> Other sample legal translations from Turkish to English
Translated from Turkish by Tim Drayton
THIS IS THE TRANSLATION OF THE FOLLOWING SECTION OF LAW NO 6102 (TURKISH COMMERCIAL CODE) AS IT WAS ENACTED ON 13.1.2011 AND THIS SECTION HAD NOT BEEN AMENDED AS OF 23.3.2023 BUT THE TRANSLATION DOES NOT INCORPORATE ANY SUBSEQUENT AMENDMENTS THAT MAY HAVE BEEN MADE.
A) Applicable Law
ARTICLE 1350- (1) The arrest or seizure in execution, the forcible execution sale and the consequences of this sale, including transfer of ownership, of a vessel and all other transactions and dispositions in connection with forcible execution shall be subject to the law of the country in which the vessel is located at the time such transactions and dispositions are conducted. This is with the proviso that, if a Turkish flagged vessel is sold abroad in a forcible execution sale, notification must be given to
a) The Turkish Ship Register in which the vessel is recorded,
b) The vessel’s owner recorded in the register, and
c) The holders of other rights and claims registered in the ship register,
or announcement made in a newspaper having a circulation of more than fifty thousand and which is distributed in Turkey, such that the cost is borne by the interested parties, by the body or interested parties conducting the auction at least thirty days prior to such sale. Should the forcible execution sale of the vessel take place abroad without such notification or announcement being made, its record may not be struck off and the rights and claims registered in the Turkish Ship Register shall be reserved.
B) Complementary provisions
ARTICLE 1351- In matters for which specific provision is not made in this Division, the provisions of the Law on Enforcement and Bankruptcy shall be applied in the manner envisaged in article 936 and the first paragraph of article 937.
C) Concerning vessels
1. Maritime Claims
ARTICLE 1352- (1) “Maritime Claim” means a claim arising out of one or more of the following:
(a) Loss or damage caused by the operation of the ship.
(b) Loss of life or other personal injury occurring, whether on land or on water, in direct connection with the operation of the ship.
(c) Salvage operations or any salvage agreement, including, if applicable, special compensation relating to salvage operations in respect of a ship which by itself or its cargo poses a threat to the environment.
(d) Damage or threat of damage caused by the ship to the environment, coastline or related interests; measures taken to prevent, minimize, or remove such damage; compensation for such damage; costs of reasonable measures of reinstatement of the environment actually undertaken or to be undertaken; loss incurred or likely to be incurred by third parties in connection with such damage; and damage, costs, or loss of a similar nature to those identified in this subparagraph.
(e) Costs or expenses relating to the raising, removal, recovery, destruction or the rendering harmless of a ship which is sunk, wrecked, stranded or abandoned, including anything that is or has been on board such ship, and costs or expenses relating to the preservation of an abandoned ship and maintenance of its company.
(f) Any agreement concluded for the purpose of using or hiring the ship, whether contained in a charter party or otherwise.
(g) Any agreement concluded for the purpose of carrying goods or passengers on board the ship, whether contained in a charter party or otherwise.
(h) Loss of or damage to or in connection with goods, including luggage, carried on board the ship.
(i) General average.
(l) Goods, materials, provisions, bunkers, equipment including containers supplied or services rendered to the ship for its operation, management, preservation or maintenance.
(m) Construction, reconstruction, repair, converting or equipping of the ship.
(n) Port, canal, dock, harbour and other waterway dues and other charges, and those payable for quarantine.
(o) Wages and other sums due to the ship’s company in respect of their employment on the ship, including costs of repatriation and social insurance contributions payable on their behalf, along with claims for other amounts due to them.
(p) Disbursements incurred on behalf of the ship or its owners, including loans taken out for the ship.
(r) Insurance premiums, including mutual insurance calls, payable by or for the account of the shipowner.
(s) Any and all commission, brokerage or agency fee payable in respect of the ship by or for the account of the shipowner.
(t) Any dispute as to ownership or possession of the ship.
