Spanish Commercial Code - From Article 781 to Article 1250 and Book IV - Of Bankruptcy - Title FInal

SPANISH COMMERCIAL CODE

Title XII

FOR CREDIT CARD ORDERS

Article 782.Credit Cards orders are intended to make a conditional exchange contract concluded between the giver and the taker, whose perfection depends on it makes use of the credit that he opens.

Article 783.Letters of credit must be given to specific individuals, not to order.

Issued in the latter form, the policyholder can collect them personally, but not endorse it.

The endorsement of a letter of credit does not transfer to the endorsee the right to collect it.

Article 784.The letter of credit shall designate the time within which the policyholder must make use of it and the maximum of the amount to be withheld from them.

If the letter of credit does not represent any time, be appointed by the court of commerce relevant in the circumstances of the giver and taker and commercial nature of the operation that was aimed at opening the credit.

Article 785.The maker of a letter of credit shall put his signature on it or give the giver a model of it.

Article 786.The giver of a letter of credit can not revoke it, unless some accident befalls to impair the credit of the borrower.

Revoking suddenly and without a serious reason and well justified, the giver will be liable for damages arising to the borrower.

Article 787.The dealer is obligated to pay its correspondent amount under the letter of credit delivered to the borrower.

Article 788.The letter of credit, even if not paid, the policyholder does not confer any rights against the giver or against the person in charge were issued.

Therefore, credit cards can not be protested.

Article 789.The bearer of a letter of credit is required to prove the identity of the person, if the payor is so requires.

Article 790.Provided that the policyholder does not use the letter of credit in the agreed term, the giver must return as soon as so required, or to pay bond for the amount until such revocation to the attention of the payer.

Article 791.Paid the letter of credit, the carrier shall reimburse promptly to giver the amount he received.

Not so, the giver may demand payment of the amount paid, plus interest running from the date of delivery and the current change of the square which was verified on the place where he should be reimbursed.

Article 792.The person completing a letter of credit does not have any action against the holder to demand repayment of the amount we have delivered, unless resulting from the terms of the letter that the giver would only become surety for the amount to be perceived the carrier.

Article 793.Letters of credit can be directed to various correspondents residing in different places for fill in the amount designated on up there.

In this case the correspondent to deliver a partial sum to the bearer should be noted in the letter of credit under the responsibility of damages.

Article 794.The letter does not have the designated amount will be considered as a simple letter of introduction and recommendation, and the giver of it will not respond to the correspondent to whom it is directed for the results of any contract it enters into with the tenant, except in cases of fraud legally justified.

Title XIII

LOAN

Article 795.Indefinite loans are not enforceable until ten days after claiming restitution.

Article 796.Not successful given the loan term, the court will fix trade prudently, taking into consideration the terms of the nature of the operation whatsoever for the loan and the personal circumstances of the provider and lender.

Article 797.Currencies against the loan specifically identified the lender meets its obligation restoring coins of the same species as those received, regardless of the value having the time of restitution.

Article 798.Gratuity is not presumed in commercial loans, and they earn legal interest, unless the parties agree otherwise.

Article 799.The stipulation of interest or which exempts the lender of your payment, shall be in writing and without this circumstance will be ineffective at trial.

Article 800.Interest will be provided in certain amounts of money, even if the loan consists of goods of any kind whatsoever.

To make the computation of interest in this case will be estimated by current price merchandise with the day and place to be made restitution.

Article 801.The lender to delay compliance with its obligations under the loan, with or without provision of interest, is obliged to pay the current interest from the day that the payment may be claimed under a court order.

Article 802.The course of conventional interest does not cease with the advent of the term to be made the return of capital.

Article 803.The receipt of interest on the last three pay periods, the presumption that the former have been covered, unless the bill contains any provision of the creditor's right preservative.

Article 804.Interest on borrowed capital can produce a new interest or a lawsuit or a special agreement, provided that the claim or interest agreement due to be on at least one full year.

Article 805.The lender who signed a promissory note or bill, confessing debtor of a sum of money or goods, may be admitted to prove the circumstances under which money or goods were not delivered.

Article 806.The balances of the accounts or anticipations regarding commercial operations will be considered as true loans and governed by the rules of this Title.

Title XIV

DEPOSIT

Article 807.The container merchant becomes the same as the commission.

Article 808.The rights and obligations of the depositor and trustee are the same as goods and imposes this Code granted to principals and brokers.

Article 809.The depositary is entitled to demand compensation for their services.

The share of the remuneration shall be fixed by the parties or by the use of every square in the absence of stipulation.

Article 810.The repository that makes use of the thing deposited, even in cases permitted by law or convention, you forfeit the compensation stipulated or usual.

Article 811.Documents consisting of the deposit in interest-bearing credit, the depositary is required to collect and take all steps necessary to preserve the rights of the depositor.

Article 812.Deposits in banks duly authorized public shall be governed by its statutes.

Title XV

PLEDGE AGREEMENT

Article 813.The pledge contract is made and proof as to the creditor and debtor and other commercial contracts.

Article 814.The security agreement gives the creditor the right to be paid the value of the thing pledged in preference to other creditors of the debtor.

Article 815.For the enjoyment of the privilege lienholder statement in concurrence of other creditors, you need:

1. ° That the pledge contract is awarded by a public or private document notarized, after certification on the same date of that disclosure, set by the notary in question;

2. ° That the writing or document containing the statement of the amount of debt and the species and engaged nature of things, or be attached to a description of its quality, weight and measure.

Article 816.The article above is applicable to the garment consisting of a loan, subject to the notification in this case required by Article 2389 Civil Code.

Article 817.The privilege arises, exists and is extinguished with the possession of the garment, although the have the pledgee or a third chosen by the parties.

Article 818.The obligation under Article 811 imposes the depositary is extended to the creditor who receives a credit as collateral.

Article 819.If credit accrues interest pawned, the lender booked to pay those owed.

But if the debt guaranteed by the pledge does not earn interest, it applied to produce the credit determined in part payment of the sum insured.

Title XVI

THE BOND

Article 820.The bond shall be in writing and without this circumstance will be of no force or effect.

Article 821.The guarantor may provide with its entrenched charges for the responsibility that gets on your behalf.

Title XVII

THE PRESCRIPTION

Article 822.Appropriate action of the obligations covered by this book and do not have designated a special limitation period will last four years.

The requirements of this Code are against all kinds of people.

BOOK III

NAVIGATION AND MARITIME TRADE

Title I

GENERAL PROVISIONS

Article 823.The provisions of this Book apply:

1. ° to all events related to navigation, which have occurred at sea, regardless of feature size or purpose of the ship or object involved or affected by such events, subject in certain matters specifically provided its application to other forms of navigation, and

2. ° to all acts or contracts that relate to navigation and maritime trade, including those relating to spacecraft, unless the book allows other rules stipulate.

Do not apply to warships, whether domestic or foreign.

Article 824.Except where the law provides a different penalty, shall be considered unwritten stipulations contrary to a mandatory provision of this Book.

Article 825.In matters governed by this Book, the custom may be proved, in addition to the forms stated in Article 5. ° of the Code, expert report, the court assessed according to the rules of sound criticism.

Title II

CRAFT AND APPLIANCES NAVAL SHIP PROPERTY

§ 1. Of ships and naval

Article 826.Nave is the whole main building, designed to sail, regardless of their class and size.

Naval craft is anyone who, not being built for sailing, water plays in the functions of complementary or supporting the maritime, river or lake or resource extraction, such as docks, cranes, fixed or floating rafts or like. Not included in this concept the port works but is admitted to the water.

Article 827.The concept includes both the ship hull and the machinery and fixed or movable property that complement it. Does not include weapons, victuals, or freight incurred.

Article 828.The ship is a chattel, subject to the rules set out in this book and other special laws. Failing that, the provisions of common law on the property.

Article 829.The ship retains its identity, even if the materials that are or are successively changed his name.

Article 830.The registration of ships in Chile is governed by the rules of the Navigation Act.

Should be recorded regardless of their registration registration of any document by a charge, transfer, convey, declare, modify or extinguish a property right over the ship and any other limitation on the domain that falls on it, under penalty of being unenforceable to any third party, except as stated in the Law of Navigation.

The natural or legal person whose name is inscribed with the ship in the respective registration record shall be presumed regular holder of it, unless proven otherwise.

§ 2. Naval property

Article 831.In addition to the acquisitions of established common law, ownership or control of a ship can be purchased as follows:

1. ° For the insurer, in the case of abandonment validly accepted;

2. ° For the person who commissioned its construction at the time indicated by the respective contract or by which he builds for himself, and

3. ° for the seizure, according to the rules of international law.

Article 832.The transfer of larger ships by inter vivos and the constitution of real rights over them, shall be by deed when they occur in Chile.

Acts and contracts for smaller vessels, shall be in writing and the signatures of the contracting parties be authorized by a notary.

For the classification of ships and naval greater or less it will be as available to the Navigation Act.

The acts and contracts that are executed abroad shall be governed by the law of the place of execution. However, the transfer of title and the constitution of real rights may have effect in Chile shall include, at least in written instruments whose signatures are authorized by a minister of faith and also be entered and recorded in the respective registers in Chile.

Article 833.If the ship was sold being in travel, belong entirely to the buyer freight than that earned on the trip, since you received your last shipment.

But if at any time of sale the ship reached its destination, freight belong to the seller.

The parties, however, may provide various modalities.

Article 834.The voluntary non-judicial sale of the ship made inside or outside the Republic, including all responsibilities concerning it.

Article 835.The foreclosure sale of a ship, whether voluntary or forced, will be in the form and with the formalities set out in the Code of Civil Procedure for the judicial sale of real estate.

To auction the ship will be required prior appraisal, which is made by an expert appointed under the rules of the Code of Civil Procedure, and will be applicable as appropriate, the provisions of Articles 486 and 487 of the Code mentioned.

The announcements of the auction shall be published in a journal of where they followed the trial, or a movement in the respective region if it does not exist. The notices are also published in a journal of the port of registry of the ship. But if one of those papers out of circulation in both places, shall be sufficient only publications in that journal.

Article 836.The acquisition of a ship prescription is governed by the rules on property.

Article 837.The ownership of vessels is not a society but a community that is governed by the rules of common law.

Article 838.The provisions of this title shall also apply to the naval, whether fixed or floating, as they are relevant.

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.

Title IV

SUBJECT IN NAVIGATION AND MARITIME TRADE

§ 1. The owner or operator

Article 882.Owner or operator is the person or entity, whether or not the owner of the ship, which exploits and issues on their behalf.

It is presumed that the owner or part owners of the ship are their owners, unless proven otherwise.

Operator is the person without the owner's quality, by virtue of a mandate it executes its own name or that of his client contracts for transportation or other operation of ships, bearing the consequent responsibilities.

The shipowner and shipping terms are understood to synonyms.

Article 883.The person or entity to assume the operation of a ship owner should make declaration to the authorities in the port of enrollment. This statement shall be recorded regardless of their registration in the Registration. When it ceases in that capacity, shall request the cancellation of such entry. Failing that, these statements will make the owner of the ship.

Failure to make such declaration, the owner and the owner jointly liable for the obligations arising from the operation of the ship.

Article 884.Legal persons having the status of owners will be governed by the rules of this Book, whatever their nature.

Article 885.The shipowner's liability for its acts or personal facts, or resulting from acts of its employees, occurring on land not subject to the provisions of this Book and will be governed by the rules of common law.

Article 886.The operator responds in the manner prescribed by this Book and the Navigation Act, the obligations of the master concerning the ship and the expedition. Answer also in the same way, for compensation to third parties for the acts of the captain, officers and crew.

Article 887.The owner does not respond in the following cases:

1. ° If the facts prove that the captain, officers and crew are outside the ship or the issue;

2. ° If it pursues this responsibility accomplice or partner regardless of the facts of the master, officers or crew;

3. ° In the case of acts committed by the captain in his capacity as representative of public authority, and

4. ° In the cases expressly provided in this book or other laws.

Article 888.The shipowner may limit his liability by contract, except where prohibited by law.

Article 889.The shipowner may also limit their liability in the following cases:

1. ° By the death or injury to any person on board the ship for transport and losses, losses or damages to property they are also on board;

2. ° By the death or injury caused by any person for whose acts the shipowner is responsible, whether it is or not on board the ship.

If the deceased person is not situated on board, his actions must necessarily be related to the operation or operation of the craft, or the loading, transport or unloading of goods transported;

3. ° for loss, shortage or damage to other goods, including loading, caused by the same quality of people, motives, places and circumstances indicated in the preceding number, and

4. ° For any obligation or liability resulting from damage caused by a ship, to the works of ports, docks, harbors and waterways.

Article 890.The duties and responsibilities for raising, removal, destruction or rendering harmless of a ship is sunk, wrecked, stranded or abandoned, including uploading or other things that are or have been on board the same, including the damage to the environment shall be governed by the Navigation Act and do not apply the provisions of this paragraph.

Article 891.The limitation of liability of the shipowner may be implored by their dependents in cases and the reasons provided by law, unless it is proved that the damage was caused by an act or omission on their part, made with intent to cause damage or injury or recklessly and in circumstances which may be assumed that they had knowledge that the damage would probably result.

Article 892.The act of invoking limitation of liability, regardless of recognition of it.

Article 893.The provisions of this paragraph relating to limitation of liability do not apply:

1. ° A credit for aid or contribution in general average, and

2. ° A credit of the master, officers and crew members, or any other dependent of the owner or operator of the ship is on board or whose functions relate to the service herself, and that arising from their employment rights.

Article 894.If the owner of a ship is entitled to assert a claim against his creditor for damages resulting from the same starting at offset the respective appropriations and the provisions of this paragraph shall apply only to the difference proves.

Article 895.The sums to which the shipowner may limit his liability as provided in this paragraph shall be calculated according to the following values:

1. ° In respect of claims relating to death or injury:

a) For ships whose tonnage is up to 500 tons, 333,000 units of account and

b) For vessels with a tonnage exceeding 500 tons, the amount set forth below for each section, more of that in the previous paragraph:

- Over 500 tons to 3,000 tons, 500 units of account per tonne;

- Over 3,000 tons to 30,000 tons, 333 units of account per tonne;

- Over 30,000 tons to 70,000 tons, 250 units of account per tonne and

- For each ton in excess of 70,000, 167 units of account.

2. ° For all other claims:

a) For ships whose tonnage is up to 500 tons, 167,000 units of account and

b) For vessels with a tonnage exceeding 500 tons, the amount set forth below for each section, more of that in the previous paragraph:

- Over 500 to 30,000 tons, 167 units of account per tonne;

- Over 30,000 to 70,000 tons, 125 units of account per tonne and

- For each ton in excess of 70,000, 83 units of account.

The limitation of this article does not include the liability in the contract of passage, which is governed independently by the rules given about him in Paragraph 5 of Title V of this book.

Article 896.When the amount calculated in accordance with the rules of number 1. Of the preceding article is insufficient to fully satisfy the claims of life or injury, the unpaid balance of these concur with the claims referred to the number 2. No. article. In this case, that balance will concur on an equal footing with the claims mentioned in that number 2. °.

Article 897.When the same facts nevertheless have responsibilities to the owner, for which he has the right to limitation under the rules of this Book, and also those facts nevertheless have responsibilities for which the owner also has the right to limit liability in accordance to the provisions of Title IX of the Navigation Act, and we resolved to make use of these rights must be the number of separate funds as appropriate, so that neither the funds nor the credit to be confused with each other.

Article 898.If prior to the distribution of the bottom of the ship owner has paid all or part of the loans referred to in Article 889, shall be entitled to occupy the place and order of the creditor in the distribution of the fund, but only to the extent that creditor would be entitled to compensation from the shipowner.

If the owner proves that at some future date may be required to pay all or part of the loans referred to in Article 889, the competent court may order, at the request of the owner, to reserve a sum sufficient to enable the appellant asserting, eventually, their rights against the background under the conditions established in the previous paragraph.

Article 899.To determine the limit of liability of an owner, referred to in this paragraph, a vessel of less than 500 tonnage, it is considered that tonnage.

Article 900.The tonnage is the basis for calculating the limitation is the gross tonnage determined under the procedure laid down in the International Convention on Tonnage and its annexes, in force in Chile.

Article 901.All liability insurer for claims subject to limitation under the preceding rules shall be entitled to enjoy this benefit as much as the insured.

Article 902.The limitation of liability referred to in this paragraph can also be invoked by the owner of the ship, its operator, the carrier or the ship owner, when a person or entity other than the owner, or their dependents or the captain and crew members on the actions taken against them.

If demand two or more people who use the disclaimer, the fund should be to not exceed the amounts set forth in the preceding articles.

Article 903.When addressing an action against the master and crew members, they may limit their respective liability even when the event giving rise to the action was caused by his own fault, unless it is proved that the damage results from an act or omission thereof, made with intent to cause damage or recklessly and in circumstances which may be assumed that they had knowledge that would probably result.

But if the master or crew member is both the owner, co-owner, carrier, ship owner, owner or operator, you can only rely on the limitation when at fault in his capacity as captain or crew member.

Article 904.The value of the unit of account referred to in Article 895, be determined by the equivalence be the date on which the fund is established for the limitation, the payment is made or warranty constitutes the competent court may impose, as appropriate.

§ 2. Captain

Article 905.The captain is the chief of the ship responsible for its governance and management and is vested with the authority, powers and duties as set forth in this Code and other laws relating to the captain.

In the performance of his duties, is empowered to perform the technical, professional and trade are proper.

Article 906.Unless otherwise agreed or provided by law, the captain of a ship is always chosen by the shipowner.

Article 907.The captain is the legal representative of the owner of the vessel or the owner, if any, and as such represents them in court and liabilities. This is without prejudice to the representation that corresponds to the ships agent who cares. In addition to factor in shipping, is representative of chargers for the purpose of conservation of charge and outcome of the expedition.

Article 908.The captain of the ship is responsible for order and discipline on board, and shall take the necessary measures to achieve these objectives.

Article 909.The captain, even if you have an obligation to employ the services of pilotage, will always be directly responsible for the navigation, security, operations and governance of the ship, without prejudice to the responsibilities of the pilot practical or poor advice. The captain's authority is subordinate to that of these under any circumstances.

Article 910.Shall be the duty of the captain preferred monitor in person the government of the ship's arrival and departure ports, or for navigation on rivers, canals or dangerous areas, but is on board the pilot or pilot.

Article 911.The duties, powers and responsibilities are established for the captain in this book and the Navigation Act, apply to any person who assumes or performs the command of a ship of any kind, within the constraints that determine such legal bodies.

Article 912.The captain must keep on board the log or blog and other books and documents required by laws, regulations and customs of maritime trade, they must settle on data and facts that the same rules prescribe.

Shall also have custody, the instruments that record data related to navigation and commercial exploitation of the ship.

Article 913.The book logbook or logbook has the value of a public instrument, provided that the entries in the pattern bearing the signature of the officer on duty and are endorsed by the captain of the ship.

These entries should not contain spaces or erasures or alterations.

However, annotations can also be affixed by mechanical or electronic, provided that they ensure the fidelity and permanence of the information provided.

Article 914.The duties of the captain, among others, whether we meet in person or by members of the crew or ground personnel under his authority, the following:

1. ° Verify that the ship is in seaworthy condition before their departure and throughout the expedition;

2. ° Comply with all laws and regulations, maritime, health, customs, police, labor and others that are applicable;

3. ° supervise everything related to the stability of the ship and cargo, loading and unloading thereof;

4. ° Provide partial receipt of goods that are loaded, extending at the time, knowledge and relevant documents, if he could claim;

5. ° Use the services of a pilot when the law, regulation or the good sense to do so;

6. ° Practice corresponding entries in the receipts and knowledge of failures, losses or damages observed in the load or causing the preparation thereof;

7. • Give immediate notice to the owner, the first means at their disposal, or retention of any embargo affecting the ship, and take the steps recommended for maintaining it, and the load and provide the due attention to passengers;

8. ° Celebrating with the permission of the owner or his agent, charter contracts or freight. Other acts or contracts relating to the ordinary management of the ship and the normal development of the trip, you can do alone;

9. ° represent legally the owner in case of his absence or his agent, to preserve their rights and take the actions which come within the ship and the expedition;

10. Provide assistance and relief to which it is bound by law or custom, and

11. Protest accidents or damages suffered the ship or cargo, or any act that might compromise their responsibility of the ship, its owners and landlord of the expedition as a whole.

Article 915.The captain has, on behalf of the carrier, the custody of the cargo and any effects you get on board, and is obliged to care for their proper handling in loading and unloading of good stowage and securing of custody and conservation and its proper delivery to the destination port.

All this in the terms prescribed in other provisions of this Book, subject to the rules on limitation of liability of the carrier contained in it.

Article 916.If during the course of the voyage and in port where there is no agent of the owner, made necessary repairs or purchase of equipment and the circumstances or the distance from home owner's do not allow asking for directions, the master may perform the aforementioned acts, noting log it in the book.

§ 3. Agents

Article 917.General agents are natural or legal persons acting on behalf of a foreign ship owner with the character of commercial agent.

Ship agents or consignees of vessels are people, Chilean natural or juridical, which act either on behalf of the owner, the owner or master of a ship and on their behalf, for all acts or representations concerning the care the ship at the port of consignment.

Stevedoring agents or stevedoring are people, Chilean natural or juridical, who performed in full or partial mobilization of cargo between ship and port facilities or ground transportation and vice versa.

