Spanish Commercial Code - Book III - Maritime Navigation and Trade - Title II - Ships and Naval Artifacts Navy Property

SPANISH COMMERCIAL CODE

Title III

PRIVILEGES AND MORTGAGES

§ 1. Of maritime liens in general

Article 839. The privileges provided in this title shall be preferred and excluded any other general or special privilege regulated by other legal bodies, as they relate to the same property and rights.

However, the priority rules and privileges relating to pollution or to guard against damage from spills of harmful substances, which are set out in international agreements in force in Chile and the Navigation Act, shall prevail over the provisions of this title in specific areas to which they refer.

They can not become garments, levies, prohibitions and embargoes independently on parts or belongings and incorporated or naval vessels.

Garments and other charges, embargoes and bans on goods made are incorporated into a ship or vessel, disappear from the incorporation.

However, no longer have already formed on engines, equipment or communications and underwater detection gear on smaller vessels.

That disappoint another incorporating or consenting to an asset subject to a lien, levy, prohibition or seizure is incorporated into an existing vessel or naval craft, shall be punished with the penalties referred to in Article 467 of the Criminal Code.

Article 840. In case of damage, decrease or loss of the property on which rests the privilege, it shall be exercised on the remainder, save or retrieve it from him, or pay compensation to the head.

Article 841. The provisions of this title shall also apply when privileged claims arising from non-owner liability of the shipowner of the ship, unless it has to use under an unlawful act, with knowledge of the creditor.

§ 2. Privileges on the ship and freight

Article 842. The privileges referred to in this paragraph, give the creditor the right to pursue the craft in power who found and made to pay with their product in preference to other creditors in the order established herein.

Article 843. The holder of the privilege, in exercising its right of hot pursuit may request the withholding or attachment of the ship wherever it is in accordance with the provisions of paragraph 5 of Title VIII of this Book.

Article 844. The following credits have privileges on the ship, in preference to the mortgage in order of priority as follows:

1. ° The court costs and other expenses caused during a trial in the common interest of creditors for the conservation of the ship or forced sale for the price and distribution;

2. ° The remuneration and other benefits arising from contracts for the provision of boarding the ship in accordance with labor laws and common law governing the occurrence of these loans, and emoluments of pilots in the service of ship.

Enjoy the same privileges that are owed compensation for death or personal injury to employees, which have occurred on land, at sea or water, and if they are caused by accidents that are directly related to the operation of the ship;

3. ° The rights and duties of harbor channels and waterways, and fiscal duties signaling pilotage;

4. The expenses and compensation for aid at sea, and in general average contribution. Enjoys the same privileges and reimbursement of expenses incurred sacrifices which the authority or others, to prevent or minimize pollution damage or oil spills or other substances harmful to the environment or property of another, if it was not constituted liability limitation fund is established in Title IX of the Navigation Act, and

5. ° Damages, loss or damage caused to other vessels, the works of ports, harbors and inland waterways or baggage or cargo, as a result of collisions or other accidents of navigation, when the respective action is not likely be based on a contract, and damages for bodily injury to passengers and crew of these other ships.

Article 845. Mortgage loans will be preferred to those listed in the following article, and governed by the provisions of paragraph 5 of this title.

Of equal preference shall credit bonds with a pledge on smaller vessels.

Article 846. In addition, enjoy privilege over the ship, in the order listed, in later grades than those specified in Article 844, the following:

1. ° The credits for the purchase price, construction, repair and equipping of the ship;

2. ° The credits for supplies of goods or materials necessary for the operation or maintenance of the ship;

3. ° The loan contracts originated by a passenger or freight charter, including damages, losses and missing in cargo and baggage claims arising from damage by pollution or spills of oil or other harmful substances;

4. ° The credits for expenditures made by the Captain, agents or third parties on behalf of the owner, to operate the ship, including agency services, and

5. ° The credits for insurance premiums in respect of the ship, whether the hull or liability.

