bill itself and the protest for non-payment, and he is bound to refund the expenses of the protest.
\n
O F THE RIGHTS AND D UTIES OF THE H OLDER Holder to present bill for payment or for acceptance.
\n
Times within which presentment is to be made.
\n
Art. 218
\n
218.The holder of a bill of exchange payable in Malta at sight, or at a certain time after sight, or at usance, is bound to present it for payment or for acceptance, within the times prescribed in the next following article, to be reckoned from the date of the bill, under penalty of forfeiting his right of recourse against the endorsers, and even against the drawer, if the latter has provided funds to meet the bill.
\n
Art. 219
\n
The times referred to in the last preceding article are(a) six months, if the bill is drawn at a place in Europe, Asia Minor, Syria, Egypt, Tripoli, Tunis, Algiers or Morocco; (b) one year, if the bill is drawn at any other place; (c) one month, if the bill is drawn and made payable in Malta:
\n
Provided that in time of maritime war, the times mentioned in paragraphs (a) and (b) shall be doubled.
\n
Bill payable outside Malta.
\n
Art. 220
\n
220.The same forfeiture mentioned in article 218 shall be incurred by the holder of a bill drawn in Malta, and payable, whether at sight, or at a certain time after sight, or at usance, in any COMMERCIAL CODE of the countries mentioned in the last preceding article, if the holder shall not present it for payment or acceptance within the times stated in that article.
\n
Art. 221
\n
221.The holder of a bill drawn at a certain time or at a certain day, or at a certain time after date, is not bound to present the bill for acceptance, but if he elects to present it, he is bound to protest it in case of non-acceptance.
\n
Certain bills need not be presented for acceptance.
\n
Art. 222
\n
222.The provisions contained in articles 218, 220 and 221 shall not apply to such drawer or endorser as may have lawfully given different directions.
\n
Where drawer or endorsers give different directions.
\n
Art. 223
\n
223.The holder of a bill shall present it for payment on the day it falls due.
\n
Presentment for payment to be made at maturity.
\n
Art. 224
\n
224.The presentment of a bill for acceptance or payment, the protest, the request for a duplicate of the bill, as well as all other acts against a particular party with regard to a bill, shall be made at such party’s place of business or otherwise at his residence.
\n
Place at which presentment, protest, etc., are to be made.
\n
Art. 225
\n
225.(1) The holder of a bill cannot demand the acceptance thereof, or the delivery of a duplicate, or the performance of any other act relating thereto, except on a day not being a public holiday.
\n
Acceptance not demandable on Sundays, etc.
\n
Amended by:
\n
V.1904.9.
\n
(2)If the last day on which the performance of any of such acts was demandable falls on a Sunday, or on a Holy day of obligation, or on Good Friday, or on any other public holiday, the performance shall be demanded on the next following day, not being a public holiday.
\n
(3)The provisions of this article shall also apply to the protest.
\n
Art. 226
\n
226.(1) The protest for non-acceptance shall be made on the day next succeeding that on which the bill was presented for acceptance.
\n
When protest is to be made.
\n
(2)The protest for non-payment shall be made on the day next succeeding that on which the bill becomes due.
\n
Art. 227
\n
227.(1) The protest for non-acceptance, or the death or bankruptcy of the party on whom the bill is drawn, shall not excuse the holder from protesting the bill in case of non-payment.
\n
(2)Where the acceptor becomes bankrupt before the bill falls due, the holder may protest the bill and exercise his right of recourse.
\n
Art. 228
\n
228.Where a party is named in the bill for the purpose of accepting or of paying it by intervention, and the drawee refuses to accept the bill, the holder shall, after protesting the bill against the drawee, present it for acceptance by the party named in the bill.
\n
Protest for nonacceptance, etc., does not excuse holder from making protest for non-payment.
\n
Holder to demand acceptance from party named in the bill in case of refusal of drawee to accept same.
\n
COMMERCIAL CODE Holder to demand payment from acceptor for honour, etc., in case of refusal of drawee to pay the bill.
