Section V. Execution against Vessels
454. (Meaning of vessels, etc.)
1. In this chapter, the term "vessels" refers to vessels having a gross tonnage of 20
tons or more.
2. In this Book and in Book Ⅶ, "certificate of registry of the vessel, etc." refers to
the document evidencing the vessel's nationality and other documents necessary
for the vessel lawfully to sail.
455. (Motion and method of execution against vessels)
1. Execution against a vessel shall be carried out by means of auction by the
execution court.
2. In addition to the matters prescribed in Paragraph 2 of Article 439 (Determination
of highest bidder, etc.), a motion for execution against a vessel shall include the
location of the vessel and the name and current location of the captain.
3. The motion under Paragraph 2 shall be accompanied by an authenticated copy of
the enforceable title of execution, together with:
(a) a certified copy of the register, in the case of a registered Cambodian vessel;
and/or
(b) a document proving that the vessel is a vessel provided in Paragraph 1 of
Article 454 (Meaning of vessels, etc.) in the case of non-registered
Cambodian vessel or a non-Cambodian vessel and that the vessel is owned
by the debtor in execution.
456. (Execution court)
The court of first instance having jurisdiction over the place in which the vessel is
located at the time of ruling of commencement of auction shall be the execution court
for execution against a vessel.
457. (Ruling of commencement of auction, etc.)
1. In order to commence auction proceedings, the execution court shall issue a ruling
of commencement of auction and order the bailiff to confiscate the certificate of
registry of the vessel, etc., and submit the same to the execution court.
2. The ruling of commencement under Paragraph 1 shall include a declaration of
attachment of the vessel on behalf of the creditor in execution, together with an
injunction against the debtor in execution leaving port.
3. The ruling of commencement under Paragraph 1 shall be served on the debtor in
execution.
4. Upon the issue of a ruling of commencement under Paragraph 1 in respect of a
registered Cambodian vessel, the court clerk shall immediately direct the registrar
to record the attachment under such ruling.
5. The effect of the attachment shall arise upon service under Paragraph 3, provided
that if registration of the attachment is carried out prior to the issue of the ruling of
commencement of auction, said effect shall arise at the time of such registration.
6. If the bailiff confiscates the certificate of registry of the vessel, etc. prior to service
of the ruling of commencement of auction or the registration of the attachment, the
effect of the attachment shall arise from the time of such confiscation.
7. A Chomtoah appeal may be made against a ruling dismissing a motion for auction.
458. (Final date for demands for distribution and change thereof)
1. If attachment has come into effect under a ruling of commencement of auction, the
execution court shall determine the final date for submission of demands for
distribution.
2. If no ruling permitting sale has been made within 3 months following the final
date for submission of demands for distribution, the execution court may change
such final date.
459. (Ruling ordering delivery of certificate of registry, etc. prior to motion)
1. If it is likely that it would be extremely difficult to execute against a vessel unless
the certificate of registry, etc. is confiscated prior to the motion for execution
against such vessel, the court of first instance having its jurisdiction over the place
where the registration of the vessel is made, upon motion, may by ruling order the
debtor in execution to deliver up the bailiff the certificate of registry, etc. of the
vessel. In cases where the vessel has not been registered or in cases of emergency,
the court having jurisdiction over the location of the vessel may issue such a
ruling.
2. When filing a motion under Paragraph 1 an authenticated copy of the enforceable
title of execution must be presented and the grounds prescribed in the said
Paragraph must be proved.
3. A ruling under Paragraph 1 shall be served on the debtor in execution.
4. A Chomtoah appeal may be filed against a ruling under Paragraph 1.
5. A ruling under Paragraph 1 ordering the delivery up of a vessel's nationality
certificate, etc. to the bailiff can be enforced even before it is served on the other
party. The costs of such execution shall be treated as common service costs of the
auction proceedings.
6. A ruling under Paragraph 1 ordering the delivery up of a vessel's nationality
certificate, etc. to the bailiff shall be enforced after two weeks have passed from
the giving of notice thereof to the creditor in execution.