Article 847. The credits listed in Articles 844 and 846, shall also enjoy the privilege of freight and passenger transport for the journey in having their origin.

Article 848. The privileges specified in Article 844, will also cover the credits listed below, provided they originate from the same trip on which it is produced:

1. ° on the claims against material damage to the vessel and not repaired and the resulting loss of freight;

2. ° on contributions for damages sustained by the ship admitted in general average and not repaired and the contributions due for loss of freight, and

3. ° on compensation due for aid at sea, after deduction of amounts that may correspond to the endowment of the ship that provided the service.

Article 849. The credits of the debtor against third parties that address the two preceding Articles shall not be assigned to privilege while those claims are pending payment, or if the respective sums to abide in the master or agent of the owner or operator.

Article 850. The privileges on the ship may be claimed on insurance compensation for it.

However, in the case of repairs to the ship, the privileges provided in this paragraph shall be grade after the cost of those for the purpose of recovering the insurer, if applicable.

This does not exclude that the owner can exercise the right to limit liability in accordance with the provisions of paragraphs 1 and 4 of Title IV of Part V of this Book.

With the exception of the mortgage, no privileges on the ship may be claimed on grants or other subsidies from the state.

Article 851. The last trip liens are preferred to travel above the latter is the better grade. However, claims arising from a single contract covering several of sea travel, attend as one, in order of preference and place under Article 844, with the other liens arising from the last trip.

Article 852. The liens arising from the same trip are preferred in the order indicated in articles 844 and 846.

The loans included in each of the numbers of those articles, contribute to each other in case of insufficient proportion of the value of the property on which relapse.

Article 853. If in doubt about the trip to a corresponding credit, the following rules apply:

1st line for ships that meet pre-established regular routes, it will be the numbers or symbols that the agent or carrier assigned to the trip during which the credit was generated;

2nd ships for charter contracts that meet total travel, means that the journey starts from the ship sets sail to find the loading and unloading ends with the total at the bottom of the ship's original destination;

3.a To craft engaged a tourist cruise, the trip will include navigation from the initial port of it, to the end or until the return of the ship to the port where the cruise began, as indicated by the respective program and

4.a For fishing vessels or scientific research, it is understood that the trip includes the length of the respective issue.

If not possible to apply the above rules, the ranking of claims referred to in Articles 844 and 846 will be determined in each issue, the reverse order of their respective dates, regardless of travel.

Article 854. Claims arising from one event is considered born at the same time.

The credits listed in No. 4. Of article 844, have priority among themselves in the reverse order of the dates on which they originated, as well as those listed in numbers 1. °, 2. And 4. No. Article 846.

Credit for contribution to general average are born on the date of the act that causes, and credits for aid at sea are considered originated in the dates on which these operations are over.

Article 855. Regardless of the extinction of the credits that originate, terminate maritime liens:

1. ° For over a period of one year from the date that originated the credit concerned. This period is not subject to interruption or suspension, except to the creditor who receives a detention or seizure of the affected judicial privilege, or the creditor for a legal impediment could not exercise before the lien;

2. ° For the judicial sale of the ship, whether voluntary or forced from their relevant registration or after 30 consecutive days after the auction day, whichever period is less, and

3. ° In case of voluntary transfer of the ship, after 90 consecutive days from the date of registration of transfer.

The provisions of points 2. And 3. ° above will not prejudice the rights of secured creditors to exercise their choice on the unpaid balance of the price, if any.

Article 856. The shipyard to build or repair a ship has on it a lien to guarantee claims resulting from such work. Retention will be declared without further ado, the court of the place of construction or repair of the ship.

If the resolution declaring the lien is there in the Register of Mortgages, Charges and Prohibition of the Directorate General of Maritime Territory and Merchant Marine, the builder or repairer credit plus enjoy preference over any mortgage whose registration is required after the date of registration of retention.

Any interested party may request the seizure of the ship which are being held, and in case of disagreement about the person kidnapped, he shall be appointed by the Court.

