Article 71 of the Saudi Commercial Maritime Law
المادة 71 من النظام البحري التجاري · الفصل الثالث: الرهن البحري
When ownership of a mortgaged ship has passed under Article 70, each creditor may request its sale by judgment of the competent court with a guarantee for the price and expenses, and the request is notified to the possessor within ten days.
Official text (Arabic)
This article has not been amended since the law was issued.
1- يجوز لكل دائن في الحالة المبينة في المادة (السبعين) أن يطلب بيع السفينة أو جزء منها بحكمٍ من المحكمة المختصة، مع تقديم كفالة بالثمن والمصروفات، وتكليف الحائز بالحضور أمام المحكمة التي تكون السفينة في نطاقها أو المحكمة التي يقع في نطاقها ميناء تسجيل السفينة إذا كانت غير موجودة في أحد موانئ المملكة، وذلك لسماع الحكم بإجراء البيع.
2- يجب تبليغ هذا الطلب إلى الحائز موقعاً من الدائن خلال عشرة أيام من تاريخ التبليغ المنصوص عليه في المادة (السبعين) من النظام.
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 71 explained in plain English
This article complements Article 70, which concerns the person to whom ownership of a mortgaged ship has passed (the possessor) and who offered the creditors payment of the secured debts within the limit of the ship's price. If a creditor does not accept this offer, then under this article he may:
- Request the sale of the ship or a part of it by judgment of the competent court.
- Provide a guarantee for the price and expenses.
- Summon the possessor to appear before the court in whose jurisdiction the ship is located, or the court in whose jurisdiction its port of registry lies if the ship is not in one of the Kingdom's ports, to hear the judgment of sale.
The second paragraph requires that this request be notified to the possessor signed by the creditor within ten days of the date of the notification provided for in Article 70.
Article 72 provides that if no mortgagee creditor submits this request, the possessor may clear the ship by depositing the price in the court's treasury. The time limit is therefore important for the creditor. Both parties are advised to consult a lawyer specializing in maritime and commercial law.
Practical example
A mortgagee bank received an offer from the buyer of a mortgaged ship to pay the debts within the limit of a price that it considered low. The bank may ask the competent court for a judgment selling the ship, providing a guarantee for the price and expenses, and notify its signed request to the buyer within ten days.
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 71 of the Saudi Commercial Maritime Law
What does the mortgagee creditor do if he does not accept the ship possessor's offer?
He may request the sale of the ship or a part of it by judgment of the competent court, providing a guarantee for the price and expenses.
What is the period for notifying the sale request to the possessor?
Ten days from the date of the notification provided for in Article 70, and the request is signed by the creditor.
Which court hears a request to sell the ship?
The court in whose jurisdiction the ship is located, or the court of its port of registry if the ship is not in one of the Kingdom's ports.
Articles this article refers to
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.