(u) Any dispute between co-owners of the ship as to the employment or earnings of the ship.
(v) A mortgage, hypothèque or a charge of the same nature on the ship.
(y) Any dispute arising out of a contract for the sale of the ship.
2. The right to apply for arrest
ARTICLE 1353- (1) In order to secure maritime claims, an order may be awarded solely for the arrest of the vessel. Request may not be made for the imposition of a precautionary measure on the vessel or for the preventing of the vessel from sailing in any other manner in respect of such claims.
(2) The provision of sub-paragraph one shall also be applied to maritime claims that have been secured by a contractual or statutory pledge.
(3) An order for the arrest of the vessel may not be awarded in respect of any claim except for a maritime claim.
(4) That the claim is a maritime claim as enumerated in article 1352 shall constitute the cause of arrest.
(5) With maritime claims that have not fallen due, request may be made for the arrest of the vessel if the conditions envisaged in paragraph two of article 257 of the Law on Enforcement and Bankruptcy are fulfilled.
3. Territorially competent court
a) With respect to the arrest order
aa) Prior to the bringing of proceedings
aaa) Turkish-flagged vessels
ARTICLE 1354- An order for the arrest of Turkish-flagged vessels may only be awarded by the court at the place at which the vessel has been anchored, moored to a buoy or piling, brought alongside or laid on the stocks, or by the courts listed below:
a) With vessels that are recorded in a Turkish Ship Register, the court at the place of the register.
b) With vessels that are not recorded in a register, the court at the shipowner’s domicile.
c) With vessels that are recorded in special registers kept in pursuance of subparagraph three of article 941, the court at the charterer’s domicile.
bbb) Foreign flagged vessels
ARTICLE 1355- (1) In Turkey, an order for the arrest of foreign flagged vessels may only be awarded by the court at the place at which the vessel has been anchored, moored to a buoy or piling, brought alongside or laid on the stocks.
ccc) The jurisdiction of Turkish courts in the event of the existence of an agreement concerning jurisdiction, arbitration or the law applicable to the merits
ARTICLE 1356- Even if, in accordance with a jurisdiction or arbitration clause included in the relevant contract or a jurisdiction or arbitration contract that has been concluded separately, an arbitration panel or foreign court has jurisdiction to adjudicate the merits of the maritime claim in respect of which the arrest will be effected or the law of a foreign state is applied to the merits of the maritime claim, the competent courts as per articles 1354 and 1355 shall have jurisdiction to award an arrest order for the purpose of securing a maritime claim.
bb) Following the bringing of proceedings
ARTICLE 1357- (1) Once proceedings have been brought in a domestic court in respect of a maritime claim, an arrest order may only be requested of the court that is hearing the case.
(2) If proceedings have been brought before an arbitrator or foreign court in respect of a maritime claim, until such time as a final judgment is issued, an arrest order may only be requested of the court that has jurisdiction as per articles 1354 and 1355.
Objections and requests for amendments
ARTICLE 1358- (1)
a) Prior to the bringing of proceedings into the merits of the case, the court which awarded the arrest order,
b) If proceedings into the merits of the case have been brought in Turkey, this court, or
c) If proceedings into the merits of the case have been brought before an arbitrator or foreign court, the court which awarded the arrest order
shall have jurisdiction to adjudicate objections by persons in respect of whom arrest orders were awarded in their absence.
(2) The courts enumerated in paragraph one shall also have jurisdiction to adjudicate applications made in the matters of the amendment of arrest orders, claims for restitution, or the increase or reduction in the amounts or the amendment of the type of security posted by the parties, or its cancellation.
b) Concerning the merits
ARTICLE 1359- (1) The court which has jurisdiction as per articles 1354 and 1355 to award the arrest order in respect of the maritime claim shall, in the absence of a jurisdiction or arbitration contract concluded with respect to the merits of the maritime claim, have jurisdiction over the proceedings initiated to complete the arrest, as shall the enforcement office effecting the arrest to conduct enforcement proceedings.
c) Concerning execution
ARTICLE 1360- (1) The Turkish court which has awarded the arrest order in respect of a maritime claim shall have jurisdiction to execute a decision by a foreign court or foreign arbitrator on the merits of that maritime claim, provided
a) the vessel is situated within that Turkish court’s territory of jurisdiction on the date that execution is requested, or
b) the security posted pursuant to articles 1370 to 1372 for the vessel to be released is present in the court safe on the date that execution is requested.
