FINANCIAL LEASING ACT, 2013

Arrangement of Sections

PART I

PRELIMINARY

1. Short title.

2. Interpretation.

3. Application.

PART II

FORMATION OF FINANCIAL LEASE

4. Financial Lease.

5. Form of contract.

6. Subject matter of financial lease.

7. Financial lease payments.

8. Irrevocability and independence.

9. Delivery and acceptance of the asset.

10. Freedom of contract.

PART III

RIGHTS, OBLIGATIONS AND DUTIES

11. Rights and obligations of the lessor.

12. Duties of the supplier.

13. Rights and obligations of lessee.

14. Return of asset.

15. Supply agreement.

16. Termination or variation of conditions of a supply agreement.

17. Non-liability of lessor for loss in relation to the asset.

18. Priority of lessor's claim against third party and insolvency of a lessee.

19. Third party claims and insolvency.

20. Lessee's trustees in bankruptcy or creditors.

21. Transfer or assignment of financial lease.

22. Transfer of lessee's rights in the asset.

23. Removal of leased asset from Seychelles without lessor's permission.

24. Priority of liens.

25. Default by lessee.

26. Accelerated payment or termination with notice to leave.

27. Repossession.

28. Recovery of payment due under the financial lease.

29. Savings of other remedies.

PART IV

REGISTRATION OF FINANCIAL LEASE AND LEASED ASSETS

30. Registration of financial lease.

PART V

LICENSING

31. Financial Leasing Licence required.

32. Approval to accept deposits.

33. Licence Application.

34. Granting of licence.

35. Licensing.

36. Approval required for banks to engage in financial leasing as part of its banking licence.

37. Annual licence fee.

38. Licensee to comply with rules, directions and instruments.

39. Approval for branches.

40. Restriction on use of words.

41. Revocation of licence of approval.

42. Power of the Central Bank to prohibit operations of licencee.

43. Urgent action.

44. Appeals.

45. Suspension of business on revocation of licence of approval.

46. Surrender of licence.

47. Revocation and variation of approval for branch business.

48. Effect of carrying on financial leasing business without a licence.

49. Inspection of financial leasing institutions.

PART VI

PRUDENTIAL REQUIREMENTS

50. Prudential requirements.

51. Other duties.

PART VII

ACCOUNTS, AUDIT INFORMATION AND INSPECTION

52. Annual Balance Sheet, etc.

53. Audit.

54. Audit committee.

55. Publication and display of balance sheets, etc.

56. Records.

57. Periodic statements.

58. Disclosure requirements.

59. Inspection of financial leasing institutions.

PART VIII

POWERS OF THE CENTRAL BANK AND OFFICERS

60. Persons qualified to be administrators.

61. Central Bank to be notified of change in administrators.

62. Administrator to declare personal interest.

63. Bribery and collusion.

64. Acquisition of substantial interest.

65. Merger.

66. Ban on receipt of deposits.

67. Disclosure of information restricted.

68. Confidentiality of information.

69. Exchange of information.

70. Publication of information by Central Bank.

71. Central Bank's power over unsafe practices.

72. Suspension unaffected by appeal.

73. Prohibited operations.

74. Approval to transfer assets.

75. General Directions.

PART IX

MISCELLANEOUS

76. Administration of abandoned property.

77. Offences.

78. Penalty for offence.

79. Protection from suit.

80. Review by court.

81. Regulations.

82. Rules of court.

83. Non-application of Act.

84. Compounding of offences.

85. Application of Companies Act.

8 of 2013.

AN ACT to provide for the regulation of Financial Leasing Business; to specify the rights and duties of lessors and lessees and suppliers of asset; to provide for the licensing, regulation and monitoring of Financial Leasing Institutions and for matters connected therewith or incidental thereto.

[Date of commencement: 1st March 2014]

PART I

PRELIMINARY

1. Short title.

This Act may be cited as the Financial Leasing Act, 2013.

