Article 17 of the Saudi Law on Security Rights in Movable Assets

This article regulates the end of registration in the Registry, and protects the grantor from his assets staying encumbered after the reason for the entry has gone.

Grounds on which a registration lapses (paragraph 1):

1. The secured party ends it.
2. Its period set in the Registry ends, unless it was extended before it ended. This period is the one the form sets at registration by stating the end date under Article 16.
3. A court judgment is issued striking it off or ending it.

The secured party's obligation (paragraph 2): if the security right ends before the end of the registration period, for example the debtor pays his debt in full, the secured party must do two things:

• End the registration within fifteen days of the date the security right ended.
• Compensate the grantor for any damage arising from his failure to end it within this period.

Why does this matter? A registration that stays visible in the Registry may give others the impression that the grantor's assets are still encumbered by a security right, and that may affect his ability to obtain new financing. Here the grantor may claim compensation if the creditor delays and damage results.

It is followed by Article 18, which gives any person the right to inspect the Registry and obtain an extract. If you paid your debt and the creditor has not ended the registration, it is advisable to consult a lawyer specialized in commercial and finance matters.