Article 68 of the Saudi Commercial Maritime Law
المادة 68 من النظام البحري التجاري · الفصل الثالث: الرهن البحري
If half of the ship or less is mortgaged, the creditor may attach and sell only the mortgaged part; if more than half, the court may order the sale of the whole ship, and co-owners must be notified fifteen days before the sale.
Official text (Arabic)
This article has not been amended since the law was issued.
1- إذا كان الرهن واقعاً على جزء لا يزيد على نصف السفينة فليس للدائن إلا حجز هذا الجزء وبيعه، وإذا كان الرهن واقعاً على أكثر من نصف السفينة جاز للمحكمة -بناء على طلب الدائن وبعد إجراء الحجز- أن تأمر ببيع السفينة بأكملها.
2- في حالة الشيوع يجب على الدائن أن يبلغ رسميًّا باقي الملاك -قبل بدء إجراءات البيع بخمسة عشر يوماً- بأن يدفعوا الدين المستحق له أو الاستمرار في إجراءات التنفيذ.
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 68 explained in plain English
This article regulates enforcement against a ship when the mortgage falls on only a part of it:
- A part not exceeding half: the creditor may only attach and sell that part, not the rest of the ship.
- A part exceeding half: the court may, at the creditor's request and after the attachment is made, order the sale of the entire ship. The order here is discretionary for the court.
In the case of co-ownership, the second paragraph imposes a duty on the creditor: to give formal notice to the other owners fifteen days before the sale procedures begin, giving them the choice between paying the debt due to him or continuing with the enforcement procedures. This gives the partners an opportunity to protect their shares by paying the debt.
The rule is linked to Article 67, which gives mortgagee creditors of a ship or part of it the right to pursue it and apply for a precautionary attachment of it, and to Article 69, which provides that carrying out a court order of sale clears the ship of all mortgages and creditors' rights shift to the price. Co-owners of ships and creditors are advised to consult a lawyer specializing in maritime and commercial law.
Practical example
Three partners own a large fishing vessel, and one of them mortgaged his 30% share to a bank. On non-payment, the bank may only attach and sell that share, and fifteen days before the sale begins it must formally notify the other two partners so that they can pay the debt or let the enforcement continue.
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 68 of the Saudi Commercial Maritime Law
Can a creditor holding a mortgage on a share sell the whole ship?
If the share does not exceed half, he may only attach and sell it; if it exceeds half, the court may, at his request and after the attachment, order the sale of the whole ship.
Must the ship's partners be notified before the mortgaged share is sold?
Yes. In the case of co-ownership, the creditor must formally notify the other owners fifteen days before the sale procedures begin.
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.