Concerning claims for compensation brought on account of unjust arrest
ARTICLE 1361- (1) The court which awarded the arrest order shall also have jurisdiction to hear claims for compensation brought against a creditor whose claim is found to be unjustified.
(2) If proceedings have been initiated before a court or arbitrator domestically or abroad into the merits of the maritime claim, the outcome of these proceedings shall constitute a preliminary issue for the compensation proceedings.
The submission of evidence by the creditor
ARTICLE 1362- (1) It is sufficient for the creditor to furnish evidence that its claim is one of the maritime claims enumerated in article 1352 and that will enable the court to form an opinion as to its monetary value.
5. The posting of security by the creditor
ARTICLE 1363- (1) The creditor applying for the awarding of an arrest order to secure a maritime claim must post security in the amount of 10,000 Special Drawing Rights.
(2) The counterparty may at any time request of the same court that the amount of security be increased. In assessing this request, the daily operating expenses incurred in respect of the vessel and lost profit attributable to the arrest, for the time that the vessel is prevented from sailing due to the arrest, shall be taken into consideration. Should a decision be made to increase the security, the court shall also specify the time period within which the additional security is to be deposited. If the additional security is not deposited on time, the arrest shall automatically be lifted.
(3) Maritime lienors as set out in subparagraph (a) of paragraph one of article 1320 shall be exempted from the requirement to post security.
(4) The creditor may also request of the same court that the amount of security be reduced.
a) The execution of arrest
ARTICLE 1364- (1) The creditor must within three working days as of the date on which the arrest order is awarded apply for execution of the order to the enforcement office in the territory of the court awarding the order or in the place where the vessel is situated. Otherwise, the arrest shall automatically be lifted.
Time period for initiating arrest
ARTICLE 1365- (1) The enforcement office shall effect the arrest immediately on application.
(2) Arrest shall also be effected at times deemed to be evenings and official holidays as per the Law on Enforcement and Bankruptcy.
Arrest of the vessel and precautionary measures
ARTICLE 1366- (1) All vessels in respect of which an arrest order has been made shall, regardless of their flag and the register in which they are recorded, be prevented from sailing and secured by the director of enforcement. Notification that the vessel has been arrested and prevented from sailing shall be given to the master or owner or demise charterer or one of their representatives. The vessel shall be turned over to the person to whom notification is made as custodian. The custodian shall be reminded of his/her duties and statutory liabilities, including penal liability arising from article 289 of the Turkish Penal Code.
(2) It is sufficient for the officer effecting the arrest to specify the name of the vessel in the arrest record; its value need not be entered. At the request of one of the parties, the vessel shall be valued by the enforcement court and the interested parties as identified from the file shall be summoned to this valuation.
(3) The director of enforcement shall immediately notify the coast guard command or police force, harbour directorate and customs office responsible for the region where the vessel is located of the arrest decision.
(4) The director of enforcement shall, on the first working day after the decision is implemented, notify the register in which the vessel is recorded and, with foreign flagged vessels, the nearest consulate of the state whose flag the vessel flies of the arrest decision.
d) If the vessel is sailing
ARTICLE 1367- If at the time the arrest decision is implemented the vessel has actually set sail or is on a voyage, in place of the procedures envisaged in paragraphs two to four of article 1366,
a) With Turkish flagged vessels, the arrest decision shall be served on the owner, demise charterer and the person who is personally liable for the obligation and caution given of the requirement for security in respect of the maritime claim to be provided within ten days or else for the vessel to be surrendered to the enforcement office on its subsequent voyage and, should the vessel not be surrendered, the perpetrator shall be penalised in accordance with article 289 of the Turkish Penal Code, or
b) With foreign flagged vessels, the arrest decision may be implemented with the assistance of the coast guard command until the vessel leaves Turkish territorial waters.
e) The scope of arrest and the managing and operating of the vessel
ARTICLE 1368- (1) The arrest of a vessel shall include attachment of the income and interests derived by the debtor from operating that vessel.
