How are Security and Investment Portfolios Reserved?
This question is answered by the security lawyer’s team at RHR for advocacy and legal advices according to the executive regulation for Money markets authority establishing and security regulation law in Kuwait State.
The regulation allowed for every realized loan debtor by certain amount, and it’s time to pay to reserve on his debtor’s security, investment portfolios, profits, revenues, and approved rights at the issuers, obligators and clearing agency even those rights were suspended or pended on condition, and it is not permitted to reserve security which are restricted by combined accounts according to a debt or adjudication or any executive document on the combined account administrator.
Reservation of Security and Investment Portfolios
Reservation on security restricted by the debtor is by reserving on what for the debtor at others and this reservation is mentioned in that security records at the issuing company for it and clearing agency which keeps this record.
Also, reservation on investment portfolios by seizing on what the debtor has at others, this reservation is mentioned at those investment portfolios administrator.
If the reservation wasn’t occurred on a certain security or its entitlement according to that he reserves all security, profits, revenues, and entitlements which the debtor may have on his authority at the time of reservation occurrence, besides all what results from it of rights owed by the debtor after that till the time of his holding’s report.
If the creditor has no executive document or his debt wasn’t by certain amount, it is not permitted to reserve unless by temporary affairs judge authorizing within its reservation and estimating the seizor’s debt temporarily according to petition presented by the reservation requester, even though there is no need to this permission if the creditor has an adjudication even not enforceable if the determined debt within it by certain amount.
Reservation on Mortgaged Security and Investment Portfolios
If the security or investment portfolios are mortgaged or consequent upon it a franchise, it should be announced those creditors who are restricted right holders of reservation occurrence, and those creditors are considered once they are announced a party in the procedures as a law enforcement reservators.
Reservation Announcement to The reserved person
Reservation occurs without needing to announce the debtor by a document announced by the advertising representatives competent by executive administration to the reserved for, and includes the following data:
- Adjudication copy or executive document which reservation is done by or the judge’s permission or his order of estimating the debt.
- Statement of the original amount which is reserved for and its attachments.
- Mentioning the reserved for person by denying every unknowledge if the reservation is occurred on certain amount, and announcing the reservator to prevent fulfilling what he owns to the reserved person or delivering it to him.
- Seizor’s country, work location and locating a chosen location for him in Kuwait if he hasn’t a location or work location in it.
- Assigning the reserved for person by presenting a financial liability by authority of the whole court writers through ten days of announcing him of reservation.
If the document hasn’t included the data mentioned in articles (1), (2), (3) latterly mentioned, the reservation is considered void, and it is permitted to everyone who has interest to adhere that nullity.
Reservation Announcement to The Reserved Person
The reservator should announce the reserved person by a document announced same way which the reservation been announced to the reservator, including mentioning the reservation occurrence and its date and required data, and it is permitted to announce by the same document after announcing with it to the reservator.
Also, the reservator should announce reservation to the reserved person through the next eight days from announcing the reservator, unless reservation is considered null, and when accountability of the reservators it should be estimated the time limit for everyone separately.
The Seizor’s Litigation of Proof of Right and Validity of Reservation
The reservator should through the eight next days from announcing the reserved person sue a lawsuit in front of the competent court by proof of right and validity of reservation, and that in cases which the reservation is by an order of the judge unless that the reservation is considered null, and if the reserved person disputed in this lawsuit he shouldn’t ask for bringing him out of it, and the adjudication resulted from it is not considered for him an argument but in the validity of reservation procedures, and if the lawsuit by the right is prior to reservation occurrence then the court which is competent by examining the right litigation is also competent by the validity of reservation.
The Reserved Person Right to Sue a Lawsuit Requiring to Hold Reservation
The reserved person has the right to sue a lawsuit asking for holding reservation in front of the competent court and as a consequence of announcing the executive administration of this lawsuit is suspension of the execution profit proceed, and doesn’t result in stopping selling unless the court which examines the lawsuit ordered by that.
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To book an appointment or request legal advice about the duties of securities companies in the optimal implementation of clients’ orders, we are pleased to receive your inquiries at (info@Taqneen.com).