Article 66 of the Saudi Commercial Maritime Law
المادة 66 من النظام البحري التجاري · الفصل الثالث: الرهن البحري
A maritime mortgage ranks after liens, mortgages rank by their registration dates, and if registered on the same day the earlier in time is preferred to the later.
Official text (Arabic)
This article has not been amended since the law was issued.
يكون الرهن تالياً في المرتبة لحقوق الامتياز، وتكون مرتبة الديون المضمونة برهون بحسب تاريخ قيدها، وإذا قيدت عدة رهون في يوم واحد فإن ترتيبها يكون وفقاً لحدوثها الزمني فيقدم الأقدم على الأحدث.
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 66 explained in plain English
This article specifies the rank of the maritime mortgage when creditors compete over a ship, and sets three rules:
- Liens first: the mortgage ranks after liens, so holders of privileged debts are paid before mortgagee creditors.
- The earlier registration first: debts secured by mortgages rank by the date of their registration in the register, not by the date the debt arose.
- Registration on the same day: if several mortgages are registered on the same day, they rank by their order in time, so the earlier is preferred to the later.
This shows the importance of registering the mortgage promptly and maintaining it, since Article 65 provides that the mortgage registration is kept until the end of its term or ten years from its making, whichever is earlier, and its effect is void if it is not renewed. Article 67 gives mortgagee creditors the right to pursue the ship into any hands.
What counts as a lien is determined by the provisions of the Law that regulate them. In disputes over priority of payment, it is advisable to consult a lawyer specializing in maritime and commercial law.
Practical example
A ship has two mortgages: one for a bank registered in March, and one for a finance company registered in June. When the ship is sold, liens are paid first, then the bank is preferred because its registration is earlier, then the finance company.
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 66 of the Saudi Commercial Maritime Law
Which comes first: liens or the maritime mortgage?
Liens come first, and the mortgage ranks after them.
How are multiple mortgages on a ship ranked?
By the date of their registration, and if they were registered on the same day, by their order in time, the earlier before the later.
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.