(2) The enforcement office shall take all necessary measures to ensure the managing and operating of the vessel along with its maintenance and preservation.
7. The exercise of the right of arrest
ARTICLE 1369- (1) Arrest is permissible of any vessel in respect of which a maritime claim is asserted if:
a) the person who owned the vessel at the time when the maritime claim arose is liable for the claim and is owner of the vessel when the arrest is effected,
b) the person who was the charterer of the vessel at the time when the maritime claim arose is liable for the claim and is owner of the vessel when the arrest is effected,
c) the claim is secured with a maritime pledge, maritime mortgage or a charge of the same nature on the vessel,
d) the claim relates to the ownership or possession of the vessel; or
e) the claim gives rise to a maritime lien right pursuant to article 1320.
(2) Arrest is permissible of any vessel apart from those enumerated in paragraph one if the vessel when the arrest is effected belongs to the person who is liable for the maritime claim and who was, when the claim arose:
a) The owner of the vessel in respect of which the maritime claim arose, or
b) The demise charterer, time charterer or voyage charterer of that vessel.
(3) In disputes over the ownership or possession of the vessel, an arrest decision may only be rendered in respect of the vessel that is the subject of this dispute.
8. Release of the vessel
a) Depositing an amount equal to the value of the vessel
ARTICLE 1370- (1) The arrested vessel may be released to the debtor at any time desired provided that a deposit equal to the value of the vessel is made for this purpose with the enforcement office or a pledge over real property, maritime pledge or surety of a bank of standing that is acceptable to the enforcement officer is furnished or, if the vessel was arrested while in the possession of a third party, it may be relinquished to that person on receipt of a bond.
(2) If the vessel is released such that it continues to be under arrest, the bodies enumerated in article 1366 must be notified and the record concerning arrest must be maintained in the register.
(3) Even if, at the conclusion of proceedings brought for the continuation of the arrest, the decision is made for the security to be paid to the creditor, other maritime creditors may participate in the arrest in accordance with the provision of this Division up until such time as the funds deposited in security have been withdrawn from the enforcement office cash desk.
(4) With regard to a vessel that has been arrested in respect of one of the maritime claims enumerated in subparagraphs (t) and (u) of article 1352, if the person who is its possessor furnishes adequate security, the vessel may be relinquished to that person.
(5) The provisions of international treaties that require to be implemented pursuant to Division Seven of this Book shall not be prejudiced.
b) The lifting of arrest
ARTICLE 1371- (1) The vessel’s owner or the debtor may, by depositing security that is sufficient to cover the maritime claim in its entirety along with associated interest and expenses, provided that this does not exceed the value of the vessel, apply to the court for the lifting of arrest. Following the commencement of recovery proceedings, jurisdiction in this regard shall pass to the enforcement court.
(2) The bodies enumerated in article 1366 must be notified of the lifting of the vessel’s arrest and the record concerning arrest in the register struck off.
(3) If, at the conclusion of proceedings brought for the continuation of the arrest, the decision is made for the security to be paid to the creditor, other maritime creditors may not bring about the attachment of this security.
c) Agreement between the parties
ARTICLE 1372- The creditor may freely reach agreement with the vessel’s owner or demise charterer as to the type and amount of security to be furnished pursuant to articles 1370 and 1371.
d) Reserved rights
ARTICLE 1373- The furnishing of security to secure the release of the vessel shall not be construed as an acknowledgement of liability nor as a waiver of any objection, defence or any right to limit liability.
