PROCLAMATION NO. 97/1998 A PROCLAMATION TO PROVIDE FOR PROPERTY MORTGAGED OR PLEDGED WITH BY BANKS

PROCLAMATION NO. 97/1998

A PROCLAMATION TO PROVIDE FOR PROPERTY MORTGAGED OR PLEDGED WITH BY BANKS

WHEREAS, it takes rather too long a time to obtain judgment, from courts of law, for sale of property mortgaged or pledged with banks and to subsequently have it executed;

WHEREAS, consequently, banking business thriving on interest payments on loans it provides from public moneys received by way of saving deposits or acquired from other sources, has been adversely affected.

WHEREAS, in order to create a conducive environment to economic development by enabling banks to collect their debts from debtors efficiently and thereby promoting a good business culture, it is necessary to amend the Civil Code concerning the sale of property mortgaged or pledged with banks;

NOW, THEREFORE, in accordance with Article 55(1) of the Constitution of the Federal Democratic Republic of Ethiopia, it is hereby proclaimed as follows:

1. Short Title

This Proclamation may be cited as the “property Mortgaged or Pledged with Banks Proclamation No. 97/1998”.

2. Definition

In this Proclamation “Registrar” means in the case of mortgage, a Regional or City organ responsible for registering an immovable property or in the case of pledge, an organ with the power to witness the signing of a contract of pledge and deposit same.

3. Contract of Mortgage or Pledge

Notwithstanding the provisions of Articles 2851 and 3060 of the Civil Code, an agreement authorizing a creditor bank with which a property has been mortgaged or pledged and whose claim is not paid within the time stipulated in the contract, to sell the said property by auction upon giving a prior notice of at least 30 days to the debtor and to transfer the ownership of the property to the buyer, shall be valid.

4. Claim on Mortgaged or Pledged Property

A creditor bank which, prior the effective date of this Proclamation, has a claim on property mortgaged or pledged with it, may sell the property by auction upon giving a prior notice of at least 30 days and transfer the ownership of the property to the buyer.

5. Relationship between the Bank and the Debtor

The sale made in accordance with Article 3 and 4 of this Proclamation shall be deemed to have been executed on behalf of the debtor.

6. Application of the Civil Procedure code to Auction

The Provisions of Article 394-449 of the Civil Procedure Code shall, mutatis mutandis, be applicable while the Bank is exercising its power of selling the mortgaged or pledged property by auction.

7. Liability of the Bank

The Bank shall be liable for any damage it causes to the debtor in the process of selling by auction in violation of the relevant provisions of the Civil Procedure Code specified under Article 6 of this Proclamation.

8. Powers and Duties of the Registrar

1. The Registrar shall have the powers and duties to take the necessary measure for carrying out the sale by auction.

2. If the Registrar, while taking action in accordance with sub- Article (1) of this Article, finds it necessary to use police force, he may order the police.

9. Cases Pending before Court

Any suit or decree on execution pending before a court prior to the coming into force of this Proclamation may be terminated upon application by the creditor bank with which the property has been mortgaged or pledged and the bank may sell and transfer the property to the buyer in accordance with this Proclamation.

10. Repealed Law

The Civil Code (Amendment) Proclamation No. 65/1997 is hereby repealed.

11. Transitional Provision

Any action taken in accordance with the Civil Code (Amendment) Proclamation No. 65/1997 prior to the effective date of this Proclamation shall be governed by this Proclamation.

 

12. Inapplicable laws

Any law which is inconsistent with this Proclamation shall not be applicable.

13. Effective Date

This Proclamation shall enter into force as of the 19th day of February, 1998.

Done at Addis Ababa, this 19th day of February, 1998.

NEGASO GIDADA (DR.)

PRESIDENT OF THE FEDERAL DEMOCRATIC

REPUBLIC OF ETHIOPIA

 

PROCLAMATION No. 718/2011 A PROCLAMATION TO PROVIDE FOR NATIONAL PAYMENT SYSTEM

PROCLAMATION No. 718/2011

A PROCLAMATION TO PROVIDE FOR NATIONAL PAYMENT SYSTEM

WHEREAS, the national payment system is an essential component of the financial infrastructure of the country, whose safety, security and efficiency is critical to ensure financial stability, economic growth and financial inclusiveness;

WHEREAS, it has became necessary to provide rules on establishment, governance, operation, regulation and oversight of the national payment system so as to ensure its safety, security and efficiency;

NOW, THEREFORE, in accordance with Article 55 (1) of the Constitution of the Federal Democratic Republic of Ethiopia it is hereby proclaimed as follows:

PART ONE

GENERAL

1. Short Title

This Proclamation may be cited as the “National Payment System Proclamation No.718/2011”.