Procedures giving rise to the provisions of this Article shall be governed by the provisions of paragraph 5 of Title VIII of this Book.

Article 857. The lien provided for in the preceding article shall lapse on the delivery of the ship who commissioned the work or the issuance of a bond, qualified enough for the court decreed it, and replacing the ship as the subject of privilege .

No other creditors holding prevent the exercise of their rights on the same ship.

§ 3. Privileges on the ship under construction

Article 858. The credits listed in Articles 844 and 846 corresponding, enjoy privilege over the ship under construction since she is afloat, with the choice and range established in the preceding paragraph.

Article 859. The privileges on the ship under construction established in the previous paragraph, end up in the cases stipulated by Article 855.

Article 860. The provisions of this paragraph and the preceding two of this title shall apply to the naval.

§ 4. Privileges on goods transported

Article 861. They enjoy the privilege on goods and concur on their realizable value in the order listed below, the credits from:

1. ° Legal costs and other expenses caused during a trial in the common interest of creditors of the owner of the goods for the conservation of these or to proceed with its forced sale and distribution of its price;

2. ° Reimbursement of expenses and compensation for aid at sea in which payment is to be part load, and contributions in general average;

3. ° Removal of shipwrecked goods, and

4. ° Freight and accessories, including loading, unloading and storage, where applicable.

Article 862. In the case of subfletamento noted in the second paragraph of Article 932, the shipowner shall be subrogated to the same privilege that corresponds to subfletante subfletador on goods of unpaid freight the latter.

Article 863. When it is insufficient value of the goods on which rests the privilege, the credits included in each issue of Article 861, contribute in proportion to each other, if it has been originated from the same port, except those listed in number 2. °. In the latter case, they will prefer each other in reverse order of their birth.

If the appropriations were originated at different ports or on successive dates, the later will be preferred to the earlier date.

Article 864. The privileges of the goods mentioned in Article 861, expire when the relevant action is not exercised within thirty consecutive days, counting from the date of unloading of finished goods, or transfer them to third parties after discharge, even before the expiration of such thirty days. However, in the case of No. 4. Of article 861, the goods pending within thirty days be transferred to the privilege continued to be affected during the eight days following delivery to the purchaser.

Article 865. The shipowner or carrier may not withhold the goods on board at the time of discharge because of not having been paid the freight. Notwithstanding the above, request the competent judge of the discharge port they are deposited with a third party to conduct, in proportion as necessary to meet the freight and accessories, unless the shipper or consignee sufficiently caucionare such payment at the discretion of that court.

The implementation will be according to the rules for property sets the Title I of Book III of the Code of Civil Procedure.

The same rules apply to the right of the carrier on the luggage of passengers who had not paid the passage at the end of the trip.

§ 5. The ship mortgage and pledge on smaller vessels

Article 866. Naval ships and larger mortgage may be taxed, provided they are properly registered in the respective Register of the Republic.

Article 867. Only the owner may mortgage a ship or vessel.

Article 868. The ship mortgage must be granted by deed. It may be one the mortgage deed and the contract to access.

When the mortgage is granted abroad is governed by the law of the place of execution. However, to be able to join in Chile, the mortgage shall state, at least, in a written instrument whose signatures are authorized by a minister of faith or a Chilean consul.

Article 869. Mortgage contracts signed in a foreign country will mortgage or naval ships registered in Chile, from enrolling in the record provided for in Article 871.

Article 870. The instrument of the establishment of a mortgage on a ship or vessel shall contain:

1. ° Name, surname, nationality, occupation and address of the creditor and the debtor and the case of legal persons, their names and addresses;

2. ° Name of the ship or naval artifact identification, registration to which it belongs and the number that she has corresponded and gross registered tonnage or light displacement hull, as appropriate;

3. ° The date and nature of the contract that is accessed by the mortgage, and

4. ° The amount of credit provided, agreed interests, time and place for payment.

The particulars mentioned in points 3. And 4. ° will not be necessary if the mortgage is bound to only general guarantee clause.