E) Changing the security
ARTICLE 1374- The person who has furnished security pursuant to articles 1370 and 1371 may at any time apply to the court for the amount of the security to be reduced, for its type to be changed or for it to be cancelled.
9. Rearrest or arrest in respect of the same claim
ARTICLE 1375- (1) Where a vessel has already, domestically or abroad, been arrested and released or security in respect of that ship has already been provided under a maritime claim, that ship may only be rearrested or arrested in respect of the same maritime claim if:
a) the initial security is insufficient in terms of type or amount, provided that the total amount of security obtained does not exceed the value of the vessel,
b) the person who furnished the initial security does not fulfil their obligation in part or in full or is incapable of doing so, or
c) the vessel arrested or the initial security was released on the application or with the consent of the claimant acting on reasonable grounds or because the claimant could not take reasonable steps to prevent the release.
(2) Another vessel which is subject to arrest in respect of the same maritime claim may be arrested if:
a) the security previously furnished is insufficient in terms of type or amount, or
b) the provisions of subparagraphs (b) or (c) are applicable.
(3) The unlawful release of or escape by the vessel from arrest shall not be deemed to constitute release in the meaning of the paragraphs one and two.
Procedures to complete the arrest
ARTICLE 1376- The time periods envisaged in the first and second subparagraphs of article 264 of the Law on Enforcement and Bankruptcy shall be implemented by way of one month with the arrest of ships.
II - Action to recover the secured claim
1. Principle of accessoriness
ARTICLE 1377- (1) None of the rights of pledge and lien that arise out of statute or contract or whose registration is ordered by court over the vessel may be made the object of legal or recovery proceedings independent of the claim that has been secured.
(2) In order for recovery action based on a judgment to be taken for the realisation of the rights of pledge and lien set out in paragraph one, it is necessary for both the claim and the rights of pledge and lien to have been substantiated in the text of the judgment or documents having the nature of a judgment or in a maritime mortgage contract drafted at the Directorate of Shipping Registration.
2. The right to recovery through bankruptcy
ARTICLE 1378- (1) The creditor may pursue recovery through bankruptcy even if there is a contractual or statutory right of pledge over the vessel.
3. Other means of recovery
ARTICLE 1379- (1) Creditors who possess a statutory right of pledge over the vessel may pursue recovery through seizure or the special procedures concerning negotiable instruments; under such circumstances, they will have waived the statutory right of pledge.
4. Recovery proceedings by creditors with pledges
a) Holders of a statutory right of pledge
ARTICLE 1380- Maritime creditors along with creditors whose claims are secured by a maritime lien over the vessel may, with a view to completing the arrest or pursuing direct recovery proceedings in respect of their claims, pursue recovery proceedings through the realisation of a movable pledge. This provision shall be applied to all Turkish and foreign flagged vessels.
b)Holders of mortgages
ARTICLE 1381- Creditors with contractual or statutory maritime mortgages may pursue recovery proceedings through the realisation of a mortgage. This provision shall be applied to all Turkish and foreign flagged vessels.
III - Forced Sale
ARTICLE 1382- (1) In the case of final seizure of all Turkish and foreign flagged vessels, articles 1364 to 1368 shall be applied to the arrest.
(2) In the case that vessels are arrested in execution, there is no requirement for the claim to be one of the maritime claims enumerated in article 1352.
ARTICLE 1383- (1) Foreclosure shall be conducted, with respect to Turkish and foreign flagged vessels which are recorded in a register, in accordance with the provisions on the sale of real property of the Law on Enforcement and Bankruptcy, and, with respect to Turkish and foreign flagged vessels that have no register record, pursuant to the provisions on the sale of movables of the same Law.
3. Preparations for the sale of vessels recorded in foreign registers
ARTICLE 1384- (1) If the sale is demanded of a vessel recorded in a foreign register, the director of enforcement shall notify the consulate of the state whose flag the vessel flies to this effect and shall request the vessel’s register record with a view to effecting the compilation of the list of charges. The claimant may also submit a certified copy of the register record to the enforcement office. Under such circumstances, the list shall be prepared in accordance with whichever record is received first.
