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The court should notify the judicial sale through newspapers or the press, or where a foreign ship is involved, through overseas edition newspapers, less than 30 days before the auction. Judicial sale confers on a purchaser a ‘clean’ title free from all charges and encumbrances, including maritime liens (Article 29(2) of the Maritime Code). Therefore, any person having a maritime lien must exercise his right or register his claim in the court within 30 days of public notice on the transfer of the ownership made by the court. The security for judgment obtained by a claimant through arrest is finally reflected in the funds from the sale. The value of the security will be affected by other claims and the priority order of such claims. The legal costs and expenses of enforcing maritime liens and judicial sale, of preserving and selling the ship, and of distribution of the proceeds of sale and other expenses incurred for the common interests of the claimants, shall be deducted and paid firstly from the proceeds of the judicial sale (Article 24 of the Maritime Code). Under Chinese law, maritime liens have priority over possessory liens, which in turn have priority over ship mortgages (Article 25 of the Maritime Code). Claims for crew wages, loss of life or personal injury, taxes and port dues, salvage payments and damage to property resulting from tortious acts are protected by maritime liens (Article 22 of the Maritime Code). If the fund is insufficient for all claims in the same rank, the claimants will then be paid in proportion. A claimant having a low ranking claim should be careful when deciding to arrest a ship. Where the ship’s value (market value) is lower than the quantum of higher ranking claims, he may not recover anything from the proceeds of the sale of the ship, but may only pick up legal costs if the owner decides not to provide security for the claim. MARITIME INJUNCTION
DOI link for The court should notify the judicial sale through newspapers or the press, or where a foreign ship is involved, through overseas edition newspapers, less than 30 days before the auction. Judicial sale confers on a purchaser a ‘clean’ title free from all charges and encumbrances, including maritime liens (Article 29(2) of the Maritime Code). Therefore, any person having a maritime lien must exercise his right or register his claim in the court within 30 days of public notice on the transfer of the ownership made by the court. The security for judgment obtained by a claimant through arrest is finally reflected in the funds from the sale. The value of the security will be affected by other claims and the priority order of such claims. The legal costs and expenses of enforcing maritime liens and judicial sale, of preserving and selling the ship, and of distribution of the proceeds of sale and other expenses incurred for the common interests of the claimants, shall be deducted and paid firstly from the proceeds of the judicial sale (Article 24 of the Maritime Code). Under Chinese law, maritime liens have priority over possessory liens, which in turn have priority over ship mortgages (Article 25 of the Maritime Code). Claims for crew wages, loss of life or personal injury, taxes and port dues, salvage payments and damage to property resulting from tortious acts are protected by maritime liens (Article 22 of the Maritime Code). If the fund is insufficient for all claims in the same rank, the claimants will then be paid in proportion. A claimant having a low ranking claim should be careful when deciding to arrest a ship. Where the ship’s value (market value) is lower than the quantum of higher ranking claims, he may not recover anything from the proceeds of the sale of the ship, but may only pick up legal costs if the owner decides not to provide security for the claim. MARITIME INJUNCTION
The court should notify the judicial sale through newspapers or the press, or where a foreign ship is involved, through overseas edition newspapers, less than 30 days before the auction. Judicial sale confers on a purchaser a ‘clean’ title free from all charges and encumbrances, including maritime liens (Article 29(2) of the Maritime Code). Therefore, any person having a maritime lien must exercise his right or register his claim in the court within 30 days of public notice on the transfer of the ownership made by the court. The security for judgment obtained by a claimant through arrest is finally reflected in the funds from the sale. The value of the security will be affected by other claims and the priority order of such claims. The legal costs and expenses of enforcing maritime liens and judicial sale, of preserving and selling the ship, and of distribution of the proceeds of sale and other expenses incurred for the common interests of the claimants, shall be deducted and paid firstly from the proceeds of the judicial sale (Article 24 of the Maritime Code). Under Chinese law, maritime liens have priority over possessory liens, which in turn have priority over ship mortgages (Article 25 of the Maritime Code). Claims for crew wages, loss of life or personal injury, taxes and port dues, salvage payments and damage to property resulting from tortious acts are protected by maritime liens (Article 22 of the Maritime Code). If the fund is insufficient for all claims in the same rank, the claimants will then be paid in proportion. A claimant having a low ranking claim should be careful when deciding to arrest a ship. Where the ship’s value (market value) is lower than the quantum of higher ranking claims, he may not recover anything from the proceeds of the sale of the ship, but may only pick up legal costs if the owner decides not to provide security for the claim. MARITIME INJUNCTION
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