Commends the United Nations Commission on International Trade Law for preparing the draft convention on the international effects of judicial sales of ships;
2
Adopts the United Nations Convention on the International Effects of Judicial Sales of Ships, contained in the annex to the present resolution;
3
Authorizesa ceremony for the opening for signature of the Convention to be held as soon as practicable in 2023 in Beijing, upon which occasion the Convention will be open for signature, and recommends that the Convention be known as the “Beijing Convention on the Judicial Sale of Ships”;
4
Calls uponthose Governments and regional economic integration organizations that wish to strengthen the international legal framework for shipping and navigation to consider becoming a party to the Convention.
United Nations Convention on the International Effects of Judicial Sales of Ships
The States Parties to this Convention,
Reaffirming their belief that international trade on the basis of equality and mutual benefit is an important element in promoting friendly relations among States,
Mindful of the crucial role of shipping in international trade and transportation, of the high economic value of ships used in both seagoing and inland navigation, and of the function of judicial sales as a means to enforce claims,
Considering that adequate legal protection for purchasers may positively impact the price realized at judicial sales of ships, to the benefit of both shipowners and creditors, including lienholders and ship financiers,
Wishing, for that purpose, to establish uniform rules that promote the dissemination of information on prospective judicial sales to interested parties and give international effects to judicial sales of ships sold free and clear of any mortgage or hypothèque and of any charge, including for ship registration purposes,
Have agreed as follows:
Article 1
Purpose
This Convention governs the international effects of a judicial sale of a ship that confers clean title on the purchaser.
Article 2
Definitions
For the purposes of this Convention:
a
“Judicial sale” of a ship means any sale of a ship:
i
Which is ordered, approved or confirmed by a court or other public authority either by way of public auction or by private treaty carried out under the supervision and with the approval of a court; and
ii
For which the proceeds of sale are made available to the creditors;
b
“Ship” means any ship or other vessel registered in a register that is open to public inspection that may be the subject of an arrest or other similar measure capable of leading to a judicial sale under the law of the State of judicial sale;
c
“Clean title” means title free and clear of any mortgage or hypothèque and of any charge;
d
“Mortgage or hypothèque” means any mortgage or hypothèque that is effected on a ship and registered in the State in whose register of ships or equivalent register the ship is registered;
e
“Charge” means any right whatsoever and howsoever arising which may be asserted against a ship, whether by means of arrest, attachment or otherwise, and includes a maritime lien, lien, encumbrance, right of use or right of retention but does not include a mortgage or hypothèque;
f
“Registered charge” means any charge that is registered in the register of ships or equivalent register in which the ship is registered or in any different register in which mortgages or hypothèques are registered;
g
“Maritime lien” means any charge that is recognized as a maritime lien or privilège maritime on a ship under applicable law;
h
“Owner” of a ship means any person registered as the owner of the ship in the register of ships or equivalent register in which the ship is registered;
i
“Purchaser” means any person to whom the ship is sold in the judicial sale;
j
“Subsequent purchaser” means the person who purchases the ship from the purchaser named in the certificate of judicial sale referred to in article 5;
k
“State of judicial sale” means the State in which the judicial sale of a ship is conducted.
Article 3
Scope of application
1
This Convention applies only to a judicial sale of a ship if:
a
The judicial sale is conducted in a State Party; and
b
The ship is physically within the territory of the State of judicial sale at the time of that sale.
2
This Convention shall not apply to warships or naval auxiliaries, or other vessels owned or operated by a State and used, immediately prior to the time of judicial sale, only on government non-commercial service.
Article 4
Notice of judicial sale
1
The judicial sale shall be conducted in accordance with the law of the State of judicial sale, which shall also provide procedures for challenging the judicial sale prior to its completion and determine the time of the sale for the purposes of this Convention.
2
Notwithstanding paragraph 1, a certificate of judicial sale under article 5 shall only be issued if a notice of judicial sale is given prior to the judicial sale of the ship in accordance with the requirements of paragraphs 3 to 7.