(2) The announcement to be made pursuant to article 126 of the Law on Enforcement and Bankruptcy must be served on
a) The authority required to keep the register of vessels in the register state with which the vessel is recorded,
b) Creditors with registered contractual pledges,
c) Creditors with statutory pledges, provided notification of these is made to the enforcement office, and
d) The recorded owner of the vessel in the register; or promulgated in a newspaper having a circulation of more than fifty thousand and which is distributed in the country in which the register is actually kept, such that the cost is borne by the interested parties.
(3) The written notification laid down in paragraph two shall be made by recorded delivery post, an electronic means of communication providing confirmation of receipt of the notification by the addressee or by any other suitable means or mode.
4. Announcement of the auction
ARTICLE 1385- (1) The announcement to be made pursuant to article 126 of the Law on Enforcement and Bankruptcy must be promulgated in a newspaper having a circulation of more than fifty thousand and which is distributed on a national basis and also abroad in a daily newspaper having to do with shipping which is distributed on a global basis.
(2) It shall be stated in the announcement that the vessel will be sold free of all rights in rem and in personam, and all charges and encumbrances, apart from those asserted by the purchaser with the consent of the claimant with the mortgage.
5. Pretimely sale
ARTICLE 1386- (1) With Turkish and foreign flagged vessels, sale may also be made, if the owner is at the same time the personal debtor of the maritime claim, at the behest of the owner.
(2) If the vessel’s value falls rapidly or its preservation is excessively costly, and particularly if this leads to the arising of fresh maritime claims or an increase in their number, the director of enforcement or creditor may apply to the enforcement court for the pretimely sale of a Turkish and foreign flagged vessel that has been arrested or finally seized. The enforcement court shall adjudicate this matter after having obtained the view of those ascertained from the file to be the interested parties. Such decision may be subjected to legal review. The court to which application is made shall initially examine such application. Application for legal review shall halt implementation of the sale decision.
(3) If the vessel or its cargo pose danger to human, material or environmental safety, the director of enforcement or harbourmaster may apply to the enforcement court for the pretimely sale of a Turkish and foreign flagged vessel that has been arrested or finally seized. The provisions of paragraph two shall be applied to such application; however, application for legal review shall not halt implementation of the sale decision.
(4) The directorate of enforcement shall deposit the proceeds of the sale on behalf of those entitled to them with a bank to be specified by the enforcement court in the form of revolving three-month deposit accounts with a view to securing a yield until such time as they are distributed.
6. Sale through negotiation
ARTICLE 1387- (1) If all interested parties so wish or if the conditions set out in article 1386 come about, the vessel may be sold through negotiation.
7. The result of sale and auction
ARTICLE 1388- (1) The purchaser shall acquire ownership of the vessel at the moment that it is auctioned or sold to it by the enforcement office.
(2) At the moment sale consideration is paid to the enforcement office, all rights in rem and in personam, and all charges and encumbrances against the vessel, apart from those asserted by the purchaser with the consent of the claimant with the mortgage, shall expire. The provision of paragraph four of article 1386 shall also be applied here.
(3) This article shall be valid for all vessels, irrespective of their flag and whether or not they are recorded in a register.
8. Ranking list
ARTICLE 1389- (1) If, following the sale through forcible execution of a Turkish or foreign flagged vessel, the proceeds of the sale are insufficient to pay all of the creditors, the enforcement office shall make a ranking list. Creditors shall be ranked on this list in the order set out in articles 1390-1397.
(2) Should more than one vessel be foreclosed on in the event of an owner’s bankruptcy, the rankings set out in articles 1390-1397 shall be made separately for each vessel and payment shall be made in terms of that ranking.
(3) Until the first-ranking creditors have recovered their claims in full, payment shall not be made to lower-ranking creditors.
