Kuwait Court of Cassation principle number 3237

The criterion for the State's purchase of the debts specified in the Law is that they must have been outstanding on 1/8/1990 in favour of a local bank, Kuwait Finance House, or an investment company subject to supervision by the Central Bank of Kuwait, owed by a Kuwaiti customer or a natural person who is a national of a Gulf Cooperation Council State. Fulfilment of these requirements. Its effect: inclusion of his indebtedness by operation of law among the purchased debts once the bank and the persons concerned take the procedures prescribed by law and the implementing procedures necessary to complete this purchase. This takes place through a special legal mechanism under which the provisions on assignment of rights apply. The State may not disavow the indebtedness purchased by operation of law. Example.