2. Interpretation.

In this Act—

"asset" means an asset which is the subject of a financial lease and include any movable tangible asset but does not include—

(a) any improvements made to land other than fixtures or immovable property attached to land which can be removed from the land without substantial destruction to such fixture or immovable property;

(b) money, shares, investments, securities, any financial instruments or any other movables whose fee circulation in Seychelles is restricted by law;

"administrator", in relation to a financial leasing institution, means any person who is a director or managing director of such institution, or in the case of a branch of a foreign financial leasing institution, the person designated as managing agent pursuant to section 313(1) of the Companies Act;

"assigned capital", in relation to a branch of a foreign financial leasing institution, means unimpaired capital assigned to the branch by its head office;

"assignment" means the transfer of rights and obligations, including the right to title and ownership of assets under a financial lease to a third party and includes assignment of rights and rent receivables;

"bank" and "banking business" have the meaning given to them under the Financial Institutions Act, 2004;

"Board" means the Board of the Central Bank;

"close relation", in relation to an administrator or a natural person holding a substantial interest in a financial leasing institution, means spouse, parents, children or dependant relatives of such administrator or natural person;

"Central Bank" means the Central Bank of Seychelles as established by section 3 of the Central Bank of Seychelles Act, 2004;

"Companies Act" means the Companies Act 1972;

"control", in relation to a financial leasing institution, means the relationship between the financial leasing institution and any body corporate in which the financial leasing institution—

(a) directly, indirectly or acting through one or more persons owns, controls or has the right to vote 20 percent or more of its voting shares or has the right to elect a majority of its directors; or

(b) exercises such a controlling influence as the Central Bank may determine;

"deposit" has the meaning given to it under section 2 of the Financial Institutions Act, 2004;

"director" has the meaning given in section 2(1) of the Companies Act, and in relation to a branch of a foreign financial leasing institution includes the person designated as managing agent pursuant to section 313(1) of the Companies Act;

"financial lease" means an agreement between the lessor and the lessee as defined under section 4;

"financial leasing institution" means an institution licenced or authorised under this Act to conduct financial leasing business;

"financial leasing licence" means a licence to conduct financial leasing business granted under this Act;

"foreign financial leasing institution" means an overseas company registered under section 310 of the Companies Act which is established under the laws of a country other than Seychelles and issued with a financial leasing licence under this Act;

"Governor" means the Governor of the Central Bank of Seychelles appointed under section 6 of the Central Bank of Seychelles Act, 2004;

"group of closely-related customers" means—

(a) two or more persons who, unless it is shown otherwise, constitute a single risk because one of them, directly or indirectly, has control over the other or others;

(b) two or more persons among whom there is no relationship of control as defined in paragraph (a) but who are to be regarded as constituting a single risk because they are so interconnected to the event that if one of them were to experience financial problems the other or all of the others would be likely to encounter repayment difficulties;

"lessor" means a person licenced or approved, to conduct financial leasing business and who transfers the right to possession and use of an asset under lease to a lessee;

"lessee" means a person who acquires a right to possession and use of an asset under the lease for an agreed period of time in exchange for agreed lease payments;

"local financial leasing institution" means a financial leasing institution established under the laws of Seychelles;

"Minister" means the Minister for the time being responsible for finance;

"net profits" means profits after providing for management charges and taxation;

"substantial interest" means holding solely or jointly with another person directly or indirectly, 10 percent or more of the capital or of the voting rights of a company or undertaking or, directly or indirectly, exercising and control influence over the control of the company or undertaking as the Central Bank may determine;

"subsidiary" means any body corporate in which another person or group of persons jointly holds—

(a) directly or indirectly 50 percent or more of the voting shares; or

(b) a substantial interest that permits such other person or group of persons to exercise effective control over the management or policies of the subsidiary;

“supervisory matters” includes matters relating to money laundering and terrorist financing;

"supplier" means a person who supplies an asset for the purpose of a financial lease, and transfers title to the asset to the lessor for delivery to the lessee;

"supply agreement" means an agreement entered into by a lessor with a supplier for the supply of an asset by the supplier under a financial lease;

"third party" means a person who is not a party to the financial lease in relation to the asset.

