Convention on Maritime Liens and Mortgages Enters into Force

The 1993 convention is the third base attack at standardizing divers domestic regulations in this field, following the 1967 conventionality, which Spain never ratified. It entered into impel on September 5 2004, six months after the go steady on which the one-tenth state ( Nigeria ) expressed its consent to be bound by it. Spain ratified it by an instrumental role of accession of May 31 2002, deposited on June 7 2002.

Despite the 1993 convention entering into violence in September 2004, Spain did not formally announce its coitus interruptus from the 1926 conventionality until October 7 2004 and will exit on May 27 2005.

Spanish domestic regulations on this count, as contained in the Code of Commerce 1885 and the Law on Ship Mortgages 1893, were not expressly abolished by the instrument of accession. however, due to the enlarged scope of the 1993 conventionality in comparison to its harbinger, any recourse to the spanish domestic government would be limited to remainder cases.

The 1993 convention has reduced the number of nautical liens that take priority over registered mortgages, hypothecs and charges. This is chiefly due to its target of improving conditions for transport finance and the development of merchant fleets. discriminatory nautical liens have been limited to the be :

• claims for wages and other sums due to the master, officers and crew with respect to their employment on the vessel, including repatriation costs and social insurance contributions payable on their behalf;
• claims with respect to loss of life or personal injury, whether occurring on land or water, in direct connection with the operation of the vessel, except for claims that result from the following:
  • damage connected to the carriage of oil or other hazardous or noxious substances by sea, for which compensation is payable pursuant to international conventions or national law providing for strict liability and compulsory insurance, or other means of securing claims; or
  • damage caused by the radioactive properties or a combination of radioactive properties with toxic, explosive or other hazardous properties of nuclear fuel, radioactive products or waste;
• claims for reward for the salvage of the vessel;
• claims for port, canal and other waterway dues and pilot dues; and
• claims based on tort arising out of physical loss or damage caused by the operation of the vessel, other than loss of or damage to cargo, containers and passengers’ effects carried on the vessel, and with the same exceptions as for loss of life or personal injury.

however, where there is a compulsory sale of the vessel, the costs and expenses arising out of the catch or seizure and subsequent sale will be paid first out of the proceeds of sale.

For further information on this topic please contact Ana Montero Martín-Caloto and Carlos López-Quiroga at Uría & Menéndez by telephone (+34 91 586 05 58) or by fax (+34 91 586 05 00) or by email ([email protected] and [email protected]).