Colombian Commercial Code - Decree 410 of 1971 - Book Five - Navigation - Part One - From the Navigation Aquatics - Title VIII - ship financing - Chapter I - General Privileges - From: Section 1555 At: Art: 1565

TITLE VIII

NAVAL CREDIT

CHAPTER I

Privileges in general

Section 1555 .- Naval privileges entitle the creditor to pursue the craft in power who be found and pay with your product in preference to other creditors in the order established in this Title.
Section 1556 .- Will the privileged character on the ship, the freight for the voyage during which the lien is born, freight accessories purchased after the trip started on all the accessories of the craft:

1. Taxes and legal fees due to the Treasury, which relate to the ship, fees and charges of navigational aids and port and other taxes of the same class, caused during the last year or the last trip;

2. Expenses incurred in the common interest of creditors to get the sale and distribution of the price of the ship or its custody and maintenance of the entry into the last port and the remuneration of skills to that income;

3. Claims arising from the contract of employment with the captain, officers, crew, and the services provided by other persons on board;

4. The compensation due for salvage and assistance and contribution by the ship in general average;

5. The compensation for collision or other accidents of navigation, for damages caused by the works of ports, harbors and waterways, for bodily injury to passengers and crew personnel, or for loss and damage to cargo or baggage;

6. Credits from contracts or transactions carried out by the captain out of the wharf, under its legal powers to the real needs of the conservation of the ship or the continuation of the journey and

7. The amounts owed to suppliers of materials, craftsmen and workers in the construction of the ship is not performed in shipyard where the vessel has not made one trip after construction, and the amounts owed by the owner, for work, labor and supplies used in repair and provisioning of the ship at the wharf, if there be browsed.

Paragraph .- The privilege may be exercised on freight when due or while held by the master or owner's agent. This rule shall apply in respect of privilege against the accessories.
Section 1557 .- The privileges set forth in the preceding article, shall include both principal and interests due for the last two years.
Section 1558 .- The credits listed in Article 1556 relating to a trip, will graduate together in the order listed statements. Ordinals except 4th. and 6th., those designated in the same number will be paid pro rata and if appropriations concerning concur different trips in each grade, will be paid in the reverse order of their dates. But the credit from the last trip will be preferred to those of previous trips.
Credits for bodily injury to passengers or crew will be paid in preference to those from damage to things.
The credits included in the ordinal 4th. and 6th. of Article 1556, in each of these categories will be paid in the reverse order of the date on which they originate.
Paragraph .- Credits related to one event shall be deemed the same date. Credits from a single contract of enrollment for various trips, contribute, in whole and in the same degree with the credits of the last trip.
Section 1559 .- For travel means:

1. If the online merchant ship is regular, with fixed or predetermined route, corresponding to the crossing from the port of departure that is header line to the terminal port of the respective line in the trip, or from the port terminal line to the header the same on the return trip.

When the ship's regular schedule determined by the Head of Line port and terminal itself, the trip will include a journey from the ship to sail from that port until it reaches again the same;

2. Craft operating in touring cars, the journey from the initial port of the tour until the end of it or to return the ship to the initial port, as determined by the corresponding program;

3. In merchant vessels not included in the above cases, corresponding to the crossing to determine the navigation, the charter contract or shipping. If the ship comes in ballast to go to another port to receive the load designated in the charter agreement, the journey begins from the departure of the port they sailed in ballast.

