The UAE’s Federal National Council has approved a draft movable assets law. If approved further, it will repeal Federal Law No. 20/2016 on the Mortgage of Moveable Property to Secure Debt. It will now apply to tangible and intangible assets as well as existing and future assets. In addition, it will cover rights to claim payments on funds deposited with financial institutions and give a right to enforce obligations of counterparties under a contract. Receivables, credit balances with banks and other financial institution, written instruments transferable by delivery or endorsement, including commercial papers like promissory notes, bank certificates and bills of lading, vehicles and equipment will also be covered. Animals, animal products and agricultural crops will be covered by the law as well. However, movable assets which guarantee wage rights, worker benefits, public funds, endowment funds and funds held by diplomats and consulates and international government organisations are not covered by the draft law. ‘Secured obligations’ will be required, which will include all current and future obligations of the debtor or borrower. An upper limit of the amount secured will have to be provided and this threshold will be laid out in subsequent legislation. Under the law, a ‘security interest’ will be enforceable against third-parties and have priority over other debts. The first security interest registered will have priority over later ones. A new Register for Rights Over Movable Assets will be established and the Finance Minister will recommend the assets which should be added to this Register. Anyone who violates the law will be jailed and/or fined 60,000 AED.