The Law makes publicizing in the Emirates
Integrated Registries Company L.L.C (EIRC) the only means of making pledge effective against third parties.
Benefits of registering your asset, collateral, or equipment include:
If you are buying goods, EIRC will provide information on whether any potential rights exist against the goods you wish to purchase. Protect yourself from being cheated.
If you are selling or leasing goods, an EIRC registration will indicate that you have a title or an interest in the goods that have been given on consignment or lease to a third party.
When you sell on retention of title or hiring or leasing, proper registration on EIRC will protect your interests.
Retention of title clause in your contract or invoice may not be enough to protect you. Protect your contracts by registering your interest.
Making a registration helps protect your interest in your goods when they are not in your possession or under your control.
For more information on the benefits of registering your collateral on EIRC and how to legally protect your assets, please visit our EIRC website.