7. Unless the creditor in execution submits documentary evidence of the filing of a
motion for execution against the vessel within 5 days of the delivery up to the
bailiff of the certificate of registry, etc., the bailiff shall return the certificate of
registry, etc. to the debtor in execution.
460. (Appointment of custodian, etc.)
1. Upon motion by the creditor in execution, where it deems necessary, the execution
court may appoint a custodian of a vessel for which a ruling of commencement of
auction has been issued.
2. The execution court shall supervise the custodian, who shall perform his/her duties
with the care of a good manager. When the custodian completes his/her mandate
he/she shall submit a report of account to the execution court without delay.
3. The custodian may be paid in advance the costs required for custody of the vessel
as determined by the ruling of the execution court. The costs and remuneration
required by the custodian for custody of the vessel shall be treated as Procedural
Costs.
4. A Chomtoah appeal may be made against the ruling on a motion under Paragraph
1 and a ruling under Paragraph 3.
461. (Cancellation of auction procedures by reason of provision of guarantee)
1. If any document listed in Paragraph 2 of Article 370 (Stay and cancellation of
execution) is submitted in connection with the claim of the creditor in execution,
and the debtor in execution provides a guarantee equivalent to the total amount of
the claims of the creditor in execution and the creditors who have submitted
demands for distribution together with the Execution costs prior to the making of
an offer to purchase, the execution court, upon motion, shall cancel the auction
proceedings, with the exception of the distribution proceedings. If the guarantee is
provided prior to the final date for submission of demands for distribution, it will
suffice if the amount of the guarantee is equivalent to the total amount of the
claims of the creditor in execution and the creditors who have submitted demands
for distribution by that time together with the Execution costs.
2. If a stay of execution by reason of submission of a document described in
Paragraph 1 lapses, the execution court shall effect distribution of the guarantee
provided under said Paragraph to the creditors.
3. A Chomtoah appeal may be made against a ruling dismissing a motion under
Paragraph 1.
4. The terms of Article 71 (Method of providing security and change in security) and
Article 72 (Rights of person receiving provision of security) shall apply mutatis
mutandis to the provision of security under Paragraph 1.
462. (Permission to sail)
1. The execution court may, upon motion of the debtor in execution, grant
permission for the vessel to sail if the execution court finds that business necessity
or other good grounds exist, and with the consent of each creditor and the highest
bidder or the purchaser as the case may be.
2. A Chomtoah appeal may be made against a ruling on a motion under Paragraph 1.
3. A ruling under Paragraph 1 shall have no effect until it becomes final and binding.
463. (Transfer of case)
If a vessel in respect of which a ruling of commencement of auction has been issued has
been moved to a location outside the jurisdiction of the execution court, the court may
transfer the case to the court of first instance with jurisdiction over the location of the
vessel.
464. (Cancellation of auction procedures in cases where certificate of registry, etc.
cannot be confiscated)
If the bailiff is unable to confiscate the vessel's certificate of registry, etc. within 2
weeks after the issue of the ruling of commencement of auction, the execution court
shall cancel the auction procedures.
465. (Cancellation of auction procedures by reason of destruction or loss of vessel,
etc.)
Where there are clear circumstances preventing the conveyance of the vessel through
sale, such as destruction or loss thereof, the execution court shall cancel the auction
procedures.
466. (Request for striking off of registration of attachment)
1. In cases where the motion for auction is withdrawn, or a ruling of cancellation of
auction procedures comes into effect, the court clerk shall direct the registrar to
strike off the registration of the attachment under the relevant ruling of
commencement.
2. The cost of the request for striking off under Paragraph 1 shall be borne by the
creditor in execution who has withdrawn his/her motion, or by the creditor in
execution who is subject to the ruling of cancellation.
467. (Valuation)
1. The execution court may appoint a valuer and order a valuation of the vessel.
2. The valuer must obtain the permission of the execution court in order to request
the assistance of the bailiff pursuant to Paragraph 2 of Article 338 (Ensuring
performance of duties by bailiffs, etc.).
