| The SDC undertakes the task of placing a pledge or releasing a pledge against deposited securities in accordance with the instructions of registration deposit and settlement of securities For the Year 2004 and to applicable regulatory procedures where the pledged securities should be deposited in the central registry at the SDC and not subject to any ownership restrictions that prevents disposal thereto, Placing a pledge or releasing a pledge is conducted as follows: |
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| First: Securities Pledge through Electronic Pledge System |
| Based on the SDC's continuous concern to serve its clients speedily and accurately, the SDC developed a special electronic system for pledgee banks specifically called the "Pledge System". This System enables pledgees (banks) to: |
| A- |
Impose pledge restrictions on securities owned by their clients through the system directly. |
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Storing pledge transactions that placed through the system, auditing and authenticating them. |
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Printing the pledge form through the system to be signed by both the pledgor or his legal representative and the pledgee. The pledgee is to authenticate the correctness of pledgor’s signature. The form is then provided to the SDC along with all of the following documents: |
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1. |
Copy of valid identification documents of pledgor. |
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2. |
Covering Letter from pledgee that includes: |
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A- |
The number of securities that wanted to be pledged, name of pledgor and pledgee and the security's name. |
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B- |
The SDC number for pledgor and pledgee. |
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C- |
Acknowledgement of the payment of stamps' fees for the pledge operation to the Ministry of Finance without holding the SDC any responsibility. |
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3. |
Identify if lawful rights e .that result from pledged securities is subject to the pledge or not subject to the pledge as the case : |
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A- |
Stock dividends or profits or refunds for the securities. |
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B- |
Bonus shares. |
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C- |
Refunds arising from amortization Corporate bonds or sukuk during its lifespan or on maturity date . |
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D- |
Refund arising from reduction corporate capital. |
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4. |
The SDC shall collect (5) Dinars for each placing pledge on securities. |
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| Second: Securities Pledge to the benefit of local banks and Foreign bank branches Operating in the Kingdom that don't use Electronic Pledge System |
| The deposited securities at the SDC for the benefit of banks that do not use Electronic Pledge System are pledged by virtue of Securities Pledge Form that accredit for this purpose and submitted by the pledgor or his legal representative to the SDC. The pledgee is to authenticate the correctness of pledgor’s signature. All of the following documents should be attached to the form: |
| A- |
A copy of valid identification documents of both pledgor and pledgee. |
| B- |
Covering Letter issued by both pledgor and pledgee that clarifies all details related to the pledge transaction that intended to be completed at the SDC. It should include the following: |
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1. |
The names of the pledgor and pledgee as mentioned in the identification documents. |
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2. |
The SDC number for pledgor and pledgee |
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3. |
The name and number of securities that wanted to be pledged. |
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4. |
Acknowledgement of the payment of stamps' fees for the pledge operation to the Jordan Ministry of Finance and the identification documents provided to the SDC are correct and validwithout holding the SDC any responsibility thereto. |
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5. |
Identify if lawful rights that result from pledged securities is subject to the pledge or not subject to the pledge as the case : |
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A- |
Stock dividends or profits or refunds for the securities. |
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B- |
Bonus shares. |
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C- |
Refunds arising from amortization Corporate bonds or sukuk during its lifespan or on maturity date. |
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D- |
Refund arising from reduction corporate capital. |
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The SDC shall collect (5) Dinars for each placed pledge on securities. |
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| Third: Securities Pledge through the SDC directly. |
| The securities are pledged through the SDC directly by the presence of pledgor and pledgee or their legal representatives as the case may be to the SDC to sign Pledge Form (Shares, Corporate Bonds, Sukuk) in front of authorized SDC employee. The following documents and information should be attached to the form: |
| A- |
A copy of valid identification documents of both pledgor and pledgee. |
| B- |
Covering letter issued by the pledgor and pledgee or their legal agent as the case includes a request from the SDC to place pledge on the securities in terms of the securities pledge form and acknowledge the correctness and validity of all attached documents without holding the SDC any responsibility thereto. |
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The SDC number for pledgor and pledgee. |
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An address for notifications of both pledgor and pledgee. |
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A copy of receipt issued by Ministry of Finance verifies that stamps' fees are paid. |
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In cases where there is an agent to conduct pledge transaction and sign the securities pledge form according to the power of attorney whether general or specific. The power of attorney shall be duly organized and should meet the Center specified requirements for the pledge operation acceptance. |
| G- |
Identify lawful rights that result from pledged securities is subject to the pledge or not subject to the pledge as the case : |
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1. |
Stock dividends or profits or refunds for the securities. |
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2. |
Bonus shares. |
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3. |
Refunds arising from amortization Corporate bonds or sukuk during its lifespan or on maturity date. |
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4. |
Refund arising from reduction corporate capital. |
| H- |
The SDC shall collect (5) Dinars for each placing a pledge on securities. |
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| Release of Pledge |
| 1. |
Through the SDC |
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The SDC will release the pledge after submitting Release of Pledged Securities Form by the pledgee that should be attached with valid identification documents enhanced with a covering letter issued by the pledgee. |
| 2. |
Through Electronic Pledge System |
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The electronic pledge system enables the pledgee to release the pledge restrictions upon pledged securities directly. |
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| General Provisions |
| 1. |
In case of a stock split (division of nominal value) on pledged securities, the pledge shall be authenticated in the securities that result from the split. |
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In case of reduction the shares number as a result for reduction the corporate capital the pledges shares will be reduced to the same percentage of reduction. |
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The pledge is authenticated on bonus shares which arising from the pledged shares and include Stock dividends and /or profits and/or any proceeds for the pledged securities and refunds arising from reducing its number or amortizing it during its lifespan or on maturity date according to the securities pledge form. |
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