Article 918.The relationship between the agent and its constituents shall be governed by the provisions of the respective contracts, and failing or lack of an express agreement, we will apply the law on commercial mandate.

Article 919.Agent can only act as whoever is registered as such before the maritime authority in the form and manner determined by the relevant regulations for each of the categories defined in Article 917.

Nevertheless, the owners will not require national register with ships agents to act as such, to their own ships in the ports that have established office.

Article 920.The mandate to act as agent in the cases referred to in this paragraph may be made up by a public or private, telegram, telex or any other suitable means.

Article 921.The general agent, in his capacity as such, is entitled to represent his client in contract freight and charter. You can also designate the agent in respect of vessels operating your principal.

Within the scope of its powers, and as to the functions listed in Article 923, may only perform those listed in numbers 2. °, 9. And 10.

Article 922.The ships agent, simply by applying the attention of a ship, means vested with sufficient representation for all subsequent purposes, subject to credit his appointment in one of the forms stipulated in article 920.

Agent ships with the authorities make the necessary arrangements for the arrival and departure of a ship or from domestic port, is representing the owner, owner or captain, for all purposes and responsibilities that flow from the attention of the ship .

When the ships agent has requested the attention of a ship, may be preferred by the maritime authority to anyone else who submitted retrospectively, with special mandate or not, except as provided in Article 924 and without prejudice to the responsibilities that incurs against the owner, operator or captain of the ship.

The ships agent also has enough representation to sue, actively or passively, the master, owner or operator of the ship it represents, in all that relates to their exploitation.

Article 923.Without prejudice to the agent representing the ships to the authorities, he, on behalf of the owner, operator or master, may provide either directly or through third parties, one or more of the services relating to the care of the ship in port, such as:

1. • Receive and assist upon arrival at a port, the ship that have been allocated;

2. ° Prepare, as necessary, conscription and expedition of the ship, practicing the appropriate steps to provide and assemble everything properly as appropriate;

3. ° take all steps necessary to obtain release of the ship;

4. ° Practicing the steps necessary to comply strictly with the provisions, decisions or instructions emanating from any state authority in the exercise of its functions;

5. ° To provide the assistance required by the captain of the ship;

6. ° recruit staff for the care and operation of the ship in port;

7. ° receive the goods for landing, in accordance with the relevant documentation;

8. ° Attend and supervise the loading and unloading tasks, including loading and unloading of goods;

9. • Receive bills of lading and deliver the goods to their recipients or custodians;

10. Sign as representative of the master, or who are operating commercially ship, bills of lading and other documentation, and

11. In general, perform all acts or transactions relating to the attention of the ship at the port of entry, without prejudice to the specific instructions that confer its constituents.

Article 924.The captain, owner or operator may appoint as its agent a person other than the consignee of a ship, when the latter was appointed by the charterer, in accordance with the powers of the charter agreement.

The officer so appointed is known as a protective agent and shall also have adequate legal representation to sue, actively or passively, by themselves, provided that written evidence of their appointment.

However, his appointment will not alter the responsibility of the ship agent appointed by the charterer.

Article 925.The ship agent is not liable for the obligations of his principal. However, will his liability to the maritime authority under the law and without prejudice to that affect their own actions or those of their dependents.

The ships agent, in his first requesting the attention of a ship to the authority of the port of arrival, you must indicate the address of the owner. In the event that they did not comply with this obligation or will provide false information maliciously, the agent will personally respond ships obligations incurred by him on behalf of his client.

Article 926.Agent stowage and unloading represent his client to the maritime and port authorities in general and may provide the following services:

a) stevedoring and other ancillary tasks in loading or unloading of ships and floating structures;

b) Loading and unloading of containers within the port premises within and

c) In general, all acts and procedures specific to the mobilization of cargo between ship and ground transportation and vice versa, including the intermediate operations to be carried out in the port facilities and ships in port or the tour, such as blocking and stacking, horizontal and vertical movement, or storage tanks.

Title V

CONTRACTS FOR COMMERCIAL EXPLOITATION OF CRAFT

§ 1. Common provisions

Article 927.The operation of a ship for transportation recognizes two main types of contracts, depending on the nature and extent of the obligations of the shipowner or operator of a contract of charter and contract of carriage of goods by sea.

When the owner or operator makes the ship available to another, so that they use it at their own convenience within the terms stipulated, the contract takes the name of the charter. That puts the ship at the disposal of another is called shipowner and the wearer, the charterer.

When the owner or operator of the vessel assumes the obligation to ship goods from third parties in certain places, drive and deliver them in certain places also, the contract takes the name of goods by sea or shipping contracts.

Sea transport is initiated, include river stage or end with, shall be governed by the rules of this Book.

Article 928.The charterparty should always be tested in writing. The conditions and effects of the charter shall be established by the parties to the contract concerned and, failing that, shall be governed by the rules of the next paragraph. The document which is held the contract called a charter party.

The formalities laid down in the preceding paragraph shall not apply to the chartering of vessels under fifty tons gross.

Written expression is used in the first paragraph includes communications the parties have exchanged either by telegram, telex or other means to record or say it stamped by each party tools or equipment designed for this purpose.

When the charter can be justified by any of the forms mentioned above, the relationships between people who have participated and their effects shall be governed by the provisions of paragraph 3 of this title on the shipping contract.

Article 929.The rules on maritime transport contract for the parties will be mandatory, except in cases where the law expressly provides otherwise.

§ 2. Of the charterSection One. General Standards

Article 930.The charter contracts are regulated in this paragraph:

1. ° time charter;

2. ° voyage charter, which may be total or partial, and

3. ° bareboat charter.

In other charters will be as agreed by the parties and, failing that, the rules of this paragraph.

Article 931.In the absence of express terms in an international charter contract, its effects in Chile are governed by Chilean law.

Article 932.The charterer may use subfletar the ship or the carriage of goods by sea, unless expressly prohibited in the contract, it is still a liability to the shipowner for the obligations of the charter agreement.

The subfletamento not create any relationship between the shipowner and subfletador. However, if any unpaid freight from the shipper to the shipowner, it may operate against the subfletador, shipper or consignee for the freight that we were still outstanding.

Article 933.If the ship was disposed of, the trip must be fulfilled that is in execution, in the manner prescribed in the respective policy, without prejudice to the rights of the buyer.

Section Two. The time charter

Article 934.Time charter is a contract whereby the owner or operator, retaining its possession, put the gun ship available to another person for the activity it has, within the terms stipulated by a certain time and by paying a shipment throughout the period agreed or calculated both by day, month or year.

Article 935.References are typical of the charter party:

1. ° Name and address of the shipowner and the charterer;

2. ° Identification of the ship, its characteristics and especially its ability, capacity and walking;

3. ° The shipping and payment methods;

4. ° Duration of the contract and

5. O A reference to the activity that the shipper intends to develop with the ship. If nothing utterance, the charterer may be used in any activity according to your specifications.

The omission in the policy of one or more of the above pronouncements will not affect the validity of the contract to govern in the areas omitted by the provisions of Article 934 and other rules that are applicable.

Article 936.The sailing ship management corresponds to the freighter.

Commercial management of the vessel corresponds to the operator and within that limit can order directly to the master meeting schedule trips, according to the stipulations of the contract.

Article 937.The obligations of the shipowner:

1. ° Present and put the ship available to the charterer at the time and place agreed in seaworthy, suitable for the intended uses, armed, equipped and properly documented. The ship owner must keep the ship in the same seaworthy and fitness throughout the life of the contract, so they can develop activities under it;

2. ° Pay the costs of management of the ship sailing, such as classification, wages and food for the crew, hull and machinery insurance, repairs and spare parts and

3. ° Comply with the charterer to order travel within the terms of the contract and agreed the shipping areas.

Article 938.The obligations of the charterer:

1. ° Pay the freight agreed on agreed terms and

2. ° Pay the expenses relating to or inherent in the commercial management of the ship.

Article 939.The charterer is responsible for the damages suffered by the ship because of its commercial management. Responds to ordinary negligence in fulfilling their obligations unless otherwise stipulated otherwise.

Article 940.The shipowner liable for injuries suffered by the goods on board, due to a breach of its obligations.

The shipowner is liable for damages resulting from the poor condition of the ship and all hidden defect, unless it proves that the latter could not be warned using reasonable diligence.

The shipowner is also liable to the charterer for damage occurred due to lack nautical captain or crew, but not accountable to the charterer for the actions of the captain and crew to comply with instructions issued by the charterer, linked to the commercial or the use it makes of the ship.

Article 941.In the absence of express provision in the contract, the freight is governed by the following rules:

1. ° will be due from the day the ship is made available to the charterer under the conditions stipulated in the contract, and

2. ° The anticipated monthly pay periods.

Article 942.The shipowner may terminate the contract within seven days from the date on which the charterer must pay the freight or part of it which fell due. The termination will occur by the mere statement of the shipowner to inform in writing the charter and also informs the captain of the ship. Made this statement, the freight shall be payable until the return of the ship.

The foregoing is without prejudice to other rights that the contract grants the shipowner in case of non payment of freight.

Article 943.When the ship owner elects to terminate the contract, must provide appropriate destination, the cargo ship have on board.

Shall be entitled also to receive in its favor the freight of the goods we were still outstanding, to the extent of what the shipper will adeudare by its respective charter. To this end, the shipowner may proceed in the manner prescribed in Article 865 of this book.

Article 944.No freight will accrue the time it is not possible to use commercially ship, unless for reasons attributable to the charterer. The suspension shall exceed twenty-four hours to have given rise to the suspension of freight.

Article 945.In case of loss of the aircraft, unless otherwise agreed, the price of freight will be until the day of loss, inclusive.

Article 946.Restore the ship's charterer in the term and location agreed and, failing that, the shipowner's home port.

Article 947.Unless any express consent of the shipowner or the contract so provides, shall not be deemed a contract renewed or extended if the ship be not reinstated within the period stipulated.

Unless the test further injury shipowner, the charterer shall pay for each day during the first fifteen days of delay, an allowance equal to the daily value that corresponded to the contract as the price for the entire period covered. For each day subsequent to the first fifteen days, the compensation shall be at least twice the daily value.

Section Three. The voyage charter

Article 948.The voyage charter can be total or partial.

Total voyage charter is the one for which the shipowner agrees to make available to the charterer, on payment of freight, all spaces that can be loaded in a particular craft, for travel on or agreed.

Partial charter trip is one in which the charterer provides one or more specific spaces within the ship.

The shipowner can not be replaced by another ship in the contract, unless otherwise specified.

Article 949.References are typical of voyage charter, in whole or in part, as follows:

1. ° The identification of the ship, carrying capacity and port of registry;

2. ° The names and addresses of the shipowner and the charterer;

3. ° The indication of the voyage or voyages to be carried out and places of loading and unloading;

4. ° If the charter is wholly or in part, in the latter case, the identification of the spaces available to the charterer;

5. ° The description of the cargo or goods, quantity and weight;

6. ° The expected times for stays and demurrage, as calculated and the value set for them;

7. ° The responsibility of the parties for any damage to the cargo and the ship, and

8. ° The shipping and payment methods.

The omission in the policy of one or more of the above pronouncements will not affect the validity of the contract to govern in the areas omitted by the provisions of Article 948 and other rules that are applicable.

Article 950.The shipowner is required to:

1. ° Present the ship at the place and date specified in seaworthy, properly armed and equipped for operations under the contract and hold it during travel or agreed.

The shipowner shall be liable for damage to goods coming from the poor condition of the ship, unless he proves that resulted from a latent defect it is not likely to be noticed with reasonable diligence and

2. Adopt all necessary measures in his power to execute the agreed or travel.

Article 951.If the shipowner does not ship available to the charterer under the conditions, time and place agreed, he may terminate the contract by written notice to the shipowner.

Notwithstanding the foregoing, the charterer may rescind the contract before the craft starts to load, in which case the shipowner pays an indemnity equal to half the agreed freight, or higher, if the shipowner proves that the damage caused are greater than that amount but not exceeding the whole of that freight.

Article 952.Corresponds to the shipper to designate the place or the site of the port where the ship should be located to perform the tasks of loading or unloading, unless the charterparty have preset. If the charter party the charterer or express anything about it, or if, as a number of charterers, including no agreement, corresponds to the shipowner to choose the place or site. All of which is subject to the administrative rules governing the operations of the ports.

Article 953.The shipowner is responsible for the goods received on board, without prejudice to the provisions of the charterparty.

Article 954.Stay means the period agreed by the parties to execute the tasks of loading and unloading, or otherwise, the term uses the port in question, brought to these tasks.

Demurrage is defined as the time after the expiration of the stay, without request.

The ship owner may terminate the contract if the demurrage time exceeds a number of calendar days equal to the days of stay.

If the policy may be established independent deadlines for work on loading and unloading, they are counted separately.

Article 955.The ship owner must give written notice to the charterer that the ship is ready to receive or deliver cargo. If nothing has been agreed between the parties, the determination of when the ship is ready for loading or unloading, as well as the counting of days of stay, duration, amount and payment of demurrage shall be determined preferably by uses the port on which the transactions occur above.

Article 956.Corresponds to the charterer make timely and cost, loading and unloading of goods.

Article 957.If the charterer shipped only part of the load up to be a period of demurrage, the ship owner may undertake the journey with the burden is on board, in which case the charterer shall pay the full freight.

If the shipowner chooses to terminate the contract, you can download the ship for the account of the charterer, who also must pay half the agreed freight, if the shipowner proves greater injury.

The ship owner shall record its decision on a protest must notify the charterer or representative it has in the place of shipment.

Article 958.Time limits will be lifted when loading or unloading prevent unforeseeable circumstances or force majeure or for reasons attributable to the shipowner or their dependents.

Article 959.The compensation for demurrage is considered as a supplement to freight. Its value is that which the parties have stipulated, failing, which is appropriate for the local use. Fractions of days shall be paid pro rata to the daily amount.

Article 960.If the charterer fulfill the tasks of loading or unloading in less time than stipulated, shall be entitled to compensation for the amount that has been agreed and, failing that, calculated on a basis equal to half the sum that corresponds to demurrage.

Article 961.The contract shall be entitled to compensation for damages to either party, if before the departure of the ship comes a ban on trade with any country to which it was intended, or if it happens any other event of force majeure to do the travel impossible.

Article 962.Where the unforeseeable circumstances or force majeure supervening they be temporary and only significaren a delay in departure, the contract shall be deemed suspended for the entire duration of the impairment.

Similarly, the contract is not resolved and remains in full force, if fortuitous event or force majeure occur during the trip. When this happens, there shall be no increase in freight and the freighter will continue the trip as soon as the impediment is removed.

In the case of temporary disability, the charterer may unload the goods at his expense in the place fixed, a shipowner must pay the freight in proportion to the distance traveled.

Article 963.Unless otherwise estipulare, freight shall be payable in advance for each trip and will be payable from the time they finish loading the respective tasks.

When in the course of its route occurs because of the effects of an event not attributable to the shipowner, the final stop of the ship, the charterer will pay an agreed freight replacement for the trip, which will be proportional to the distance the ship has traveled on-demand point of destination by the parties, unless agreed upon was a freight won every event.

Article 964.When the ship has undergone total charter, the charterer will be able to discharge the goods at any port or place that is in the course of the route, but must pay the total freight stipulated for the trip and all expenses caused by or arising from the diversion and discharge.

Section Four. The bareboat charter

Article 965.Bareboat charter is a contract under which one party, against payment of freight, undertakes to make available another, for a given time, a ship dismantled and no equipment or with equipment and weapons incomplete, yielding to the latter into its possession, control and exploitation, including the right to appoint the captain and crew.

Default of the terms of the contract and not covered in this section, Paragraph 1 and the first section of Paragraph 2 of this title, the bareboat charter will be governed by general rules of the lease of furniture, which may be applicable.

Article 966.The charterer will have the legal status of the owner and, as such, the rights and obligations thereof.

Freight shall be payable, unless otherwise stipulated by the parties for periods anticipated.

Article 967.The charterer may not subfletar bareboat or assign the contract without the written permission of the owner.

As specifically agreed not to subfletamento charterer, it shall be governed by the requirements of this section.

Article 968.The shipowner must file and deliver the ship to the charterer at the time and place agreed, provided the necessary documentation and seaworthy. During the contract will be borne by the shipowner repairs and replacements due to hidden defects.

If the ship inmovilizare as a result of a latent defect, one should not be shipping for the duration, the detention of an excess of twenty-four hours.

Article 969.The charterer may use the ship in accordance with the specifications of it and in accordance with the terms of employment agreed in the contract.

The violation of the provisions of the preceding paragraph shall entitle the shipowner to request termination of the contract and require the charterer compensation for the damages caused.

Pending the resolution on the termination of the contract, the court may order temporary withholding of the ship, if it appears the need for it. All of which is subject to precautionary measures as are appropriate under the general rules.

Article 970.During the contract, the charterer will be charged to repairs and replacements that do not have their origin in some hidden defect in the ship.

Article 971.Shall be borne by the charterer of the ship procurement, hiring the crew, paying their salaries and, in general, all expenses of operating the ship.

The charterer is responsible to the shipowner for all claims of third parties that have resulted from the exploitation or operation of the ship.

Article 972.The operator shall restore the ship to the expiration of the period stipulated in the state in which it was given, except for the wear caused by normal use or agreed. Also, the charterer to shipowner should ensure the release of all lien arising from their exploitation.

The refund shall be made at the place agreed and, failing that, the shipowner's home port.

Article 973.This contract shall apply the provisions of Articles 942 and 947.

§ 3. Shipping contractSection One. Definitions

Article 974.Means that shipping contract whereby the carrier undertakes against payment of freight to carry goods by sea from one port to another.

The contract which includes shipping and transport in addition to any other means, shall be governed by the provisions of this paragraph only for the period specified in section 982. The other stages will be governed by the rules that apply to the means of conveyance.

Article 975.For all purposes of this paragraph, the term:

1) Carrier or carrier means any person who by himself or by another acting on its behalf, has entered into a contract of carriage of goods by sea with a shipper;

2) effective carrier or actual carrier, any person to whom the carrier has entrusted the performance of the transport of goods, or part thereof, and any other person who has entrusted the implementation;

3) Charger, any person who by himself or by another acting on its behalf or on its behalf, has entered into a contract of carriage of goods by sea with a carrier and any person who by himself or by another acting in name or on its own, the goods are actually delivered to the carrier under the contract of carriage by sea and

4) Consignee, a person authorized by a title to receive the goods.

Article 976.Goods means every kind of property, also comprising living animals.

When goods are grouped in containers, pallets or other similar article of transport or where they are packed, the term goods includes such article of transport or packaging if supplied by the shipper.

The baggage is governed by the provisions of the contract of passage.

Article 977.The bill of lading is a document that proves the existence of a contract for shipping, and certify that the carrier has taken over or loading of the goods and is obliged to deliver against presentation of the document to a particular person, your order or to bearer.

Article 978.Whenever in this paragraph shall use the term in writing, means that she understands the telegram, telex or other means to stamp it, record or repeat what was said by each party using tools or equipment designed for this purpose.

Section Two. Scope

Article 979.Without prejudice to establish international treaties or conventions in force in Chile, the provisions of this paragraph shall apply to all shipping contracts, provided that:

1. ° The port of loading or discharge under the contract of carriage by sea is located in national territory, or

2. ° The bill of lading or other document evidencing the contract of carriage by sea, stipulating that the contract shall be governed by the provisions of this paragraph, or

3. ° One of the optional ports of discharge provided for in the contract of shipping is the actual port of discharge and it is within the national territory.

Article 980.The provisions of this paragraph shall apply regardless of the nationality of the ship, the carrier, the effective carrier, the shipper, the consignee or any other interested person.

Article 981.The provisions of this paragraph shall not apply to charter parties. However, when a bill of lading issued pursuant to a charter party, they apply to that bill of lading if it governs the relationship between the carrier or the holder of cash and the knowledge that is not the charterer.

If a contract provides for the transport of goods in successive shipments during an agreed period, the provisions of this paragraph shall apply to each of these shipments.

When a shipment is made under a charter agreement, will apply the provisions of paragraph one.

Section Three. Liability of the carrier

Article 982.The liability of the carrier for the goods includes the period during which they are in their custody, whether on land or during transport.

Article 983.For the purposes of the preceding Article shall be deemed that the goods are in the custody of the carrier from the time he has taken charge upon receipt of the shipper or the person acting on its behalf, or an authority or other third party to whom, according to the laws or regulations applicable at the port of loading are to place the goods to be shipped, and so far that they have been delivered in any of the following ways:

a) by handing over to the consignee;

b) In cases where the consignee does not receive the goods from the conveyor, making them available to the consignee in accordance with the contract, the laws or customs of the trade in question, applicable at the port of discharge, or

c) handing over the power of an authority or other third party who, pursuant to law or regulations applicable at the port of discharge, have to surrender the goods.

Carrier and consignee terms also include their servants and agents, respectively.

Article 984.The carrier shall be liable for damages resulting from loss of or damage to goods as well as from delay in delivery, if the occurrence which caused the loss, damage or delay took place while the goods were in his custody in terms of Articles 982 and 983, unless he proves that he, his servants or agents took all measures that could reasonably be required to prevent the occurrence and its consequences.

Article 985.There is a delay when the goods have been delivered to the port of discharge stipulated in the contract of shipping, within the time expressly agreed upon or, failing such agreement, if not delivered within the time period in the circumstances of the case would be reasonable to require of a diligent carrier.

Article 986.Goods are considered lost if they have not been delivered to its destination in one of the forms mentioned in the first paragraph of Article 983, within sixty days following the expiration of the deadline determined in accordance with the preceding article.