3. Application.

This Act shall apply to any financial leasing business if the—

(a) asset which is the subject of a financial lease is within Seychelles;

(b) lessee's principal place of business is within Seychelles; or

(c) financial lease agreement provides that the Laws of Seychelles governs the transaction.

PART II

FORMATION OF FINANCIAL LEASE

4. Financial Lease.

(1) A financial lease is an agreement entered into between two parties, whereby the lessor, in exchange for monetary consideration, leases an asset to the lessee on the following terms—

(a) the asset is an asset which the lessor agrees to acquire from a supplier chosen and specified by the lessee, so that the lessor shall retain full title to the asset and the lessee is granted the right to possess and enjoy the asset during the period of lease;

(b) subject to agreement by the lessor, the lessee may—

(i) exercise an option to purchase the asset after the expiry of the period of lease at a price to be agreed upon by the parties;

(ii) may return the asset to the lessor; or

(iii) request renewal of the financial lease; and

(c) under a financial lease the purchase price to be agreed upon by the parties upon expiry of the lease term shall be based on the residual value of the asset at the expiry of the lease term.

(2) A financial lease includes the following characteristics—

(a) the lessee chose the asset without relying primarily on the skill and judgement of the lessor;

(b) the lessor acquires the asset or the right to possess and use the asset for the purpose of the financial lease or a previous lease, and the supplier is notified;

(c) the supplier of an asset for financial lease shall have knowledge that the asset is being acquired for the purpose of a financial lease.

5. Form of contract.

(1) A financial lease shall be in writing and shall—

(a) state that the parties have agreed to enter into a financial lease;

(b) state whether the prospective lessee has chosen the asset and the supplier without relying on the skill and judgement of the prospective lessor;

(c) give a description of the asset which is the subject of the financial lease;

(d) state the total financial lease payments to be paid by the lessee to the lessor;

(e) state the amount of each installment payment payable by the lessee to the lessor;

(f) state the date or the mode of determining the date on which each installment is payable;

(g) state that the lessee acknowledges, confirms and declares that he or she holds the asset as a mere bailee of the lessor and that the lessee does not, during the term of a financial lease, have any proprietary right, title, or interest in the asset other than as a lessee;

(h) state full pay-out period;

(i) state that the lessee confirms and acknowledges that the financial lease is a full pay-out irrevocable agreement; and

(j) state that upon determination of the financial lease by expiry of time, unless a renewal is granted or the lessor agrees to sell the asset to the lessee, the lessee shall deliver to the lessor the asset in good order and condition, ordinary wear and tear exempted.

6. Subject matter of financial lease.

The asset subject to a financial lease may be either existing goods, owned or possessed by the lessor, or goods to be manufactured or acquired by the lessor from a supplier for the purpose of making an agreement with the lessee.

7. Financial lease payments.

The payment for use of a leased asset in a financial lease may be calculated primarily on the basis of amortisation of the whole or substantial part of the value of the leased asset and a profit therefor for the lessor, and the manner of financial lease payments may be determined or agreed between parties.

8. Irrevocability and independence.

Where a financial lease and supply agreement have been created and the asset subject to the financial lease has been entered into and accepted by the lessee, the lessee's duties toward the lessor shall become irrevocable.

9. Delivery and acceptance of the asset.

(1) Upon the lessee's acceptance of the asset provided under a financial lease, the terms and conditions of the lease shall become irrevocable, and it shall be the duty of the lessee to observe all such terms and conditions including the terms and conditions relating to payments under the lease.

(2) For the purposes of subsection (1), a lessee accepts the asset where—

(a) the lessee signifies to the lessor or supplier that the asset conforms to the supply agreement;

(b) fails to reject the asset after having been given a reasonable opportunity to inspect such assets; or

(c) uses the asset.

(3) Unless the parties agree otherwise, after a lessee has accepted the asset, the lessee is entitled to damages only from the supplier if the asset does not conform to the supply agreement.

