Article 65 of the Saudi Civil Aviation Law
المادة 65 من نظام الطيران المدني · الفصل الثاني: الحقوق على الطائرات
A forced sale of an aircraft also covers the spare parts seized with it; the article governs auctioning them at two-thirds of value where the seizing creditor's debt has no security interest, and distributing the proceeds.
Official text (Arabic)
This article has not been amended since the law was issued.
1- إذا تقرر بيع الطائرة جبريًّا وفقًا للمادة (الثالثة والستين) من هذا النظام فإن هذا البيع يشمل قطع الغيار المحجوز عليها، ويتم نقل ملكيتها للمشتري الجديد.
2- إذا كان دين الحاجز مجردًا من كل تأمين عيني فإنه يسمح ببيع قطع الغيار بالمزاد مقابل ثلثي قيمتها وفقا للفقرة (3) من المادة (الثالثة والستين) من هذا النظام على النحو الذي يحدده الخبراء الذين تعينهم الجهة المنوطة بها إجراءات البيع.
3- عند توزيع ثمن بيع قطع الغيار، تقوم الجهة المكلفة بالبيع لصالح الدائن الحاجز بتحديد القدر الذي يمكن صرفه لدائني الديون الممتازة في حدود ثلثي حصيلة البيع بعد خصم المصاريف المشتركة المشار إليها في الفقرة (4) من المادة (الثالثة والستين) من هذا النظام.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 65 explained in plain English
This article completes the forced-sale rules in Article 63 and applies them to spare parts.
- Scope of the sale: If the aircraft is ordered sold by forced sale under Article 63, the sale includes the spare parts seized along with it, and their ownership passes to the new buyer.
- Seizing creditor's debt with no security interest: If the seizing creditor's debt has no security interest of any kind (that is, no mortgage or security over the property), the spare parts may be sold at auction for two-thirds of their value under paragraph (3) of Article 63, as determined by the experts appointed by the authority in charge of the sale procedures. Paragraph (3) requires that the rights ranking ahead of the seizing creditor's right have been paid from the price or assumed by the buyer.
- Distribution of the price: When the price of the spare parts is distributed, the authority in charge of the sale determines, for the benefit of the seizing creditor, the amount that may be paid to holders of preferred debts, within two-thirds of the sale proceeds, after deducting the common expenses referred to in paragraph (4) of Article 63.
Under Article 63, common expenses are the expenses incurred for the common benefit of the creditors on the enforcement procedures leading to the sale. Identifying the spare parts themselves is dealt with in Article 64. Because the way these proportions apply depends on the nature of each debt, creditors are advised to consult a lawyer specializing in enforcement and civil aviation matters.
Practical example
A fuel supplier seizes the aircraft of a private airline for a debt that has no mortgage or other security interest, and the aircraft comes with a stock of seized spare parts. In the forced sale, the spare parts are auctioned at two-thirds of the value set by the appointed experts, and the authority in charge of the sale determines what is paid to holders of preferred debts, within two-thirds of the proceeds after deducting the common expenses.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 65 of the Saudi Civil Aviation Law
Are spare parts sold with the aircraft in a forced sale?
Yes. A forced sale of the aircraft under Article 63 includes the spare parts seized along with it, and their ownership passes to the new buyer.
At what price are spare parts sold if the seizing creditor's debt has no security interest?
They may be sold at auction for two-thirds of their value, as determined by the experts appointed by the authority in charge of the sale procedures.
What is the limit on payments to holders of preferred debts from the price of the spare parts?
The authority in charge of the sale determines the amount paid to them, within two-thirds of the sale proceeds after deducting the common expenses.
Articles this article refers to
More articles on Registering Aircraft and Rights Over Them
- Article 49
No civil aircraft may fly in the Kingdom's territory without its nationality and registration marks; the Authority may permit an unregistered aircraft to fly or land for technical testing or other purposes.
لا يجوز لأي طائرة مدنية أن تطير في إقليم المملكة ما لم تكن تحمل علامة جنسيتها وتسجيلها طبقا لنظام دولة التسجيل ، أو سلطة تسجيل العلامة العامة ، ومع ذلك يجوز لله
- Article 50
The Authority determines the nationality and registration marks of national aircraft and how they are placed on the aircraft, in accordance with the applicable international rules and laws.
تحدد الهيئة علامات جنسية وتسجيل الطائرات الوطنية ، كما تحدد طريقة وضعها على الطائرة وفقا للقواعد والأنظمة الدولية المطبقة في هذا الشأن.
- Article 51
The Authority maintains the Saudi National Register for Aircraft Registration, whose contents and registration conditions are set by the Implementing Regulations; a registered aircraft has the Kingdom's nationality.
1- تعد الهيئة سجلا لتسجيل الطائرات المدنية الوطنية يسمى ( السجل السعودي الوطني لتسجيل الطائرات )، وتحدد اللائحة البيانات التي يجب أن يتضمنها السجل والشروط الواج
- Article 52
The Authority issues aircraft registration certificates after completing the necessary procedures, each containing the data set by the Implementing Regulations.
تصدر الهيئة شهادات تسجيل الطائرات بعد إتمام الإجراءات اللازمة لذلك على أن تتضمن كل شهادة البيانات التي تحددها اللائحة.
- Article 53
An aircraft is deregistered if its owner or lessee loses Saudi nationality, ownership passes to a foreigner, it is lost or permanently withdrawn, the owner requests it or a registration condition ceases; the owner must notify the Authority and return the certificate.
1- تشطب الطائرة من السجل في الحالات الآتية: أ - إذا فقد مالكها أو مستأجرها جنسيته السعودية. ب - إذا انتقلت ملكيتها إلى شخص أجنبي. ج - إذا فقدت الطائرة أو سحبت
- Article 54
The provisions on rights over aircraft apply to all civil aircraft in the Kingdom's territory whatever their nationality and to Saudi civil aircraft wherever they are, but not to state aircraft.
تطبق أحكام هذا الفصل على جميع الطائرات المدنية أيًّا كانت جنسيتها حال وجودها في إقليم المملكة وكذلك على الطائرات المدنية السعودية في أي مكان كانت، ولا تسري أحكا
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.