Law 26 Of 2015, Non-Performing Debt Settlement With The Public Banks

Original Language Title: القانون 26 لعام 2015 تسوية الديون المتعثرة لدى المصارف العامة

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Read the untranslated law here: http://parliament.gov.sy/arabic/index.php?node=201&nid=15922&RID=-1&Last=10058&First=0&CurrentPage=0&Vld=-1&Mode=&Service=-1&Loc1=&Key1=&SDate=&EDate=&Year=&Country=&Num=&Dep=-1&

Law 26 of 2015

Distressed debt settlement with public banks




President of the Republic based on the provisions of the Constitution,

And approved by the People's Assembly in its meeting held on 16/04/1437 AH corresponding to 27-12- 2015 AD.

Issued the following:
Article 1


Words and phrases contained in this Act have the meanings indicated next to each of them ..

Bank: a public institution of an economic nature has legal personality and financial and administrative independence and operate in accordance with the provisions of the applicable laws, particularly Law No. 2 of 2005.

Board The Board of Directors of the Bank.

Debtor: legal or natural person who follows the religion of his trust to the bank.

Religion: The remaining amount of the outstanding loan or facility granted.

Aftershocks Religion: regular benefits and benefits The delay and fines and fees and all expenses arising from the debt.

Mass religion: the amount resulting from the debtor a comprehensive debt and its consequences for the bank.

Waiver: waiver of bank debt for a block partially or completely.

Settlement: an agreement between the bank and the debtor or intervenor on debt repayment schedule block.

Settlement agreement: a contract between the bank and the debtor or intervener to implement the settlement.

Short-term debt: debt with original maturity of up to a year.

Medium-term debt: debt with original maturity of more than one year and up to five years.

Long-term debt: debt with original maturity of more than five years.

Interest Inclination: regular interest contained in the body of the loan facility or contract.

The delay interest: interest rate applicable in the bank applied to amounts owed unpaid debt.

Intervener: natural or legal person who applies for the settlement of the debtor as a guarantor or damaged, or an agent with the knowledge of the debtor or without his knowledge.

Installments due and outstanding: the amounts and benefits that the client was delayed for paid and unpaid until the date of settlement.
Article 2


A - Bank may make a settlement in accordance with the provisions of this law after making sure to check the following conditions are combined:

1 - evidence of the debtor's inability to pay in accordance with the specific benefits.

2 - proved that the settlement helps to collect the debt repayment and the largest block enough of the available alternative procedures in accordance with the laws and regulations in force.

3 - proven creditworthiness of the debtor or the intervener on the settlement and its ability to pay according to the terms of the settlement to be concluded .. and that tripping or inability to pay in accordance with the existing contracts but due to reasons beyond the control of the debtor and after confirming the adequacy of safeguards.

B - Contrary to the provisions of paragraph (a) / 3 / of this article and the provisions of item A / 3/1 of Article / 10 / can the settlement procedure in cases where the seriousness of the client debtor proves to pay its obligations, but that it can not, for reasons justified provide credit prove its worth or enhancement request additional collateral and are in the settlement of these cases with the consent of the Director General of the bank, "chairman of the settlements," and on his responsibility.
Article 3


The bank conducting settlement in accordance with the following conditions:


A - settlement procedure on the entire religion mass for a period not exceeding ten years maximum, "including allowing" or the remaining term of the basic contract, whichever is longer period .. determined duration depending on the type of religion and within the deadlines specified in Article / 4 / of the Act .

B - determines the debt in monthly installments balances maturity quarterly or semi-annual dates .. and come back to the Council identified settlement agreement based on a study-related factors, the nature of the debtor's activities or intervenor and cash flows resulting from it and the working capital cycle .. and that includes the repayment installment with interest.

C - re-setting of interest rates and Streptococcus are subjected to debt that will be settled in interest rates according to the approved rates on the bank settlement and charged on similar credit facilities.
Article 4


A - the Council determine the repayment of the debt, including the mass allowed in accordance with the periods specified below, or the remaining term of the basic contract, whichever is longer period of time.

A maximum of two years from the date of the signing of the settlement agreement for each short-term loan.

B - may Council and the responsibility if there are two or more blocks of the integration of religion and the adoption of longer-term debt in the settlement .. so in case there is an interest of the bank to do so.
Article 5


A - exempt premiums payable outstanding based on the issuance of this law all the benefits of delay and fines without benefits in the event of streptococcus has been paid in full within six months of the effective date of this Act.