10. Freedom of contract.

Unless otherwise provided in this Act or any other law, the lessor and lessee may derogate from or vary the effect of this law in determining the contents of a financial lease.

PART III

RIGHTS, OBLIGATIONS AND DUTIES

11. Rights and obligations of the lessor.

(1) A lessor shall—

(a) grant the lessee quiet possession of the leased asset free from interference from any third party having or claiming a right in the leased asset, where such claim or right of the third party derives from a negligent or intentional act or omission of the lessor;

(b) not be liable for defects in or unfitness of the leased asset for any particular purpose except as provided in this Act or in the financial lease.

(2) The liability of the lessor for defects in legal title to the leased assets shall not be limited by the agreement.

(3) Where the leased asset is not delivered to the lessee as a result of delay on the part of the lessor to—

(a) enter into a supply agreement with the supplier; or

(b) make payment to the supplier on time,

the lessee's obligations under a financial lease shall be suspended.

(4) Notwithstanding subsection (3), the lessee may give the lessor an extension of time during which the lessor may comply with his or her contractual obligations.

(5) Upon the occurrence of the event in subsection (3) of this section, the lessee may—

(a) request that the financial lease be fulfilled in its entirety and that a penalty be paid, covering the actual losses that have resulted from the delay;

(b) terminate the financial lease and demand that the lessor pays any damages or losses incurred by the lessee as a result of the lessor's failure to comply with his or her contractual obligations.

(6) Unless otherwise as provided for in this Act, the lessor shall not be liable to the lessee for damages caused to the leased asset.

(7) Notwithstanding subsection (6), the lessor may be liable to the lessee for damages caused to the leased assets by wilful infringement or unlawful acts of the lessor which result in—

(a) damage to or defects in the leased asset;

(b) curtailment of the lessee's rights in relation to a third party; or

(c) infringement of the lessee's right to peaceful and lawful use of the leased asset.

12. Duties of the supplier.

(1) For the purposes of this Act, the supplier of an asset to a lessor for a financial lease shall owe the lessee the same obligations as regards quality and fitness of the asset as he or she owes to the lessor under the supply agreement and shall be liable to the lessee for material defects of the leased asset.

(2) The benefit of a supplier's promises to the lessor under the supply agreement and all warranties, whether express or implied, including third party, warranties provided in connection with or as part of the supply agreement shall extend to the lessee to the extent that the lessee's interest under a financial lease relates to the supply agreement.

(3) The lessee may take legal action directly against a supplier of the asset for a financial lease in respect of material defects in the leased asset, and a supplier of goods shall not be liable to both the lessor and lessee in respect of the same damage.

(4) Where the lessee fails to enforce the supplier's promises or warranties against the supplier as a result of the absence of privity of contract between the lessee and the supplier, the lessor shall be obliged to take commercially reasonable steps to assist the lessee.

13. Rights and obligations of lessee.

(1) The lessee shall have the right to peaceful enjoyment and possession of the leased asset during the term of the financial lease.

(2) The lessee shall—

(a) take proper care of the asset as provided under the financial lease;

(b) use the asset in a reasonable manner consistent with that of normal use for which it was provided; and

(c) maintain and keep the asset in the same condition as was delivered, subject to fair wear and tear and any modification to the asset agreed to by the parties to the financial lease.

(3) The lessee shall use the asset according to the terms and conditions of the financial lease.

(4) The lessee shall be responsible for the proper maintenance and provide such insurance cover for the asset as may be agreed upon between the parties and paying the insurance premium throughout the lease of the financial lease.

(5) The lessee shall be responsible for repairing damage caused by third parties during the time the asset is in his or her possession.

(6) Where the lessee repairs damages under subsection (5), he or she shall have the right to take legal action against third parties to recover any expenses incurred as a result of his obligations to restore the condition of the leased asset or to pay any damages to the lessor.

(7) Subject to the lessee performing his or her obligations under the financial lease, the agreement shall not be terminated unilaterally even if the lessor is declared bankrupt.

