Registering the Pledge and Its Effectiveness in the Saudi Commercial Pledge Law
تسجيل الرهن ونفاذه — نظام الرهن التجاري
A pledge contract takes effect against third parties by registration or by transferring possession to the pledgee or custodian; changing the custodian and amending the contract; and an ineffective pledge remaining valid between pledgor and pledgee.
3 articles
- Article 4Amended by M/94
The article makes a pledge contract effective against third parties by public notice or by transfer of possession of the pledged asset to the pledgee or custodian, under the Law of Security Rights over Movable Assets.
يعد عقد الرهن نافذاً في مواجهة الغير بالإشهار أو بانتقال حيازة المال المرهون إلى المرتهن أو المعدل، وذلك وفقاً لأحكام نظام ضمان الحقوق بالأموال المنقولة
- Article 5Amended by M/94
The article prevents changing the custodian in a commercial pledge except by agreement of the pledgor and the pledgee, and gives the custodian the right to claim compensation for damages from the change.
1- لا يجوز تغيير العدل إلاَّ باتفاق الراهن والمرتهن، ويحق للعدل المطالبة بالتعويض عن أي أضرار ترتبت على هذا التغيير.
- Article 6
The article provides that a pledge contract that has not become effective against third parties remains valid and produces its effects between the pledgor and the pledgee.
يكون عقد الرهن غير النافذ في مواجهة الغير صحيحًا منتجًا لآثاره بين الراهن والمرتهن.