Guide to Doing Business
After the vessel has been auctioned, the proceeds must be divided according to the priorities of the claims that have been presented by creditors. In general our local law is applicable to determine the rank of a claim. However, whether a claim validly exists and the priority of a claim, is determined by the law governing the claim. Consequently, no priority is attributed to a claim which, under the law applicable to the claim, has no priority on the vessel.
The judicial sale of a vessel is definite. It is not possible to appeal the awarding of the vessel to the successful bidder/buyer at auction. The purchase price of the vessel will normally be payable within eight days from the auction. Once the purchase price and the costs of execution, listed in the statement of costs, have been paid by the purchaser, the vessel is delivered free and clear of all previous liens, encum¬brances and mortgages to the buyer.