Article 987.In case of fire, the carrier shall be liable:

1. ° of loss or damage to goods or delay in delivery thereof, if the claimant proves that the fire was caused by fault or negligence of the carrier, its servants or agents, or

2. ° of loss or damage or delay in delivery when the claimant proves that have occurred through the fault or negligence of the carrier, its servants or agents in taking all measures reasonably could be required to turn off the fire and avoid or mitigate its consequences.

Article 988.In case of fire on board, affecting the goods, if the claimant or the carrier upon request, there will be an investigation into the causes and circumstances of the fire, in accordance with the regulations and shipping practices, and provide concerned a copy of the report with the findings of the investigation.

Article 989.In the carriage of live animals, the carrier shall not be liable for loss, damage or delay in delivery resulting from the special risks inherent in this type of transport.

It is presumed that such risks have been the cause of the loss or damage or delay in delivery when the carrier proves that he has complied with any special instructions you are given the boot, and also, in the circumstances the loss, damage or delay in delivery, can be attributed to such risks. Notwithstanding above, the presumption will not take place where there is evidence that all or part of these events have had their origin in the fault or negligence of the carrier, its servants or agents.

Article 990.Should aid be provided to third parties, the carrier shall not be liable, except for general average, where loss, damage or delay in delivery, have come from measures taken to saving lives or reasonable steps taken to saving property at sea.

Article 991.Where fault or negligence of the carrier, its servants or agents combines with another or other cause to produce loss, damage or delay in delivery, the carrier is liable for the loss, damage or delay that may attributable to the fault or negligence or that of its servants or agents, provided that test the amount of loss, damage or delay is attributable to one or other causes.

Section Four. Limits of liability

Article 992.Carrier's liability for damages resulting from loss or damage of goods in accordance with the provisions of the preceding section shall be limited to a maximum equivalent to eight hundred thirty-five units of account per package or other shipping unit or half past two units of account per kilogram of gross weight of goods lost or damaged, whichever is greater.

Article 993.The liability of the carrier for delay in delivery in accordance with the provisions of the preceding section shall be limited to an amount equivalent to two and half times the freight payable for the goods that have been delayed, but not exceed the amount total freight payable under the respective contract of carriage of goods by sea.

Section 994.In no event shall the aggregate liability of the carrier for the concepts in the two preceding articles, exceed the limit set under Article 992, for the total loss of the goods for which incurred such liability.

Article 995.In the limits of liability referred to the above articles are not considered interest on the sum to appraise the damages or court costs.

Article 996.To determine, in the case of Article 992, which amount is greater, the following rules apply:

1. ° In cases where, to consolidate goods, you should use a container, pallet or similar article of transport shall be considered as packages or shipping units, each of which appear as contained in that element transport bill of lading, if issued, or any other document evidencing the contract of carriage by sea. If you omit the reference indicated in those documents, the goods in such article of transport shall be considered as a unit of cargo carried;

2. ° In cases where it has been lost or damaged article of transport itself, it is regarded as an independent unit of cargo, unless the carrier is owned or provided by him.

Article 997.The carrier and the shipper may agree on limits of liability exceeding those provided for in Articles 992 and 993.

Article 998.Both exemptions and limits of liability under this paragraph shall apply to any action against the carrier for loss or damage to the goods referred to in the contract of carriage by sea, as well as the delay in delivery, regardless that the action is founded in contract, in tort or other cause.

Article 999.When you exercise the actions of the preceding articles against an employee or agent of the carrier, they may qualify for exemptions and limits of liability which the carrier can invoke under the provisions of this paragraph if he proves that he acted in exercise of their functions.

Section 1000.Notwithstanding the provisions of articles following the total of the amounts recoverable from the carrier and any person referred to in the preceding article shall not exceed the limits of liability provided in this paragraph.

Section Five. Exceptions to the limitation of liability

Section 1001.The carrier may not invoke the limitation of liability provided for in Articles 992 and 993, if it is proved that the loss, damage or delay in delivery resulted from an act or omission of the carrier done with intent to cause such loss, damage or delay or recklessly and in circumstances which may be assumed that probably had knowledge that such loss, damage or delay.

Section 1002.Notwithstanding Article 999, servants or agents of the carrier may not invoke the limitation of liability provided for in Articles 992 and 993, if it is proved that the loss, damage or delay in delivery resulted from an act or omission of them done with the intent to cause such loss, damage or  delay or recklessly and in circumstances which may be assumed that probably had knowledge that such loss, damage or delay.

Section Six. Deck cargo

Section 1003.The carrier can only carry goods on deck under a prior agreement with the charger, or when permitted or authorized the use of the trade concerned or otherwise required by current legislation.

Section 1004.If the carrier and the shipper have agreed that the goods are transported or can be carried on deck, so expressed in the bill of lading or other document evidencing the contract of carriage by sea. In the absence of written statement on the matter, the carrier must prove the existence of the agreement, may not be invoked against third parties, including with respect to the consignee who acquired the bill of lading in good faith.

When goods are conducted in containers on a ship capable of transporting them, it is presumed the prior agreement referred to the first part of the preceding article, unless the applicant proves otherwise.

Section 1005.When the goods have been carried on deck contrary to the provisions of Section 1003, or when the carrier can not claim in accordance with the preceding Article, an agreement in this regard, the carrier shall be liable for loss or damage to goods and the delay in delivery, if arising from their carriage on deck.

The extent of liability of the carrier is determined in accordance with the fourth and fifth sections of this paragraph, as appropriate.

For the purposes set out in section five of this paragraph shall be presumed to have committed willful or negligent conduct under Articles 1001 and 1002, when it has violated the express agreement of transporting them under cover.

Section Seven. Liability of the carrier and the effective carrier

Section 1006.When the performance of the carriage or part thereof has been entrusted to an effective carrier, regardless of whether or not authorized by contract to do so, the carrier remains responsible for all transport arranged.

Regarding the operator is executed by the effective carrier, the carrier shall be jointly liable with that of the acts or omissions in the exercise of their functions may occur, both the effective carrier and their servants and agents.

Section 1007.All provisions of this title relating to the liability of the carrier shall also apply to effective carrier, for transport by the executive.

If you will exercise action against a servant or agent of the effective carrier shall apply the rules contained in Articles 999, 1000 and 1002.

Section 1008.Any special agreement under which the carrier assumes obligations not outlined in this book or waive rights that it confers only take effect on the effective carrier when it expressly agreed in writing.

Notwithstanding the foregoing, the carrier will remain subject to the obligations or waivers resulting from such special agreement, regardless of whether they have been accepted or not by the carrier.

Section 1009.The total sums are payable to the carrier, the effective carrier and their servants and agents shall not exceed in any case, the limits of liability specified in the relevant provisions of this paragraph.

Section 1010.The rules on liability of the carrier and the effective carrier shall be without prejudice to the right of recovery that they can exercise another.

Section Eight. Transportation with authority to ferry

Section 1011.Notwithstanding the provisions of Article 1006, when a shipping contract expressly provided that a certain portion of transportation shall be performed by someone other than the carrier, the contract may also stipulate that he is not liable for the loss, damage or delay in delivery caused by an incident which occurred while the goods were in the custody of another carrier specifically nominated. But this provision shall not take effect unless it can be initiated before a competent tribunal proceedings against the second conveyor actually nominated, as provided in Section XVI of this paragraph.

The proof of loss, damage or delay in delivery was caused by an event that occurred while the goods were in the custody of the effective carrier, and proof that the applicant could initiate action against the second conveyor in a competent court, shall be the first carrier.

Section Nine. From the shipper's liability

Section 1012.Generally, the shipper, his servants or agents, shall be responsible for the loss suffered by the carrier or the carrier effective, or damage to the ship, when the loss or damage in question was caused fault or negligence of the shipper, his servants or agents.

Section 1013.In the case of dangerous goods, the shipper highlight, appropriately, by marks or labels, goods have this feature.

The charger that puts dangerous goods to the carrier or an effective carrier, as appropriate, inform him of the dangerous nature of those and if necessary, the precautions to be taken. If the charger does not and the carrier or the actual carrier are unaware of the dangerous nature of the goods from another source, this omission will have the following effects:

1. ° The shipper is liable to the carrier transport and all cash for the damages resulting from shipment of such goods, and

2. ° The goods may at any time be unloaded, destroyed or rendered innocuous, as circumstances require, without payment of compensation.

The provisions of this article may not be invoked by a person during transport has taken charge of the goods, knowing the danger.

Even when brought to the attention of the carrier or the effective carrier of the dangerous nature of the goods, if they should come to an actual danger to human life or property, may be unloaded, destroyed or rendered innocuous, as circumstances require, without payment of compensation, except where there is an obligation to contribute in general average or where the carrier is responsible in accordance with Articles 984 to 991 of this paragraph.

Tenth Section. Transport documentation

Section 1014.When the carrier or the cash to take over the goods, you must first issue a bill of lading to the shipper, if requested.

The bill of lading may be signed by a person having authority from the carrier. It is understood that the bill of lading signed by the captain of the ship carrying the goods, has been on behalf of the conveyor.

The signature on the bill of lading may be handwritten, printed in facsimile, perforated, stamped in symbols, or any other mechanical or electronic.

Section 1015.Are stipulations own bill of lading:

1. ° The general nature of the goods, the leading marks necessary for identification, an express statement, if applicable, to the dangerous character, and if instructions were given about it, the number of packages or pieces, and the weight of goods or their quantity expressed otherwise. All these data will be recorded as furnished by the shipper;

2. ° The apparent condition of the goods;

3. ° The name and principal place of the conveyor;

4. ° The name of the shipper;

5. ° The name of the consignee if named by the shipper;

6. ° The port of loading, according to the shipping contract and the date on which the carrier has taken delivery of the goods;

7. ° The port of discharge under the contract of shipping;

8. ° The number of original bills of lading, if more than one;

9. ° The place of issuance of bills of lading;

10. The signature of the carrier or the person acting on its behalf;

11. Freight, to the extent that must be paid by the consignee or other indication that freight is payable by it;

12. The declaration mentioned in the final paragraph of Article 1039;

13. The statement, if applicable, the goods are or may be carried on deck;

14. The date or period for delivery of the goods at the port of discharge if expressly agreed in the parties and

15. Any limits or upper limits of responsibility were agreed upon in accordance with Article 997.

The omission in the bill of lading of one or more of the above pronouncements will not affect its legal effect, subject to adjustment as provided in Article 977.

Section 1016.Once loaded the goods on board, the carrier shall issue to the shipper a bill of lading with the reference board, if requested, in which, in addition to the pronouncements mentioned in the preceding article shall contain the goods on board a ship or aircraft specific and indicate the date or dates on which the charge was made.

If the carrier has previously issued a bill of lading or other document of title of any such goods to the charger, it will return the document to change a bill of lading with the reference board.

When the magazine requested a bill of lading with the reference board, the carrier may amend any previously issued document if the amendments are added, is included all the information to be provided in a bill of lading on board.

Section Eleven. Probative value and reserves in the knowledge 

Shipping

Section 1017.The carrier or the person issuing the bill of lading in their name, affix a reservation that knowledge in the following cases:

1. ° When you know or have reasonable grounds to suspect that the data on the general nature, leading marks, number of packages or pieces, weight or quantity of goods contained in the bill of lading, do not accurately represent the goods has effectively taken over;

2. ° In case of having issued a bill of lading with the reference board and are known or have the same reasonable grounds for suspicion regarding the information specified in the previous number, and

3. ° If not had any reasonable means to verify those data.

Section 1018.When a reservation is stamped on the bill of lading or other document evidencing the contract of transport, such reservation shall specify the inaccuracies, grounds of suspicion or lack of reasonable means of checking the data of knowledge or document that was subject to the objection.

Section 1019.If the carrier or the person issuing the bill of lading in its name, it is stated in that document the apparent condition of the goods shall be deemed to have indicated in the bill of lading that the goods were in good condition.

Section 1020.Except with respect to the data on which it has made a reservation permitted under the three previous articles and the extent of the reserve:

1. ° The bill of lading shall be presumed, unless proved otherwise, that the carrier has taken over or, if already issued a bill of lading with the reference board, which has loaded the goods, as are described in the bill of lading, and

2. ° Do not be accepted for carriage evidence to the contrary, if the bill of lading has been transferred to a third party, including a consignee, who has acted in good faith based on the description of goods contained in that knowledge.

Twelfth Section. Rules on payment of freight in the contractShipping

Section 1021.Generally, unless expressly stated otherwise, the freight is earned and will be due after delivery of the goods at the destination specified in the contract, in some form letters that indicate a), b) or c) Article 983.

Should not be freight for goods lost by accident or force majeure. However, when the goods have been lost by an act or result of general average, the freight will be paid for as if benefits had reached their destination.

The provision of freight payable at all events, shall take effect provided that the load is on board and the ship has commenced travel.

The bill of lading which does not specify the unpaid freight or otherwise indicate that freight has to be paid by the consignee, as provided in Article No. 11 of 1015, or not specified payments for delays in the loading port to be made by the consignee will assume, unless proven otherwise, the consignee does not have to pay any freight or delays.

However, the carrier is not admissible evidence to the contrary, when the bill of lading has been transferred to a third party, including a consignee, who has acted in good faith based on the lack of such information in the bill of lading.

Section Thirteen. Guarantees provided by the shipper

Section 1022.Charger shall be deemed to guarantee to the carrier the accuracy of the data concerning the general nature of the goods, their marks, number, weight and quantity, which provided for inclusion in the bill of lading.

The shipper shall indemnify the carrier against loss resulting from the inaccuracy of the data, even when you have transferred the bill of lading.

The right of the carrier to such indemnity shall not limit in any way, your liability under the contract shipping to any person other than the shipper.

Section 1023.The letter of guarantee or agreement whereby the shipper agrees to indemnify the carrier for damages resulting from the issuance of bills of lading issued by it or the person acting on its behalf, and contains no reservations about data provided by the shipper for insertion therein, or the apparent condition of the goods shall not take effect for another person or an agent who has transferred the bill of lading.

Section 1024.Both the letter of guarantee to the covenant, if any, will be valid as against the shipper unless the carrier or the person acting in his name, skip the reserve referred to in the preceding article, with the intention of causing damage to a third party, including a consignee that is based on the description of the goods contained in the respective bills of lading.

In this case, if the reservation omitted refers to data that provided the shipper for insertion in the bill of lading, the carrier is not entitled to be indemnified by the shipper.

Section 1025.In the case of fraud referred to in the preceding article, the carrier shall be liable and may not invoke the limitation of liability provided in this paragraph, in respect of loss suffered by a third party, including a consignee, having acted on the basis of these in the description of goods contained in the bill of lading.

Section Fourteen. Effects of other transport documents

Section 1026.When the carrier issues a document other than the bill of lading to prove receipt of the goods being transported, this document will assume, unless proven otherwise, which has a contract of maritime transport and the carrier has taken over the goods concerned in the way are described in the document in question.

Section XV. Notices, claims and actions

Section 1027.Putting the goods to the consignee will assume, unless proven otherwise, the carrier has delivered the as are described in the document of transport or in good condition, if it had not been issued.

There shall be no such presumption in the following cases:

1. ° When the consignee has given the carrier written notice of loss or damage, specifying the nature thereof, by the first working day following the date on which the goods were put into his power, or

2. ° When the loss or damage in question are not visible, and has given written notice of loss or damage, specifying the nature thereof, at the latest within fifteen consecutive days from the date where the goods were handed over to the consignee.

Need not be given notice of loss or damage for which have been detected at a joint survey or inspection of parts, made at the time of receipt of goods by the consignee.

Section 1028.In case of loss or damage, actual or apprehended, the carrier and the consignee shall give all reasonable facilities for inspection of goods and checking the number of packages.

If the logbook or controls on warehouses and goods are ultimately carried by machine or by computer, the consignee or who represents his rights, have access to the information or record relevant data relating to the entire period in which the goods have been under the care of the conveyor. In like manner, the carrier will have access to data from the shipper or consignor and consignee, as the case relating to the shipment giving rise to the claim.

Section 1029.The right to compensation for damages resulting from delay in delivery shall lapse if not given them written notice to the carrier within sixty consecutive days after the date on which the goods were handed over to the consignee.

Section 1030.If the goods have been delivered by an effective carrier, any notice given to it will have the same effect as if given to the carrier, and any notice given to the carrier will have the same effect as if given to the carrier effective.

Also be considered that the notice given to a person acting on behalf of the carrier or the carrier effective, including the master or officer having charge of the ship, or a person acting on behalf of the shipper, has been given to carrier, the effective carrier or shipper, as appropriate.

Section 1031.If the carrier or do not cash the charger written notice of loss or damage is presumed, unless proved otherwise, who have suffered loss or damage caused by the fault or negligence of the shipper, his servants or agents.

The notice referred to in the preceding paragraph indicate the general nature of the loss or damage and must be given within ninety consecutive days, counting from the date of such loss or damage occurred, or the date of delivery of goods in accordance with points a) b) c) of Article 983 as applicable, whichever is later.

Sixteenth Section. Extension of jurisdiction and competence

Section 1032.Without prejudice to the competition rules laid down by law, in legal matters relating to the carriage of goods governed by this paragraph shall also be competent, at the option of the plaintiff, the following courts:

1. ° The current location of the principal or usual residence of the defendant;

2. ° The venue of the contract, provided that the defendant has there a place, branch or agency through which the contract was concluded;

3. ° The port or place of loading or unloading, and

4. ° In the actions against the carrier of any other place designated for that purpose in the contract shipping.

Section 1033.Without prejudice to the preceding article, the action may be brought before the courts of any port or place in Chile where the craft engaged or made any other transport or ship the same ownership, has been judicially detained or rooted .

In this case, if the defendant so requests within the period of formal notice, the judge may authorize the extension of jurisdiction to a court or arbitral tribunal referred to in the next section, but opposed by the plaintiff. The judge must proceed with informed choices.

The request will be processed as an exception alluded dilatory and must be made in writing referred to in Article 305 of the Code of Civil Procedure. Before authorizing the extension, the respondent shall provide security sufficient to meet the sums that could get the plaintiff, under the decision rests with the trial.

The court of port or place of detention or arraignment, resolved all issues relating to the provision of the bond.

Section 1034.May not institute any legal proceedings in relation to goods governed by this paragraph, in a place other than those specified in the previous two articles. This is without prejudice to the ability to exercise precautionary measures or rulings of the power to initiate the arbitration procedure as set out in the next section, or the special jurisdiction provided for bankruptcy.

Section 1035.Notwithstanding the provisions of this section, the parties, after filing a claim under the shipping contract may agree on the place where the plaintiff would prosecute.

Section Seventeen. Arbitration

Section 1036.When the parties have not opted for the ordinary courts, as that provided in paragraph 1 of Part VIII of this Book, the arbitration proceedings shall, at the option of the plaintiff in one of the following locations:

1. ° Where is the principal or the absence thereof, the habitual residence of the defendant or the place of the contract, provided that the defendant has there a place, branch or agency through which it is held the contract or the port or place of loading or unloading, and

2. ° In the actions against the carrier, any place designated in the arbitration clause or the arbitration agreement.

Section 1037.The provisions of paragraph 1. Of the preceding article, shall be deemed to be part of every arbitration clause.

Any provision of such clause or agreement which is inconsistent with them shall be deemed not written.

Section 1038.The arbitrator or the arbitral tribunal shall apply the rules of this paragraph.

Section Eighteen. Effect of some contractual

Section 1039.Any stipulation in a contract of carriage by sea, contained in the bill of lading or other document evidencing it and that it derogates, directly or indirectly from the provisions of this paragraph shall be deemed not written.

Also have not written any clause that assigning benefit of insurance of the goods to the carrier or any similar clause.

However, the carrier may increase his responsibilities and the obligations under the rules of this paragraph.

The bill of lading or other document evidencing the contract of carriage by sea, shall include a statement to the effect that transport is subject to the provisions of this paragraph and therefore any stipulation apart from them to the detriment of shipper or the consignee shall be deemed not written.

Section 1040.When the owner of the goods has incurred loss as a result of a stipulation should be not written under the previous article, the carrier, in accordance with the provisions of this paragraph, pay compensation to the extent required to compensate the holder of the goods for any loss or harm them or delay in delivery.

In addition, the carrier shall pay compensation for costs incurred by the claimant to assert his right. The costs and expenses in bringing this latest action will be determined in accordance with the law of the place where proceedings are instituted.

§ 4. Multimodal transport of goods

Section 1041.For purposes of this paragraph, the term:

1. Multimodal transportation, porterage of goods by at least two different modes of transportation from one place where the multimodal transport operator takes the goods in his charge to another place designated for delivery.

2. Multimodal transport operator, any person who, by himself or by another acting on its behalf, concludes a multimodal transport contract, acting as principal and assumes responsibility for contract compliance.

3. Multimodal transport contract, the one whereby a multimodal transport operator undertakes, against payment of freight, to perform or to implement a multimodal transportation of goods.

4. Multimodal transport document, the one which evidences a multimodal transport contract and certifies that the operator has taken the goods in their custody and is committed to deliver in accordance with the terms of that contract. The multimodal transport document shall be signed by the transport operator or a person having authority from him and may be negotiable or non negotiable.

5. Consignor, any person who by himself or by another acting on its behalf or on behalf, has entered into a multimodal transport operator of the conveyance or any person who, by himself or by another acting in name or on its own, actually delivered the goods to the transport operator in relation to the multimodal transport contract.