Article 871. The ship mortgage must be recorded in the Register of Mortgages, Charges and Prohibition of the Directorate General of Maritime Territory and Merchant Marine, will have no value without this requirement and that will date your request was that recorded in the book repertoire concerned.

For the purposes of the summons provided for in Article 879, the respective registration shall be recorded in the special address set the creditor to receive notification that the rule prescribes, within the city seat of the registry. Notice that in practice it will be valid even if the creditor is not in that place or country. Fixing this address may be in the act establishing the mortgage or when required to register it. The lack of such a mention in the registration will only be sanctioned administratively under the respective regulations. Not take into account the subsequent change of address has not been recorded outside the respective entry.

Article 872. The order of entry in the Register of Mortgages, Charges and Prohibitions determine the degree of preference of the mortgages.

Article 873. If it is a mortgage on a ship or a naval craft under construction, in writing must contain the same information specified in Article 870, except those listed in number 2. °, which is replaced by the identification of the shipyard which is being built, the date on which construction began and that they are expected to be completed, length of the keel or hull, as appropriate, the presumed tonnage and about its other dimensions. Is also expressed in writing, to which he belongs enrollment, the number that she has corresponded and the name or identification, if you already have one.

Article 874. For the purposes stated in the previous article, is also considered integral parts of a ship or vessel under construction and subject to the warranty, materials, equipment and items of any nature that can be individualized as species or certain bodies, who are collected or deposited in the shipyard and were intended to build. This, even though they have not yet been incorporated into the ship or vessel, provided such materials, equipment or items are sufficiently identified in the memorandum of the mortgage.

Article 875. The mortgage constituted in accordance with the two preceding articles, will continue to tax the ship or vessel upon completion of construction, unless expressly otherwise agreed by the parties.

Article 876. The mortgage includes naval hull, machinery and fixed or movable belongings of the ship.

It also includes the freight and grants or other subsidies granted by the State, if so estipulare.

The parties included in the ship shall not be subject to guarantees independently.

Article 877. In case of loss, severe permanent impairment or total unseaworthiness of the vessel or naval craft, the mortgagee can exercise their rights on the remainder, to be saved or recovered, or realizable value, even if your credit has not expired.

Unless the ship or vessel HAVE been repaired, the mortgagee may exercise its rights in the following claims that the debtor holds:

1. ° Compensation for damage caused to the ship or vessel;

2. ° Contribution to general average for property damage suffered by the ship or vessel;

3. ° Damages caused to the ship or vessel at the time of services at sea, and

4. ° insurance claims for total loss or partial damage of the vessel or naval craft.

Article 878. The owner of the ship or naval craft encumbered by mortgage, alienate or mortgage it may always be, notwithstanding any provision to the contrary.

However, the disposition giving rise to the change of nationality of the ship or vessel, and that has not been spoiled by the mortgagee is zero, is fraud and subject the seller to the penalties provided for in Article 467 of the Penal Code .

Article 879. The mortgage of a ship is extinguished by the foreclosure sale of the same, provided that the auction takes place upon summoning staff Mortgagee degree preferred. These, within the term of location, may choose to demand payment of their claims on the auction price or maintain their mortgages on the vessel at auction, provided that credits are not earned. If you say nothing within the period specified shall be deemed to choose to be paid on the price of the auction.

Article 880. Alternatively to apply the provisions Mortgages for mortgage real estate of the Civil Code, as not contrary to the provisions of this paragraph.

But the debts that are liens by mortgage general guarantee clause, shall be considered in post-credit degree indicated by Article 846.

Article 881. The smaller vessels may be subject to a pledge. Whatever the nature of it, must be recorded outside of the ship registration in the Register of tuition, which is unenforceable to third parties.

This entry replaces, in addition to any registration and publication as required by the rules governing the kind of garment in question. The entry must be dated and numbered.

The order of entry determines the degree of preference among the garments.

The above provisions apply to naval ship mortgage is not likely.