Article 27 of the Saudi Law on Security Rights in Movable Assets
المادة 27 من نظام ضمان الحقوق بالأموال المنقولة · الفصل التاسع: السجل
The article provides that the Ministry of Commerce establishes and runs the registry or assigns it to a private body, that the secured party who registers is responsible for the accuracy of the registered data, and that any interested person may object before the competent court.
Official text (Arabic)
This article has not been amended since the law was issued.
1- تؤسس الوزارة السجل وتديره، ولها إسناد ذلك إلى جهة خاصة، وتحدد الوزارة شروط عمل هذه الجهة والضوابط اللازم التقيد بها، ويكون للوزارة جميع الصلاحيات اللازمة لضمان ممارسة هذه الجهة عملها بفعالية ونزاهة.
2- يكون المضمون له الذي قام بالإشهار مسؤولًا عن دقة وصحة المعلومات والبيانات التي قدمها في الإشهار، ولا تتحمل الجهة القائمة على السجل مسؤولية عدم صحة أو دقة البيانات والمعلومات الواردة في الإشهار الذي قام به المضمون له.
3- لكل ذي مصلحة الاعتراض أمام المحكمة المختصة على أي إشهار في السجل أو على بيانات محددة في الإشهار.
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 27 explained in plain English
This article regulates the unified registry of rights in movable assets, in which security rights are recorded by registration.
1) Establishing and running the registry (paragraph 1):
- The Ministry, which under Article 1 is the Ministry of Commerce, establishes and runs the registry.
- It may assign this to a private body, and it sets the conditions under which that body works and the necessary controls.
- The Ministry has all the powers needed to ensure that this body performs its work effectively and with integrity.
2) Responsibility for the data (paragraph 2): The secured party who made the registration is responsible for the accuracy and correctness of the information and data it submitted. The body running the registry bears no responsibility for any inaccuracy or error in this data. The registry records what is submitted to it, and the creditor bears the consequences of its own mistake.
3) Objection (paragraph 3): Any interested person may object before the competent court to any registration in the registry, or to specific data in it. Whoever is harmed by a registration they believe is wrong turns to the competent court. The article does not specify which court is competent or any time limits for objecting.
This article follows Article 26 on the distribution of enforcement proceeds, and is followed by Article 28, which requires the Minister to issue the Regulations, including the procedures for registration, for searching the registry, and the fees for its services. If you find a wrong registration against your assets, it is advisable to consult a lawyer specialized in commercial and finance matters.
Practical example
The owner of an establishment in Makkah, when applying for financing, discovers that the registry contains a registration against his equipment in favor of a party he never dealt with and never agreed to any registration for. As an interested person, he may object to this registration before the competent court, and the party that registered is responsible for the accuracy of its data.
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 27 of the Saudi Law on Security Rights in Movable Assets
Who runs the unified registry of rights in movable assets?
The Ministry of Commerce establishes and runs the registry, and it may assign this to a private body under conditions and controls that it sets.
Who is responsible if registered data is wrong?
The secured party who made the registration is responsible for the accuracy and correctness of the data, and the body running the registry bears no responsibility for it.
Where can I object to a wrong registration?
Any interested person may object before the competent court to any registration in the registry or to specific data in it.
More articles on Unified Register of Movable Assets
- Article 18
The article gives any person the right to inspect the Registry and obtain an extract of any registration's details, and makes the certified extract a recognized means of proving the registration's date, time and content.
لأي شخص الاطلاع على السجل والحصول على مستخرَج ببيانات ومعلومات أي إشهار، ويعد المستخرَج المعتمد وسيلة معتبرة في إثبات تاريخ الإشهار ووقته ومضمونه.
- Article 28
The article requires the Minister of Commerce to issue the Regulations within thirty days of the Law's publication, covering in particular registration procedures, searching the registry and obtaining extracts, and the fees for registry services.
يصدر الوزير اللائحة خلال (ثلاثين) يومًا من تاريخ نشر النظام في الجريدة الرسمية، على أن تتضمن بوجه خاص الآتي: أ- إجراءات الإشهار. ب- إجراءات البحث في السجل والحص
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.