6. Consignee, the person authorized to receive the goods.

7. Goods also includes any container, pallet or transport or packaging of analog, if supplied by the consignor.

Serving as a multimodal operator in Chile, you must be registered in the multimodal operations, according to the regulations for the purpose shall. Those who operate from Chile must be Chilean natural or juridical persons. The same regulation will establish the requirements to qualify as legal persons in Chile.

Section 1042.The liability rules of the contract of carriage of goods by sea, the third section contained in paragraph 3 above shall apply to multimodal transport during the period indicated in Article 982.

The same rules apply while you are using other modes of transport, if the multimodal transport contract or the law in question does not provide otherwise.

Section 1043.The liability of the multimodal transport operator does not exclude the responsibility of those who are responsible for the various means of transport actually used. Each of these persons shall be jointly liable with each other and the multimodal transport operator, for any loss, damage or delay with which they received the goods at their final destination.

The executor of a part of multimodal transport which has been ordered to pay damages for acts that have not occurred during the stage by the director, shall be entitled to repeat, at its option, against the multimodal transport operator or against carriers responsible for such acts.

§ 5. The passage contract

Section 1044.By the contract of passage, the carrier is obliged to lead a person by sea on a certain route, on payment of a fee called passage.

The provisions of this paragraph apply only to contracts of passage by sea. Not apply to the transportation of persons within the same port, harbor or bay, for recreation or tourism. This kind of transport is governed by the relevant provisions of Title V of Book II of this Code.

Section 1045.For purposes of this agreement means:

1) Carrier means any person who, under a contract of passage, is obliged to carry passengers, either on their own or another's behalf.

Transportation of passengers may be carried by a conveyor also effective;

2) effective carrier, any person other than the carrier who actually performs the whole or part of the carriage;

3) Passenger means any person carried by a ship, whether under a contract of passage, or with the consent of the carrier, is accompanying a vehicle or live animals covered by a contract of carriage of goods by sea;

4) Baggage any item or vehicle driven by the carrier under the contract of passage to in this paragraph. Not included are articles and vehicles carried under a charterparty, bill of lading or other contract the principal purpose of transporting goods, nor include live animals, and

5) for cabin luggage, the passenger who has in his cabin or otherwise under its custody and supervision. Except as provided in Articles 1047 and 1066, cabin luggage, also includes carrying a passenger in the interior of your vehicle or thereon.

Section 1046.The loss or damage to luggage includes pecuniary loss resulting from failure to deliver the luggage to the passenger in a reasonable time, since the ship arrived at a destination where he was to surrender. Not count any delays caused by labor disputes.

Section 1047.The passage contract includes the following periods:

1) With respect to the passenger and his cabin luggage, the period during which those on board the ship or being loaded or unloaded and the time during which the passenger and his cabin luggage are transported by water from land to the ship and vice versa, provided that the price of this transportation is included in the fare or the vessel used for has been made by the carrier.

The carriage does not include the period during which the passenger is in a terminal, passenger terminal, a pier or at any other port installation;

2) With regard to cabin luggage, also include the period during which the passenger is in a terminal, passenger terminal, a pier or any other port installation if the carrier, its servants or agents, have been charge of the baggage and they have not delivered to the passenger;

3) With regard to other luggage than the cabin, the period between the time the carrier, its servants or agents have taken over the ground or on board, and when they return it.

Section 1048.The carrier must provide the passenger a ticket or ticket evidencing the contract and a guide to proper individualized luggage.

The omission of these obligations prevent the carrier from limiting its liability for damage to both passenger and his luggage, as the missing documents.

Section 1049.The ticket or ticket must indicate the place and date of issue, the ship's name and address of the carrier, port of departure and destination, fare class.

When the ticket is nominative not be assigned the right to be transported without the consent of the carrier, and if it is not, nor be transferred once the trip.

Section 1050.The passenger is entitled to be transported to the port or place of destination, without the ferry services that may occur during the trip are due to additional payments.

Section 1051.The carrier must exercise reasonable diligence to put and keep the ship seaworthy, properly equipped and armed.

The designation of the ship in the contract does not deprive the carrier the right to substitute another similar conditions, if this does not alter the agreed route and will not cause injury to passengers.

Section 1052.The carrier may cancel the sailing of the ship. The cancellation shall entitle the passenger to seek repayment of the amount paid and compensation for damages, unless the carrier proves due to force majeure.

Section 1053.In case of delay in departure of the ship or delay in arriving at its destination, the passenger shall be entitled for the period of delay to the ship and stay in power if this person was included in the agreed price. In case of delay in departure may also request the termination of the contract and ask the ticket refund and compensation for damages, unless the carrier proves that he is not responsible for the delay.

Section 1054.When the passenger does not arrive on board, the appointed time for shipment at the port of departure or in one scale, the master may make the journey and the fare demand, excluding the value of food.

The same right shall have the carrier when the trip started after the passenger landing voluntarily.

Section 1055.If the passenger desist trip before the departure of the ship, you pay half the fare agreed upon, unless otherwise is stipulated.

Section 1056.When the trip is temporarily interrupted for reasons of charge the carrier, the passenger is entitled to room and board without an additional payment may be required, which does not preclude you can ask for cancellation of the contract and request a full refund of the ticket .

If the break was final because the carrier, it must compensate the passenger for damages, but if the cause is of force majeure, the passage must be paid in proportion to the distance covered, without any  compensation.

Section 1057.The carrier shall be liable for any damage caused by the death or injury to a passenger for loss or damage to luggage if the occurrence causing the injury occurred during the execution of transport and is attributable to fault or negligence of the carrier or its servants or agents.

The incumbent who claims to prove the damage and resulted in the fact that the execution took place during transport.

Section 1058.It is presumed, unless proved otherwise, the fault or negligence of the carrier or its servants or agents, if death or injury of passengers or loss or damage to his cabin luggage, have a direct or indirect shipwreck, collision, stranding, explosion, fire or failure of the ship.

Also, such fault or negligence presumed, unless proved otherwise, in respect of loss or damage to luggage other than cabin, regardless of the nature of the act that caused the loss or damage.

Section 1059.The carrier will always be responsible for what happens in the transport of one passenger to the destination, the meaning of this paragraph, but has entrusted all or part of the execution thereof to an effective carrier.

This responsibility includes explicitly derived from acts or omissions of effective carrier, and of its servants and agents acting in the performance of their duties.

The effective carrier shall also be governed by the provisions of this paragraph as to the rights and obligations of transportation that has been executed.

Section 1060.In cases where the carrier and the effects are responsible, jointly and severally.

Section 1061.The agreements under which the carrier assumes obligations not provided for in this paragraph or waives rights conferred on it, do not apply to the carrier effective unless it has agreed to be expressly and in writing it.

Section 1062.Nothing in the preceding three articles shall not prejudice the right of recourse which may exist between the carrier and the carrier.

Section 1063.The carrier shall not be liable for any loss or damage of money, negotiable securities, jewelry or valuables belonging to the passenger, unless they have been delivered to the carrier on deposit.

In this case, be liable to a limit of 1,200 units of account per passenger, unless expressly agreed in writing, higher liability limits.

Section 1064.If the carrier proves that the passenger's fault or negligence have caused death or personal injury to body or loss or damage to baggage, or that such fault or negligence contributed to this, the competent court to know the case may exonerate the carrier wholly or partly from his liability, as appropriate.

Section 1065.In case of death or injury of passengers, the maximum liability of the carrier is determined by multiplying the sum of 46,666 units of account by the number of passengers the ship is certified to carry. The maximum liability in any case not exceed 25 million units of account.

When there is more of a victim the upper limit for each is determined by dividing the resulting total, according to the rules of the preceding paragraph, the number of victims.

Section 1066.The contract or tort of the carrier for loss or damage to luggage shall not exceed the following limits for each event that causes:

1. ° For cabin luggage, 833 units of account per passenger;

2. ° for loss or damage to vehicles including all luggage carried inside them or on them, 3.333 units of account per vehicle, and

3. ° For luggage other than those mentioned in items 1. And 2. ° previous 1,200 units of account per passenger.

The contract or tort of the carrier in cases of Articles 1052, 1053 and 1056 shall not exceed 3,000 units of account per passenger.

Section 1067.In the limits of liability referred to previous articles, are not considered interest on the sum that appraise damage, or court costs.

Section 1068.The carrier and the passenger may agree, expressly and in writing, liability limits than those contained in Articles 1065 and 1066.

Section 1069.The servant or agent of the carrier or the carrier effective against which an action is brought for compensation for damages under this title, may assert defenses and adhere to the limits of liability which the carrier or the carrier effective are set to the same, provided that they prove that they acted in the exercise of their functions.

Section 1070.The aggregation of claims, whatever their source, the following rules:

1. ° Where appropriate to apply the limits of liability prescribed in Articles 1065 and 1066, they apply to the aggregate of the amounts recoverable in all claims arising from death or injury to a passenger or for loss or damage his luggage, derived from the same event;

2. ° When transportation is done by the effective carrier, the total sums due to it and the carrier, as well as their servants and agents, shall not exceed the sum greater than, under this paragraph may have been established as due to the carrier or the carrier effective, and

3. ° In the cases of the previous article, the total of the amounts recoverable from the carrier or the carrier effective, as applicable, and from that servants or agents, shall not exceed the limits of liability prescribed in Articles 1063, 1065 and 1066.

Section 1071.The carrier or the cash, if any, shall not receive the benefit of the limitation of liability, if it is proved that the death, loss or damage resulted from an act or omission of theirs, performed with intent to cause such damage, or recklessly and under circumstances which may be assumed that they heard that probably result.

Nor eligible dependents, its agent or the carrier effective if it is proved that the damage resulted from an act or omission of any of these, working with the same intent, or recklessness and knowledge outlined in the preceding paragraph .

Section 1072.Unless proven otherwise, it is presumed that the luggage has been returned to the passenger in full and in good condition, unless the claim in writing to the carrier at the time of delivery, or even before that, for any loss or damage are visible or, if not, within fifteen days from the date of disembarkation or return or the date on which the latter should have been made.

For the purposes of communication alluded to in the preceding paragraph and without prejudice to the passenger to make his claim in any other reliable way, the carrier will provide, along with the ticket and duplicate a form that can indicate summarily.

Failure by the carrier or its subsidiaries in providing this form, will deprive them of the presumption in the first paragraph and the right to limit liability.

Section 1073.Neither the presumption will be held in the previous article if at the time of the return of luggage this is considered jointly by the carrier or its servants and by the passenger and is payable in this event for any loss or damage in the review are identified .

Section 1074.The provisions of this paragraph shall not deprive the carrier, the cash or the servants and agents of both the right to limit his liability under the provisions of paragraph 1 of Part IV of this Book.

Section 1075.The rights provided in this paragraph for the passenger waived.

They have not written any contractual provision, whatever its date, seeking to exempt the carrier from liability, reduce the amount or reverse the burden of proof. Only valid on tickets embedded clauses which give rise to rights to the passenger.

Nothing in the preceding paragraph, if ever occur, will not affect the existence and validity of the contract of carriage of the passenger.

Section 1076.The provisions of this paragraph shall only apply to commercial passenger transport.

However, when the transport is free or benevolent, they apply the rules on liability, provided the passenger proves the fault or negligence of the carrier. In this case, the limits of liability shall not exceed 25% of the amounts that may correspond.

Section 1077.In cases where the requirements described by the numbers 1. ° or 5. Of article 1203, actions arising under the provisions of this paragraph shall, at the option of the plaintiff:

a) Before the court of the domicile or place of business where you have a defendant, or

b) In the court of the initiation or termination of the trip, according to the contract of passage.

In the event that a dispute is submitted to arbitration, it shall be conducted in one of the places mentioned above. Only with the express agreement of the passenger may be carried out elsewhere.

§ 6. Trailer sea, river and lake

Section 1078.It is called tow-carriage operation to move water a ship or other object towed from place to place, under the direction of the towing ship's captain and the provision by it of all or part of the traction force.

Section 1079.The trailer-transport contract shall be governed by the conditions to be agreed and, failing that, by the provisions of this paragraph, and in matters not provided by them, will apply the relevant rules of contract of carriage of goods by sea .

Section 1080.Towing operations aimed at facilitating the entry or departure of a vessel from a port, dock or moorage, or the tasks of loading and unloading the same, are trailer-maneuver.

The ship towed retain responsibility for the maneuver, unless otherwise agreed by the parties, in which case it shall be recorded in the log books of ships.

Section 1081.The trailer-move is a kind of lease and in matters not provided by the parties, the rules of this paragraph, the Navigation Law or Civil Code provisions on such a contract.

Section 1082.In all types of trailer towing the ship must be seaworthy, properly manned and equipped and be fit for the contract for which it has requested.

Section 1083.As a rule, on trailers referred to in this paragraph, both the towing and the towed ship, be liable to third parties for their own fault.

But in the event of collision with another ship, unaware of the operation, if the trailer was in charge of the ship towing the convoy will be considered as a single unit of transportation for the purposes of liability to third parties. If the direction of the maneuver was towed by the ship, the responsibility rests on it.

Section 1084.In each ship should be observed during the course of the operation, precautions as may be necessary to avoid any danger to the other.

Will be null disclaimer of liability for damages resulting from breach of this provision, notwithstanding the provisions on limitation of shipowner's liability under paragraph 1 of Part IV of this Book.

Section 1085.For purposes of determining responsibility, it is presumed that the trailer-maneuver starts with the preparatory operations and necessary for execution and ends when he directs the maneuver has its term or the removal of the tug.

Section 1086.When, during a ship provided a towing service contract, we sobrevinieren dangerous situations which give rise to special services, or when they can not be considered within the normal duties that the contract imposed upon the tug towing the ship will entitled to the remuneration set out in the paragraph on support services under Title VI of this Book, as appropriate.

Title VI

RISK OF NAVIGATION

§ 1. Definitions and general rules

Section 1087.For purposes of this title shall mean damage:

1. ° Any damage suffered by the ship, whether or not charged, in port or while browsing, and affecting the load since it is loaded at the place of issue, until landing in the consignment, and

2. ° All unforeseen extraordinary expenses incurred during the expedition to the preservation of the ship, cargo or both at once.

Section 1088.Breakdowns are not ordinary expenses arising from:

1. ° pilotage and pilotage;

2. ° boats and trailers;

3. ° Harbour dues or other services to shipping;

4. ° Loading and unloading of goods, and

5. ° In general, all ordinary navigation.

Section 1089.All charges referred to in the preceding Article shall be borne by the carrier and or ship owner, unless other rules in this book or the agreement of the parties provide otherwise.

Section 1090.The faults are classified as:

1. ° Single or individuals, or

2. ° Thick or common.

In both cases it may be cost breakdowns and failures of damage.

Section 1091.In the absence of express provision, the liquidation and payment of damages shall be governed by the provisions of this title.

Section 1092.The arrangement of the damage done outside the territory of the Republic shall be governed by the law and customs of the place where such settlement check.

§ 2. Simple fault or particular

Section 1093.Faults are single or individuals:

1. ° The loss or damage affecting the ship or cargo, force majeure, inherent vice or by acts or events of the shipper, shipping, dependents or others;

2. The expenses incurred unforeseen extraordinary exclusive benefit of the ship, cargo or part thereof, and

3. ° In general, all damages and unforeseen extraordinary expenses that do not deserve the qualification of general average.

Section 1094.The owner of the thing that had suffered damage or expense caused, will support the particular fault, without prejudice to its right to pursue the corresponding responsibilities.

§ 3. The average or commonSection One. The admission average and his statement

Section 1095.They are average or common sacrifices or unforeseen extraordinary expenses, incurred or made intentionally and reasonably in order to preserve a common danger to the interests involved in the maritime expedition.

Section 1096.The classification, liquidation and distribution of general average, the parties may agree to use any kind of standards, which have received legal sanction of a state, whether from applications or agreements, foreign or international public or private or rules of practice, national or foreign.

Section 1097.The decision to take measures average or common, rests solely with the captain of the ship or his substitute, which in the circumstances of the case, hear the views of representatives of the load, if they are present.

Section 1098.Following a decision that gives rise to general average and as soon as circumstances permit, the master shall record it in the log book, which will contain the date, time and place of the event, the measures ordered by the captain and fundamentals.

In the first place of arrival, and as soon as possible, the master shall confirm the facts relating to the general average, in the Book blog, before a minister of faith, without prejudice to information corresponding to the maritime authority, if regardless Chilean port.

When the arrival abroad should occur and the fault hath consequences in Chile, the ratification must be made to the Chilean consul, and failing that, before a minister of faith or to the competent local court.

Section 1099.Applies only to general average damages, losses or expenses arising from the act that originates. However, this effect will be included as expenses and liquidation of the damage and interest values ​​for losses and disbursements payable in general average.

Damage or loss caused to delay the ship or cargo, either during or after the trip, and indirect losses due to this same cause, such as demurrage resulting from market and difference will not be admitted average.

Section 1100.Any expenses incurred to avoid loss, damage or expenditure that would have been payable in general average shall also be admitted as such, only to crowd the value of the damage or loss avoided or saved costs, as appropriate.

Section 1101.The burden of proving that an injury or expense should be admitted in general average, is in charge of who calls.

Section 1102.Faults are thick over the ship, freight and goods that exist in it at the time of those occur. Contribution shall be paid in proportion to the value of such goods.

Section 1103.There shall be a settlement of the general average, but the incident which has caused the damage or expense is due to the fault of one of the stakeholders in the maritime expedition, without prejudice to any action or defenses that THEY MAY exercise against .

Section 1104.The common fault is cleared, both in terms of losses and contributions, based on the values ​​of the interests involved, the date and place where the sea expedition ends.

Section 1105.The arrangement of the general average shall be made by an expert liquidator.

Declared general average, if not already agreed in advance the name of the liquidator, or is not reached agreement on a person to designate, either party may request the appointment to judge the port where it finishes.

Required the court for the appointment, if the port was Chilean, it shall arrange his appointment in the manner prescribed by Articles 414 and 415 of the Code of Civil Procedure, without further ado. If the appointment is made in Chile, it shall devolve upon a Chilean insurance adjuster who has been appointed in the manner prescribed by law.

Section Two. The procedure to declare general average, and to challenge its legitimacy

Section 1106.When the master or owner of the vessel concerned has not declared a general average, anyone interested in it, may ask the judge indicated in the previous article to appoint an arbitrator to rule on the existence of the general average, unless already had been appointed.

This request may be made within six months following the expiration of the download.

The appointment, failing agreement will stick to the rules of paragraph 1 of Part VIII of this Book.

In turn, if declared general average by the master or owner of the ship, any interested party wishes to object in issuing its legitimacy, must make his appeal to the same judge indicated in the preceding article, within sixty consecutive days, counted since it has received notice in writing of the declaration of general average, or since has signed a commitment to malfunction, is not received before that communication.

The parties may also directly initiate an arbitration procedure.

Written expression includes, inter alia, telegram and telex.

It may be objected then the legitimacy of the fault, which is subject to action granted by section 1111 to object to the settlement itself.

Section 1107.Posed a challenge by an interested party, the court shall summon the parties to a subpoena to appoint an arbitrator to hearing the trial of impeachment. Be parties to this effect, the appellant, the owner of the vessel affected and who has applied for a declaration of general average.

Section 1108.The trial to declare a general average, as of the promotion to challenge its legitimacy, the referee will know in a single instance, and will also be invested with the powers specified in Article 1206 of this Book.

Unless the parties agree otherwise handling in these trials will comply to the Code of Civil Procedure provides for summary proceedings, with the exception of Articles 681 and 689.

Section 1109.All requests to declare the failure or challenge to their legitimacy, are processed jointly in a single trial. For this purpose, all claims will accrue to the first one is formulated and will be competent court or the arbitrator appointed to be appointed at the trial that first promoted there.

Other stakeholders who have not deducted challenges in a timely manner may be made party to the lawsuit stated, provided they do so before the hearing, answering established in summary proceedings, and from that moment they will also all other paperwork litigation.

The sentence that falls in the trial of impeachment, only affect those who have been party to it. If the sentence or acogiere the challenges, the contribution rates of those who have obtained at trial, shall be borne by the owner on whose behalf it was decided to produce damage or incur the expense.

Section 1110.Challenges to the legitimacy of the general average of the previous articles shall not suspend the proceedings of the liquidation of the same, whether previously appointed by the liquidator or the parties indicated in the case of Article 1105.

Section Three. The objection to the settlement

Section 1111.Complete liquidation of general average, the liquidator shall report its findings to all concerned, by registered letter, a copy of the settlement or an extract thereof containing at least the total amount of securities admitted in general average , the total quantity of each item taxpayer and the respective share of contribution.

This letter is sent by the liquidator by a notary or other minister of faith.

The applicant objected that no settlement within 45 days counted from the issuance of the letter shall be obligated to pay its contribution.

Section 1112.Objections to the settlement will accumulate in a single trial, which know a referee appointed in the manner referred to in Article 1106, which have the same powers mentioned in the previous section.

It is necessary to appoint new arbitrator, if it has been named before to hear any of the trials cited in the article, unless the objecting, proves a causal implication or objection against it.

The deadline to object to the settlement of general average, be suspended in respect of which have challenged its legitimacy, as mentioned in Article 1106, or what opportunities already done part in them, and until these disputes are resolved by a final sentence .

Section 1113.Objections to the settlement shall be determined under the rules established for the incidents in the Code of Civil Procedure, and they shall be given to the party that has declared general average or who is appointed to enforce them. If that is not stipulated otherwise, shall be the owner or operator of the affected vessel enforcing contracts.

