Article 67 of the Saudi Commercial Maritime Law
المادة 67 من النظام البحري التجاري · الفصل الثالث: الرهن البحري
Mortgagee creditors may pursue the mortgaged ship into any hands and apply for a precautionary attachment, and the ship may not be disposed of once the attachment report is registered in the ship register.
Official text (Arabic)
This article has not been amended since the law was issued.
الدائنون المرتهنون لسفينة، أو لجزء منها، يتتبعونها في أي يد كانت، ولهم حق التقدم بطلب الحجز التحفظي عليها، ولا يجوز التصرف في السفينة المرهونة بعد قيد محضر حجزها في سجل السفن.
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 67 explained in plain English
This article gives the mortgagee creditor of a ship or part of it two important rights, and places a restriction on the owner:
- The right of pursuit: the mortgagee creditor pursues the ship into any hands; if the owner sold it to another person, the mortgage remains in force and the creditor may enforce against it in the hands of the new owner.
- The right to apply for a precautionary attachment: the creditor may apply for a precautionary attachment of the ship.
- A bar on disposal after registration: as soon as the attachment report is registered in the ship register, the mortgaged ship may not be disposed of.
This is linked to Article 66, which ranks mortgages after liens and by their registration dates, and to Article 68, which explains what the creditor may attach and sell according to the proportion of the mortgaged part of the ship. The right of pursuit means that a person buying a ship must verify the mortgages registered on it, because they pass with it.
The conditions and procedures of precautionary attachment are governed by the Law's specific provisions on attachment. A mortgagee creditor or a buyer of a mortgaged ship is advised to consult a lawyer specializing in maritime and commercial law.
Practical example
A ship owner mortgaged his ship to a bank and then sold it to another company. The bank may pursue the ship in the hands of the buyer company and apply for a precautionary attachment of it, and once the attachment report is registered in the ship register it may not be disposed of.
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 67 of the Saudi Commercial Maritime Law
Does the mortgage lapse if the ship is sold?
No. Mortgagee creditors pursue the ship into any hands.
When is the sale of a mortgaged ship barred?
It may not be disposed of after the report of its attachment is registered in the ship register.
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.