Article 10 of the Saudi Finance Lease Law

This article opens a financing route for finance lease companies, as it allows securities to be issued against the lessor's rights. The lessor, under Article 1, is the joint-stock company licensed to engage in finance leasing.

The article did not detail the conditions or procedures for this issuance, or the types of securities, but referred all of that to the regulations and rules issued by the Capital Market Authority. So issuance is made only in accordance with those regulations and rules, and anyone wanting to know its details must refer to them.

This article concerns first of all finance lease companies, investors in securities, and the bodies that regulate the capital market. As for the lessee, the article does not directly address its obligations; the provisions of the contract and the Law continue to govern its relationship with the lessor, such as its obligation to pay the rent and the rules on loss of the asset.

This article sits alongside Article 9, which regulates the risk of loss of the asset and cooperative insurance on it, and Article 11, which allows the lessee to assign the contract to another lessee with the lessor's consent. Anyone needing advice on issuing securities of this kind can consult a lawyer specializing in banking, finance, finance lease and securities cases.