If the referee we resolved to welcome the objections in the same resolution appoint a new liquidator indicating the points to be referred to your opinion. Evacuated this second opinion, the arbitrator decide the dispute. If they are dismissed the objections, the items will necessarily pay the costs.

Section 1114.The carrier or the ship owner shall not be required to deliver the goods until payment of the amount of the provisional or definitive contribution or payment guarantees. They may also request the deposit of goods on land, on behalf of the proper authority to give effect to the payment or the guarantee above.

Section 1115.The insurer shall indemnify the owner of property affected by the average, be subrogated to the rights it in any, of such damage.

§ 4. The approach

Section 1116.The rules of this paragraph shall apply to damage occurring in the following cases:

1. ° When a collision occurs between two or more ships, and

2. ° When due to the wave of displacement of a ship is occasioned damage to one or more other vessels, their cargo or persons on board them, although it would not be a collision.

To this end, the concept include the naval ship that can navigate their own or other means.

These rules will also apply when the events occurred in river water, lake or other waterway.

Section 1117.They also apply the rules of this paragraph, the damage occurring in collision between vessels belonging to the same owner or under a single administration.

Section 1118.In any approach is the law of the State in whose waters occurred.

If the collision is produced in waters under the sovereignty of any State, the applicable law of the country whose courts the application is made.

Section 1119.In a collision, the claimant may occur, at its option, before the civil court where the defendant or civil court of the port where the ship is responsible for taking refuge, or has been withheld or rooted.

If competition correspond to a Chilean tribunal shall apply the rules set out in paragraph 1 of Part VIII of this Book. The appointment of the arbitrator, failing agreement of the parties may be requested at the option of complaining to the presiding judge with civil jurisdiction of any of the locations mentioned in the previous paragraph.

Section 1120.If the collision between two or more ships was caused by force majeure, or if there is any doubt about the cause that originated it, the damage will be borne individually by those who have suffered.

Section 1121.If the collision was caused by fault or misconduct of the captain, pilot or crew one of the ships, the damage will be the responsibility of its owner.

Section 1122.If the collision is attributable to the fault of two or more ships, the total losses will be borne by the owner of each in the proportion of blame assigned to the respective ship by the court to which the first action of damages to be promoted.

However, payments to claimants will be governed by the rules of the following article.

Section 1123.Those responsible shall be jointly liable to pay compensation for death or injuries in the collision, notwithstanding the right of recourse against each other whatever has been paid in excess of its quota, according to the proportionality of the blame for every ship .

Regarding damage to the cargo, there is no solidarity among the ships guilty, and each owner will pay the damages of the charges damaged his ship, in the manner provided by law or the respective charter contracts or transportation. If by virtue of the above, or the effect of direct cargo owners of one or more other vessels in collision, a ship owner or carrier will repay a greater proportion than the percentage of blame assigned to his ship, the owner may reclaim the the other, or other craft for the excess has been paid.

Section 1124.For the determination of civil liabilities arising from a collision, are deemed true, unless proven otherwise, the facts established as determinants of him in the final determination made in the summary has been initiated by the maritime authority.

Section 1125.If a ship, having been addressed, naufragare during their navigation to the port or place where he went, his loss will be considered as a result of the collision, unless proven otherwise.

§ 5. The forced landing

Section 1126.Forcible entry is necessary arrival of the ship to a port or place other than scale or terms provided for the trip.

Section 1127.Costs constitute a general average forced landing if she has made in the common interest of the ship and cargo, in other cases shall be borne by the interested party who is affected by the need to make. All this is without prejudice to any action to compete against those responsible for the facts which have led to the forced landing.

§ 6. Of the services provided to a ship or other property in dangerSection One. Concepts and scope

Section 1128.For purposes of this paragraph, that:

1. ° Operation rescue or relief assistance involves any act or activity undertaken to assist a ship, naval craft in danger or any property, regardless of the waters where the act occurs or the activity takes place. For this purpose, the expressions rescue or relief assistance will be considered synonymous;

2. ° Nave, includes any ship, boat, able to navigate structure or vessel, including any ship that is stranded, abandoned by her crew and sunk and is the subject of aid to this paragraph;

3. ° Among the assets at risk also includes the freight transport of the cargo ship that helps, whether the risk of loss of cargo corresponding to the owner of the goods, the shipowner and the charterer, and

4. ° Damage to the environment is significant physical damage to human health, animal or plant life and marine resources in waters under national jurisdiction and land areas adjacent to those produced by pollution, poisoning, explosion, fire or other similar causes.

Section 1129.The master shall have authority to conclude contracts for assistance to and on behalf of the owners or operators of the vessel and other property in its custody and are in danger.

The owner of a ship to which you HAVE to bring assistance to the rescuers respond to all rights arising in their favor, even affecting the cargo or other property benefit.

The foregoing is without prejudice to the right of the owner or the owner of the ship steering, which corresponds to retrieve other benefits or obligations.

Section 1130.The rules of this paragraph shall apply to all assistance operation, unless the relevant contract provides otherwise expressly or implicitly.

However, do not apply to:

1. ° to the assistance to be provided to warships or other ships public, and are used at the time relief operations exclusively in government departments, non-commercial and

2. ° A wreck removal.

Also apply if the vessel assisted and assistant belong to the same owner or are subject to the same administration.

Section 1131.Any party that has entered into a contract or assistance agreement, request you rescind or modify in the following cases:

1. ° When the contract was signed under undue pressure or influence of danger and, moreover, its terms are unfair or

2. ° When the agreed payment is too high or too low, for services actually rendered.

Section Two. Obligations of parties to the transactions ofassistance

Section 1132.The owner, including the operator acting under contract with the former, the owner and captain of a ship in danger, are required to:

1. Adopt timely reasonable steps to obtain assistance, cooperate fully with the assistant for operations and do everything possible to prevent or minimize damage to the environment;

2. ° Ask for help right away where the ship, aircraft or vessel, by your state or where they are, endanger or be an obstacle to navigation, fishing, preservation of the environment or other activities at sea or river. In such cases, the services provided by order of the authority or own and do not have the limitation set forth in Article 1152.

This is without prejudice to the powers that the Navigation Act gives the maritime authority in these matters, and

3. ° Ask for or accept assistance services savior when it reasonably appears that is conducting relief operations can not complete alone, or within a reasonable time, or its components are inadequate.

Section 1133.The owners of the ship or goods saved have been taken to a safe place, they must accept their return when it is deemed reasonably complete the work of the rescuers.

Section 1134.The obligations of the wizard:

1. ° Perform salvage operations with due care, using their best efforts to save the ship and goods contained therein and to prevent or minimize damage to the environment, and

2. ° If the circumstances reasonably require, the wizard will request assistance from other salvors available and accept the intervention of other participants when required by the owner or master, as indicated in item 3. Of article 1132. However, in the latter case, the amount of remuneration shall not be affected if it is demonstrated that this intervention was not necessary.

Section 1135.Every master is bound to render assistance to any person in distress at sea.

The owner or operator of the ship shall not be liable for breach of this duty of the captain.

Section Three. Rights of audience

Section 1136.Support services will be entitled to compensation in the following cases:

1. ° When succor a ship or other property in danger, or

2. ° When you have to prevent, avoid or mitigate environmental damage.

In both cases, the remuneration and reimbursement of expenses and damages incurred by the assistant shall be governed by the provisions of this section.

Section 1137.To qualify for compensation, you need assistance operations have had a useful result, unless expressly otherwise agreed.

Section 1138.The remuneration should be set with the intention of encouraging assistance operations, and taking into account, inter alia, the following considerations, without regard to the order listed:

1. ° The value of goods accompanied;

2. ° The skill and efforts of participants to prevent or minimize damage to the environment;

3. ° The degree of success achieved by the assistant;

4. ° The nature and degree of danger;

5. ° The efforts of the attendees, including time used and expenses and damages incurred by them;

6. ° The risk of liability and other risks run by participants or their equipment;

7. ° The speed of the service;

8. ° The availability and use of equipment and ships specially designed for rescue operations, and

9. ° The extent and state of readiness, efficiency and value of the equipment from the audience.

Where it has been agreed that, while not useful, the assistant is entitled to reimbursement of their expenses and compensation for damage to boats or equipment used to fix the amount is attending, as appropriate, to the considerations outlined above , which is subject to establishing the next section, if it chooses the wizard.

Section 1139.The remuneration referred to in the preceding article may not exceed the value of goods at the time assisted the completion of the relief operation.

Section Four. Reimbursement of expenses and special compensation

Section 1140.If the wizard has run relief operations to a ship which by itself or its cargo, or was threatening to cause environmental damage occurring will at least be entitled to reimbursement by the owner or operator of the ship, the expenses reasonably incurred and may further have the right to compensation as indicated in the following article.

Section 1141.If the circumstances described in the previous article, with its operations, the wizard has avoided or reduced the damage to the environment, and the court deems reasonable and fair compensation may be increased owed by the owner or operator of the ship, for which will take into consideration the different criteria mentioned in Article 1138. But in no case exceed that compensation at twice the base amount.

Section 1142.For the purposes mentioned in the two preceding articles shall be considered as expenditure of the wizard, disbursements reasonably incurred in relief operations and appropriate allocation of the equipment and personnel actually and reasonably used in these operations, taking into consideration the criteria in the 7. °, 8. and 9. of article 1138.

Section 1143.Where remuneration that corresponds to the assistant under Article 1138, fall below the total compensation and reimbursement of expenses that may be obtained by applying the three preceding articles, may require that you pay based on the latter method, although not in and agreed beforehand.

Section 1144.If the wizard has been negligent and has thereby failed to prevent or minimize damage to the environment, can be totally or partially deprived of the compensation and reimbursement that would have been entitled under this section.

Section Five. Distributions to participants

Section 1145.If there is more than an assistant, the fee is distributed among them according to the criteria specified in Article 1138.

Section 1146.The distribution between the owner, master and others in the service of every ship assistant, will be determined according to the law of the flag of the ship. If attendance has not been carried out from a ship, the distribution will be made according to the law governing the contract in force between the wizard and their dependents.

Section 1147.Where applicable national law enforcement, the distribution is governed by the following rules:

1. ° After deduction of the proportion of fixed and variable costs of the ship, including costs and damage relief, the shipowner shall pay half the liquid, and

2. ° The other half is distributed between the envelope in proportion to their base salary or wages. In any case, the share of the master may not be less than twice the rate that would correspond according to their basic salary.

When you choose to distribute part of the special compensation referred to in Articles 1141 and 1142, is assigned to each item the amount that the court has set respectively, and that apply to staff remuneration, if nothing is expressed in the fault, distributed in accordance with the number 2. ° of this article.

In ships engaged exclusively in providing aid, the distribution will attend first to the covenants that they exist between the owner or operator of the ship and its crew assistant.

Section 1148.Correspond only to the owner of the vessel assistant exercise of the shares in payment of compensation, refunds, compensation and special compensation arising on labor provided by or from it.

Section Six. Salvage of persons

Section 1149.People whose lives have been saved should not be paid. However, El Salvador of life, who spoke on the occasion of an accident that results in services to assist the ship or other property, is entitled to an equitable share of the remuneration that corresponds to saving the ship or those other property, or that corresponds to the prevent or reduce damage to the environment.

Section Seven. Services rendered under existing contracts

Section 1150.The services provided pursuant to a contract prior to the emergence of the danger, not be considered assistance and will not be entitled to pay, refunds and compensation to in this paragraph, except as such services exceed what could reasonably be regarded as adequate fulfillment of this contract.

Section Eight. Deprivation of remuneration

Section 1151.An assistant may be deprived of all or part of remuneration, compensation, reimbursement or compensation due to the extent that salvage operations have become necessary or more difficult by his fault or fraud.

Section 1152.Services rendered notwithstanding the express and reasonable prohibition captain, owner or operator of the ship is not entitled to remuneration, allowances, reimbursements and compensation set forth in the provisions of this paragraph, except as provided in number 2. ° Article 1132.

Section Nine. Warranties and interim payments

Section 1153.While not constituting a sufficient guarantee to respond to the collection of the wizard, the property saved may not be transferred from the first port or place to have reached the end of the relief operations.

The court competent to entertain the application wizard, decree, at his request and without further ado, withholding or attachment of property saved and where the measure must be satisfied.

Section 1154.The same court referred to in the preceding article may be ordered to be paid to assistant already has a provisional amount that it considers appropriate and just. These payments will be entitled to a proportional reduction of the guarantee referred to in the preceding article.

The request for interim payments are granted shall be treated as incident and the resolution agreeing to it, will determine whether El Salvador should be a sufficient guarantee of return.

Section 1155.The decisions handed down in the matters referred to in the previous two articles, may be appealed to the sole purpose of execution.

Tenth Section. Competition

Section 1156.When will the parties be an ordinary court know about the regulation of the value of the services and the amount of damages and reimbursable expenses, and has not clarified the court shall, at the option of the plaintiff, for:

1. ° The address of the defendant;

2. ° The port or place where goods have been saved at the end of services;

3. ° The place which has become the respective warranty;

4. ° The place has retained the property saved or rooted, or

5. ° The place where the services were rendered.

Section 1157.When the same subjects in the previous article must be submitted to arbitration under the provisions of paragraph 1 of Title VIII of the Book, and necessary to proceed with the appointment of the arbitrator shall be competent to make such designation, any of the courts specified in that article to the applicant's choice.

Title VII

Marine insurance

§ 1. General rules

Section One. Scope

Section 1158.Apply to the insurance referred to in this title, the provisions in Articles 512 and following up to 560, inclusive, except for those matters that the title regulate otherwise.

Section 1159.The rules of this Title shall apply in the absence of the stipulations of the parties, except in matters in which the rule is expressly imperative.

Section 1160.Marine insurance may cover:

1. O A ship or vessel, fittings, and fixed or moving objects, regardless of where they are, even in construction;

2. ° Goods or any other kind of property which may suffer risks of maritime, river or lake;

3. ° The value of freight and disbursements incurred by those organizing an expedition at sea, or

4. ° The responsibility of a ship or other object, for damages that may result against third parties as a result of use or navigation.

Section 1161.Generally, marine insurance are intended to indemnify the insured for loss or damage that may occur to the insured for the risks involved in a maritime adventure, river, lake, or inland waterways.

Section 1162.The adventure and its extent depend on what the parties stipulated in the insurance contract.

However, in the absence of any stipulation to the contrary, including the risk understand the dangers arising or that may occur as a result of browsing or being the ship or vessel in port or in detention, including in this concept the dangers of weather conditions, fire, pirates, thieves, robbers, catch, shipwrecks, groundings, collisions, forced change of route, boarding, looting, seized by order of the administrative authority to order withholding foreign power, retaliation, and in general all acts of God occurring in the sea or other means.

Any exceptions to the risks identified in the preceding paragraph shall be expressly stated in the policy.

Section 1163.In addition to the risks identified in the previous article, the parties may add to the insurance contract may face other risks that the insured, either while in port, dock, sea, rivers, lakes and canals, or when it is not a ship while it is in transit through other means of transport or in storage before or after an expedition ship.

Section Two. Of insurable interest

Section 1164.Marine insurance can take anyone with an interest in conservation of the insured while running the risk of a maritime adventure, whether that interest directly affect their own property or to certain obligations in relation to the insured.

It is understood that a person is interested in a maritime adventure when she is in any legal relationship or possession with respect to property subject to maritime adventure, and as a result of that relationship, that person may be affected with the preservation or good and timely arrival of the thing at the end of the adventure, or could be harmed by damage to or loss, or detention, or incurring a liability in respect of the thing, their damage, loss or theft during the time insured.

Section 1165.The insurer must justify its insurable interest at the time the loss occurs or damage to the insured.

Section 1166.Is void and of no insurance effected after the cessation of the risks if the time of its conclusion, the insured or who hired him, knew of the accident have occurred, or the insurer, the risks they have ceased.

Section 1167.When the insured must pass over custody or property of several people while they are running risks, insurance of goods means held on behalf of whom it may concern, unless the policy provides otherwise.

Section 1168.The benefit of insurance may be assigned or transferred before or after the accident occurred. The transferee will have all the rights that correspond to the transferor in the policy assigned.

The assignment of insurance or the right to compensation shall be subject to the standards prescribed by this Code for the transfer of goodwill, as the person was how widespread the policy.

Section Three. The insurable value

Section 1169.In insurance on ship, the parties may mutually agree the value of the insured in the policy. It is presumed that this has been done, if it is expressly mentioned in the policy value for the insured.

The insurer may, before the conclusion of the contract, that such valuation is made by a naval expert.

Except where fraud is proven either party, the value stated in the policy and shall be deemed as the only true for all purposes of the contract excluding the valuation made of the insured for the sole purpose of determining whether the claim or does not constitute a constructive total loss or assimilated.

Section 1170.If the contract the parties have not entered a value for the subject-matter insured shall apply the provisions of Articles 532, 533 and 535 of this Code.

Section 1171.The sum insured in the transport of things may also comprise the value of them in the port where the expedition begins, all reasonable costs for them to get to your destination, including insurance premium.

However, the sum insured may be up to the amount that can reasonably be obtained from the sale of things, if they come near the place of healthy destination.

If any doubt about the selling price at the destination for loading sound, it may also be established by experts.

Section 1172.Can ensure the value of freight and disbursements incurred by those organizing a maritime expedition, and they can leave to recover for a maritime risk or otherwise expressly covered in the policy.

§ 2. Conclusion of contract

Section 1173.The marine insurance contract means perfected from the time the insurer express in writing their acceptance of the written proposal to hold insurance, as it has been made directly by the proposer or anyone on your behalf. Serve to justify the time the proposal was accepted, the annotations that the insurer has stamped on the proposal cover sheet or other document used to use between insurers, brokers and insurers, for the contract.

Perfected the contract, the insurer shall issue as soon as possible the policy. You will also have the merit of policy, cover note or other document in practice use the insurer to indicate safe conditions have been accepted by him.

Section 1174.In insurance on goods or cargo need not be precise identification of the insured, it may be contracted on behalf of whom it may concern.

When it comes to safety of ship and it is not in contract by the owner, the insurer shall specify in the policy or insurable interest relationship exists between the person to whom it extends the policy and the ship is secured. In any case, this is the date and time they begin to take risks on behalf of the insurer.

Section 1175.When insurance is governed by clauses forms provided by the insurer, or the use is known of the parties, the policy will be enough to make a mention of them, that such clauses are hereby incorporated into the contract. But if any doubt about the interpretation to be given to the specific rules incorporated, they are construed against the one who issued the policy.

§ 3. Obligations and rights of the parties

Section 1176.In the case of the obligations outlined in number 1. Of article 556, the insured must fully inform the insurer before a contract is in all circumstances concerning the risks and aims to ensure it is heard by the insured.

Presumably all circumstances known to the insured that he can not ignore the ordinary course of business.

Also, any relevant statement made by the risks to the broker or the insured to the insurer during the negotiations preceding the contract must be true.

Section 1177.To obtain compensation for a claim, the insured must demonstrate:

1. ° The or events that constitute it. Regarding the origin of the damage or expense, the insured should only list the events that presumably produced it;

2. ° The shipment of the insured, if any;

3. ° The insurance contract, and

4. ° The loss or impairment of the insured.

Section 1178.In case of accident, the insured may bring an action for failure to obtain compensation for damages suffered by the insured or the abandonment, to demand payment of the total sum insured in cases where this Code or the contract so allow.

Section 1179.The insured person may jointly promote the action of abandonment and breakdown, so that the latter stands in the first grant.

Section 1180.The insurer will be liable for any loss or damage resulting from maritime or other risks covered by the policy events.

Also, if not expressly excluded, indemnify the insurer in addition:

1. ° For the contribution of the insured in general average, except if it comes from a risk excluded by insurance, and

2. ° for expenses incurred in order to prevent the object insured suffers damage or lessen its effects, provided the damage is avoided or reduced is covered by the policy.

In any case, the costs can not exceed the indicated value of damage avoided.

Section 1181.The insurer is liable for loss or damage of the insured arising out of fault or misconduct of the captain or crew. It will not be compensated for loss or damage to the hull that comes from intent of the master, unless expressly stated.

Section 1182.The insurer is not liable for losses caused by delay, even one having its origin in a risk covered by the policy, unless expressly so provided.

Section 1183.Unless otherwise agreed, the insurer is not liable for ordinary filtration phenomena, breakage or wear, inherent vice or nature of the insured and other normal transport.

Section 1184.When the loss or damage of the insured comes from several causes, the insurer will be liable if the primary cause or factor is a risk covered by the policy. However, whatever the terms of the contract if it is not possible to establish which was the main cause or if several simultaneous determinants were among them any one that constituted a risk insured, the insurer liable for the damage under the terms stated by the policy.

Section 1185.Correspond to the insurer the burden of proving that the incident has occurred for an event or risk not covered by the policy.

Section 1186.The loss may be total or partial. Any losses not covered by the concepts of total loss or defined in the following articles shall be deemed a partial loss.

Section 1187.The total loss may be real or effective. It can also be assimilated or constructive.

There will be real or actual total loss where the insured object is completely destroyed or so damaged, lost forever fitness for purpose for which it is intended, or when the insured is irretrievably deprived of it. All this is without prejudice to what has been stated in the policy.

Section 1188.If after a reasonable time, have not heard from a ship, is presumed effective and the total loss of cargo.

Section 1189.Unless the policy otherwise provides, there will be assimilated total loss when the subject-matter insured is reasonably abandoned either because the actual total loss appears inevitable or because you can not avoid the loss, without incurring any expenses that exceed the value of the object after the disbursement.

