Article 220. Consequences of the forced sale of a vessel or a vessel under construction of the Merchant Shipping Act
1. In the event of a forced sale of a vessel or a vessel under construction, all registered mortgages of the vessel or vessel under construction, with the exception of those assumed by the buyer with the consent of their mortgagees, all liens and other encumbrances of any kind, cease to apply to the vessel or vessel under construction.
2. Expenses incurred in connection with the seizure and subsequent sale of a vessel or a vessel under construction are primarily paid from the proceeds of their sale. Such expenses include, in particular, the expenses incurred since the arrest of the vessel for the maintenance of the vessel and the crew members, as well as salaries, other amounts and expenses specified in subparagraph 1) of paragraph 1 of Article 203 of this Law. The remainder of the proceeds from the sale of a vessel or a vessel under construction shall be distributed in accordance with this chapter to the extent necessary to meet the relevant requirements. After satisfying the claims of all persons who submitted them, the amount earned from the sale of the vessel or the vessel under construction, if it remains, is returned to the owner of the vessel or the vessel under construction and can be freely transferred.
3. In the case of the forced sale of a sunken vessel, the removal of which is carried out by the maritime administration of the port in order to ensure the safety of navigation or protection from marine pollution, the costs of removing the sunken vessel are paid from the proceeds of its sale, until the claims secured by the maritime lien on the vessel are satisfied.
4. The shipbuilding or ship repair organization (contractor), which holds the vessel to ensure its obligations, is obliged to issue it for compulsory sale.
If there are claims secured by a sea pledge for the vessel, in accordance with paragraph 1 of Article 203 of this Law, the ship repair organization has such a right after satisfying the specified requirements.
5. If the buyer of a vessel or a vessel under construction is a citizen or a legal entity of the Republic of Kazakhstan, the vessel or ownership of the vessel under construction must be registered in the name of such buyer in the relevant registry in the Republic of Kazakhstan. If a vessel or the right of ownership of a vessel under construction is registered in the relevant registry in the Republic of Kazakhstan and the buyer of such vessel or vessel under construction is a foreign citizen or a foreign legal entity, the vessel registration authority or the registration authority for the right of ownership of the vessel under construction is obliged to issue to such buyer a certificate of exclusion of the vessel from the State Register of Marine Vessels, the ship's register or the exclusion of ownership of a ship under construction from the register of ships under construction for the purpose of registering the ship or ownership of a ship under construction in the relevant register of a foreign state.
The Law of the Republic of Kazakhstan dated January 17, 2002 No. 284.
This Law defines the legal, organizational, economic and international foundations of public administration in the field of merchant shipping and regulates relations related to the transportation of passengers, baggage and cargo, ensuring safety in maritime transport and environmental protection.
President
Republic of Kazakhstan
© 2012. RSE na PHB "Institute of Legislation and Legal Information of the Republic of Kazakhstan" of the Ministry of Justice of the Republic of Kazakhstan
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