3
The notice of judicial sale shall be given to:
a
The registry of ships or equivalent registry with which the ship is registered;
b
All holders of any mortgage or hypothèque and of any registered charge, provided that the register in which it is registered, and any instrument required to be registered under the law of the State of registration, are open to public inspection, and that extracts from the register and copies of such instruments are obtainable from the registry;
c
All holders of any maritime lien, provided that they have notified the court or other public authority conducting the judicial sale of the claim secured by the maritime lien in accordance with the regulations and procedures of the State of judicial sale;
d
The owner of the ship for the time being; and
e
If the ship is granted bareboat charter registration:
i
The person registered as the bareboat charterer of the ship in the bareboat charter register; and
ii
The bareboat charter registry.
4
The notice of judicial sale shall be given in accordance with the law of the State of judicial sale, and shall contain, as a minimum, the information mentioned in annex I.
5
The notice of judicial sale shall also be:
a
Published by announcement in the press or other publication available in the State of judicial sale; and
b
Transmitted to the repository referred to in article 11 for publication.
6
For the purpose of communicating the notice to the repository, if the notice of judicial sale is not in a working language of the repository, it shall be accompanied by a translation of the information mentioned in annex I into any such working language.
7
In determining the identity or address of any person to whom the notice of judicial sale is to be given, it is sufficient to rely on:
a
Information set forth in the register of ships or equivalent register in which the ship is registered or in the bareboat charter register;
b
Information set forth in the register in which the mortgage or hypothèque or the registered charge is registered, if different to the register of ships or equivalent register; and
c
Information notified under paragraph 3, subparagraph (c).
Article 5
Certificate of judicial sale
1
Upon completion of a judicial sale that conferred clean title to the ship under the law of the State of judicial sale and was conducted in accordance with the requirements of that law and the requirements of this Convention, the court or other public authority that conducted the judicial sale or other competent authority of the State of judicial sale shall, in accordance with its regulations and procedures, issue a certificate of judicial sale to the purchaser.
2
The certificate of judicial sale shall be substantially in the form of the model contained in annex II and contain:
a
A statement that the ship was sold in accordance with the requirements of the law of the State of judicial sale and the requirements of this Convention;
b
A statement that the judicial sale has conferred clean title to the ship on the purchaser;
c
The name of the State of judicial sale;
d
The name, address and the contact details of the authority issuing the certificate;
e
The name of the court or other public authority that conducted the judicial sale and the date of the sale;
f
The name of the ship and registry of ships or equivalent registry with which the ship is registered;
g
The IMO number of the ship or, if not available, other information capable of identifying the ship;
h
The name and address of residence or principal place of business of the owner of the ship immediately prior to the judicial sale;
i
The name and address of residence or principal place of business of the purchaser;
j
The place and date of issuance of the certificate; and
k
The signature or stamp of the authority issuing the certificate or other confirmation of authenticity of the certificate.
3
The State of judicial sale shall require the certificate of judicial sale to be transmitted promptly to the repository referred to in article 11 for publication.
4
The certificate of judicial sale and any translation thereof shall be exempt from legalization or similar formality.
5
Without prejudice to articles 9 and 10, the certificate of judicial sale shall be sufficient evidence of the matters contained therein.
6
The certificate of judicial sale may be in the form of an electronic record provided that:
a
The information contained therein is accessible so as to be usable for subsequent reference;
b
A reliable method is used to identify the authority issuing the certificate; and
c
A reliable method is used to detect any alteration to the record after the time it was generated, apart from the addition of any endorsement and any change that arises in the normal course of communication, storage and display.
7
A certificate of judicial sale shall not be rejected on the sole ground that it is in electronic form.
Article 6
International effects of a judicial sale
A judicial sale for which a certificate of judicial sale referred to in article 5 has been issued shall have the effect in every other State Party of conferring clean title to the ship on the purchaser.
Article 7
Action by the registry
1
At the request of the purchaser or subsequent purchaser and upon production of the certificate of judicial sale referred to in article 5, the registry or other competent authority of a State Party shall, as the case may be and in accordance with its regulations and procedures, but without prejudice to article 6:
a
Delete from the register any mortgage or hypothèque and any registered charge attached to the ship that had been registered before completion of the judicial sale;
b
Delete the ship from the register and issue a certificate of deletion for the purpose of new registration;
c
Register the ship in the name of the purchaser or subsequent purchaser, provided further that the ship and the person in whose name the ship is to be registered meet the requirements of the law of the State of registration;
d
Update the register with any other relevant particulars in the certificate of judicial sale.