(8) At the expiration of the term of the financial lease, return the asset to the lessor, the lessee shall, unless the financial lease is renewed with the consent of the lessor or the lessee accepts to purchase the asset from the lessor.

(9) Without prejudice to the rights of the lessor against the lessee or the supplier, the lessee shall have the right to take legal action directly against the supplier for the performance of the supplier's obligations and to obtaining from the supplier compensation for damages resulting from his default.

(10) The lessee shall have no other claim against the lessor for non-delivery, delay in delivery or delivery of a nonconforming asset by the supplier.

(11) Where owing to default on the part of the lessee, the supply agreement between the supplier and the lessor is terminated, the lessor may demand lease payments due from the lessee under the financial lease where payment was made by the lessor for purchase of the asset at the request of the lessee.

(12) The lessee may, with the prior written consent of the lessor, lease the asset to a sub-lessee on the same terms and conditions set forth in the financial lease.

14. Return of asset.

Upon the expiration of the financial lease or its prior termination under this Act, the lessee shall return the asset to the lessor in such condition as is specified in section 13(2), unless the lessee has accepted to purchase the asset or retain it for a further period. Where the lessee fails to return the asset, the lessor shall have a right to recover possession of the same.

15. Supply agreement.

(1) A lessor shall not enter into a supply agreement with a supplier for the supply of an asset under a financial lease, until the lessee agrees in writing with the terms, conditions warranties and specifications specified in such agreement.

(2) Where a lessor has entered into a supply agreement in accordance with the provisions of subsection (1) and the asset specified in the agreement is delivered at or before the time fixed under such agreement, the lessee shall accept the asset supplied, if the asset conforms to the terms, conditions, warranties and specifications specified in the agreement.

16. Termination or variation of conditions of a supply agreement.

(1) A lessee shall not terminate or rescind a supply agreement without the consent of the lessor.

(2) The rights conferred on a lessee under this Act in relation to a supply agreement shall not be affected by any variation of a term, condition, warranty or specification in such agreement, unless the lessee has consented in writing to such variation.

17. Non-liability of lessor for loss in relation to the asset.

(1) A lessor shall not incur any liability to the lessee for any loss suffered by the lessee in respect of the asset provided under the financial lease, except to the extent of any loss arising out of the lessee's reliance on the lessor's skill and judgement on the selection of the asset or in the lessor's intervention in the selection of the supplier or in the specification of the asset.

(2) The lessor, shall not, in his or her capacity as a lessor, be liable to any person for death, personal injury or any damage to an asset caused by the use of the asset by the lessee.

18. Priority of lessor's claim against third party and insolvency of a lessee.

The title or interest of the lessor or the lessor's assignees in any leased asset under a financial lease shall prevail at all times against claims by a third party including a creditor of the lessee, except as against a purchaser in good faith for value of the asset under a non-registered lease.

19. Third party claims and insolvency.

(1) Except as otherwise provided in this Act, a financial lease is effective and enforceable according to its terms between the parties, against purchasers of the assets and against creditors of the parties.

(2) Any action by a third party claiming right to the asset shall be brought against the lessor.

(3) Any claim to the ownership or any disturbance to the quiet enjoyment of a leased asset by a third party shall be notified in writing by the lessee to the lessor within fourteen days of such claim.

(4) If a lessee fails to notify the lessor as provided in subsection (3) above, the lessee shall be liable for any charge or damages thereby incurred by the lessor.

(5) A lessor may apply to join as a co-defendant in any legal action instituted by a third party claiming any right to a leased asset.

(6) The lessee shall not create any charge or encumbrance over the leased asset during the term of the lease, and if so created, the charge or encumbrance shall be void and the creditors of the lessee shall not be entitled to enforce the charge or encumbrance of the asset leased against the lessor.

20. Lessee's trustees in bankruptcy or creditors.

(1) The rights of a lessor under this Act, may be enforced against a trustee in bankruptcy of the lessee, or against any creditor of a lessee, including any creditor who has obtained an attachment in execution of such asset.