B - the bank may accept the request of the debtor or the intervener to pay the entire debt block or all installments due is paid with the consequences of the debt incurred to the date of payment instead of signing the listing agreement and the remaining installments is payable in accordance with the previous debt contracts in the original schedule .. condition make sure provide the conditions set out clause (a) / 3 of article / 2 / of the Act for the partial repayment of the debt, "the unpaid installments due with the aftershocks of religion only," and according to the instructions specified in the executive of this law controls.
Article 6


A - is offered a settlement request and recorded in the office of the branch concerned or the Office of the General Directorate of the bank and the bank's decision on the request for a settlement within three months from the date of registration of the request updated all the required documents .. and the debtor or intervenor that shows in the request for the settlement and the responsibility Title residence and take him in addition, choosing a title .. the notification to any of the addresses or via text messages or newspapers in the case could not be reported to any of the product that addresses the full legal consequences.

B - In order to accept the settlement request .. attaching a financial nature worth 1,000 Syrian pounds.

Attach a notice to pay the amount of 5,000 Syrian pounds to the bank fund to consider the request .. does not that amount be returned to the debtor in case of rejection.

C - collected from the debtor or intervenor boost goodwill by between 5 percent and a minimum of 10 percent maximum of the total value of installments due and unpaid at the signing of the settlement agreement and in accordance with what is specified in the executive regulations of this law.
Article 7


A - The Bank may and decision of the Board to waive the debt entirely block in the following two cases:


1 - If the expenses that result in the bank to pay for a court ruling eliminates compel the debtor to pay the debt bloc and its implementation or sell mortgaged eye outweigh the debt block or draw.

2 - Ten years after the death of the debtor without the legacy and without collateral or guarantors of the debt.

B - in case of the demise of the situation that led to the assignment of the debt claim block on the Council debtor mass religion in whole or in part .. has no right to stick to the previous waiver.
Article
8

Bank may and decision of the Board to waive the debt partially block in the following cases:

A - the debtor's obligation or full intervenor settlement terms only when the settlement for the first time in accordance with the provisions of this law .. and be waived for full benefits The delay by deferring payment of benefits of the delay to the last installment and exemption from payment in the event of the full terms of the settlement obligation.

B - debt exceeded twice the mass of the debt so that may be assigned part of the consequences of the debt and up to the value of this excess.

C - the debtor or the intervener to pay the debt with full interest Streptococcus implications until the date of payment .. then be waived benefits The delay and the outstanding fines in excess of the contractual interest rate.

D - the debtor or the intervener to pay the goodwill of a boost than 50 percent of the mass of religion .. and then be waived 50 percent of full benefits The delay and the outstanding fines in excess of the contractual interest rate that is subject to the remaining portion of the outstanding debt bloc settlement in accordance with the provisions of this law.
Article 9


Longer indebtedness or balances not exceeding the amount of 25,000 Syrian pounds, which is older than fifteen years have not been collected or Trginha virtue of bad debts .. and addresses allocated to it in accordance with the regulations in force provisioning .. and may be increasing the amount or decrease the duration by decision of the Minister of Finance at the request of the concerned bank.
Article 10


A - boards of public banks and management is committed to the adoption of detailed regulations governing the deciding requests and settlement processes and operations partial waiver Owalkla which is made according to the provisions of this Act and instructed the executive to include these controls are clearly defined entities authorized to decide such applications within the bank and the distribution of these powers-committee process which will form the bank according to the size of the credit facility subject of the settlement and its importance relative as follows:

Formation of a committee in the overall management of the bank decision of the Council called for the Settlement Committee, headed by Director-General and would be responsible for the follow-up settlement processes that are branches in accordance with the provisions of this law .. and bit applications for settlement worth more than limit authorized for committees of branches and not to exceed the limit specified detailed controls referred to above.

The formation of committees with some branches and the decision of the Director-General would be responsible for studying the settlement requests and decide on applications that are not worth more than the limit specified detailed controls referred to above.

Back to the Council to decide applications for settlement in the following cases:


3/1 / exceptional cases detailed regulations do not apply approved by the Council and not contrary to the provisions of this Act and instructed the executive.



3/2 / cases that exceed the limit specified within the detailed controls and referred to in paragraph (a) / 2 above.



