The law in Morocco was recently reformed, as a new law was enacted on the 22^nd of April 2019. Law N. 21-18 is modelled after OHADA principles, and it is a welcome change from previous unsatisfactory secured transactions law. The law notably allows for security interests to be created over movable assets, even if they are future assets, or if they are intangible. Under the previous law, only immovables could be the subject of non-possessory security interests, and the main method of enforcing security rights over movable assets was through an auction, which led to many issues because of the uncertainty of the ultimate amount that the asset would be valued at by the highest bidder. This often led to an overvaluing of the value of the asset. Now, security interests in movable assets can be enforced more easily, including by an out-of-court enforcement such as pacte commissionaire (private foreclosure) by which the creditor automatically becomes the owner of the asset in cases of default. The creditor may also sell the assets and keep the proceeds without needing to resort to a court through the mechanism of voie parée.

Additionally, Law N. 21-18 creates a unified, online collateral registry. Under the new law, no security interest is enforceable against third parties unless it has been registered.

The following is a link to the national collateral registry. Additionally, you may find the Arabic versions of the Collateral Registry Decree and the Collateral Registry Law (Law N. 21-18) under the “Law and Regulations” heading:

• https://rnesm.justice.gov.ma/index.aspx?redirected=1&lang=en-US

Further reading

• https://www.dlapiper.com/en/morocco/insights/publications/2019/05/morocco-new-law/
• https://www.cliffordchance.com/news/news/2019/05/clifford-chance-advises-on-the-reform-of-the-legislation-taking-.html

Last Checked October 2020

If you have any questions or would like to suggest an update please email magda.raczynska@ucl.ac.uk