Article 70 of the Saudi Commercial Maritime Law
المادة 70 من النظام البحري التجاري · الفصل الثالث: الرهن البحري
If ownership of the mortgaged ship has passed before the attachment report is registered, the creditor notifies the possessor of the attachment and demands the price; the possessor may avoid attachment and sale by notifying the registered creditors within the period and stating his readiness to pay.
Official text (Arabic)
This article has not been amended since the law was issued.
1- إذا انتقلت ملكية السفينة المرهونة، أو بعضها -قبل قيد محضر الحجز- فعلى الدائن المرتهن الذي اتخذ إجراءات التنفيذ على السفينة أن يبلغ الحائز للسفينة بمحضر الحجز ومطالبته رسميًّا بدفع الثمن.
2- إذا أراد الحائز تجنب إجراءات الحجز والبيع وجب عليه -قبل البدء في الإجراءات أو خلال الخمسة عشر يوماً التالية لإبلاغه- أن يبلغ الدائنين المقيدين رسميًّا في سجل السفن بملخص العقد، مع بيان تاريخه، واسم السفينة، ونوعها، وحمولتها، وثمنها، والمصاريف، وقائمة بالديون المقيدة مع تواريخها ومقدارها، وأسماء الدائنين، وباستعداده لدفع الديون المضمونة بالرهن فوراً وذلك في حدود ثمن السفينة.
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 70 explained in plain English
This article deals with the position of the person to whom ownership of a mortgaged ship has passed (the possessor) before the attachment report on it is registered.
First: the creditor's duty. The mortgagee creditor who has taken enforcement steps must notify the possessor of the attachment report and formally demand that he pay the price.
Second: the possessor's option. If the possessor wishes to avoid attachment and sale, he must, before the procedures begin or within the fifteen days following his notification, formally notify the creditors registered in the ship register of the following:
- A summary of the contract and its date.
- The name of the ship, its type, tonnage, price and the expenses.
- A list of the registered debts with their dates, amounts and the names of the creditors.
- His readiness to pay the debts secured by the mortgage immediately within the limit of the ship's price.
Article 71 complements this rule, as it permits each creditor in this case to request the sale of the ship or a part of it by judgment of the competent court with a guarantee for the price and expenses, and requires the request to be notified to the possessor within ten days of the said notification. Article 69 provides that carrying out a court order of sale clears the ship of mortgages. A person who buys a mortgaged ship would do well to consult a lawyer specializing in maritime and commercial law.
Practical example
A company in Dammam bought a ship with a registered mortgage in favor of a bank, and the bank then notified it of the attachment report and demanded the price. To avoid the sale, the company notified the registered creditors within fifteen days of the contract and ship particulars and the debts, and of its readiness to pay the secured debts immediately within the limit of the price.
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 70 of the Saudi Commercial Maritime Law
What does the buyer of a mortgaged ship do to avoid its attachment?
He formally notifies the creditors registered in the ship register of a summary of the contract, the ship's particulars, the list of debts and his readiness to pay the secured debts immediately within the limit of the ship's price.
What is the period available to the possessor to notify the creditors?
Before the procedures begin or within the fifteen days following his notification of the attachment report.
Is the possessor obliged to pay more than the ship's price?
The article makes his readiness to pay within the limit of the ship's price.
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.