Alqanoni

Bankruptcy Law

Art. 197
Status unknownSaudi ArabiaRegulation

Issued by Ministry of Investment (misa.gov.sa)

If the sale proceeds of a bankruptcy asset, used as a security for a debt, exceed the debt secured by such asset, the bankruptcy trustee shall deposit any surplus in the bank account designated for the bankruptcy assets. However, if the sale proceeds of such asset are insufficient to satisfy the whole debt, the outstanding debt shall be deemed unsecured debt.

The Arabic text is the legally binding version. The English translation is provided for guidance only.

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