2
At the request of the purchaser or subsequent purchaser and upon production of the certificate of judicial sale referred to in article 5, the registry or other competent authority of a State Party in which the ship was granted bareboat charter registration shall delete the ship from the bareboat charter register and issue a certificate of deletion.
3
If the certificate of judicial sale is not issued in an official language of the registry or other competent authority, the registry or other competent authority may request the purchaser or subsequent purchaser to produce a certified translation into such an official language.
4
The registry or other competent authority may also request the purchaser or subsequent purchaser to produce a certified copy of the certificate of judicial sale for its records.
5
Paragraphs 1 and 2 do not apply if a court in the State of the registry or of the other competent authority determines under article 10 that the effect of the judicial sale under article 6 would be manifestly contrary to the public policy of that State.
Article 8
No arrest of the ship
1
If an application is brought before a court or other judicial authority in a State Party to arrest a ship or to take any other similar measure against a ship for a claim arising prior to a judicial sale of the ship, the court or other judicial authority shall, upon production of the certificate of judicial sale referred to in article 5, dismiss the application.
2
If a ship is arrested or a similar measure is taken against a ship by order of a court or other judicial authority in a State Party for a claim arising prior to a judicial sale of the ship, the court or other judicial authority shall, upon production of the certificate of judicial sale referred to in article 5, order the release of the ship.
3
If the certificate of judicial sale is not issued in an official language of the court or other judicial authority, the court or other judicial authority may request the person producing the certificate to produce a certified translation into such an official language.
4
Paragraphs 1 and 2 do not apply if the court or other judicial authority determines that dismissing the application or ordering the release of the ship, as the case may be, would be manifestly contrary to the public policy of that State.
Article 9
Jurisdiction to avoid and suspend judicial sale
1
The courts of the State of judicial sale shall have exclusive jurisdiction to hear any claim or application to avoid a judicial sale of a ship conducted in that State that confers clean title to the ship or to suspend its effects, which shall extend to any claim or application to challenge the issuance of the certificate of judicial sale referred to in article 5.
2
The courts of a State Party shall decline jurisdiction in respect of any claim or application to avoid a judicial sale of a ship conducted in another State Party that confers clean title to the ship or to suspend its effects.
3
The State of judicial sale shall require the decision of a court that avoids or suspends the effects of a judicial sale for which a certificate has been issued in accordance with article 5, paragraph 1, to be transmitted promptly to the repository referred to in article 11 for publication.
Article 10
Circumstances in which judicial sale has no international effect
A judicial sale of a ship shall not have the effect provided in article 6 in a State Party other than the State of judicial sale if a court in the other State Party determines that the effect would be manifestly contrary to the public policy of that other State Party.
Article 11
Repository
1
The repository shall be the Secretary-General of the International Maritime Organization or an institution named by the United Nations Commission on International Trade Law.
2
Upon receipt of a notice of judicial sale transmitted under article 4, paragraph 5, certificate of judicial sale transmitted under article 5, paragraph 3, or decision transmitted under article 9, paragraph 3, the repository shall make it available to the public in a timely manner, in the form and in the language in which it is received.
3
The repository may also receive a notice of judicial sale emanating from a State that has ratified, accepted, approved or acceded to this Convention and for which the Convention has not yet entered into force and may make it available to the public.
Article 12
Communication between authorities of States Parties
1
For the purposes of this Convention, the authorities of a State Party shall be authorized to correspond directly with the authorities of any other State Party.
2
Nothing in this article shall affect the application of any international agreement on judicial assistance in respect of civil and commercial matters that may exist between States Parties.
Article 13
Relationship with other international conventions
1
Nothing in this Convention shall affect the application of the Convention on the Registration of Inland Navigation Vessels (1965) and its Protocol No. 2 concerning Attachment and Forced Sale of Inland Navigation Vessels, including any future amendment to that convention or protocol.
2
Without prejudice to article 4, paragraph 4, as between States Parties to this Convention that are also parties to the Convention on the Service Abroad of Judicial and Extrajudicial Documents in Civil or Commercial Matters (1965), the notice of judicial sale may be transmitted abroad using channels other than those provided for in that convention.
