Article 43 of the Saudi Commercial Pledge Law
المادة 43 من نظام الرهن التجاري · الفصل الخامس: المحافظة على المال المرهون واستثماره
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 معينة من الأموال إجراءات خاصة لتحديدها.
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 43 explained in plain English
In a number of cases the law needs to know the value of the pledged asset or the average valuation. This article does not set the valuation method itself, but identifies the reference from which it is taken:
- The rule: The value and average valuation are determined according to the rules and procedures set out by the Regulations, which under the law's definitions are the Implementing Regulations of the law.
- The exception: If the body competent to regulate certain types of assets has special procedures for determining their value, those procedures are followed.
The article does not state the details of these rules or the bodies meant, so one must refer to the Regulations and to the laws of the body competent for each type of asset, without assuming what they contain.
The phrase in the cases provided for in the law makes this article a general rule for every place in the law where the value of the pledged asset or its average valuation must be determined, in which case one refers to the Regulations' rules, or to the special procedures of the competent body if any exist.
In a dispute over the value of a pledged asset, it is advisable to consult a lawyer specialized in commercial and finance matters to refer to the applicable rules.
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 43 of the Saudi Commercial Pledge Law
How is the value of a pledged asset determined?
According to the rules and procedures set out by the Implementing Regulations of the law, unless the body competent to regulate that type of asset has special procedures for determining it.
Do some assets have a different valuation method?
Yes. If the body competent to regulate certain types of assets has special procedures for determining their value, those procedures are followed.
More articles on Conditions of the Pledged Asset
- Article 8
The article requires the pledgor to own the pledged asset and have capacity to dispose of it, and the asset to be saleable or valuable, and bars pledging estate and bequest assets before the pledgor owns them.
1- يجب أن يكون الراهن مالكًا للمال المرهون عند إبرام العقد وأهلاً للتصرف فيه، فإن تبين ما يخالف ذلك بعد التعاقد فللدائن المرتهن حسن النية التمسك بحقه في رهن بدي
- Article 10Amended by M/94
The article provides that the whole pledged asset secures the whole debt unless otherwise agreed, and permits pledging an undivided part of a movable asset even if it cannot be divided.
2- يعد كل المال المرهون ضامناً لكامل الدين، ما لم يتفق على غير ذلك. 3- يجوز رهن جزء من مال منقول ولو استحالت قسمته أو فرزه، ويقع الرهن في هذه الحال على الجزء ال
- 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 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
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.