JUDICIAL SALEOF SHIPS

Aurelio Fernández-ConchesoCMI - Argentina Octubre 2010

Questionaire

1-. The concept of judicial sales of ships

1.1 -. Is the term judicial sale or judicial sale of ship (or a similar term such as forced sale) defined in the law of your jurisdiction? If yes, please provide the definition. If not, please explain what kind of sale of ship equates to a judicial sale of ship by which all liens or charges or encumbrances attached to the ship before the sale will be extinguished?

1.2 -. For what purpose may a judicial sale of ship be initiated and conducted in your jurisdiction?

1.3 -. In what circumstances and on what conditions may a judicial sale of ship be initiated and conducted in your jurisdiction?

1.4 -. Will a judicial sale of ship in your jurisdiction necessarily be conducted by or under the control of a court?

1.5 -. Is auction the only method of judicial sale of ships in your jurisdiction? If not, please list and explain in detail all other ways, such as private treaty, which may be used for judicial sales of ships?

General DefinitionsJudicial Sale

It is a transfer of title or sale of goods which is conducted by a court order or by an official appointed by the court.

The transfer tittle to and possession of a debtor's property to another one in exchange for a price determined in proceedings that are conducted under a judgment or an order of court by an officer duly appointed and commissioned to do so.

Forced Sale

Refers to the sale of ship ordered by a court after the ship is being arrested or seized for the purpose of enforcement of a maritime lien or mortgage or hypotheque or charges of the same nature on ships.

Country Defined

Malta NO

Spain NO

China NO

Belgium NO

Italy NO

Denmark NO

United States NO

France NO

Germany NO

Norway NO

Dominican Republic NO

Brazil NO

Country Defined

South Africa NO

Argentina NO

Nigeria NO

Swedish NO

Singapore NO

Canada NO

Croacia NO

Venezuela NO

Rules of Procedure for a Judicial Sale

A set of rules which governs the procedure in which a claim either based on a maritime lien, maritime credit or maritime mortgage or hypoteque is developed ending in the transfer of title of the vessel as a result of such procedure.

Country Regulated Process

Malta YES

Spain YES

China YES

Belgium YES

Italy YES

Denmark YES

United States YES

France YES

Germany YES

Norway YES

Dominican Republic

YES

Brazil YES

Country Regulated Process

South Africa YES

Argentina YES

Nigeria YES

Swedish YES

Singapore YES

Canada YES

Croacia YES

Venezuela YES

Alternatives for initiation or cause of the sales

1-. Enforcing a judgment, award or enforcement title related to a maritime lien, mortgage or hypothec or indeed other types of credit.

Country Regulated Process

Malta YES

Spain YES

China YES

Belgium YES

Italy YES

Denmark YES

United States YES

France YES

Germany YES

Norway YES

Dominican Republic

YES

Brazil YES

Country Regulated Process

South Africa YES

Argentina YES

Nigeria YES

Swedish YES

Singapore YES

Canada YES

Croacia YES

Venezuela YES

Procedure for the sale

1-. Directly by the Court.

2-. Or where not directly by the Court by direct supervision of the same or one of its officers, such as a Marshall.

Country

Malta Court

Spain Court

China Court

Belgium Court

Italy Court

Denmark Court

United States Marshall

France Court

Germany Court

Norway Court

Dominican Republic Court

Brazil Court

Country Court

South Africa Court

Argentina Court

Nigeria Court

Swedish Court

Singapore Court

Canada Marshall

Croacia Court

Venezuela Court

Especific forms for the sale

1-. An auction or

2-. Related methods such as a private sale or through a broker but in terms and conditions that must be appropriately approved by the judicial entity under whose authority it has been imposed.

Country Option

Malta

Spain

China

Belgium

Italy

Denmark

United States

France

Germany

Norway

Dominican Republic

Brazil

Country Option

South Africa

Argentina

Nigeria

Swedish

Singapore

Canada

Croacia

Venezuela

Conclusions

1. Governed in most legislations in either the maritime or procedural legislation.

2. Governed in a way in which there is a set of rules in respect of the judicial sale but not express definition thereof.

3. Possible for the purposes of enforcing a judgment, award or enforcement title related to a maritime lien, mortgage or hypothec or indeed other types of credit.

4. Usually effected directly by the Court or where not directly by the Court by direct supervision of the same or one of its officers, such as a Marshall.

5. Normally effected through an auction but also through related methods such as a private sale or through a broker but in terms and conditions that must be appropriately approved by the judicial entity under whose authority it has been imposed.

AURELIO FERNÁNDEZ-CONCHESO

Email: clyde.co@cantv.net