(4) Should those creditors who rank in the first seven positions fail to recover their claims in full, they shall not be entitled to priority when recourse is made to the debtor’s remaining assets.
b) First Ranking
ARTICLE 1390- (1) a) Costs and expenses arising out of the vessel’s maintenance and preservation along with the maintenance of the ship’s company for the period under arrest as of the vessel’s arrest, and out of foreclosure on the vessel and distribution of the proceeds of the sale, and
b) those claims enumerated in subparagraph (a) of paragraph one of article 1320 that relate to the period under arrest,
from the date of the vessel’s arrest until the date on which payment is made,
shall rank in first position on the list.
(2) The holders of rights enumerated in paragraph one shall possess equal rights among themselves.
c) Second ranking
ARTICLE 1391- (1) If the vessel, having run aground or sunk, was raised by public bodies with a view to protecting traffic safety or the marine environment, the costs of such raising shall rank in second position on the list.
d) Third ranking
ARTICLE 1392- (1) Those maritime lienors provided for in subparagraphs (a) to (e) of paragraph one of article 1320 who do not fall under article 1390 shall rank in third position on the list.
(2) The claims enumerated in paragraph one shall be ranked as laid down in article 1324.
e) Fourth ranking
ARTICLE 1393- (1) If the vessel is in the possession of a shipyard in the course of sale through forcible execution, the shipyard owner’s claims that are secured by a statutory mortgage pursuant to article 1013 or a lien pursuant to article 950 of the Turkish Civil Code shall rank in fourth position on the list.
f) Fifth ranking
ARTICLE 1394- (1) Customs duty and other taxes relating to the vessel under the proceedings shall rank in fifth position on the list.
g) Sixth ranking
ARTICLE 1395- (1) Those claims that are secured by a contractual or statutory right of pledge that do not fall under articles 1390-1394 shall rank in sixth position on the list.
(2) The claims enumerated in paragraph one shall be ranked as laid down in the law governing the right of pledge that secures each claim.
h) Seventh ranking
ARTICLE 1396- (1) Those maritime claims enumerated in article 1352 that do not fall under articles 1390-1395 shall rank in seventh position on the list.
(2) The holders of rights enumerated in paragraph one shall possess equal rights among themselves.
i) Eighth ranking
ARTICLE 1397- (1) Those claims enumerated in paragraph four of article 206 of the Law on Enforcement and Bankruptcy shall rank in eighth position on the list.
(2) The holders of rights enumerated in paragraph one shall possess equal rights among themselves.
D) Concerning Property
I - The keeping of a ledger of liens
ARTICLE 1398- (1) Articles 270 and 271 of the Law on Enforcement and Bankruptcy shall also be applied in the realisation of a lien created over property pursuant to the provisions of this Law.
(2) The period envisaged in paragraph three of article 270 of the Law on Enforcement and Bankruptcy shall be fifteen days as of the realisation of liens created over property.
(3) Liens created over property may not be pursued through judicial or recovery proceedings separately and independently of the claims that they secure.
II - Recovery proceedings with a judgment
ARTICLE 1399- (1) If the claim that is secured by the lien is based on a judgment or a document having the nature of a judgment, the creditor shall conduct recovery proceedings with a judgment through the realisation of a lien over movables within fifteen days as of the keeping of the ledger. This is with the proviso that, if the lien has not been specified in the judgment or a document having the nature of a judgment, the debtor may object to the lien. Under such circumstances, subparagraph number (2) of paragraph one of article 147 of the Law on Enforcement and Bankruptcy shall be applied.
III - Recovery proceedings without a judgment
ARTICLE 1400- If the claim that is secured by the lien is not based on a judgment or a document having the nature of a judgment, the creditor shall conduct recovery proceedings without a judgment through the realisation of a lien over movables within fifteen days as of the keeping of the ledger. The debtor may object to the claim or the lien or both of these. Article 147 of the Law on Enforcement and Bankruptcy shall be applied to this objection.