3. When carrying out an examination for the purpose of valuation, the valuer may
board the vessel, question the debtor in execution or other third party in possession
of the vessel and/or request the submission of documents by said persons.
4. A bailiff whose assistance has been requested under Paragraph 2 of Article 338
(Ensuring performance of duties by bailiffs, etc.) may take the necessary measures
to open locked doors if required in cases where the valuer boards a vessel pursuant
to Paragraph 3.
468. (Determination of minimum sale price)
1. The execution court shall determine the minimum sale price on the basis of the
valuation by the valuer.
2. Where it deems necessary, the execution court may change the minimum sale
price.
3. Article 435 (Measures to be taken if there is likely to be a deficit) the provisions
shall apply mutatis mutandis for execution against vessel.
469. (Method of sale, etc.)
1. Sale of the vessel shall be by tender or auction or such other method as may be
prescribed by the execution court.
2. In the case of sale by tender or auction, the execution court shall set the date, time
and place of sale, and have the bailiff carry out the sale.
3. In the case of sale under Paragraph 2, the court clerk shall give public notice with
a description of the vessel to be sold, the minimum sale price and the date, time
and place of sale.
4. In the case of sales under Paragraph 2, Article 396 (Maintenance of order in the
sale premises) shall apply mutatis mutandis.
470. (Guarantee of offer to purchase)
1. Any person wishing to offer to purchase a vessel shall provide a guarantee in the
amount equivalent to 10 percent of the minimum sale price, provided that the
execution court may set a guarantee that exceeds this amount when it finds
appropriate.
2. On request by a person other than the highest bidder, the execution court shall
promptly return the guarantee prescribed under Paragraph 1 after the sale has been
completed pursuant to Article 469 (Method of sale, etc.).
471. (Prohibition of offer to purchase by debtor in execution)
No debtor in execution shall be entitled to make an offer to purchase a vessel.
472. (Date for ruling of sale)
1. The execution court shall set a date for the purpose of ruling on sale and shall
declare whether to permit or to refuse to permit the sale.
2. If the execution court has set a date for ruling on sale, the execution court must
give notice to that effect to the persons with a relationship of interest.
473. (Statements of opinion concerning permission or refusal to permit sale)
Persons having an interest in the permission or refusal of permission for sale of the
vessel may state their opinions on the date for ruling of sale concerning any grounds
listed in Paragraph 2 of Article 474 (Permission or refusal of permission for sale) that
affect their rights.
474. (Permission or refusal of permission for sale)
1. Except in cases described in Paragraph 2, the execution court shall issue a ruling
permitting sale.
2. Where any of following grounds is found, the execution court must issue a finding
refusing permission for sale:
(a) the auction proceedings should not be commenced or continued;
(b) the highest bidder is not qualified or incapable of purchasing the vessel, or
its representative is not authorized to purchase the vessel;
(c) an application is made for refusal of permission for sale under Paragraph 1
of Article 476 (Application for refusal of permission for sale in a case where
the vessel has been damaged, etc.);
(d) there is a serious error in the procedure for ruling of minimum sale price;
and/or
(e) there is a serious error in the sale procedures.
475. (Chomtoah appeal against ruling permitting or refusing to permit sale)
1. An interested party may file a Chomtoah appeal against a ruling permitting or
refusing to permit a sale, but only in cases where such party's rights would be
infringed by such ruling.
2. A Chomtoah appeal against a ruling permitting sale must cite the existence of one
of the grounds listed in Paragraph 2 of the 6 Article 474 (Permission or refusal of
permission for sale) or of a serious error in the procedures of the ruling permitting
the sale.
3. If it deems necessary, the Chomtoah appeal court may designate a respondent to
the Chomtoah appellant.
4. A ruling permitting or refusing to permit a sale shall only become effective after it
becomes final and binding.
476. (Application for refusal of permission for sale in a case where the vessel has
been damaged, etc.)
1. If a vessel is seriously damaged by reason of natural disaster or other cause not
attributable to fault on the part of the highest bidder or purchaser after the making
of an offer to purchase, said highest bidder or purchaser may file a motion for
disallowance of the sale prior to a ruling permitting sale being handed down, and
for cancellation of such ruling if it has already been issued, until the time of
payment of the price.