(2) For the purposes of subsection (1), "a trustee in bankruptcy" includes a liquidator, administrator or other person appointed to administer the estate of a lessee for the benefit of the lessee's creditors.

21. Transfer or assignment of financial lease.

(1) A lessor may, with the written consent of the lessee obtained at the time of entering into the financial lease or thereafter, transfer or assign all or any of the lessor's rights under the financial lease or in relation to any asset provided under the financial lease or of both, to any financial leasing institution.

(2) Unless otherwise stipulated, a financial lease may be assigned by the lessor after he has informed the lessee of his intention in writing. The lessor shall always have the right to assign its rights on the lease payments due under the financial lease without requiring prior information to the lessee thereof.

(3) The lessor has unilateral right to assign the financial lease to third parties, but without infringement of the lessee's right to the quiet enjoyment of the leased asset.

(4) A subsequent holder of a financial lease has the same rights and obligations that are specified in the financial lease or as provided by law in relation to the lessee as the original lessor, and accordingly, the lessee shall continue to have the right to quiet enjoyment of the leased asset provided the lessee performs his obligations under the financial lease.

(5) Any such transfer by the lessor shall require the Central Bank's approval.

22. Transfer of lessee's rights in the asset.

A lessee shall not, except with the written permission of the lessor and subject to any rights of third parties, transfer the right to the possession and use of an asset under a financial lease to any other person.

23. Removal of leased asset from Seychelles without lessor's permission.

(1) A lessee or the agent or representative of the lessee shall not remove a leased asset from Seychelles without the prior written consent of the lessor.

(2) If a lessee contravenes subsection (1), the lessee shall be liable on conviction to a fine not less than double the market value of the leased asset or to imprisonment for a term not exceeding one year or to both such fine and imprisonment.

(3) If a lessor believes that a leased asset has been removed or is being removed from Seychelles without his consent in accordance with subsection (1), the lessor has the right to institute legal action for the return to Seychelles of the leased asset.

24. Priority of liens.

Where an asset which is the subject of a financial lease becomes attached to immovable property; and where the lessee under a financial lease has creditors, the creditors of the lessee and the holders of the interest in land to which the asset becomes affixed take the rights subject to the financial lease and cannot attach the lessee's interest.

25. Default by lessee.

Where a lessee fails to comply with certain terms and conditions of the financial lease in such circumstances as would amount to a substantial failure of such lease, the lessor may, subject to the provisions of section 26—

(a) require the lessee to make accelerated payment of the payments due under the financial lease, where the lease so provides;

(b) where a lessee fails to make accelerated payments as required under paragraph (a), terminate the financial lease and—

(i) recover possession of the asset provided; and

(ii) recover such damages as would place the lessor in a position the lessor would have been if the lessee had complied with the provisions of the financial lease in accordance with its terms and conditions.

26. Accelerated payment or termination with notice to leave.

(1) A lessor shall, prior to enforcing the right to accelerated payment or to the termination of a financial lease under section 25, serve by registered post a notice on the lessee—

(a) specifying the circumstances which had caused a substantial failure of the lease within the meaning of the financial lease;

(b) appointing a date, not being a date less than 21 days after the receipt of the notice, for remedying the failure referred to in paragraph (a).

(2) Where a lessee fails to remedy the failure specified in a notice served under subsection (1) on or before the date appointed in the notice, or fails to give a reasonable cause for such failure, the lessor may act in accordance with the provisions of section 25.

27. Repossession.

(1) Where the lessee defaults in the payment of lease payments in accordance with the financial lease, the lessor may recover unpaid dues together with interest and damages.

(2) In the event of—

(a) death, bankruptcy, liquidation or dissolution of the lessee; or

(b) expiry of the financial lease; or

(c) breach of any terms of the financial lease by the lessee, including default in one lease payment of any amount not remedied within such period as may be stipulated in the financial lease, or in the absence of any such stipulation, within a period of 30 days,

the lessor shall have a right to repossess the leased assets which shall not be included in the assets of any receivership or pool of assets to be disposed by the creditors of the lessee.

