Article 72 of the Saudi Commercial Maritime Law
المادة 72 من النظام البحري التجاري · الفصل الثالث: الرهن البحري
If no mortgagee creditor requests the sale of the ship under Article 71, the possessor may clear it of mortgages by depositing the price in the court's treasury and request cancellation of the mortgage registration without any other procedure.
Official text (Arabic)
This article has not been amended since the law was issued.
إذا لم يتقدم أي دائن مرتهن بالطلب المذكور في المادة (الحادية والسبعين) يحق للحائز أن يطهر السفينة من الرهون بإيداع الثمن في خزانة المحكمة، وله في هذه الحالة أن يطلب شطب قيد الرهن دون اتباع أي إجراء آخر.
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 72 explained in plain English
This article gives the possessor of a mortgaged ship a way to be rid of the mortgages. If no mortgagee creditor submits a request for the sale of the ship by judgment of the competent court under Article 71, the possessor may:
- Clear the ship of mortgages by depositing the price in the court's treasury.
- Then request cancellation of the mortgage registration without following any other procedure.
So if the creditors do not submit a judicial sale request under Article 71, the possessor can clear the ship of mortgages by depositing the price and requesting cancellation of the mortgage registration.
Article 71 permits each creditor to request the sale with a guarantee for the price and expenses and requires the request to be notified to the possessor within ten days of the notification provided for in Article 70. Article 73 provides that cancellation of the mortgage registration is by judgment or by agreement between the creditor and the debtor, subject to this rule. A person who buys a mortgaged ship would do well to consult a lawyer specializing in maritime and commercial law.
Practical example
A company bought a ship with a mortgage on it and offered the creditor payment of the debt within the limit of the price. The creditor did not request a judicial sale of the ship, so the company deposited the price in the court's treasury and requested cancellation of the mortgage registration.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
How we write and review contentCommercial & Corporate Law lawyers: ask a specialist about your case
Describe your situation briefly and we'll suggest a lawyer who specialises in this law
Commercial & Corporate Law lawyers
Lawyers who handle this kind of case
Ibrahim Al Salem Law Firm
Active contributor
Dr. Ali Al-Rubaie Law Office and Ittihad Al-Asr Legal Company
Frequently asked questions about Article 72 of the Saudi Commercial Maritime Law
How does the buyer of a mortgaged ship clear it of mortgages?
If no mortgagee creditor submits the sale request mentioned in Article 71, he deposits the price in the court's treasury.
Does the possessor need additional procedures to cancel the mortgage after the deposit?
No. He may request cancellation of the mortgage registration without following any other procedure.
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.