The Palestine Capital Market Authority has issued regulatory rules to govern the pledging of assets that are leased under financial leasing contracts, setting a clearer framework for how such pledges can be used in financing structures. The rules aim to balance financial leasing companies’ funding needs with lessees’ rights to acquire ownership once contractual obligations are met, while improving transparency and reducing legal and regulatory risks associated with pledges. They also regulate the relationship between financial leasing companies and financing providers, including a requirement to obtain the lessee’s independent consent to the pledge, and allow the Authority to take supervisory action where breaches occur. The rules take effect from the date of publication in the Official Gazette.
Palestine Capital Market Authority 2025-12-29
Palestine Capital Market Authority issues rules governing pledges of leased assets in financial leasing contracts
The Palestine Capital Market Authority has issued new rules governing the pledging of assets under financial leasing contracts, aiming to balance leasing companies' funding needs with lessees' ownership rights. The regulations enhance transparency, reduce legal risks, and require lessee consent for pledges, with supervisory actions for breaches. These rules are effective upon publication in the Official Gazette.