Chapter IV. Treaties concerning international law concluded under the auspices of the United Nations and related intergovernmental organizations

TREATIES CONCERNING INTERNATIONAL LAW CONCLUDED UNDER THE AUSPICES OF THE UNITED NATIONS AND RELATED INTERGOVERNMENTAL ORGANIZATIONS

1. Treaties concerning international law concluded under the auspices of the United Nations and the International Maritime Organization

   INTERNATIONAL CONVENTION ON MARITIME LIENS AND MORTGAGES1

   The States Parties to this Convention,

   Conscious of the need to improve conditions for ship financing and the development of national merchant fleets,

   Recognizing the desirability of international uniformity in the field of maritime liens and mortgages, and therefore

   Convinced of the necessity for an international legal instrument governing maritime liens and mortgages.

   Have decided to conclude a Convention for this purpose and have therefore agreed as follows:

   Article 1

   Recognition and enforcement of mortgages,

   "hypothèques " and charges

   Mortgages, "hypothèques" and registrable charges of the same nature, which registrable charges of the same nature will be referred to hereinafter as "charges", effected on seagoing vessels shall be recognized and enforceable in States Parties provided that:

   (a) Such mortgages, "hypothèques" and charges have been effected and registered in accordance with the law of the State in which the vessel is registered;

   (¿>) The register and any instruments required to be deposited with the registrar in accordance with the law of the State in which the vessel is registered are open to public inspection, and that extracts from the register and copies of such instruments are obtainable from the registrar; and

   (c) Either the register or any instruments referred to in subparagraph (b) specifies at least the name and address of the person in whose favour the mortgage, "hypothèque" or charge has been effected or that it has been issued to

   bearer, the maximum amount secured, if that is a requirement of the law of the State of registration or if that amount is specified in the instrument creating the mortgage, "hypothèque" or charge, and the date and other particulars which, according to the law of the State of registration, determine the ranking in relation to other registered mortgages, "hypothèques" and charges.

   Article 2

   Ranking and effects of mortgages, "hypothèques" and charges

   The ranking of registered mortgages, "hypothèques" or charges as between themselves and, without prejudice to the provisions of this Convention, their effect in regard to third parties shall be determined by the law of the State of registration; however, without prejudice to the provisions of this Convention, all matters relating to the procedure of enforcement shall be regulated by the law of the State where enforcement takes place.

   Article 3

   Change of ownership or registration

   1. With the exception of the cases provided for in articles 11 and 12, in all other cases that entail the deregistration of the vessel from the register of a State Party, such State Party shall not permit the owner to deregister the vessel unless all registered mortgages, "hypothèques" or charges are previously deleted or the written consent of all holders of such mortgages, "hypothèques" or charges is obtained. However, where the deregistration of the vessel is obligatory in accordance with the law of a State Party, otherwise than as a result of a voluntary sale, the holders of registered mortgages, "hypothèques" or charges shall be notified of the pending deregistration in order to enable such holders to take appropriate action to protect their interests; unless the holders consent, the deregistration shall not be implemented earlier than after a lapse of a reasonable period of time which shall be not less than three months after the relevant notification to such holders.

   2. Without prejudice to article 12, paragraph 5, a vessel which is or has been registered in a State Party shall not be eligible for registration in another State Party unless either:

      (a) A certificate has been issued by the former State to the effect that the vessel has been deregistered; or

      (b) A certificate has been issued by the former State to the effect that the vessel will be deregistered with immediate effect, at such time as the new registration is effected. The date of deregistration shall be the date of the new registration of the vessel.

      Article 4

      Maritime liens

   1. Each of the following claims against the owner, demise charterer, manager or operator of the vessel shall be secured by a maritime lien on the vessel:

      (a) Claims for wages and other sums due to the master, officers and other members of the vessel's complement in respect of their employment on the vessel, including costs of repatriation and social insurance contributions payable on their behalf;

      (b) Claims in respect of loss of life or personal injury occurring, whether on land or on water, in direct connection with the operation of the vessel;

      (c) Claims for reward for the salvage of the vessel;

      (d) Claims for port, canal, and other waterway dues and pilotage dues;

      (e) Claims based on tort arising out of physical loss or damage caused by the operation of the vessel other than loss of or damage to cargo, containers and passengers' effects carried on the vessel.

