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Article 54 of the Saudi Commercial Maritime Law

المادة 54 من النظام البحري التجاري · الفصل الثاني: حقوق الامتياز على السفينة

The article sets out how liens on a ship are extinguished: judicial sale at auction, voluntary sale at auction subject to publication and objection conditions, and the passage of one year or six months for supply debts, with the start of each period stated.

Official text (Arabic)

This article has not been amended since the law was issued.

تنقضي حقوق الامتياز على السفينة في الحالات الآتية:

1- بيع السفينة بالمزاد العلني قضائيًّا.

2- بيع السفينة بالمزاد العلني طوعيًّا. ويشترط لانقضاء حق الامتياز في هذه الحالة ما يأتي:

أ- قيد عقد البيع في السجل المعد لهذا الغرض.

ب- النشر في لوحة الإعلانات في مكتب تسجيل السفينة وموقع الهيئة الإلكتروني، ويجب أن يشتمل النشر على بيان بحصول البيع والثمن واسم المشتري وموطنه.

ج- نشر ملخص العقد في صحيفة يومية أو غيرها وفي موقع الهيئة الإلكتروني، ويذكر فيه الثمن واسم المشتري وموطنه. ويجب أن ينشر هذا الملخص مرتين تفصل بينهما سبعة أيام، وذلك وفقاً لما تحدده اللوائح.

د- ألاّ يقوم صاحب حق الامتياز -خلال (ثلاثين) يوماً من تاريخ آخر نشر- بتقديم اعتراض على البيع إلى المحكمة المختصة.

3- مضي سنة، عدا حقوق الامتياز الضامنة لديون التوريد المشار إليها في الفقرة (6) من المادة (السادسة والأربعين) فإنها تنقضي بعد مضي ستة أشهر. ويبدأ سريان هذه المدد وفقاً للآتي:

أ- بالنسبة إلى حقوق الامتياز الضامنة لمكافأة عمليات الإنقاذ، من تاريخ انتهاء هذه العمليات.

ب- بالنسبة إلى حقوق الامتياز الضامنة للتعويضات الناشئة عن التصادم والحوادث الأخرى أو الإصابات البدنية، من تاريخ حصول الضرر أو الوفاة.

ج- بالنسبة إلى حقوق الامتياز الضامنة للتعويضات الناشئة عن هلاك البضائع والأمتعة، أو تلفها، من تاريخ تسليم البضائع أو الأمتعة، أو من التاريخ الذي كان ينبغي تسليمها فيه.

د- بالنسبة إلى حقوق الامتياز الضامنة لديون الإصلاحات والتوريدات وسائر الحالات المشار إليها في الفقرة (6) من المادة (السادسة والأربعين)، من تاريخ استحقاق الديون.

هـ- في جميع الأحوال الأخرى تسري المدد المحتسبة لانقضاء الامتياز من تاريخ استحقاق الدين.

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 54 explained in plain English

1. Judicial sale at public auction: the lien is extinguished by it.

2. Voluntary sale at public auction: the lien is extinguished by it under cumulative conditions:

  • The sale contract is recorded in the register prepared for that purpose.
  • Publication on the notice board of the registration office and on the Authority's website, stating the sale, the price, and the buyer's name and domicile.
  • A summary of the contract is published in a daily newspaper or otherwise, and on the Authority's website, twice with seven days between them, as specified by the regulations.
  • The lien holder does not file an objection to the sale with the competent court within 30 days of the last publication.

3. Passage of time: one year, except that liens securing the supply debts referred to in paragraph (6) of Article 46 are extinguished after six months. The period starts:

  • For a salvage reward: from the end of the salvage operations.
  • For compensation for collision and other accidents or bodily injury: from the occurrence of the damage or death.
  • For compensation for loss of or damage to goods and baggage: from their delivery or the date on which they should have been delivered.
  • For debts of repairs, supplies and the cases in paragraph (6): from the date the debts fall due.
  • In all other cases: from the date the debt falls due.

In practical terms, a privileged creditor who learns of a voluntary sale at auction must object within 30 days of the last publication, or his lien is extinguished, and the lien is extinguished by the passage of the specified period from its start date. A person holding a privileged debt on a ship would do well to consult a lawyer specializing in commercial cases before the periods expire.

Practical example

A sailor had wages that fell due at the beginning of Ramadan and took no action. Under paragraph 3, his lien on the ship is extinguished after one year from the date the debt fell due, and the period extends to three years if the ship cannot be attached in the Kingdom's maritime areas, under the conditions in Article 55.

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 54 of the Saudi Commercial Maritime Law

When does a lien on a ship expire?

By its judicial sale at public auction, by its voluntary sale at public auction under the specified conditions, or by the passage of one year, or six months for the supply debts referred to in paragraph 6 of Article 46.

How long is the period to object to a voluntary sale of the ship?

Thirty days from the date of the last publication, during which the lien holder files his objection with the competent court.

When does the period for expiry of a collision compensation lien start?

From the date the damage or death occurred.

Articles this article refers to

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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.