(3) Subject to subsection (4), where the lessee defaults in the payment of lease dues in accordance with the financial lease, or commits another breach, the lessor may terminate the financial lease, and after the termination—

(a) recover possession of the asset; and

(b) recover damages as will place the lessor in the position in which he would have been had the lessee performed the financial lease in accordance with its terms.

(4) Where the lessor becomes entitled to repossess the leased asset through breach of agreement by the lessee or otherwise through operation of law, and the lessee does not deliver the asset after having been given due notice to surrender the asset to the lessor, the lessor may—

(a) on his own motion repossess the leased asset provided that in doing so the lessor does not commit a breach of peace; or

(b) apply for an order for repossession or recovery of the leased asset in court.

(5) The right of the lessor to repossess shall not prejudice other remedies available to the lessor under any other law, including but not limited to, the right to recover damages for loss caused by non-compliance with the terms of the financial lease by the lessee.

(6) Where there is a repossession order under this section, the lessee shall, unless otherwise stipulated in the financial lease, be responsible for the immediate payment of all lease payments due for the remaining term of the financial lease.

(7) The parties may, under a financial lease, stipulate that the amount of future payments at the time of repossession shall be decreased by the fair value of the asset repossessed, less any administrative costs of the lessor, including but not limited to legal and transportation costs.

(8) The lessor shall not be entitled to recover damages to the extent that he has failed to take reasonable steps to mitigate the loss.

28. Recovery of payment due under the financial lease.

(1) In an application under section 27, a lessor may, in addition to praying for an order of possession, also pray for an order for recovery of any payments due under the financial lease, and in that event shall specify in the plaint filed the sum due and such other facts as may be necessary for the determination of such matter.

(2) The provisions of section 27(4) and (5) shall, mutatis mutandis, apply to an order under subsection (1) of this section, and the court may in the order made under those subsections, include an order for recovery of the sum of money sought to be recovered.

(3) An order made under subsection (2), shall be executed in the same manner as if it were a decree for the recovery of money.

29. Savings of other remedies.

The provisions of sections 28 shall be in addition to and not in derogation of any other remedy that may be available to a lessor in law, for the recovery of possession of any asset or any money due under a financial lease.

PART IV

REGISTRATION OF FINANCIAL LEASE AND LEASED ASSETS

30. Registration of financial lease.

(1) The Central Bank, in consultation with the Minister, may designate by Notice in the Gazette a registry for registration of assets under financial lease which shall be made open for inspection by the public.

(2) Parties to a financial lease shall register assets under financial lease with the register of financial lease.

(3) A registered asset under a financial lease shall serve as a notice to third party purchasers of leased assets of existing interests in the leased asset.

PART V

LICENSING

31. Financial Leasing Licence required.

(1) A person shall not advertise for or engage in financial leasing business in accordance with section 3, unless a financial leasing licence is obtained from the Central Bank.

(2) A person shall not be eligible to be licenced under this Act, unless such person is—

(a) a company incorporated under the Companies Act; or

(b) an overseas company registered under the Companies Act,

having its principal place of business in Seychelles and having such minimum issued and paid-up capital as may be prescribed by the Central Bank and proposing to solely conduct financial leasing business.

(3) A licence granted under this Act is granted in writing for an indefinite period of time and shall not be transferable. The licence shall specify the activities which the holder of the licence is authorised to undertake and the terms and conditions under which it has been issued.

(4) Notwithstanding (1), every person who is carrying on financial leasing business on the commencement date, may continue to carry on such business for a period not exceeding one year from such commencement date, but shall within that period apply for and obtain a financial leasing licence under this Act to carry on such financial leasing business.

(5) Where a person referred to in subsection (4) does not apply for a financial leasing licence, or is refused a financial leasing licence under this Act, only such financial leases entered into by that person before the expiration of the period referred into subsection (4) or the date of refusal, as the case may be, shall remain valid for the periods for which they are entered into.

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