4. If there is no previous program navigation or shipping freight contract, the voyage from the port of departure of the ship to the destination shown on the accompanying documentation, and

5. If the vessel is fishing or scientific research, for the duration of the campaign.

Section 1560 .- If there is a statutory limitation in relation to any of the appropriations provided for in Article 1556, secured creditors are entitled to claim the full amount of their loans without any deduction on account of the rules on limitation, but the amount received exceeds the amount due under these rules.
Section 1561 .- To enjoy the privileges granted by Article 1556, creditors must prove their claims through the following:

1. The Treasury, through the collection title to serve as executive to demand payment of its tax, fee or charge;

2. Rights and rate of navigation aids and other port or similar certified by the respective competent authority or account signed by the master and accepted by the owner. In the absence of such account or discrepancy between it and the certificate shall prevail;

3. The expenses included in the first part of paragraph 2o. Article 1556, the respective settlement made in the trial and duly approved by the responsible official;

4. The remuneration of practitioners covered by the end of the same ordinal, the collection account authorized by the association of pilots, if any, or by the competent authority and the expenses of custody and maintenance of the ship since its entry last port, with a written record of the captain of the ship;

5. The wages of masters, officers, crew and other persons performing services on board with the settlement made in view of the role and relevant books of the ship, and approved by the harbormaster. If there is not role or books, simply the settlement approved by the harbormaster;

6. The remuneration of assistance and salvage, with a copy of the relevant agreement or judicial regulation, if any;

7. The contribution to general average, with a copy of the relevant agreement or settlement duly approved by the competent authority;

8. The compensation referred to in the ordinal 5th. Article 1556, with a copy of the Order made by the competent authority;

9. Debts referred to the ordinal 6th. Article 1556, the documents that the master has given, and

10. Debts arising from the construction of the ship is not performed in the shipyard, and those caused by its repairs and supplies, has signed with the captain and recognized by the owner or operator.

Section 1562 .- For the purposes of Articles 1481, 1556, 1575 and 1709 of this Code, will ship accessories and freight:

1. The compensation payable to the owner because of unrepaired damage suffered by the ship or loss of freight;

2. Compensation due the owner for general average, when they consist of unrepaired damage suffered by the ship or loss of freight and

3. Compensation due the owner for assistance or salvage made until the end of the trip, after deduction of amounts paid to the master and other persons in the service of the ship.

Paragraph .- Shall be deemed to freight the fare, and eventually, the amounts as compensation for loss of profits due to the owners of the ships, taking into account the limitations set out in Article 1481.
Not be considered as accessories to the ship or freight compensation due the owner under contracts of insurance, or premiums, grants and other national aid.
Section 1563 .- Outside of the general ways of extinguishing obligations, privileges enumerated in Article 1556 shall cease:

1.For the judicial sale of the vessel as provided in Article 1454;

2. For voluntary transfer of the ship is in port of registry, when sixty days have elapsed from the inscription disposed of in the manner provided in Article 1427, without opposition or protest from creditors.

If the registration of the sale of the ship being found it was made out of the harbor, within this period shall be counted from the day he arrives at the same port, and

3. On the expiration of six months for the claims referred to in ordinal 6th. Article 1556, and one year for others.

This period will be as follows:

For the privileges guaranteed remuneration for assistance or rescue from the day operations have been completed, with respect to the privilege that ensures compensation of collision or other accidents and injuries, from the day that the damage caused; for the privileges for any loss or damage of cargo or baggage from the day they were delivered or should be delivered, for repairs, supplies and other cases mentioned in the ordinal 6th. Article 1556, after the birth of the credit in terms of the privileges is the ordinal 3o. the same article, the prescription begins to run from the completion of the appropriate relationship. In all other cases, the period shall run from the credit has made it enforceable.

Paragraph 1 .- The right to request advances or payments on account will not produce the effect of making loans payable of people enrolled on board, referred to in the 3rd ordinal. Article 1556.

Paragraph 2 .- If the ship could not be seized in the territorial waters or within the national territory, the period of limitations is three years from the date of the respective credit.

Section 1564 .- If (bankruptcy) * the owner or the owner, the secured creditors of the ship will be given preference over other creditors of the estate, but this preference does not extend to any compensation due the owner or owner under insurance contracts the ship or freight, or bonuses, subsidies and other national subsidies.

* Mandatory Settlement.

Section 1565 .- The provisions of this Chapter shall apply to vessels operated by a shipowner by a charterer owner or principal, unless the owner is dispossessed by a wrongful act or the creditor is not in good faith free of guilt.