   2. No maritime lien shall attach to a vessel to secure claims as set out in subparagraphs (b) and (e) of paragraph 1 which arise out of or result from:

      (a) Damage in connection with the carriage of oil or other hazardous or noxious substances by sea for which compensation is payable to the claimants pursuant to international conventions or national law providing for strict liability and compulsory insurance or other means of securing the claims; or

      (b) The radioactive properties or a combination of radioactive properties with toxic, explosive or other hazardous properties of nuclear fuel or of radioactive products or waste.

      Article 5

      Priority of maritime liens

   1. The maritime liens set out in article 4 shall take priority over registered mortgages, "hypothèques" and charges, and no other claim shall take priority over such maritime liens or over such mortgages, "hypothèques" or charges which comply with the requirements of article 1, except as provided in paragraphs 3 and 4 of article 12.

   2. The maritime liens set out in article 4 shall rank in the order listed, provided however that maritime liens securing claims for reward for the salvage of the vessel shall take priority over all other maritime liens which have attached to the vessel prior to the time when the operations giving rise to the said liens were performed.

   3. The maritime liens set out in each of subparagraphs (a), (b), (d) and

      (e) of paragraph 1 of article 4 shall rank parí passu as between themselves.

   4. The maritime liens securing claims for reward for the salvage of the

      vessel shall rank in the inverse order of the time when the claims secured thereby accrued. Such claims shall be deemed to have accrued on the date on which each salvage operation was terminated.

      Article 6

      Other maritime liens

      Each State Party may, under its law, grant other maritime liens on a vessel to secure claims, other than those referred to in article 4, against the owner, demise charterer, manager or operator of the vessel, provided that such liens:

      (a) Shall be subject to the provisions of articles 8, 10 and 12;

      (b) Shall be extinguished

      (i) after a period of 6 months, from the time when the claims se-cured thereby arose unless, prior to the expiry of such period, the vessel has been arrested or seized, such arrest or seizure leading to a forced sale; or

      (ii) at the end of a period of 60 days following a sale to a bonafide purchaser of the vessel, such period to commence on the date on which the sale is registered in accordance with the law of the State in which the vessel is registered following the sale;

      whichever period expires first; and

      (c) Shall rank after the maritime liens set out in article 4 and also after registered mortgages, "hypothèques" or charges which comply with the pro-visions of article 1.

      Article 7

      Rights of retention

   1. Each State Party may grant under its law a right of retention in re-spect of a vessel in the possession of either:

      (a) A shipbuilder, to secure claims for the building of the vessel; or

      (b) A shiprepairer, to secure claims for repair, including reconstruction of the vessel, effected during such possession.

   2. Such right of retention shall be extinguished when the vessel ceases to be in the possession of the shipbuilder or shiprepairer, otherwise than in consequence of an arrest or seizure.

      Article 8

      Characteristics of maritime liens

      Subject to the provisions of article 12, the maritime liens follow the vessel, notwithstanding any change of ownership or of registration or of flag.

      Article 9

      Extinction of maritime liens by lapse of time

   1. The maritime liens set out in article 4 shall be extinguished after a period of one year unless, prior to the expiry of such period, the vessel has been arrested or seized, such arrest or seizure leading to a forced sale.

   2. The one-year period referred to in paragraph 1 shall commence:

      (a) With respect to the maritime lien set out in article 4, paragraph 1 (a), upon the claimant's discharge from the vessel;

      (b) With respect to the maritime liens set out in article 4, paragraph 1 (b) to (e), when the claims secured thereby arise;

      and shall not be subject to suspension or interruption, provided, however, that time shall not run during the period that the arrest or seizure of the vessel is not permitted by law.

      Article 10

      Assignment and subrogation

   1. The assignment of or subrogation to a claim secured by a maritime lien entails the simultaneous assignment of or subrogation to such a maritime lien.

   2. Claimants holding maritime liens may not be subrogated to the compensation payable to the owner of the vessel under an insurance contract.

      Article 11

      Notice of forced sale

   1. Prior to the forced sale of a vessel in a State Party, the competent authority in such State Party shall ensure that notice in accordance...