Will be considered a total loss assimilated, especially when:

1. ° When the insured is deprived of the ship or goods due to a risk covered by the policy and is unlikely to recover or the cost of recovery exceeds the value of the vessel or goods after recovery;

2. ° When damage to a ship by an insured peril, be such that the cost of repairs exceeds the value of that ship, once repaired. In estimating the cost of repairs, no deduction shall be made by general average contributions to those repairs, by other interests. But take into account the costs of future salvage operations and of any future general average contribution would affect the ship to be repaired, and

3. ° When the cost of repair and for forwarding to their destination, they exceed the value on the date of arrival at your destination, whether it is damage to goods or cargo.

Section 1190.Unless otherwise provided, the total loss insurance covers both the assimilated total loss as the real or effective.

Section 1191.Unless the policy otherwise provides, the insurer is liable for all losses suffered by the insured during the coverage period, although the amount of all of them exceed the sum insured.

But if a total loss following a partial damage not repaired, the insured may only demand compensation for total loss.

Section 1192.If the insured elects to claim a total loss, the insurer must notify its intention to relinquish. In the absence of such notice, the insurer may bring an action for failure.

Section 1193.If assimilated total loss, the insured shall within three months since he had actual knowledge that the loss had that character, to the insurer written notice of its intention to relinquish.

The expression written communication also includes telegram, telex or other means to record, or provide a record of receiving the message sent.

The notification to the insurer an abandonment action, substitutes for these effects to the notice of abandonment.

The notice or application must indicate unequivocally the intention to relinquish the subject-matter insured unconditionally to the insurer.

Section 1194.The notice of abandonment is not required in the breakdown or accident, by its nature or magnitude, making it impossible for the insurer measures to recover the thing to rescue distressed or decrease the effects of the accident.

Section 1195.The abdication notice interrupts prescription of the actions of the insured against the insurer.

Section 1196.The acceptance of abandonment may be express or inferred from the conduct of the insurer. In any case, its effects can be traced back to the date of receipt of the notice of abandonment or notice of demand for abdication.

The insurer may, in any case, waive the requirement of notice or warning respectively.

Section 1197.The acceptance of abandonment, as well as to give it the irrevocable, it means that the insurer recognizes its responsibility for the total amount insured.

Section 1198.The abdication accepted or upheld by a final ruling, the insurer transfers all rights and obligations of the insured in respect of the insured, by the mere operation of law.

However, while not accepted the abandonment or final decision issued declaring it invalid, the insurer may recognize its obligation to compensate the total loss of the insured object and reject the transfer of ownership of the insured.

Section 1199.The insured has been privileged abandonment is subject to payment of the amount insured, in preference to any other credit can enjoy privilege over it, with the exception of claims on the ship referred to in Articles 844, 845 and 846 .

§ 4. Liability Insurance

Section 1200.The insured in a liability insurance only entitled to compensation and reimbursement of expenses incurred, when it has paid compensation for damage to third.

Notwithstanding the foregoing, the insured must notify the insurer of any claim that is the subject and can compromise the liability. It will be also obliged to take all protective measures as may be appropriate.

Section 1201.Only in cases where a liability insurer provides a guarantee to cover the liability of the insured, may be sued directly by the third party to whom it has issued such a guarantee.

This does not apply if the insured is entitled to limit liability and the insurer it was constituted of the respective fund limitation.

Liability insurance for a shipowner collision or collision with any fixed or floating object, which aims to repair damage caused to third parties, but produces obligation to indemnify in case of failure of the sum insured on the policy of the Town .

Section 1202.Whatever the number of events occurring during the term of liability insurance, the amount covered by each insurer is, for each event, the limit of your coverage.

Title VIII

PROCEDURE IN THE MARITIME TRADE

§ 1. General rules

Section 1203.Knowledge of any dispute arising out of acts or contracts that result in maritime trade or navigation, including marine insurance of any kind, shall be submitted to arbitration.

Nothing in the preceding paragraph shall not apply if:

1. ° When or interested parties express their willingness to submit to the ordinary courts, either in the same act or contract giving rise to the dispute, or by agreement in writing prior to the start of the trial;

2. ° When it comes to pursuing penal responsibilities that may arise from the same facts. In this case, civil action may be brought before the court hearing the respective criminal or before the arbitral tribunal referred to in the first paragraph;

3. ° In the case of the judgments referred to in paragraph 4. ° of Title IX of the Navigation Act, or those who, in this book have pointed out a special procedure to be followed before an ordinary court;

4. ° In the case of the Treasury or disputes responsibilities are met with port authorities or agencies at the state or customs, or duties controlled by such entities, and

5. ° When the amount of trial does not exceed 5,000 units of account and the plaintiff chooses to prosecutions before the courts.

Section 1204.When provisions of this Book empowered by court where events occur, or where they arrived and the ship is held, this shall not prevent the establishment of the arbitral tribunal in that place or another if the parties so agree in writing and under their signatures.

However, at the request of the defendant, may move the action in the manner and in the cases mentioned in the second paragraph of Article 1033, before the ordinary judge or arbitrator, as the procedure in accordance with the provisions of previous article.

Section 1205.The appointment of the arbitrator, its qualities and the procedure to be used shall be governed by what the parties agree in writing under their signatures and, alternatively, by the provisions of the Organic Code of Tribunals Judges Referees and the Code of Civil Procedure, the arbitration.

Section 1206.Without prejudice to the preceding article, the arbitral tribunal or post to the appropriate jurisdiction in matters referred to in Article 1203 shall have the following powers:

1. ° may admit, at the request of a party, in addition to the forms of evidence outlined in the Code of Civil Procedure, any other kind of evidence;

2. ° may, at any stage of trial proceedings, ex officio of evidence it deems appropriate, with citation of the parties;

3. ° You can call the parties to recognize their presence documents or instruments, to justify their objections and can resolve the matter without incurring any prejudgment about the controversial subject matter, and

4. ° will have the power to assess the evidence according to the rules of sound criticism, the ruling must be entered in the foundations of that assessment.

Section 1207.When applying measures referred, are preparatory precautionary or evidentiary or special deductions, before being constituted by the arbitral tribunal, the applicant may occur before the competent court in civil matters which are being on duty or in the courts that assign particular competition rules of this Book. The foregoing is without prejudice to the prosecution of litigation before the arbitral tribunal to be designated or previously designated to hear the dispute, if the parties have not opted for the ordinary courts.

§ 2. The fact-finding

Section 1208.When an interested party, before filing a lawsuit, want to do an inspection on the state of the ship or goods or other events that are likely to disappear, will occur at the turn of the civil court where they should be inspected, which, without further proceedings, appoint a notary or other minister of faith for finding the earliest possible.

Designee, prior to its mandate, it shall by any means his appointment and the date, time and place that intends to make the verification, or to counterparts who made the call. Diligence will be conducted with or without the assistance of the parties.

When recognition refers to events whose interpretation requires special knowledge of any science or art, the court at the request of the applicant, may appoint a minister of faith insurance official liquidator or other expert, or have faith that the minister appointed will advise the expert, who also appoint outright.

The court may, in any case, personally perform the procedure.

Responsible for inspection of record shall have wrought, leaving her record of having notified the parties of the circumstances mentioned in paragraph two of this article and also record brief observations of these, if they so request. The original instrument will be delivered to the court that made the designation, which will give interested parties who request copies.

The costs of the proceeding shall be borne from the person who requested without prejudice to the particular resolution of the final decision.

§ 3. Trial court

Section 1209.When the parties agree, the evidentiary proceedings that have requested in a proceeding or action referred and which relate to matters covered by this book may be out of court, but with the assistance of counsel for the parties.

If during the production of these tests misunderstandings may arise between the parties, suspend the act reserving the decision of the disagreement to the court hearing process or need to know if it's pre-trial. The foregoing does not preclude the continuation of court with other evidentiary proceedings.

The evidentiary proceedings that may have been interrupted by opposition from either party, may be continued in court if requested.

The court may of its own motion the ratification of the evidence produced out of court.

§ 4. Procedure for the creation and distribution

Fund disclaimer

Section One. The constitution of the fund

Section 1210.Any of the persons mentioned in paragraph 1 of Title IV and paragraph 3 of Title V of this Book, deemed entitled to limit liability, or the insurer if any, may occur before any court indicated in the following article and request that proceedings are taken in order to form the background, verifying and settling claims, and to effect distribution in accordance with the rules of priority provided by law.

Section 1211.Court will have jurisdiction in all matters referred to in the previous article and as may be incidental or consequential damages of the same:

1. ° When the disclaimer refers to a ship registered in Chile, the civil court that corresponds to the port of registry of the ship;

2. ° If it is a foreign ship, the Chilean civil court jurisdiction of the port where the accident occurred, or the first Chilean port of call after the accident or, failing that, the court with jurisdiction in the first place the ship is detained there or where it first has been granted a security for the ship, and

3. ° When not yet been initiated proceedings in any court referred to above, and is alleged in another case the limitation of liability as an exception, the same court before which claims shall have jurisdiction on the limitation of the process, if ordinary. In the case of an arbitral tribunal, shall be sent copies of records relevant to the court that has jurisdiction in accordance with the above numbers, for this court to start the procedure for the creation and distribution of fund limitation of liability.

In these cases except for limitation of liability for constitution of the fund may only be made to answer the complaint.

Section 1212.With the exception of number 3. Of the preceding article, the limitation of liability for constitution of the fund can exercise until the deadline to raise defenses at trial executive, or within quotation referred to the Article 233 of the Code of Civil Procedure in the process of enforcement of judgments.

Section 1213.The request for opening of proceedings shall:

1. ° The event which comes from the damage that will affect the limitation;

2. ° The maximum amount of the fund or funds to be provided, in accordance with the relevant provisions of Title IV, paragraph 1 and paragraph 3 of Part V of this Book, and

3. ° The way they constitute the fund, whether in cash or by guarantee. The court shall assess the adequacy of it.

Section 1214.The application for the opening of the procedure is accompanied by a list of known creditors of the petitioner, along with their addresses, the nature of the loans and their amounts definitive or provisional. Also be accompanied by the documents supporting the calculation of the maximum amount of the fund which has pointed to the proponent.

Section 1215.The court, after examining whether the proponent's calculations on the amount of the fund, comply with the relevant provisions of paragraph 1 of Title IV or paragraph 3 of Title V of this Book, as appropriate, issued an order which declared started the procedure. Simultaneously, decide the arrangements provided for the establishment of the fund and ordered compliance with their approval. In the same resolution shall specify the amount the applicant shall make available to the court to cover the costs of the proceedings and appoint a trustee and an alternate to lead and execute all actions and operations that are charged under this paragraph. These appointments must be persons who integrate the list of trustees referred to the Bankruptcy Act, and without requiring the appointment or subsequent ratification by the meeting of creditors.

Section 1216.When the constitution of the fund will give money, the court will be deposited in a bank with knowledge of the trustee and stakeholders. Adjustments and interest to be obtained will increase the fund for the benefit of creditors. If the fund has been set up by a guarantee, the amount will accrue interest at the site of current seat of the court, which shall be recorded in the document establishing the warranty.

Section 1217.Constituted a fund or accepted the warranty on its constitution, the court will say so, and from the date of this resolution, suspend all or a precautionary measure individual performance against the applicant, in respect of claims to which it can oppose the limitation of liability .

You may not implore any rights to the fund, which is exclusively for the payment of claims in respect of which they can oppose the limitation of liability.

Section 1218.When invoking limitation of liability to a creditor to oppose him compensation for injury caused by an event triggering the commencement of proceedings, the provisions of this Paragraph shall apply to any resulting balance. In any case, claims the applicant may be entitled to compensation.

Section 1219.From the date of enactment of the resolution referred to in Article 1217, will be suspended over the interest they earn credits against the applicant.

Section Two. 

Verification and challenge and opposition toconstitution of the fund

Section 1220.Issuance of the resolution referred to in Article 1217, the trustee shall, by registered letter of the constitution of the fund to all creditors whose names and addresses were identified by the applicant in the list referred to in article 1214.

The above information to creditors shall contain:

1. ° Copy of the resolution provided for in Article 1217;

2. ° The name and address of someone who has required the establishment of the fund and to what degree;

3. ° The name of the ship and its place of registration;

4. O A brief account of the event in which the damage occurred;

5. ° The amount of the loan recipient of the communication as the applicant, and

6. ° The indication that the period established has the following article to check your credit.

Section 1221.As are the cards shipped with the aforementioned information, the receiver extracting the same information and publish it along with the list referred to in Article 1214, once in the Official Gazette and a newspaper in the place that works the court before which the procedure has been opened, indicating that the creditors have thirty consecutive days from the date of the last publications to verify their claims and accompanying documents to prove it.

Section 1222.Within the same period indicated in the previous article, that these effects will be fatal, any creditor may object to the limitation on the grounds that do not meet the legal requirements to exercise this benefit. Within the same period, the creditors may object to the amount of the fund.

Oppositions or objections shall be determined under the summary procedure, with the exception of Articles 681 and 684 of the Code of Civil Procedure.

Section 1223.In all the procedures in this paragraph, the trustee will act as a party and will seek a progressive course to cars, using all the means provided for in the laws for that purpose.

Section 1224.The trustee will be the list of creditors entitled to participate in the distribution of the fund, the judge will propose the payment of claims. Distribution will comply with rules on preferences or privileges provided in this book.

The fund balance will be distributed in proportion to the amount of credit pertaining to the limitation and not receiving preference or privilege.

Section 1225.When there are claims with appeal or declaration can not be resolved, the liquidator will make it deems prudent reserves proportional, while distributing the remainder of the fund according to the above rules.

Section 1226.In matters not provided for in this Book, the verification and appeal of claims and deals are governed by the pertinent rules of the Bankruptcy Act. Similarly, the trustees will apply the grounds for removal set which establishes the law.

Section 1227.As soon as you become exhausted the partitioning process, the receiver shall render a final account to the court which appointed him and he shall declare the limitation proceedings.

If you still remaineth remaining, it will be restored to a person who has composed the background. In addition, if after three months of issuing the resolution indicated in the preceding paragraph, any remaining creditors that have not appeared to withdraw funds, the remainder will be given to who was the background, can these creditors reluctant, claiming their contributions to within a period of one year since it was issued the above resolution.

The rules of this Article shall not apply to the remainder to occur when the fund established refers to the limitation of liability provisions of Title IX of the Navigation Act, which charged no fees, will be used to purchase items and equipment to prevent or mitigate pollution of the water, proceeding by the Directorate General of Maritime Territory and Merchant Marine, in the manner determined by the regulations enacted to that effect.

Section 1228.Any question that does not have a special procedure shall be handled in a separate file, as an incident between who makes and which seeks to limit liability.

Other creditors interested in the background, may act as third parties.

Section 1229.The appeals that may be required under the procedure referred to in this paragraph shall be granted the sole purpose of execution.

Against the decision on appeal will not proceed to appeal.

Section 1230.The procedure under this paragraph shall apply to the creation and distribution of the limitation fund, where you can exercise the right to limit liability for damage resulting from oil spills and other harmful substances, referred to in paragraph 2. No. Title IX of the Navigation Act, except for the competent court to hear such matters.

§ 5. Of the proceedings on hold or retention of ships and their uprising

Section 1231.The holder of a claim that enjoyment of a privilege on a ship, the provisions of this Code or the laws that complement may occur before the turn of the civil court where it is or civil court that has jurisdiction of the day under the rules of this Book, to request a ban on the departure of the former, from the port or place where you are, in order to guarantee the exercise of the lien or to secure compliance with a court decision that may involve special the ship concerned.

The court addressed shall accede to that request, without further ado, if accompanied by a history that constitute presumption of the right claimed. If such records are inadequate or even possess no manifest petitioner, the court may require that constitutes security for any damages caused if it later proves that their request was unfounded.

Section 1232.For purposes of this paragraph, the prohibition of sailing terms, retention, attachment and immobilization are considered synonymous. It is not understood in these terms the seizure of a ship procedures enacted in haste.

Section 1233.The retention or attachment to in this paragraph may also be ordered on the port or place where the ship is expected to arrive.

If the court before which requests the root has jurisdiction of the action to be exercised, the roots may be made or retention is practiced in any other port where the ship arrives.

Section 1234.A ship may be subject to special precautionary measure referred to in this paragraph, the following cases:

a) When the ship is the material object on which the privilege is exercised, or

b) When the creditor holds a privileged over another ship belonging to the same owner, or is subject to the same management, or is operated by the same person.

Section 1235.The attachment or retention of a ship will be fulfilled by notifying the maritime authority of the place where they occur, or trade or notification to the Director General of Maritime Territory and Merchant Marine, if the vessel is not within the jurisdiction of ordered by the court action. Not required prior notice to the person against whom action is sought.

In urgent cases, the court may hold communicate by telegram, telex or other reliable means.

When the case of a management reference, the roots must also notify the person against whom the request within ten days from the resolution that granted it. This period may be extended by the court, for good reason.

The lack of notification within the said period or the last of its extensions, the produce automatic expiration decreed roots, which will be communicated automatically to the relevant maritime authority.

Section 1236.When the matter is referred precautionary management, the applicant shall state the proposed action and summarily conclude its foundations. If the action relates to the ownership or possession of the ship but the recovery of any pecuniary benefit, the actor must indicate the amount and form of security it considers sufficient to ensure the outcome of the action. If the request is made simultaneously with the complaint or in the course of litigation, the plaintiff indicated it its claim on the bond amount and form of constitution.

As soon as she provided the guarantee requested, the court will lift the roots without further proceedings. Proceed in the same way if the parties agree on these respects. The court may also qualify the adequacy of the security offered by the defendant, or incidental to handling this matter. In any case, the amount of the guarantee may not exceed the established value of the vessel.

The guarantee granted subrogated to the ship as the respective sole purpose of the privilege.

Section 1237.The person who has lodged the security or who it affects, in molten form may request at any time, to modify it, reduce or elk.

Efforts to raise an attachment does not impair the petitioner's right to claim or oppose further exemptions or defenses that make him competent. Shall not be considered as a waiver of the right to limit liability under Articles 889 and following.

Section 1238.The request for retention or opposition to a root, and the objection to the amount or form of a security, shall be treated as incident and without the interposition suspend the effects of the contested decision.

The request for modification, reduction or lifting of a security of a root replacement, will also be processed as an incident.

Section 1239.As this paragraph does not, or if no agreement of the parties, shall apply to special measures at issue here, the rules on precautionary measures referred and titles IV and V of Book II of the Code of Civil Procedure.

Section 1240.The provisions of this paragraph shall not preclude the exercise of other precautionary measures that may apply common law to a creditor to ensure the outcome of your action, or where no case of a credit enjoyment of privilege on a ship.

Title IX

ADDITIONAL PROVISIONS

§ 1. Of protests

Section 1241.For purposes of this paper, the term protest to the act by which a person records the occurrence of acts or omissions related to navigation or maritime commerce, which could affect their liability, their principals or employees, or makes a reservation of rights or actions that may arise from such acts or omissions in respect of the same people here alluded to.

Section 1242.Protests must be expressed in writing in any way that can demonstrate its formulation.

Written expression shall include telex, telegram or other means to record or repeat what molded who protest tools or equipment designed for this purpose.

Section 1243.When the respective laws or regulations provide that the protest should be brought before the maritime authority, it will be done through a written submission to that authority. This presentation will be effective for all other effects that may arise.

§ 2. The unit of account and the conversion and interest

Section 1244.When this book specifies a quantity or value of compensation in units of account, or to be established according to the former, means such a unit called the Special Drawing Right as defined by the International Monetary Fund or to replace it.

The value of the Special Drawing Right is calculated by the method of assessment established by the International Monetary Fund in its operations and transactions, the date of fulfillment of the obligation in question.

The determination of the equivalence of the Special Drawing Right in national currency shall be the Central Bank of Chile.

Section 1245.The obligations of current interest money earned from the notice of default by the debtor, unless it had agreed a larger one. The current interest payments accrue also to have originated from the fact that.

Title X

THE PRESCRIPTION

Section 1246.The actions for the collection of passenger and freight, including accessories, prescribe within six months.

That period shall run from the obligation had it been unenforceable under the respective provisions of the parties or laws governing the matter, and failing that, from the end of the journey to collect the ticket and the date of the termination delivery of the goods at the destination or the date in which they were delivered, as appropriate.

Section 1247.The action to declare a general average, the prescribed period of six months from the date of delivery of goods or since the trip is terminated.

In turn, the action to demand payment of the contribution prescribed in six months has been reported since the issuance of the liquidation of the general average. But when this has been challenged their legitimacy, will run for six months following termination of the appellant court.

Section 1248.Prescribed in two years, all other actions that the obligations referred to in this book, which they have not been designated a special term.

Section 1249.The statute of limitations shall include:

1. ° In charter contracts:

a) If a bareboat or time from the date of expiration of the contract or discontinuance of its execution, and

b) In the case of a voyage charter, from the date of their term, or from the date the contract has been terminated or rescinded.

2. ° In the shipping contracts, from the day of completion of delivery of the goods by the carrier, or part thereof, or if no delivery from the end of the last day that should have been delivered.

However, the person found liable may bring the action replay that product, even after the limitation period expired. The Commission shall have a period of six months counted from the date on which the claim voluntarily satisfied or has been convicted by a final sentence to pay under an action brought against him.

