Article 73 of the Saudi Commercial Maritime Law
المادة 73 من النظام البحري التجاري · الفصل الثالث: الرهن البحري
A ship mortgage registration is cancelled by judgment or by agreement between the creditor and the debtor, and in an agreement the debtor submits a declaration signed by the creditor, with the signature certified, consenting to cancellation, subject to Article 72.
Official text (Arabic)
This article has not been amended since the law was issued.
مع مراعاة حكم المادة (الثانية والسبعين) يشطب قيد الرهن بناء على حكم، أو اتفاق بين الدائن والمدين، وفي الحالة الأخيرة يجب أن يقدم المدين إقراراً موقعاً من الدائن، ومصدقًا على توقيعه بموافقته على شطب قيد الرهن.
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 73 explained in plain English
This article sets out the ways of cancelling the registration of a maritime mortgage from the ship register, which are:
- By a court judgment.
- By agreement between the creditor and the debtor, in which case the debtor must submit a declaration signed by the creditor consenting to the cancellation of the registration, and the signature must be certified.
Requiring certification of the creditor's signature protects the creditor from having his mortgage cancelled without his knowledge, and ensures the seriousness of the consent.
The article begins with the phrase “subject to the provision of Article 72”, the article that permits the possessor, if no mortgagee creditor submits the sale request mentioned in Article 71, to clear the ship by depositing the price in the court's treasury and request cancellation of the mortgage registration without any other procedure. That is a third route specific to that case.
The article does not specify the authority before which the signature is certified or the steps of cancellation, so one refers to the regulations and the registration office. A person facing a disagreement about cancellation is advised to consult a lawyer specializing in maritime and commercial law.
Practical example
A ship owner in Jeddah fully repaid his loan to the mortgagee bank. To cancel the mortgage from the ship register, he obtained from the bank a signed declaration consenting to the cancellation with the signature certified, and submitted it to the registration office.
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 73 of the Saudi Commercial Maritime Law
How do I cancel the mortgage on my ship after paying the debt?
By a court judgment or by agreement with the creditor; in an agreement you submit a declaration signed by the creditor consenting to the cancellation, with his signature certified.
Is an oral agreement with the creditor enough to cancel the mortgage?
No. A declaration signed by the creditor with a certified signature must be submitted.
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.