Article 14
Other bases for giving international effect
Nothing in this Convention shall preclude a State from giving effect to a judicial sale of a ship conducted in another State under any other international agreement or under applicable law.
Article 15
Matters not governed by this Convention
1
Nothing in this Convention shall affect:
a
The procedure for or priority in the distribution of proceeds of a judicial sale; or
b
Any personal claim against a person who owned or had proprietary rights in the ship prior to the judicial sale.
2
Moreover, this Convention shall not govern the effects, under applicable law, of a decision by a court exercising jurisdiction under article 9, paragraph 1.
Article 16
Depositary
The Secretary-General of the United Nations is hereby designated as the depositary of this Convention.
This Convention is open for signature by all States.
2
This Convention is subject to ratification, acceptance or approval by the signatory States.
3
This Convention is open for accession by all States that are not signatories as from the date it is open for signature.
4
Instruments of ratification, acceptance, approval or accession are to be deposited with the depositary.
Article 18
Participation by regional economic integration organizations
1
A regional economic integration organization that is constituted by sovereign States and has competence over certain matters governed by this Convention may similarly sign, ratify, accept, approve or accede to this Convention. The regional economic integration organization shall in that case have the rights and obligations of a State Party, to the extent that that organization has competence over matters governed by this Convention. For the purposes of articles 21 and 22, an instrument deposited by a regional economic integration organization shall not be counted in addition to the instruments deposited by its member States.
2
The regional economic integration organization shall make a declaration specifying the matters governed by this Convention in respect of which competence has been transferred to that organization by its member States. The regional economic integration organization shall promptly notify the depositary of any changes to the distribution of competence, including new transfers of competence, specified in the declaration under this paragraph.
3
Any reference to a “State”, “States”, “State Party” or “States Parties” in this Convention applies equally to a regional economic integration organization where the context so requires.
4
This Convention shall not affect the application of rules of a regional economic integration organization, whether adopted before or after this Convention:
a
In relation to the transmission of a notice of judicial sale between member States of such an organization; or
b
In relation to the jurisdictional rules applicable between member States of such an organization.
Article 19
Non-unified legal systems
1
If a State has two or more territorial units in which different systems of law are applicable in relation to the matters dealt with in this Convention, it may declare that this Convention shall extend to all its territorial units or only to one or more of them.
2
Declarations under this article shall state expressly the territorial units to which this Convention extends.
3
If a State makes no declaration under paragraph 1, this Convention shall extend to all territorial units of that State.
4
If a State has two or more territorial units in which different systems of law are applicable in relation to the matters dealt with in this Convention:
a
Any reference to the law, regulations or procedures of the State shall be construed as referring, where appropriate, to the law, regulations or procedures in force in the relevant territorial unit;
b
Any reference to the authority of the State shall be construed as referring, where appropriate, to the authority in the relevant territorial unit.
Article 20
Procedure and effects of declarations
1
Declarations under article 18, paragraph 2, and article 19, paragraph 1, shall be made at the time of signature, ratification, acceptance, approval or accession. Declarations made at the time of signature are subject to confirmation upon ratification, acceptance or approval.
2
Declarations and their confirmations shall be in writing and formally notified to the depositary.
3
A declaration takes effect simultaneously with the entry into force of this Convention in respect of the State concerned.
4
Any State that makes a declaration under article 18, paragraph 2, and article 19, paragraph 1, may modify or withdraw it at any time by a formal notification in writing addressed to the depositary. The modification or withdrawal shall take effect 180 days after the date of the receipt of the notification by the depositary. If the depositary receives the notification of the modification or withdrawal before entry into force of this Convention in respect of the State concerned, the modification or withdrawal shall take effect simultaneously with the entry into force of this Convention in respect of that State.
Article 21
Entry into force
1
This Convention shall enter into force 180 days after the date of the deposit of the third instrument of ratification, acceptance, approval or accession.
2
When a State ratifies, accepts, approves or accedes to this Convention after the deposit of the third instrument of ratification, acceptance, approval or accession, this Convention shall enter into force in respect of that State 180 days after the date of the deposit of its instrument of ratification, acceptance, approval or accession.
3
This Convention shall apply only to judicial sales ordered or approved after its entry into force in respect of the State of judicial sale.
