Article 18 of the Saudi Law on Security Rights in Movable Assets

This article establishes the principle of publicity of the Registry, which is the basis of the idea of registration: an entry in the Registry achieves its purpose only if people can inspect it.

First provision: the right of inspection

• Any person has the right to inspect the Registry, without needing to be a party to a security right.
• He also has the right to obtain an extract of the details and information of any registration.

Second provision: the evidentiary value of the extract

The certified extract is a recognized means of proving three things: the date of the registration, its time, and its content. The importance of the date and time is that they may determine precedence among creditors under the priority provisions.

Practical benefit:

• Someone who wants to buy used equipment or goods can check whether they are encumbered by a registered security right.
• Someone who wants to give financing against collateral can find out whether there are earlier registrations over it.
• Someone who needs to prove the date of his registration before a body can rely on the certified extract.

This article follows Article 17 on the lapse of registration, and is followed by Article 19, which regulates priority among holders of security rights. To make use of the extract in an existing dispute, it is advisable to consult a lawyer specialized in commercial and finance matters.