3. ° The contract of passage:

a) In the actions of damages and damages for injury to a passenger or for loss or damage to luggage, from the date of disembarkation of the passenger;

b) If a passenger's death occurred during transportation from the landing due date;

c) If death occurs after the landing, but because of injuries sustained during carriage, from the date of death, but the total term to exceed three years, counted from the landing.

The limitation period of two years for actions that are mentioned in the three letters above shall apply whether the action is based on a contract or tort of the carrier or their dependents, and

d) The payment of compensation for termination of the passage, within six months counted from trip cancellation or from the events that impede its implementation or continuation.

4. ° In the event of collision, the period is counted from the date of accident.

However, the statute of limitations is three years if the ship could not be held responsible or defendant while he was in the waters under national jurisdiction, for having abandoned after the collision without calling at any port of the Republic.

5. ° In charge of rescue services, the period is calculated from the day the respective operations were completed, and

6. ° The term of limitation for action lies with the shipowner, the owner or operator to repeat the other beneficiaries of the aid, only run when it has been ordered to pay court of a firm or have voluntarily paid the remuneration or compensation services assistant.

Section 1250.May be interrupted the limitation period on written statement of the person to whom run, but will begin running again as of the date of the last statement.

BOOK IV

OF BANKRUPTCY

(Book repealed)

Final Title

THE ENFORCEMENT OF THIS CODE

Final Rule.This Code shall take effect from 1. January 1867 and be repealed on that date, even the part that are contrary to it, pre-existing laws on all matters it addresses, as they can issues affecting business.

PURPOSE OF THE CODE OF COMMERCE

And because, after hearing the State Council, I have been pleased to sanction it, so it enacted and take effect in all its parts as the law of the Republic .- .- José Joaquín Pérez Federico Errazuriz.

CODE OF COMMERCE

(Amended by Law 19,755 dated 27.SEP.2001) 

MESSAGE FROM THE EXECUTIVE

Fellow of the Senate and House of Representatives:

The codification of our laws in general has been long before now a need felt by all, recognized by scientists, and duly estimated by successive governments that have ruled the destinies of the Republic, but this need has been expressed with urgent and compelling character on the trade legislation, which puts us in immediate contact with the various nations of the globe looking for on our soil the benefits of change of the respective products.

During the average time between the conquest and the establishment of the consulate in the capital, our company law was reduced to scattered provisions of the Recopilacion de Indias, Compilation Castellana, parties and other legal bodies of our ancient metropolis, but the trade laws, confused with the civil and lost in the large cluster they were in such compilations, were far from harmonizing with the principles proclaimed the Republic in his glorious emancipation, meet new and growing needs of our social life, much less further the interests to be promoted to a post honorable among civilized nations.

Indiana's collection, though it contained a large number of provisions more or less connected with corporate law, was not really a Commercial Code in the specific sense of this word was, strictly speaking, a collection of precepts of police administration and commerce. She described the legal personality of the trader, completely forgot everything about the functions of the auxiliaries, failed to determine the nature and effects of land and marine contracts, regulated the most meticulous detail restricted trade, so justly called privileged and monopoly, and a compilation, so lacking in substance as imperfect in form, and could not meet the legitimate aspirations of the trade, always eager for freedom and franchises, and justly deserve the name and honors of a real commercial code. Such was the real importance of this legislation should preferably be applied in the Spanish colonies.

The collection Castellana, the Spanish parties and other codes, intended to supply the deficiency of the laws of India, contained many provisions scattered and some titles on subjects whole business, but not these true pieces forming a coherent body of doctrine, just enough to solve certain specific cases between the various and countless lives that occur in business practice. In vain would look into all these titles and unity of plan provisions, the clear and methodical principles generators, or logical deduction of the first consequences, because while it lacks all those qualities that both enhance the work of science, and more weighing on our secular view that the recommendations have survived these supplementary codes, it must be confessed that they compiled in commercial laws were insufficient to meet the needs created by time and progressive civilization people for whom they were issued.

Looking back to the Indian Collection, it must be remembered that the defects were so glaring in that compilation, which recognized the Spanish government made a general and a special test in the second half of last century to improve it and bring it into line with demands of time and civilization that had reached their colonies.

The first was the work of a body of law must replace the Collection of the Indies, and bear the name, now purely historical, Carolino Code. While finishing early this century, the code failed to be enacted: it was a frustrated hope for the colonies, and just paid the anomalous provide service provisions for the resolution of some issues and questions.

The second was the weighted free-trade regulations, published on October 12, 1778. This regulation denied his title, as the freedom to trade was granted exemption from the heavy yoke of privilege and monopoly. His most prominent provisions are limited to determining the conditions of the ships and crews for the colonial trade, to allow access to certain ports on the peninsula and its colonies, to eliminate some duties and taxes that oppressed the trade and revenue sources to establish management rules commercial and police, but not having removed the obstacles that impeded the free flow of commercial industry, and introduced the principles to be followed in the hiring land and sea, did not alleviate the distressing situation of trade, nor made any improvements in the legislation commodity itself.

The schedule for February 26, 1795, which established the Consulate in Santiago, the country also introduced Ordinance of Bilbao, so justly celebrated in the most cultured nations of Europe. Its enactment in the year 1737, imported a large and positive progress in business law from the metropolis and its adoption in the colony was considered the most favorable omen of good fortune was in the interest of our trade. She underwent fixed rules limited the progress of business operations to our traffic was reduced, given strong guarantees of good faith and credit, forcing the retailer required to keep regular accounts, served as a norm for our consular courts to decide fair and equitable issues occurring between merchants and the country could not deny the deserved applause for a code that was delivered from the chaos of Indiana collection, and providing such important benefits.

But the prestige that had caught the Ordinance in the fifteen years between the erection of the consulate and our memorable revolution, began to decline gradually decreased and as he woke up on all the legitimate desire for a broader and more comprehensive legislation.

The lights that provides freedom of inquiry found flaws in the Ordinance that were previously not noticed it, thanks to the favor that had been accepted, and the comparative study and impartiality of its provisions with those contained in the Code of Commerce have come to light in the first third of this century, came to check the effectiveness of this idea and to legitimize the trend of trade towards the codification of our commercial legislation.

To demonstrate the accuracy of the concepts just expressed, and without trying to make criticism of a code to be venerated as a monument marking the history of trade in an era of true progress, a quick glance over the field that embraces our ordinance.

The first eight chapters of the twenty that make up that point code are all useless, because their provisions lost their force and importance since the application of preferential ballot ereccional reproduced them with short differences. The same should be said of the last five chapters, since its precepts purely local can only be applied to the regime and river port of Bilbao.

The remaining sixteen chapters regulate various land and marine contracts and determine the functions of some auxiliary staff. Justice and fairness of the rules established in those chapters to the government  contracting, have casuitismo forget the wording of our ordinance, and are, without doubt, are real and recognized merit. Despite this, we miss that part of the ordinance some important matters of land and sea trade, noted in some of its chapters omission of necessary details and resolutions totally unacceptable in the present state of science and Given all this, no wonder that the country aspired to gain a more complete code better suited to the general customs and trade more in line with the light of day.

Governments patriotic who led our first steps on the path of freedom, understood very early the wishes of the country, but engaged in the fight for independence, and devoted to meeting the high duties imposed on them she could not dispense the commercial encryption all the attention she demanded to improve the deplorable condition of our trade. However, for this we owe a gratitude to the everlasting memory of unblemished patriotism of the leaders of our revolution that the February 21, 1811 allowed "trade with friendly or neutral nations," and in 1813 promulgated the regulation of "openness and promotion of trade and navigation ", establishing our business relationships on the dual foundation of freedom and reciprocity.

The satisfaction of desire as just was reserved for another time and other men. To undertake a result the great work of codification, it was necessary to fully enjoy the benefits of peace, complete our political organization, put the Republic into the path of intellectual progress, giving it all the institutions that promote and encourage, and patiently accumulating the knowledge needed to perform that work with due skill, and the meeting of these conditions, nor was it accessible to the men who ran the fortunes of our liberation war, nor could be expected but the slow and powerful action of time and the gradual spread of lights.

The law of September 14, 1852 came to announce both the advent of so desired time and the firm resolve to tackle with ardor coding of our laws in the various areas embrace. She authorized the President to commission the preparation of projects for the reform of our codes, and use of the authorization was commissioned the drafting of the Commercial Code relating to an active and distinguished jurist, who has dealt with it regularly for a few years. The same Act ordered that each project completed and reviewed by a special commission, be submitted for congressional approval, and fulfilling this duty, I have the pleasure to present the attached project, as remained after the lengthy reviews that he made. I turn now to give account of the new institutions introduced in our trade laws and reforms that they have done.

Under the heading General Provisions have established certain rules that dominate all areas of the Code and could not be entered in any of the securities that compose it, without altering the system and method of writing. Some of these rules determine the limits of the rule of the Code, and authorize the application of common law and customary in cases in which the first is poor. The numerous requirements that must be custom to take an extra force of law, and the nature of proof that must be proven at trial, remove the drawbacks of uncertainty and hesitation of the unwritten law, and allow us to look fearlessly freedom to trade is to introduce new uses within the circle of honest and lawful.

Among the general provisions are also dealing with acts of commerce, more than form the special subject of the Code, provide the broadest base and secure the commercial jurisdiction, and by placing that have been given, has prevented a fair criticism of the codes that have retained the important notion of these acts to the law regulating the jurisdiction of the courts of commerce. The project has fled from the danger of purely theoretical definitions, and instead to define acts of commerce, described practically by listing them with due order, precision and clarity.

Book I of the project deals with the merchants and auxiliary trade.

In Title I defines precisely the person to whom the law attributes the quality of the merchant. Determine the way the conditions that enable minors and married women to trade, detailing the special rights that gives these people the trade profession, and to prevent fraud and dire disappointments he produced, commands open a log at the head of each department to enroll in it all the documents that impose some responsibility to the merchant, in kind or amount, on behalf of his wife, children or boarders. This registration extends to the writings of traders held company and the powers granted to its factors or dependents, to provide contractors the knowledge of their respective personalities, and out as far as possible cheating on a point usually decides the survival of the conventions.

The obligations of the profession of trade is the subject of the second title. It sets the number of books that every businessman must take the proper arrangement of its accounts, knowledge of their true situation and justification of their proceedings in bankruptcy professionals, faith is also determined due to the book trade in the issues between merchants and addressed the seriousness and importance of the subject, adopted several provisions that significantly improve this part of our business law. The Project considers accounting as the mirror that reflects vividly the trader's conduct, the soul of trade in good faith, and the best means that you can use the legislature to prevent fraudulent machinations in bankruptcy cases, and ensure the resulting punishment of fraudulent or guilty, and placed in this view, renders appropriate provisions to guarantee the regularity and purity of the keeping and enforce the responsibilities imposed by the merchant does not carry books, which leads without subjecting the system established, or that eludes the severe inspection of commercial justice.

The obligation to keep books is limited, for the retail trader, the keeping of one, and to facilitate knowledge of the persons to whom the law is said as such, the Bill defines retail trade with more ease and accuracy the resolution of February 10, 1753 and rule 63, 1813.

Trade has always been just jealous of the reservation of his books, and respecting the sake of convenience and fairness to legitimize this right, have adopted several provisions that reconciled with the imperative requirements of justice in cases of dispute. It prohibited the demonstration and general recognition of the books, except in four cases listed by the project, but to sort, ex officio or upon request legitimate and validating partial display of the seats on the question that shook under the protection of certain rulings conducive to preventing the revelation of all the transactions that make up the rotation of each merchant frustrate those whose success depends on the secrecy with which they are handled.

The French Commercial Code imposes an obligation to the merchant to keep their books for the space of ten years, in Buenos Aires for twenty Dutch and Portuguese for thirty, and to fill the silence of our ordinance in this regard, it was thought more rational and convenient not to fix a limit to the obligation that the marking by the interest and the need for a complete liquidation of the business to which they relate books. This obligation extends to the heirs of the merchant, because they often have to use the news contained therein to carry out the settlement that its author has left pending.

Title III deals with brokers who act as brokers for the conclusion of commercial contracts.

Our Ordinance contains many important provisions on the exercise of the broker, but keeping in view the new needs created the great development of our trade and the importance it has acquired these auxiliaries, in facilitating and accelerating the commercial transactions, has been deemed essential to make these provisions throughout the development and amplitude that were susceptible. The project also introduces some rules that are missing from that code, to prevent or repress the easy abuses to which the profession serves essentially based on trust and good faith; lists the people who can not play the brokerage, details the obligations and prohibitions on those who exercise in the various areas to extend their mediation determines the faith that they deserve their records and minutes, requires the manager to buy or sell credits documents designated by the name of public securities The responsibility to pay the price of purchased or sold to deliver, and no doubt, well-calculated using these provisions, the brokerage will produce the benefits that trade has always expected as profitable institution.

Title IV is the final and auxiliaries known as the auctioneers.

Hammer houses have not been considered so far as institutions to promote the trade, but as an industry that could not be raised without the permission of Government and the payment of an amount in treasury, but this, the supreme decree on July 12, 1823 regulatory senate of July 24, 1820, known to us for the most part the powers and duties of auctioneers in his capacity as auxiliary officers. The project deals with them considering them as such, and to regulate the exercise of his office, reproduces the provisions of the decree, adding others is a clear opportunity, extends the prohibitions to cases omitted in the former and, in short, imposes the obligation to carry three books subject to the rules set out in paragraph 2, Title II of the book at hand.

Book II of the project begins by establishing certain principles common to all commercial contracts, and then is particularly concerned with those related to trade land.

In Title I of the project states that the requirements of the Civil Code relating to contracts generally apply to commercial, save the changes he introduced, and after the enactment of this important rule, are reflected in all that he claims imperiously enlightened interest of trade. These changes are worthy of special mention the arrangements for the purpose of the enactment of deposit, the fixing of the objects that should cover the execution of contracts in a foreign country to be fulfilled in Chile, the limitation of the right small change to pay in silver or copper coin, the power of the creditor to make the claim, if the debtor does not check in the act of payment, where you work or novation by the payment negotiable and the inadmissibility of termination due to massive injury, and finally, those designated specialties in the commercial test.

This same title is an issue as difficult as important, omitted from the ordinance and even the Civil Code. Often occurs the need to set the time and place where oral or written proposals assume the character of perfect contracts, and lacking clear and precise rules that direct the trial lawyer and illustrate the conscience of the judge, it is essential to invoke the opinions accommodative and unsafe authors have examined in depth about these points. To overcome difficulties of such importance, the project has been satisfactory solutions to major issues and incidents that offers the matter, and thus has filled a significant gap in our commercial and civil law.

The draft regulates the commercial sale in accordance with the principles established exceptional case law and commercial law of civilized nations. Nor was it possible to bring this trade agreement establishing the requirements of Civil Code, because regardless of whether they refer mainly to the sale of real estate, there are profound differences between civil and commercial sales, which make them inapplicable in trade.

The immediate object of direct sales and civil, but things seen on Furniture is the exclusive use or consumption of the acquirer, the merchant of the transaction is to achieve a profit by reselling or renting the mere use of the thing purchased . The first is usually pure, the second is conditional, since in some respects has a tacit condition, precedent or subsequent, unless the contract concluded between present and one thing that is also present on the spot delivery, and differing from both sales in purpose and quality, was absolutely essential that the project will adopt special rules for commercial sale, to facilitate transactions, to ensure its effects against the estimates of fraud, and by these means to promote the rapid movement of goods.

In dealing with the transfer of goodwill, the Project will not only indicates how to transfer credit documents and the public purpose, but advances to meet the Code's silence on two points of no small importance in this area of use as often as necessary to the speed of transactions. He orders the notification of the assignment of no endorsement is made by a minister of public faith, said a deadline for the debtor opposes the exceptions dormant states that given on the instrument can be opposed to the transferee in the same way may be the transferor, and so appropriate arrangements surely cut the recurrence of the issues which has resulted in the lack of clear and direct statements about points.

In the chapter "of the merchant fees" our slogan Ordinance certain requirements relating to land transport, and even in the Civil Code deals with it in paragraph 10 of the title of the lease. However, being manifestly inadequate prescriptions that contain the codes for the regime of the industry, attended the surprising development that has taken in recent years, has seen fit to give them all the growth and expansion required by the emerging needs of trade.

Title V of Book II, which deals with transport by land, lakes, canals and navigable rivers, was drafted under the influence of that idea, and to do it in its entirety, the Bill defines the transport establishes common rules for public companies or driving; lists things to express consignment, details the rights, obligations and responsibilities of the carrier, shipper and consignee and, in short, provides and resolves cases that often put in conflict interests of the contractors.

Twenty-four hours after delivery, the project allows the carrier to collect the agreed size and expense made in the conservation of ported goods, and not getting the payment, we also authorized to solicit the sale of them, preferably with hammer and paid their product under the privilege granted on all objects that make up the load. At this point the project is separated from the Civil Code, for disappearing for the delivery of the cargo retention that he granted this right to the carrier does not provide a guarantee and effective serious. However, wishing if possible to reconcile the interests of shippers to the carrier's rights and prevent the hint of privilege is an obstacle to free and open movement of goods, it limits the duration of the short space of three days when ported out of the hands of the shipper or consignee after the expiry of this period, and does all respects cease, provided that the carrier did not use their right within one month of delivery of cargo.

Although the trade mandate is a genus of several species, the project only deals in Title VI of the known commission considered in its most common applications, and which factors play and dependents.

The commission is undoubtedly one of the most useful creations of modern times. It allows the merchant to perform the most extensive speculation speed and economy, without leaving his place of business, or abandon the personal direction of their negotiations, allows communication to merchants of different nations of the globe and close relationships of interest the bond of mutual services, ensures the success in riskier operations, leveraging the knowledge that the correspondent of the customs and needs of each locality, facilitates the appropriate use of credit abroad, by sending merchandise is guaranteed , and put it all at once, the commission subrogation and under every advantage over the factories creating the wasteful to keep traffic trade with distant countries.

Between us, the trade commission has taken truly colossal proportions, thanks to the abolition of laws that prohibit overseas and this was extremely urgent circumstances to supply the deficiency of our Ordinance, the rules dictate that this contract should be adjusted in each the various forms it takes in business practice. Fortunately, the principles of the common mandate wisely are outlined in the Civil Code, and alleged the existence of such a precious history, the real work of writing project has involved the classification of materials to be included in the composition of Title VI, the expansion and modification of these principles according to the unique needs of commerce and the aggregation of certain rules relating to the administration of the Commission in general, the lien is given to ensure payment of their wages in advance, interest and cost, and the establishment of the special obligations imposed on brokers to buy, sell or make your own name in the transport of goods.

The proposed regulations mandate dependent factors and subject to general principles and in order to complete this matter that does not address our ordinance lists the cases where, even if the contract or dependent factor in his own name , means that it has done on behalf of his client, noting the causes that authorize the termination of their service efforts and the extinct.

The project accepts and confirms the tripartite classification that the Civil Code makes the partnership agreement, adding known as "society accidental" or "share accounts", and subdividing the limited partnership in "simple" and " actions. " The exposition of the principles of commercial law governing these different species of society, is intended Title VII of Book II of the project.

The partnership is the type of the other and that deviates less from principles of civil law, and therefore to treat it, the wording has been made particularly to the establishment and development of rules to modify those principles in everything that affects more closely the legitimate interests of trade.

In the development of this plan, the draft constitution stipulates that the proof of the existence, dissolution, extension and modification of society are made by deed, duly recorded, posted and published under penalty of absolute nullity between the partners, regulates correctly use the name that embodies the partnership, all partners extends the solidarity of the social obligations in the name, that the ordinance limited to "those under whose signature the company corriere" adds useful management principles, intended to stabilize in all relationships, introduces an expeditious settlement system and set the precise form of the appointment and powers of the liquidator, and finally, five-year also introduces the requirement for members who are not involved in the settlement, leaving subject to the provisions of civil law prescribing the actions against the clearing members and partners together.

The law of November 8, 1854 on corporations has been incorporated into the project with the deletions made inevitable the fact of its incorporation, the aggregation leading to the perfection of the system adopted by them, and certain changes in wording and order number . The convenience of this law has in its favor the practice of some years, and it was thought prudent to keep the letter and spirit in its entirety.

The Civil Code establishes the two fundamental principles of simple limited, but they do not suffice to remove the doubts that occur in practice, it has been deemed absolutely necessary to regulate their application, and add some rules supplementing the rules of that society.

To fulfill this purpose, the project extends sympathy to the limited partner that tolerates the inclusion of his name in the name: it means the things you can not take society by way of capital confers the right to require the return managing partners of excess amounts of their contribution has been paid to creditors have been mixed in social administration or tolerated the insertion stated, describes the actions that can run without losing its character and exemptions, and, ultimately, close the paragraph concerning the limited partnership simple, stating that in case of doubt the company is said to be collective.

I hope that these provisions preclude the renewal of the issues on the merits given the principles of simple limited by lack of proper development in its most frequent applications.

As for the limited stock, so common in France, I need only announce that the project has received the necessary modifications to the law enacted in that country on July 23, 1856.

Fruit of long experience and the meditations of many years, the law offers ample guarantees convenience and accuracy in its provisions, and no doubt she will produce in the country that promises all the benefits that society, bringing together both the benefits of the partnership and the anonymous, open a vast field of applications fruitful principle of association.

Title VIII of Book I am reviewing is "Insurance in general and in particular ground" and in the first part of the insurance described in the abstract, define the words most frequently used in the field, and exposed with distinction that requires its novelty among us, the common principles to secure land and sea, following the track of the laws of the nations that have long practiced this contract, which provides civil and commercial property truly priceless advantages.