2. Definitions

In this Proclamation unless the context requires otherwise:

1/ “book, record, account, document or information” means a book, record, account, document or information recorded or stored in any media including paper or data stored by electronic, optical, magnetic or in any other form;

2/ “card” means any card, or other device, including a code or any other means of access to an account, that may be used from time to time to obtain or deposit money or to make payment, and includes a debit, credit and stored-value card;

3/ “central counter party” means an entity that is the buyer to every seller and the seller to every buyer in a settlement system;

4/ “central securities depository” means an entity in whose register securities or other financial instruments are immobilized so as to enable their transactions to be finally processed by book entry;

5/ “clearing” means the process of transmitting, reconciling and confirming funds or securities transfer instructions prior to settlement and includes the netting of instructions and the establishment of final positions for settlement;

6/ “clearing house” means the National Bank or an entity authorized by the National Bank that provides clearing services but excludes a clearing house recognized under any other law;

7/ “clearing system” means a system whereby participants present and exchange information relating to the transfer of funds, securities or other financial instruments to each other through a centralized system or at a single location and includes mechanisms for the calculation of participants’ positions on a bilateral or multilateral basis with a view to facilitating the settlement of their obligations;

8/ “electronic” mans electrical, digital, magnetic, optical, biometric, electrochemical, wireless or electromagnetic technology or any other technology used in relation to the national payment system;

9/ “electronic communication” mans electronic exchange of messages in a standardized format that allows:

a)visual display or listening of data that is clear and readily understandable; and

b)receiving and retaining the information in the message for subsequent retrieval such as by printing, recording or any other means for later use;

10/ “electronic equipment” means electronic terminal including computer, points of sale, automated teller machine, telephone and other similar devices;

11/ “electronic signature” means a data in an electronic form, affixed to or logically associated with, an electronic message, which may be used to guarantee the authenticity and identify the signatory in relation to the date message and to indicate the signatory’s approval of the information contained in the data message;

12/ “financial institution” means a bank, a micro-financing institution, postal savings, money transfer institution, an insurance company or such other similar institution as determined by the National Bank;

13/ “funds transfer” means any transfer of funds, either representing an order of payment or a transfer of money, which is initiated by a person by way of instruction, authorization or order to a financial institution to debit or credit an account maintained with that financial institution and includes point of sale transfers, automated teller machine transactions, direct deposits or withdrawal of funds, transfers initiated by telephone, internet, card or other devices;

14/ “large value funds transfer system” means large value electronic fund transfers, the amount of which shall be determined by the National Bank, which consists of:

a)an inter-bank funds transfer system;

b)high priority and time critical government fund transfer;

c)clearing and settlement of securities of the government; or

d)any other fund transfer system prescribed by the National Bank as large value.

15/ “National Bank’ means the National Bank

of Ethiopia;

16/ “national payment system” means a system in the Federal Democratic Republic of Ethiopia that consists of the following :

a)sending, receiving and processing of orders of payment or transfers of money in domestic or foreign currencies:

b)issuance and management of payment instruments;

c) payment, clearing and settlement systems;

d)arrangements and procedures associated to those systems specified under paragraph (c) of this sub-article; and

e)payment service providers, including operators, participants, issuers of payment instruments and any third party acting on behalf of them, either as an agent or by way of outsourcing agreements, whether entirely or partially operating in the country;

17/ “netting” means the determination of the net payment obligations or the determination of the net termination value of settlement obligations by setting off or adjusting the payment obligations between two or more participants within the payment system;

18/ “operator” means the National Bank, a financial institution or any other entity authorized by the National Bank as operator;

19/ “participant” means a party who participates in a payment, clearing or settlement system as a direct participant which opens and maintains a settlement account at the National Bank or any other settlement entity or an indirect participant which shall only be able to settle its obligations due through the account of a direct participant;

20/ “payment instrument” means any instrument, whether tangible or intangible, that enables a person to obtain money, goods or service or to otherwise make payment or transfer money such as cheques, drafts and cards;

21/ “person” means any natural or juridical person;

22/ “retail funds transfer system” means a fund transfer system consisting of the cheque clearing system operated and administered by the National Bank and any type of retail fund transfer system authorized by the National Bank;

23/ “settlement” means the act of discharging obligations by transferring funds, securities or financial instruments between two or more parties;

24/ “settlement rule” means the rule that provide the basis upon which payment obligations are calculated, netted or settled;

25/ “settlement system” means a system for the discharge of payment and settlement obligations established and operated by National Bank or any other settlement system authorized by the National Bank;

26/ “stored value” means a representation of value that is intended to be used to make a payment which includes units of value recorded in a computer chip or any other device and may or may not be denominated by reference to units of a currency;

27/ “stored value card” means a prepaid card in which the record of funds can be increased or decreased;

28/ “system” includes a payment, clearing and settlement system;

29/ any expression in the masculine gender includes the feminine.

Continue reading PROCLAMATION No. 718/2011 A PROCLAMATION TO PROVIDE FOR NATIONAL PAYMENT SYSTEM