Article 26 of the Saudi Commercial Pledge Law
المادة 26 من نظام الرهن التجاري · الفصل الثامن: التنفيذ على المال المرهون وبيعه
The article lets the Implementing Regulations set special provisions for enforcement against the pledged asset, subject to the enforcement provisions of the Law of Security Rights over Movable Assets.
Official text after amendments (Arabic)
Compiled from the original text and every officially published amendment; the amendments are shown in full below for comparison.
مع مراعاة أحكام التنفيذ الواردة في نظام ضمان الحقوق بالأموال المنقولة، للائحة تحديد أحكام خاصة للتنفيذ على المال المرهون.
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 26 explained in plain English
This is a short referral article concerning enforcement against the pledged asset, that is, the pledgee recovering its right from the pledged asset. It contains two matters:
- The authority of the Law of Security Rights over Movable Assets: The enforcement provisions in that law must be observed when enforcing against the pledged asset.
- The role of the Implementing Regulations: The Implementing Regulations of the Commercial Pledge Law may set special provisions for enforcement against the pledged asset.
The article itself does not state the enforcement procedures, their periods or the body before which it takes place; these details are to be found in the Law of Security Rights over Movable Assets and in the Implementing Regulations, and the article does not state their content.
The pledged asset, under Article 1, is the movable asset provided, or agreed to be provided, as security for a debt. This article differs from Article 25, which permits the competent court to order the pledged asset sold before the debt falls due if it faces destruction or loss of value or an opportunity arises to sell it at a higher price, with the court determining the method of sale.
This wording was issued by Royal Decree No. M/94 dated 15/8/1441 AH. Anyone who needs to enforce against a pledge, or faces enforcement against one, is advised to consult a lawyer specialized in enforcement or commercial cases.
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 26 of the Saudi Commercial Pledge Law
Which law governs enforcement against an asset under a commercial pledge?
The article provides that the enforcement provisions in the Law of Security Rights over Movable Assets are to be observed.
Are there special provisions for enforcing a commercial pledge?
The article permits the Implementing Regulations to set special provisions for enforcement against the pledged asset.
Amendment history
Royal Decree No. M/94 — 15/8/1441 AH
Official amendment text (Arabic)
- عُدلت هذه المادة وذلك بموجب المرسوم الملكي رقم (م/94) وتاريخ 1441/8/15هـ. لتكون بالنص الآتي: "مع مراعاة أحكام التنفيذ الواردة في نظام ضمان الحقوق بالأموال المنقولة، للائحة تحديد أحكام خاصة للتنفيذ على المال المرهون".
Original text before the amendments (Arabic)
مع عدم الإخلال بما ينص عليه أي نظام آخر، تتقدم الديون المضمونة بالرهن النافذ -في حالات الإفلاس أو التصفية- في أولوية السداد على الديون الأخرى.
More articles on Enforcing Against the Pledged Asset
- Article 12
The article permits pledging more than one movable asset to secure the same debt, and gives the pledgee the right to set the order of enforcement against them unless otherwise agreed.
يجوز رهن أكثر من مال منقول لضمان الدين نفسه، ويحق للمرتهن في هذه الحال تحديد ترتيب التنفيذ على هذه الأموال، ما لم يُتفق على غير ذلك.
- Article 19
The article lets a pledgee with a right of pursuit enforce against the pledged asset in the hands of whoever acquired its ownership even if unaware of the pledge, and gives that person recourse against the pledgor or seller.
يترتب على ثبوت حق المرتهن في تتبع المال المرهون حقه في التنفيذ عليه في يد من انتقلت إليه ملكيته وإن لم يعلم بوجود الرهن، ويحق لمن انتقلت إليه ملكية المال المرهو
- Article 38Amended (1411 AH)
The article permits pledging all of the pledgor's movable assets, a part or class of them, or an adequately described asset, and states when enforcement may take place and the pledgor's right to dispose of the assets before default.
1- يجوز رهن جميع الأموال المنقولة المملوكة للراهن أو جزء منها أو فئة منها، ويجوز كذلك رهن أي مال منقول موصوف وصفً عاماً وكافياً لتعيينه 2- يكون التنفيذ على الره
- Article 43
The article refers the determination of a pledged asset's value and average valuation to the Regulations' rules and procedures, unless the body competent for certain types of assets has its own special procedures.
تحدد قيمة المال المرهون ومتوسط التقويم في الحالات المنصوص عليها في النظام وفق القواعد والإجراءات التي تبينها اللائحة، ما لم يكن لدى الجهة المختصة بتنظيم أنواع م
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.