Article 16 of the Saudi Law on Security Rights in Movable Assets

This article opens the provisions on registration, which according to Article 1 is entering the security right and anything that changes it in the Registry. It contains two provisions:

1) The grantor's consent: a registration of a security right is given no effect except with the written consent of the grantor. A creditor cannot register a right over a person's assets without his written consent.

2) The method of registration: registration is completed by meeting the procedures in the Implementing Regulations, by filling in the electronic form prepared for it, which must contain:

1. The grantor's details: his name according to his official documents, and his identity or registration number.
2. The name of the secured party, his address and his contact details.
3. A description of the collateral under paragraph (1)(d) of Article 6, that is, a general or specific description that allows it to be identified, which may describe it as all of the grantor's assets or a specific or general category or type of them.
4. The registration's end date.

Note that, according to this article, the form does not require stating the amount of the secured obligation, whereas Article 6 requires, for a security right to be valid between its parties, that it be in writing and that the secured obligation be described in a general or specific way, "including stating its maximum amount".

This article follows Article 15 on assigning a security right without registration, and is followed by Article 17 on the lapse of registration. To make sure the registration details are correct, it is advisable to consult a lawyer specialized in commercial and finance matters.