Qatar Trade Law No. 27/2006 Thursday, 09 June 2011 00:49

Provision 232

The air carrier shall be responsible for the maximum compensation provided for in provision (224) of this law, irrespective of the status of the liabilities in the case of liability and the number or amount of due compensation.

Mortgage and Deposit in the Stores

Provision 233

Commercial mortgage decides a property transferred as security for the commercial debt for the debtor.

Mortgage is a business for all stakeholders whose rights and obligations are related to it.

Provision 234

Mortgage shall be implemented in the right of others only if the possession of the mortgaged item has been transferred to the mortgager or to the justice appointed by the contracting parties and it remained in the possession of the one who received the same from them until the expiry of the mortgage.

Mortgagee or justice appointed by the contracting parties shall be the possessor of the mortgaged item in the following cases:

1 - If he placed the items at his disposal in a way that make others believe that the thing is in his custody.

2 - If he received the document that represents the mortgaged item and its possessor gives the other the right to receive that item.

Provision 235

The rights may be mortgaged. The mortgage shall be done as follows:

1 - The inalienable rights in nominal documents with a written proof in which it shall be mentioned that it has been done for the purpose of security and the same shall be recorded in the books of the authority which issued the document and it shall indicate the same document.

2 - The inalienable rights in the documents are an order of endorsement in which it shall be stated that the value is for the guarantee or mortgage.

3 - The inalienable rights in documents for their bearer with a written proof in which it shall be stated that these rights have been mortgaged by notifying the authority that issued these documents to obtain a mortgage.

4 - The other unalienable rights in nominal documents or documents are as an order to follow the procedures for the transfer of rights.

The possession of rights is transferred by delivery of fixed documents. If the document was deposited with by someone else the delivery of receipt of deposit shall be considered as the delivery of document itself, provided that the document is specified in the receipt sufficiently and the depositor accepts its possession to the credit of the mortgager.

Provision 236

The mortgage for the contracting parties and in the face of others shall be proved with all methods of proof.

Provision 237

If the mortgage resulted from fungible money it shall remain existed even if anything else with the same value and type is replaced by the mortgaged item.

If the mortgaged item is not fungible money it is permissible to the mortgager to recover it and replace it by the other, provided that it has been provided for in the mortgage contract and the creditor accepts the replacement by taking into account the provisions set forth in the bankruptcy and without prejudice to the rights of third parties of good faith.

Provision 238

The mortgagee or justice appointed by contracting parties must deliver the debtor, if so requested, a receipt showing the nature, type, quantity and weight and other characteristics of the mortgaged item.

Effects of mortgage (239-247)

Provision 239

The mortgagee or justices appointed by the contracting parties are committed to take the necessary measures to maintain the mortgaged item. If this item is a commercial paper, he must take the actions required by law to protect the inalienable right in the paper and take its value at maturity. The mortgager shall be bound to all expenditures made in this way.

The mortgagee or Justice appointed by the contracting parties are responsible for the loss or damage of the mortgaged item, unless it is proved that this is due to a self defect in the item or any alien cause in which he can’t do anything.

Provision 240

The mortgagee cannot benefit from the mortgaged item without any charge. He has to invest the mortgaged item and use all rights related to it to the credit of mortgager and collect its value, profits and other sums resulting from it at the time of maturity.

The net profit which the creditor obtained and what he benefited from it by using the thing, shall be deducted from the amount secured by the mortgage even if the maturity date didn’t come, provided that the first deduction shall be made from the value of what he spent in maintaining repairing the thing and the costs he paid, the compensation which he deserved, expenses and origin of debt.

Provision 241

If the debtor did not pay the debt secured by the mortgage within a period of its maturity, the mortgagee, after the expiry date of seven days from the date of notification to the debtor about the payment formally or by registered letter with acknowledgment of receipt, has to submit a petition to the head of the court to seek an order to sell the entire mortgaged item or part of it.

Provision 242

The order issued by the head of the court to sell the mortgaged item shall be executed only after the expiry date of five days from the date of notification to the debtor and in the guarantor if any, with a statement of the place of sale, date and hour.

If the mortgage has been decided on a number of funds, it was the right of the mortgagee to set aside the fund which shall be sold, unless otherwise agreed. In all cases, the sale shall include only what shall be enough to meet the creditor’s right and selling expenses.

Provision 243

The sale in the auction shall be conducted in a time and place specified by the head of the court unless the head of the court specify another way of sale.

If the mortgaged item is a document that can be traded in the stock market, the head of the court shall order to sell it in this market by the recognised brokers.

The mortgagee shall obtain by a way of privilege the origin of his debt expenses from the price resulting from the sale.

Provision 244

If the mortgaged item is vulnerable to loss or damage or its possession requires heavy expenditures and the mortgager didn’t not submit other things as its alternate, it is permissible for each of the creditor and the mortgager to request the head of the court to permit to sell it immediately in any way designated by the court and the mortgage shall be transformed into the price resulting from the sale.

Provision 245

If the market value of the mortgaged item fell in a way that it became insufficient for security of debt, the creditor may request the mortgager to complete the security during a certain time limit.

If the mortgager refused to do that or the specified time limit ended without a completion of security, the creditor can carry out an action on the mortgaged item following the procedures stipulated in Provisions (241) to (243) of the law.

Provision 246

If the mortgaged item is a document of which the entire value has not been paid, the mortgager is obliged, when he is asked to pay the unpaid part, to submit to the mortgagee the money necessary to fulfill this part before the date of maturity by at least one day, otherwise the mortgagee may request to sell the document by following the procedures set forth in Provisions (241) to (243) of the law.

Provision 247

Any agreement concluded at the time of the decision mortgage or after the decision shall be invalid. In the case of failure to pay the debt at maturity the mortgagee shall have the right to own the mortgaged item or sell the same without taking into account the procedures set forth in provisions (241) to (243) of the law.

However, after the debt or its installment became payable it is permissible to have an agreement that the creditor for his debtor can waive the mortgaged item or part of it as a fulfillment of debt, as the court may order the mortgagee to own the mortgaged item or part of it as a fulfillment of debt provided that it shall be calculated by its market value according to expert’s estimation.