The second part of this Title insurance particular to land.

After dividing them into "mutual" and "premium" means the Project on dealing ordinary objects, states that the abandonment of the insured and the termination by the mere will of the insured are inadmissible on the ground safe, except transport; points within five years for the extinction of the actions that produce the contract, and concludes by setting the rules peculiar to life insurance, fire, products of agriculture and land transport.

The extension of Title VIII does not allow me to offer a summary of the many provisions it contains, but enough to excite your attention to the knowledge that many European nations today have no laws on this important matter, and she is completely new in the country.

The contract talks Title IX, known under the name "current account" pays to trade services of the highest importance to the parties providing a convenient means for carrying out their claims and merchandise, without the risks and costs ordinarily she claims. This contract was not incorporated until the day when none of the commercial codes that we know, but having their own existence and well characterized in the use of trade, has seen fit to make room in the project, and compile the principles that govern jurisprudence and the practice of traders understood.

Consistent with this purpose, the project describes the current account with all the clarity necessary to distinguish it from the management accounts, indicates the things which constitute its legal, declares the admission innovation that produces current account above values ​​due; prohibits the charging those received payment of a specified item of the account sets out the purposes of final adjustment of the balance and character, allowing secure a mortgage in the event the contract and establishes Finally, several other rules to help not certainly widespread knowledge of the current account, considered, not as an accounting term, but as a real contract, created by the needs of commerce.

Chapter 13 of our Ordinance, dealing with bills of exchange, has received the recommendations of merchants and lawyers for the accuracy of the principles it contains, but its provisions were not to give us the fundamentals of the changeover from a place to another, are limited especially regulate the course material for the letter that serves as an instrument for the execution of this contract, and suffer more than some dark natural consequence of the neglect of its wording and the lack of method in the distribution and exposure of the subject.

All this was necessary and urgent improvement of this interesting branch of our company law, and this need has been satisfied, merging and sorting materials estimates that offers the Ordinance, and supplemented by acquisitions that have enriched science after the enactment of that code.

To properly perform this task, the Bill defines the change, specifically the transportation of currency from one place to another, explains the word in universal use in commerce and the law peculiar to this contract, and then regulates the neatness and appropriate detention everything relating to the form and requirements of the letter, the manner and purpose of transmission to the obligations of the drawer, drawee, acceptor and others involved accidentally in negotiation, payment, protests, replaced, and prescription hangover stock from the exchange. The timing of the classifications and the good order and clarity of presentation, let me hope that soon become general knowledge of the rules governing change throughout the business world.

Not close the magazine of Title X not to call your attention to a point on which the trade in all countries there has been in constant conflict with written company law. Such is the use of blank endorsement.

Despite the prohibition contained in our self Ordinance and agreed January 31, 1848, trade has persisted in the use of endorsements in blank, and considering that this persistence is the expression, not fancy, but a real need, it was thought wiser to give legal existence to these endorsements, which reagravar providences that some codes have wanted outlaw. However, to compensate for the lack of statements that characterize the act and determine their effects, the draft states that the blank endorsement transfers ownership of the lyrics, and imports the evidence of receipt of its value, and thus leaves the endorser free to choose between the use of this dangerous method of transmission and the possibility of a breach of trust.

Titles XI and XII deal "of drafts and notes to the order and credit card orders" documents which, taken in trade law as auxiliaries to the bills, make them "the complement of the varied and ingenious system of negotiable instruments. "

These titles contain the provisions necessary to design the nature and effects of contracts that justify those loan documents, and among them is one that should draw your attention to the importance in the defining of the civil and commercial jurisdiction.

Such is the rule that subjects the Civil Code of the warrants and notes to the order, not from business.

In a situation analogous to the implied titles are the four ending with Book II of the project. However, it deserves a particular recommendation the provision, in order to prevent fraud so prevalent in the approximation of bankruptcy requires the concurrence of certain requirements for the lienholder may have against others the privilege granted by law.

Project Book III is devoted to exposing matters concerning maritime trade.

Although this part of commercial law among us has a special significance, because the peculiarities of the geographical location of Chile is calling us to promote and stimulate trade by sea, is not given to undertake the analytical examination of the provisions contained in this book because the nature of this communication and the limits set in the beginning, keep me from playing this work. However, consistent with the plan I have proposed, will do a slight review of those that by their novelty, or some other special reason, may merit your consideration.

Title I of the book speaks of "ships and owners and joint owners of them."

In paragraph 1 of this title explains the legal scope of the word "ship" and "rigging" and to avoid the error could lead to certain pronouncements of the Ordinance and the Civil Code concerning the legal status of ships, the states Furniture Project, subject to the modifications introduced in the legal status of same.

Consequently, the project affects the ship to pay the joint debts and privileged of the owner, gives creditors the right to pursue it with third parties, the duration of its responsibility, introduces a special way to the foreclosure sale, considering the influence that this valuable piece of furniture in the owner's credit, required to establish a public private sale to third parties, detailing the preferential debts and determines the nature of the test to be justified, and, finally, sets the time to spend to acquire by prescription the domain of the ship.

Paragraph 2 rule the rights, obligations and responsibilities of owners and joint owners of the ship. They can manage, with ability to trade, but lack of it, is obliged to appoint a person who administers it on behalf of the community with the relevant powers of the agent. Assuming the existence of collective management of the joint owners, the project provides for the frequent conflicts between them on weapons, equipment, supplies, charter, repair, voluntary sale, appointment of captain and other objects and in our view, he adopts the measures more conducive to prevent or resolve them in the most equitable and in accordance with law and convenience of all partners.

Title II deals with "persons involved in maritime trade."

Paragraph 1 of this title lets us know the legality of the shipowner or operator, powers, obligations and contracts from the master, and the wrongful acts of self and seamen, or constitute a crime or tort, or imported a mere fault. In the interest of our navigation, and to stimulate the arms trade, the project enables the shipowner to be freed from the responsibilities expressed abandoning ship and the rates charged to be received on account of the journey that they come from, and to characterize conveniently neglect, determine its limits, the effects produced by the solemnity with which must be done and the way we should proceed to agree the co-owners of the ship, when acting as the agent.

Paragraph 2 deals with the proper arrest of the captain, who plays the main role in the realization of the contract establishing the maritime trade. The project gives the captain three times a delegate of the public authority to preserve order on the ship, shipping factor with regard to the interests of itself and as representative of shippers in all matters relating to the load and the result of the expedition, and refers to the age and sufficient conditions to be met which intends to perform the duties of such a ship of commerce. Immediately considered in the various situations which puts the nature of his office, the project describes his duties: specified with the neatness and necessary distinction the obligations incumbent upon it in each of these situations, details the acts that are prohibited and, lately, he declared civilly liable even slight fault committed in the exercise of his office and the theft of the crew, while fixing the time begins and ends this responsibility for the shipping and chargers.

As for the provisions contained in paragraphs 3, 4 and 5 ending with Title II, just to announce that all of them are aimed at determining the functions, duties and responsibilities of the pilot, boatswain and surcharges.

Although Chapter 24 of our Ordinance is the same people that the project called "seamen", Title III of Book III, which deals with contracts of these persons should be considered a truly new work in substance and form. Missing in our company law provisions that govern the adjustments of the crew, taking into account that individuals who compose it are those who only support the tough work and the hardships of navigation and, happily, the project has successfully supplied the missing regulate the settings of the more believed that in fairness and the nature of these contracts.

Title begins at hand by defining the word "seaman," "Seafarer", explains the legal nature of the adjustments made by a fixed amount per month or per trip, freight or share in the profits of the expedition , lists the rights and obligations of the seaman, prefix the ultimate responsibility for the costs of care and cure diseases caused by regular and special services for the ship, said the compensation owed in certain cases and in short, refers to the causes that authorize the termination and produce the extinction of their efforts, and leads to foresee everything that was fair to improve their condition, without breaking the principles of justice.

The following four titles cover subjects that our ordinance has been treated with maturity and wisdom. This consideration leads me to point out to limit this review: that Part IV deals with "the charter", the project has added a paragraph that contains the rules regarding the maritime transport of passengers in the V is defined and divided the fault "in coarse or common" and "simple or particular" as inaccurate by deleting the "ordinary" in the VI, "the loan to the heavy or marine peril," has been granted privileges on objects giver directly affects the loan instead of the mortgage on them must be the borrower under applicable law, and in the VII, "marine insurance" has been widely regulated in all respects the right of abdication granted to insured, thus supplying the deficiency of our Ordinance, which only five articles 
devoted to the explanation of this serious matter.

The final title of Book III is "the prescription of the specific obligations of maritime trade and the plea of ​​inadmissibility of some special actions."

In the first paragraph of this Part sets out the statute of limitations on actions expressed therein, and which are not mentioned in Book III, and the fix has been taken in view of the need not maintain indefinitely dealer under the impression of a threat that undermines the assiduous attention to their businesses and avoid the hassle and difficulty of keeping for a long time for his defense documents that could easily disappear in the fast moving business operations.

Project in the second paragraph states certain facts that, even assuming that the action is not required, the make totally unacceptable and this inadmissibility is based on the assumption of the absence of the event legal action occurs, or throws a waiver of the performance of certain acts when there have been previous protests.

This same presumption, strengthened by the above considerations, justifies the revocation of the action, when having protest was not made and notified within seventy-two hours, or if made and notified in time, not lawsuit has been filed within two months from the date of the protest.

Book IV and last project is "of bankruptcy." This matter, the most difficult, serious and embraces many important corporate law, has unfortunately been the most neglected among us. The provisions that currently govern us in bankruptcy are contained in the law, civil and commercial time, from February 8, 1837, chapter 17 of the Ordinance of Bilbao, Title 32, Book 11 of the newest collection, and some scattered laws contained in our old codes, but the most superficial knowledge of these provisions is sufficient to deeply convinced of their utter failure to effectively protect creditors and trade in general against the serious damage and disruption produced by bankruptcy, to satisfy the entire society, and ensure the debtor, in cases of misfortune, all the regard to reconcile the different interests than those engaged.

This state of affairs urgently demanded the complete abandonment of this legislation composed of heterogeneous elements, and the introduction of a new one able to give strong guarantees to the merchant in good faith, prevent fraud and ensure the prosecution and punishment of those who abuse the confidence of the trade, seeking wealth in the dispossession of those who have recklessly dispensed.

Fortunately, the project has welcomed, with necessary modifications, the French law of June 8, 1838, which amended the Book III of the Commercial Code, using the lights that had accumulated the experience of thirty years, and forum discussions the meditations of the most eminent jurists, and so give me credit history advisable to wait for the faithful application of the provisions it contains will decrease the number of bankruptcies, hindering the success of the fraudulent machinations that the approximation of the fatal moment suggests the prospect of destitution, or the desire to enrich punishable with the fortune of others.

Paragraph 1 of Part I defines the bankruptcy with the greatest propriety and accuracy, not by the decomposition of the complex elements of this fact, but through the legal assessment of the material fact of default, a characteristic sign of the absolute loss necessarily cause the credit trading merchant of death, and thus forestall the danger you lose awareness of the Commercial Court, submitting appreciation mere symptoms or circumstances on which scope and importance could easily be wrong.

The very definition of bankruptcy rejects the project shows that the middle state between solvency and insolvency that some have tried to introduce in the bankruptcy law under the name of "suspension of payments." To solve the problem of solvency or insolvency of a merchant, would be essential to implement all procedures of bankruptcy, to complete the sale of all the objects that make up its assets, and to cut this painstaking research, which ultimately produce the same results the bankruptcy, the project states that bankruptcy is not the state of bankruptcy when creditors granted unanimously expect the common debtor.

Bankruptcy is the legal personification of all assets and debts of the failed merchant, and therefore includes everything up its assets and liabilities, all claims, whether they come from an act of commerce,  whether born of a purely civil case .

Paragraph 2 is classified fortuitous bankruptcy, guilty and fraudulent. The first is easily characterized by the nature of the event which occurs, but not the second and third, the difficulty to draw line fixedly, often imperceptible, separating the guilt of fraud. To overcome this difficulty, the project determines the facts attributed to the bankruptcy law the character of guilty or fraudulent, and that simply throw a presumption of guilt or dishonesty, which can be dissipated by regular testing. In the same paragraph designating the facts constituting complicity in the fraudulent bankruptcy, and that the main accused and his accomplices do not go unpunished, it gives creditors and the prosecution the right to prosecute criminally and sent form in trade courts for qualifying a record of bankruptcy, which must end before them or before the criminal courts to throw on the merits.

Title II is "the declaration of bankruptcy and its effects, which causes the cessation of payments and appeals against the order refusing or declaratory."

Bankruptcy can be reported by creditors and the debtor himself. For those manifestation of poor debtor's right, but for this it is not only a duty of honor and conscience, but a strict obligation, breach of which, more than deprive him of the many advantages that the law rewards spontaneity of the complaint, establishes a presumption against him guilty of bankruptcy. The demonstration in any case she should be exhibiting with the documents required by the Project, and born of the debtor must be verified within three days of cessation of payments, telling them the day it occurred.

The court pronounces the auto trade plea of ​​bankruptcy, if there is enough merit in the audience following the day on which it was made the manifestation tentatively fixed on him the time of default or subject to further fixation; appoints interim trustees, ordered the arrest of the debtor, and sends judicial proceeding to the occupation of the property, books, correspondence and documents of their membership and sets all other measures that lists the project aimed at giving publicity to the declaration time and avoid a concealment of property and improper payments.

The project introduces serious changes to the status of the debtor and the creditors, all aimed to keep intact the real assets of the bankrupt, to unify the procedures of it, and maintain complete equality among all stakeholders in the mass. For while such laudable intentions, divestment of the debtor's right to manage their assets and transferred to the trustees from time to pronounce the declaration of bankruptcy, common prohibits creditors from initiating or continuing a run that have pending, orders accumulate all commercial or civil cases to trial contest universal; declared due and payable on the debts of the bankrupt, only for objects that designates the law and what is more important attributes to the bankruptcy the effect of irrevocably fixing the rights of creditors in the state they were the day before delivery. However, she does not deprive the debtor of the exercise of civil rights, except in cases expressly determined by law.

The French law, which has taken the project as the most complete and forward to as many know, it punishes the guilty flawed or fraudulent, because it was unfair to grant impunity for a crime that carries so many calamities and misfortunes to trade and to society, but fixed his attention more especially to prevent the disastrous machinations of fraud gives rise to the approximation of the failure to preserve this environment in its entirety the assets of the estate, and appropriating the spirit of the wise provisions it contains, Project identifies as the main effect of the default invalid acts translaticios property free of charge, the prepayment of the debt due that have not been made in cash or negotiable instruments, and mortgages, antichresis garments and after the time granted to the court referred to cease trading or within ten days that precede it.

The project also provides for the termination of payments in cash or credit value of outstanding debts and contracts for pecuniary interest, verified in the mean time between default and bankruptcy, provided that the request justify the creditors, or third parties who have contracted with the bankrupt, have acted with knowledge of that event, and to complete the system which introduces precautionary protection of the common ground and avoid misunderstandings about the scope and impact of new termination formally reserves the exercise of creditors' action to set aside in accordance with the requirements of the Civil Code.

Payment of bills and notes the order is just exempted from the above provisions, except that the return of the amount paid is required of the person on whose behalf the payment have been verified, proving that while doing so, she had knowledge of cessation. Justice of the exception is clearly evident if one takes into account the one hand the need to guarantee the free and expeditious course of these papers give up to trade credit as important services, and further that the holder can not dispose of the payment being offered, without losing his appeal against the co-debtors of the bankrupt, since in this case can not keep using the protest.

The invalidity and termination can not affect the registration of mortgages validly constituted and compensation of debts due before the bankruptcy filing. It can be done until the day of the declaration and shall be irrevocably accomplished this, given that both debts meet the requirements under the Civil Code.

The project gives the bankrupt, creditors and other interested parties the right to request the replacement of the Bankruptcy car, fixed the time within which to exercise this right and that should end the article, and if that car revoked, confers the failed action to demand compensation for damages to the creditor who has filed for bankruptcy.

Such are the main provisions contained in Title II of the project, and certainly they will give creditors more effective protection and fruitful than could be expected from the laws that have needlessly felled the last penalty against fraudulent failed.

Title III explains all steps subsequent to the bankruptcy. It imposes on the prosecution and the trustees the obligation to request the arrest of the bankrupt, authorizing the trade court to exonerate the prison to the debtor who has declared bankruptcy spontaneously, or to grant a temporary pass if he were imprisoned, provided that the consideration of the balance, books and papers does not lead to enough credit to qualify bankruptcy guilty ordering the deposition of stamps at home and facilities of the bankrupt, and it empowers the court to waive this hearing all objects lists, and order the sale of those exposed to a near-term deterioration and eventually duplicate the training has a particular inventory and deposit one copy in the clerk of commerce for the proper instruction of creditors, and allows employees of the prosecutor to attend the preparation of the inventory.

In Title IV is the final appointment of trustees to do the trade court, after hearing the opinion of the creditors in general meeting have, are designated in those unfit to perform the receivership; clearly specified the powers and duties of the trustees, and issuing all necessary steps to accelerate and regulate the procedures of those agents, to prevent fraud could be committed in the administration and make it more beneficial to creditors than fruitful for managers .

Title V contracts to regulate the examination and admission of claims against bankruptcy. This diligence should be done at a general meeting of creditors convened for this purpose and chaired by the Commercial Court. The bankrupt and the creditors listed in the balance sheet submitted by him, or made by the trustees, may challenge the claims subject to verification. The uncontested claim and irrevocably jury is recognized, unless fraud or a legitimate subject for the car you declare completed the verification process, but credit is subject to failure objected that the court must pronounce trade at the same hearing, if to give not need the help of the test. This simple verification system can use the knowledge of all creditors of the origin and other particulars of their claims, provides this important act of advertising collateral, and avoids the serious disadvantages and dangers that entails the recognition based solely on the silence of the trustees, creditors and failed.

Title VI speaks of the agreement between the bankrupt and his creditors, regulating all matters relating to their formation, effects, cancellation and termination. Noting that the agreement is the way to end the contests more in keeping with the habits and trends in trade, the project has taken special care to adopt all measures necessary for him to be a genuine expression of the free and enlightened will of the creditors form it, and not the result of collusion involved, or the guilty condescension most influential creditors or with the same failed, and no doubt the well calculated project system will produce the effect indicated, and help to destroy the prejudices spread class in civil society against justice and utility of this institution, identified with the interest and the universal custom of trade.

The competitions are often drag on because the failure of the asset does not cover the costs demanded by the bankruptcy proceedings. The paralysis of these indefinitely puts creditors in a situation so anomalous as painful, and allows the failed start new businesses in the shelter of the exemptions inherent bankrupt, and to implement an effective remedy for the ills that such a situation, the project has enacted the provisions contained in Title VII. According to them, the court may order ex officio trade, or at the request of the trustees or any of the creditors, the stay of the proceedings of the contest, and though the resolution leaves the bankrupt subsistent, return to the creditors the right to individually pursue the person and property of the bankrupt. However, this refund is prohibited writ of execution dispatch personnel outside of bankruptcy fraud cases.

In Title VIII establishes the rules to be respected by the realization and liquidation of assets and liabilities of the bankruptcy, when there is no agreement to terminate the bankruptcy proceedings. Project Title This authorizes the trustees to sell the furniture, estate and credit of the mass, in the manner prescribed, to compromise all disputes relating to the disputed rights in bankruptcy, subject to what is provided by law, for demand the return of the garments covering debt capital, interest and costs, to pay in any state of bankruptcy, secured creditors or mortgage, which expresses the formalities, and after agreeing to certain other provisions relating to and knowledge management to be given every three months to creditors on the state of realization and liquidation, directing the trustees concluded the presentation of his final account to the board to be convened for that purpose, and the termination of the exercise of their functions.

The commercial claims, termination and retention in bankruptcy cases, are the subject of Title IX. The project has been compiled in this title the principles accepted by the European codes and case law and commercial practice, and it is fair to expect widespread among us, will facilitate the resolution of many issues that have given rise alternately silence and uncertainty our legislation.

Title X contains provisions concerning the ranking of creditors, and among them only deserve a special recommendation authorizing the creditor obligations subscribed, endorsed or guarantor of people failed to appear on all bankruptcies at face value their titles and respective share in dividends, and denying the masses the right to sue each other the refund of any dividends each given unless they exceed the amount to mount the credit principal, interest and coasts.

The bankruptcy court declared the failed subject to certain prohibitions that can not stop it through the rehabilitation of concern to Title XI of the Project. It designates the persons to whom the law denies this benefit, and lists the objects that must deal with the proof required to grant it, the court before whom the request must be reduced and people can make opposition to it, and finally is to be published in extract that application or fully the decision to grant rehabilitation, to give due importance to the act which replaces the failed in its lost position.

The final title says the time should begin to govern the Code.

To introduce, under the State Council, the deputy project, I am far from assuming that he is a perfect work in every way, because I know that nothing comes out of the hands of the man who deserves such an epithet, but I attend the most inner confidence that he greatly improved the condition of our business institutions and places them in the way of progress. The experience and the gradual increase of our lights we discover the errors it contains and the gaps that leave, and knowing it will be easy to correct and complete each other without running the risks entailed by thoughtless and violent transitions of legislation to another.

Santiago, October 5, 1865 .- .- José Joaquín Pérez Federico Errazuriz.

The President of the Republic

Santiago, November 23, 1865.

Because Congress has approved the following