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MPs pass provision banning mortgage of movable possessions as collateral in return of loan

By Raed Omari - Apr 15,2018 - Last updated at Apr 15,2018

AMMAN — The Lower House on Sunday passed a provision in the draft movable property security rights law banning the mortgage of one's movable possession as collateral in return of a loan.

Under MPs' amendments, lenders cannot use one's personal belongings, household items and entire salary to lenders to create a charge on movable assets. 

As per deputies' amendments to article 5 of the draft movable property security rights law, neither a bank-owned movable properties nor concessions or licences granted by the state can be put under charge.

The said article also prohibits borrowers' mortgage of salaries, compensations, payments and alimonies as collateral against a business loan in case of a pledge or hypothecation.

The House Legal Committee on Sunday endorsed the 2018 amendments to the Chamber's bylaws under which the term of the permanent office is extended to two years instead of one.

Under the 2016 Constitutional amendments, the term of the House Speaker was extended to two years instead of one, and they can be elected for another two-year term.

The number of the House's permanent committees is reduced to 15 up from 20. The financial committee will be merged with the economic and investments committee, and the education and culture committee and the youth and sports committee will be also merged in one committee.

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Jordan Times got it all completely wrong here. This is what happens when journalists focusing on sensationalist stories as opposed to the focusing on content. The new law needs to be closely reviewed. It is completely wring that it bans possessory pledges - on the other hand it brings them with the scope. Also it does nor prohibit the use of consumer goods is those were used to finance their purchase. This law opens up so many opportunities for small businesses. This should be the focus of the article. JT authors, please approach the government agencies Ministry of Trade and Ministry of Planning to obtain correct information and reprint this article.

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