Special Maritime Procedure Law of the People's Republic of China

    Updated : 2015-09-11

Chapter X Procedure for Registration and Repayment of Debts

Article 111 After announcement of the maritime court's order for forced auction of a ship, the creditors shall, within the time limit announced, apply for registration of their claims pertaining to the ship to be auctioned. Creditors who fail to register their claims before expiry of the said time limit period shall be deemed to have abandoned their rights to be satisfied from the proceeds of the auction.

Article 112 After the maritime court's announcement of acceptance of the application to constitute a limitation fund for maritime claims, the creditors shall, within the time limit announced, apply for registration of their claims relevant to the maritime accident that occurred at a particular scene. The creditors who fail to register their claims before expiry of the time limit announced shall be deemed to have abandoned their rights to debt.

Article 113 A creditor who wishes to apply for registration of his claims shall file an application in writing with the maritime court and provide relevant debt evidence.

Debt evidence includes legally-binding judgements, written orders, conciliation statements, arbitral awards, notarised documents concerning creditors' rights to debt and other evidential material substantiating the maritime claim.

Article 114 The maritime court shall examine the application submitted by a creditor, and make an order to allow the registration if debt evidence is provided, and to reject the application if it is not.

Article 115 Where the maritime court, having examined the judgements, written orders, conciliation statements, arbitral awards, or the notarised documents concerning creditors' rights to debt provided by the creditors, firmly believe that they are all true and lawful, it shall make an order to confirm them.

Article 116 Where a creditor wishes to provide other maritime claim evidence, he shall, after having registered his claims, bring an action to confirm his rights before the maritime court where the claims are registered. Where an arbitration agreement has been concluded between the parties, they shall apply for arbitration promptly.

The judgements and written orders made by the maritime court to confirm the rights are legally binding, no parties may appeal against them.

Article 117 After examining and confirming the debts, the maritime court shall issue a notice to the creditors for a creditors' meeting, and make arrangements for and convene the creditors' meeting.

Article 118 The creditors' meeting may through negotiation put forward a plan for distribution of the proceeds from auction of the ship or the limitation fund for maritime claims and sign an agreement on satisfaction.

The agreement on satisfaction shall be legally binding after the maritime court makes an order to confirm it.

Where consultation at the creditors' meeting fails, the maritime court shall, according to the ranking of claims provided for in the Maritime Code of the People's Republic of China and other related laws, decide on the plan for distribution of the proceeds from auction of the ship or the limitation fund for maritime claims.

Article 119 The proceeds from auction of a ship and interest thereon, or the limitation fund for maritime claims and interest thereon, shall be distributed at the same time.

In distribution of the proceeds from auction of a ship, the legal costs to be borne by the person liable, expenses incurred in order to preserve the ship or to procure its auction and to distribute the proceeds from the auction, as well as other expenses incurred in the common interest of the creditors, shall first be paid out of the proceeds from such auction.

The balance, after satisfaction of the debts, shall be refunded to the former ship-owner or the person constituting the limitation fund for maritime claims.

Chapter XI Procedure for Exigence of Maritime Liens

Article 120 Where a ship is transferred, the transferee may apply to the maritime court for exigence of the maritime lien, demanding the maritime lien holder to assert his right promptly so as to extinguish the maritime lien attached to the ship.

Article 121 A transferee who wishes to apply for exigence of the maritime lien shall file an application with the maritime court of the place where the ship is to be delivered or where the domicile of the transferee is located.

Article 122 A person who wishes to apply for exigence of the maritime lien, shall submit to the maritime court a written application, the contract for ship transfer, technical data of the ship and other documents. In the written application shall be stated the name of the ship, the facts and grounds therefor.

Article 123 The maritime court, having received the application and the relevant documents, shall examine them and, within seven days, make an order to approve or disapprove the application.

A transferee who is dissatisfied with such an order may apply for review not more than once.

Article 124 After an order to approve an application becomes effective, the maritime court shall issue an announcement in newspapers or other news media urging the maritime lien holder to assert his right within the period of exigence.

The period for exigence of a maritime lien is 60 days.

Article 125 A maritime lien holder who asserts his right within the period of exigence shall complete registration with the maritime court; if the lien holder fails to assert his right, he shall be deemed to have waived the maritime lien.

Article 126 Where on the expiry of the period of exigence, no one asserts the maritime lien, the maritime court shall, on the application of a party, make a judgement, declaring that the ship to be transferred is free from maritime lien. The judgement shall be published.

Chapter XII Supplementary Provisions

Article 127 This Law shall go into effect as of July 1, 2000.