2. A Chomtoah appeal may be filed against a ruling on a motion for cancellation of a
ruling allowing sale under Paragraph 1.
3. A ruling upon motion under Paragraph 1 canceling a ruling permitting sale shall
not become effective until it becomes final and effective.
477. (Withdrawal of motion for auction after making of offer to purchase)
In order to withdraw a motion for auction after making an offer to purchase, a creditor
in execution must obtain the consent of the highest bidder or purchaser as the case may
be.
478. (Deadline for Payment of Price)
If the ruling permitting sale has become final and binding, the execution court shall
promptly stipulate a deadline for payment of the price, and notify the purchaser thereof.
479. (Payment of the price)
1. When a ruling permitting sale becomes final and binding, the purchaser must pay
the price to the execution court within the period stipulated by that court pursuant
to Article 478 (Deadline for Payment of Price).
2. The money paid by the purchaser as guarantee of its offer to purchase shall be
applied to payment of the price.
480. (Time of acquisition of vessel)
The purchaser acquires the vessel at the time of payment of the price.
481. (Effect of non-payment of price)
1. If the purchaser does not pay the price, the ruling permitting sale shall lapse. In
such a case, the purchaser shall have no right to demand return of the guarantee
paid under Article 470 (Guarantee of offer to purchase).
2. In the event of Paragraph 1, the execution court must once again execute an
auction.
3. The Purchaser set forth in Paragraph 1 cannot make an offer to purchase under an
auction as prescribed in Paragraph 2.
482. (Request for registration based on payment of price)
1. Upon payment of the price by the purchaser, the court clerk shall direct the noting
and striking off of the following matters in the register:
(a) the noting of the transfer of the rights acquired by the purchaser; and
(b) the striking off of the attachment or provisional attachment.
2. The direction to the registrar under Paragraph 1 shall be accompanied by an
authenticated copy of the ruling permitting sale.
3. The costs of the request under Paragraph 1 shall be borne by the purchaser.
483. (Ruling ordering delivery up of vessel)
1. Upon motion by a purchaser who has paid the price, the execution court may issue
a ruling ordering the debtor in execution or a person in possession of the vessel to
deliver up the vessel to the purchaser, provided that this shall not apply in the case
of a person who the court finds is in possession on the basis of title that prevails
over the title of the purchaser according to the case record.
2. The purchaser cannot file a motion under Paragraph 1 after the lapse of 6 months
from the date of payment of the price.
3. In the case of a ruling under Paragraph 1 against persons in possession other than
the debtor in execution, the execution court shall examine such other person.
4. A Chomtoah appeal may be filed against a ruling on a motion under Paragraph 1.
5. A ruling under Paragraph 1 shall not come into effect until it becomes final and
binding.
484. (Sale price)
The sale price to be applied to distribution shall consist of the following:
(a) the price of the vessel; and/or
(b) any guarantee the return of which cannot be demanded under the second
sentence of Article 481 (Effect of non-payment of price).
485. (Demand for distribution)
1. The persons listed below are entitled to make a demand for distribution:
(a) creditors holding an authenticated copy of a title of execution who are
entitled to effect execution in accordance with Paragraph 1 of Article 354
(Requirement for execution clause and which organs grant such clause);
(b) creditors who have registered provisional attachment after registration of
attachment based on a ruling of commencement of auction;
(c) creditors who have effected execution using the method of confiscation of
the vessel's certificate of registry, etc.; and/or
(d) persons with documentary evidence of general liens or liens over the vessel.
2. A Chomtoah appeal may be filed against a ruling dismissing a demand for
distribution.
486. (The scope of creditors entitled to distribution)
The creditors listed below shall be entitled to distribution of the sale price:
(a) the attachment creditor(s);
(b) creditors who have made a demand for distribution not later than the last
date for submission of demands for distribution; and/or
(c) creditors who have registered provisional attachment prior to registration of
attachment based on a ruling of commencement of auction.
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