B - is committed to those specific paragraph / a / above when deciding on applications for settlement on the basis of its decision to the detailed study and reasoned prepared in accordance with modern and accurate queries dealing with the reality of the debtor or the intervenor, religion and its affiliates and the financial situation of the debtor or intervenor and guarantees in-kind and personal has an opinion on the request of the settlement and the reasons for tripping and propose all that is useful and appropriate in this regard and so that is raised this study as a basis for making the right decision by the party her authority as specified in paragraph / a / above.

C - The Committee on Settlements report periodically to the Council leveling operations that have been made in accordance with the provisions of this law in order to ensure the adequacy of the actions taken regarding settlement processes and enable the Council to take appropriate decisions in this regard.

D - the right for the Council and Settlement Committee may enlist the competence and expertise in the field of non-performing and risk management Debt Settlement .. and the right of the bank to grant the appropriate compensation expertise under a decision issued by the Minister of Finance, and without being restricted to maximum limits adopted laws and regulations in force.
Article 11


A - include the organization of settlement agreements in accordance with the provisions of the full amounts due and owed by law provided that the agreement will be signed within thirty business day period beginning on the day following the date of the debtor or intervenor settlement decision.

B - Bank is committed to notify the debtor or intervenor settlement decision within a maximum period of ten working days from the date of issuance of this decision .. and if this is not possible for reasons beyond the control of the bank settlement is a decision to void a ruling within forty business days from the date of issuance.
Article 12


Settled discounted bonds payable outstanding between the bank and the parties to the bonds for a period not in excess of the legal limit for support .. and be repayable in a single payment or in batches .. and vows in front of the bank bonds parties to abide by the settlement agreement.
Article 13


The settlement agreement is void if the debtor fails or intervenor partially or completely pay four monthly installments or two installments Rbaaan or semi-annual installments .. It demands then fines and delay interests exempted so that the debt covered by the funds shall be returned to this law to the original accounts and every settlement and every religion separately .. and applied to the installments due interest the delay in force in the bank.
Article 14


Guarantees provided for the debts to be settled remains under this law in force and remains debtors principals, sponsors and guarantors reservists and their heirs committed to previous pledges to the Bank judgment .. In case of insufficient collateral request additional collateral in accordance with what is specified in the executive regulations of this law.
Article 15


Debtor or intervenor benefit from the payment of the premium owed unpaid deadline for only thirty days from the day following the maturity date without prejudice to the right of the bank to impose benefits The delay, starting from the day following the due date until the date of payment.
Article 16


A - gives the debtor or intervenor allow for the payment of the first installment no later than six months from the date of signing of the settlement agreement period.


B - the right of the debtor or the intervener to repay any installment ahead of schedule without incurring any additional costs .. and will be deducted the amount of interest for the period between the date of payment and the date of maturity of premiums paid early.
Article 17


Prosecution and operational action stops below sales phase auction and stop the implementation of court judgments entered against debtors and guarantors covered by the provisions of this law, while keeping in place the executable file without having to renovated .. In the case of considering the settlement agreement null and void in accordance with the provisions of this Act and instructed the Executive be followed up judicial and executive actions in accordance with the stage reached by the results arising therefrom.
Article 18


A - determines the number of times the settlement, which the customer can use them in accordance with the provisions of this law within the executive instructions specifying special controls in all of them and so that you are doubling the percentage boost goodwill in every time resubmit the process of scheduling or settlement is carried out.

B - without prejudice to the provisions and controls most prescribed window receivables covered under the legislation does not benefit from the provisions of this law, any loan or new credit facilities directly or indirectly from the same bank, and so over the settlement period.

C - The Board may exempt from the provisions of paragraph / b / above may approve granting the debtor committed settlement agreement a new credit facility after the repayment of at least 50 percent of the mass of debt that were subject to settlement under the provisions of this law.
Article
19

Provisions of this Act shall apply to all existing debt with the bank on force or that arise later.
Article 20


Council respect of any matter concerning the settlement not contrary to the provisions of this Act and instructed the executive.
Article 21


The Council to reconsider the applied has operations system and the adoption of controls referred to Article No. / 10 / accordance with the provisions of this law within a period not exceeding three months from the date of entry into force.
Article 22


Provisions of the Trade Act applied .. and regulations and other related everything not provided for in this Act and laws.
Article 23


Finished the provisions of Decree No. 213 for the year 2006.
Article 24


Minister of Finance shall issue the executive regulations of this law.
Article 25


This law shall be published in the Official Gazette.

Damascus 03.18.1437 / AH corresponding to 12/29/2015 AD's.

President
Bashar al-Assad