Article 64 of the Saudi Commercial Maritime Law
المادة 64 من النظام البحري التجاري · الفصل الثالث: الرهن البحري
If the mortgage rights pass to a new creditor through endorsement of the debt secured by the mortgage, which is payable to order, the new creditor's name must be noted in the mortgage registration.
Official text (Arabic)
This article has not been amended since the law was issued.
إذا ترتب على تظهير الدين المضمون بالرهن لإذن الدائن انتقال الحقوق الناشئة عن الرهن إلى الدائن الجديد، وجب التأشير باسم هذا الدائن في قيد الرهن.
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 64 explained in plain English
This article deals with the case where the debt secured by the ship mortgage passes to another person by endorsement. The debt may be evidenced in an instrument payable to order, which the creditor endorses to a new creditor, so that the rights arising from the mortgage pass to the latter.
In this case the article requires the name of the new creditor to be noted in the mortgage registration. The purpose is for the ship register to reflect the person actually holding the right in the mortgage, so that third parties and the authorities concerned know who the current mortgagee is.
The rule is understood together with Article 63, which provides that the mortgage is registered in the ship register at the ship's registration office, and Article 65, which specifies how long the mortgage registration is kept and makes its effect void if it is not renewed before the period ends. Registration is the basis of the mortgage's effect, and noting is the means of updating its particulars when the creditor changes.
The article does not specify the method of noting or who applies for it, so one refers to the regulations and the registration office. A person who buys a debt secured by a ship mortgage would do well to consult a lawyer specializing in maritime and commercial law.
Practical example
A bank in Riyadh holds an instrument payable to order, secured by a mortgage on a ship, and endorsed it to another bank to which the mortgage rights passed. The name of the second bank must then be noted in the mortgage registration in the ship register.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
How we write and review contentCommercial & Corporate Law lawyers: ask a specialist about your case
Describe your situation briefly and we'll suggest a lawyer who specialises in this law
Commercial & Corporate Law lawyers
Lawyers who handle this kind of case
Ibrahim Al Salem Law Firm
Active contributor
Dr. Ali Al-Rubaie Law Office and Ittihad Al-Asr Legal Company
Frequently asked questions about Article 64 of the Saudi Commercial Maritime Law
What happens to the ship mortgage if the debt is endorsed to a new creditor?
If the endorsement results in the mortgage rights passing to the new creditor, his name must be noted in the mortgage registration.
Why is the new creditor's name noted in the mortgage registration?
Because the article requires it when the rights arising from the mortgage pass, so that the registration shows the name of the new right holder.
More articles on Maritime Liens and Mortgages
- Article 46
The article lists the debts that carry a maritime lien on the ship, from court costs and crew employment debts to fees, salvage rewards, compensation and the master's contract debts.
تشمل حقوق الامتياز على السفينة ما يأتي: 1- المصروفات القضائية التي أنفقت لحفظ السفينة وبيعها وتوزيع ثمنها. 2- الديون الناشئة عن عقد عمل الربان والبحارة وغيرهم م
- Article 47
The article provides that maritime liens on a ship are not subject to any formality or any special requirement of proof.
لا تخضع حقوق الامتياز لأي إجراء شكلي، أو لأي شرط خاص بالإثبات.
- Article 48
The article specifies the property that the Article 46 liens attach to: the ship, the freight of the voyage that gave rise to the debt, and their accessories, with a special rule for the paragraph 3 lien.
1- تترتب حقوق الامتياز المنصوص عليها في المادة (السادسة والأربعين) على السفينة، وأجرة النقل الخاصة بالرحلة التي نشأ عنها الدين، وعلى ملحقات كل من السفينة، وأجرة
- Article 49
The article defines what counts as accessories of the ship and the freight subject to the lien, such as compensation for unrepaired damage and salvage rewards; passenger fares count as freight; insurance compensation and State subsidies are excluded.
1- يعد من ملحقات السفينة وأجرة النقل المنصوص عليها في الفقرة (1) من المادة (الثامنة والأربعين) ما يأتي: أ- التعويضات المستحقة للمالك عن الأضرار المادية التي لحق
- Article 50
The article provides that the lien on freight remains as long as the freight is payable or is held by the master or the owner's representative, and likewise the lien on the accessories of the ship and the freight.
يبقى حق الامتياز على أجرة النقل قائماً ما دامت الأجرة مستحقة الدفع، أو كانت تحت يد الربان أو ممثل المالك، وكذلك الحال بالنسبة إلى الامتياز على ملحقات السفينة وم
- Article 51
The article sets the ranking of liens for a single voyage in the order of Article 46, with proportional sharing within one paragraph, reverse chronological order for paragraphs (4) and (6), and one date for rights arising from one incident.
1- تُرتب حقوق الامتياز المتعلقة برحلة واحدة وفقاً للترتيب الوارد في المادة (السادسة والأربعين) من النظام. 2- تكون للحقوق المذكورة في كل فقرة من المادة (السادسة
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.