Article 22
Amendment
1
Any State Party may propose an amendment to this Convention by submitting it to the Secretary-General of the United Nations. The Secretary-General shall thereupon communicate the proposed amendment to the States Parties with a request that they indicate whether they favour a conference of States Parties for the purpose of considering and voting upon the proposal. In the event that within 120 days from the date of such communication at least one third of the States Parties favour such a conference, the Secretary-General shall convene the conference under the auspices of the United Nations.
2
The conference of States Parties shall make every effort to achieve consensus on each amendment. If all efforts at consensus are exhausted and no consensus is reached, the amendment shall, as a last resort, require for its adoption a two-thirds majority vote of the States Parties present and voting at the conference. For the purposes of this paragraph, the vote of a regional economic integration organization shall not be counted.
3
An adopted amendment shall be submitted by the depositary to all States Parties for ratification, acceptance or approval.
4
An adopted amendment shall enter into force 180 days after the date of deposit of the third instrument of ratification, acceptance or approval. When an amendment enters into force, it shall be binding on those States Parties that have expressed consent to be bound by it.
5
When a State Party ratifies, accepts or approves an amendment following the deposit of the third instrument of ratification, acceptance or approval, the amendment shall enter into force in respect of that State Party 180 days after the date of the deposit of its instrument of ratification, acceptance or approval.
Article 23
Denunciation
1
A State Party may denounce this Convention by a formal notification in writing addressed to the depositary. The denunciation may be limited to certain territorial units of a non-unified legal system to which this Convention applies.
2
The denunciation shall take effect 365 days after the date of the receipt of the notification by the depositary. Where a longer period for the denunciation to take effect is specified in the notification, the denunciation shall take effect upon the expiration of such longer period after the date of the receipt of the notification by the depositary. This Convention shall continue to apply to a judicial sale for which a certificate of judicial sale referred to in article 5 has been issued before the denunciation takes effect.
DONE in a single original, of which the Arabic, Chinese, English, French, Russian and Spanish texts are equally authentic.
Minimum information to be contained in the notice of judicial sale
1. | Statement that the notice of judicial sale is given for the purposes of the United Nations Convention on the International Effects of Judicial Sales of Ships | 2. | Name of State of judicial sale | 3. | Court or other public authority ordering, approving or confirming the judicial sale | 4. | Reference number or other identifier for the judicial sale procedure | 5. | Name of ship | 6. | Registry | 7. | IMO number | 8. | (If IMO number not available) Other information capable of identifying the ship | 9. | Name of the owner | 10. | Address of residence or principal place of business of the owner | 11. | (If judicial sale by public auction) Anticipated date, time and place of public auction | 12. | (If judicial sale by private treaty) Any relevant details, including time period, for the judicial sale as ordered by the court or other public authority | 13. | Statement either confirming that the judicial sale will confer clean title to the ship, or, if it is not known whether the judicial sale will confer clean title, a statement of the circumstances under which the judicial sale would not confer clean title | 14. | Other information required by the law of the State of judicial sale, in particular any information deemed necessary to protect the interests of the person receiving the notice
Model certificate of judicial sale
Issued in accordance with the provisions of article 5 of the United Nations Convention on the International Effects of Judicial Sales of Ships
This is to certify that:
a
The ship described below was sold by way of judicial sale in accordance with the requirements of the law of the State of judicial sale and the requirements of the United Nations Convention on the International Effects of Judicial Sales of Ships; and
b
The judicial sale has conferred clean title to the ship on the purchaser.
1. | State of judicial sale | 2. | Authority issuing this certificate | 2.1 | Name | 2.2 | Address | 2.3 | Telephone/fax/email, if available | 3. | Judicial sale | 3.1 | Name of court or other public authority that conducted the judicial sale | 3.2 | Date of the judicial sale | 4. | Ship | 4.1 | Name | 4.2 | Registry | 4.3 | IMO number | 4.4 | (If IMO number not available) Other information capable of identifying the ship | (Please attach any photos to the certificate) | 5. | Owner immediately prior to the judicial sale | 5.1 | Name | 5.2 | Address of residence or principal place of business | 6. | Purchaser | 6.1 | Name | 6.2 | Address of residence or principal place of business
At | On | (place) | (date) | Signature and/or stamp of issuing authority or other confirmation of authenticity of the certificate
