Qatar Trade Law No. 27/2006 Thursday, 16 June 2011 04:44

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.

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.

Section II, Deposit in General Stores

The deposit in general stores is a contract by which the treasurer is committed to receive the goods for safekeeping on the account of the depositor or the one who gets ownership of the goods or its possession, under the instruments that represent the goods and are issued by the public store.

The transit depots at the ports are considered as the general stores.

Any store which does not have the right to issue the negotiable instruments representing the goods is not considered as general store subject to the provisions set forth in this section.

A general store which has the right to issue the negotiable instruments representing the goods can be established or invested in it only with the license from the competent authority in accordance with the terms and conditions that are issued by a decision of the authority.

The competent minister shall issue a register to regulate the general stores.

He shall put for each general store a register to regulate its activity as per the agreement and the nature of the goods which it will keep and preserve. This register must include the rights and obligations of the treasurer and the method of determination of the wage of storage.

The treasurer with any character whether for his own account or others, cannot exercise any commercial activity which includes any goods from the type of goods licensed to save in his store and issue the instruments that represent the goods.

If the treasurer is a company in which one of the partners holds at least 10 per cent of its capital, such partner shall come under the prohibitions set forth in the preceding paragraph.

The general stores can provide guaranteed loans by mortgaging the goods stored in them and deal with the mortgage instruments that represent the goods.

The depositor is committed to submit to the public store all the correct data and information about the type of goods, features and value.

The depositor has the right to inspect the goods delivered to the public store on his account and take samples from it.

The treasurer shall be responsible for guarding and preserving the deposited goods. The treasurer has to take the necessary care according to the nature and type of goods.

The treasurer shall be responsible for the goods and he shall not exceed the value determined by the depositor.

The treasurer shall not be responsible for the damage or defect if it resulted from dragging or it took place because of the nature of the goods or the self-defect or because of the way of preparation.

The treasurer can request the president of the court to authorize him to sell the goods if they are threatened by a quick damage. The president of the court shall define the method of sale. The treasurer has to notify the depositor about the same without any delay.