\n
Art. 229
\n
229.Where the party on whom the bill was drawn refuses to pay it, the holder shall, after protesting the bill against him, present it for payment to the acceptor for honour, and, in case of refusal by the latter, to any other party named in the bill for the acceptance or payment thereof in case of need.
\n
Refusal of acceptor for honour, etc., to be recorded in or after protest.
\n
Art. 230
\n
230.The refusal, whether to accept or to pay, by any of the parties referred to in the last two preceding articles, shall be mentioned in the act of protest against the drawee or subsequently thereto.
\n
Holder cannot refuse acceptance or payment for honour.
\n
Art. 231
\n
231.(1) The holder of a bill which has been protested for nonacceptance or non-payment cannot refuse the acceptance or payment offered by a party intervening for the honour of the drawer or any of the endorsers.
\n
(2)Nevertheless, any such acceptance for honour shall not operate so as to bar the holder from demanding the security mentioned in article 154.
\n
Retour sans protêt.
\n
Art. 232
\n
232.A request or direction contained in a bill that it shall be returned without protest (retour sans protêt), excuses the holder from the obligation of protesting the bill, but shall not excuse him from the obligation of presenting the bill in due time.
\n
Notice of nonacceptance and of non-payment.
\n
Art. 233
\n
233.(1) The holder of a bill protested for non-acceptance or non-payment shall, without delay, give notice thereof in writing to the endorser immediately preceding him.
\n
(2)Every endorser on receiving such notice shall, without delay, communicate it to the endorser immediately preceding him.
\n
(3)The notice referred to in this article shall be accompanied by the protest.
\n
Where address of endorser is not stated in endorsement.
\n
Art. 234
\n
234.Where a party has endorsed a bill to another party without stating his address, notice of non-acceptance or non-payment shall be given to the endorser next preceding him.
\n
When holder loses his right of recourse.
\n
Art. 235
\n
235.It shall not be competent to the holder of a bill, in case of non-payment, to exercise his right of recourse against the drawer or the endorsers (a) if the bill was not presented for acceptance, where necessary, or for payment, to the drawee or the parties mentioned in articles 228 and 229; (b) if the holder has refused acceptance or payment by a party intervening for the honour of the drawer or of any of the endorsers.
\n
Other cases in which holder loses his right of recourse.
\n
Art. 236
\n
236.Nor shall it be competent to the holder to exercise his right of recourse against the endorsers or the drawer who has supplied funds to the drawee or to the parties mentioned in articles 228 and 229, if he has failed to comply with the provisions of articles 226, 230 and 233.
\n
How right of recourse may be exercised.
\n
Art. 237
\n
237.The holder of a bill protested for non-payment may exercise his right of recourse against all the obligors jointly, or against only one or some of them, without forfeiting his right of COMMERCIAL CODE recourse against the others not sued on the bill, and he shall not be bound to follow the order of the endorsements.
\n
Art. 238
\n
238.The right of recourse against endorsers and drawers residing in Malta, in the case of bills, protested for non-payment, drawn in Malta and payable elsewhere, shall be exercised within (a) twelve months, if the bill was payable at a place in Europe, Asia Minor, Syria, Egypt, Tripoli, Tunis, Algiers or Morocco;
\n
Times within which right of recourse against endorsers and drawers resident in Malta is to be exercised. (b) eighteen months, if the bill was payable in any other country:
\n
Provided that such times shall be doubled in time of maritime war.
\n
Art. 239
\n
239.The times specified in the last preceding article shall commence to run - Running of times. (a) with regard to the holder of the bill, from the date of the protest for non-payment; (b) with regard to each endorser, from the day on which the payment was demanded from him, if he pays voluntarily, or, otherwise, from the day on which a judicial demand for payment was made against him.
\n
Art. 240
\n
240.After the expiration of the times specified in the last two preceding articles, the holder and the endorsers of the bill shall lose their right of recourse.
\n
Right of recourse bared by lapse of time.
\n
Art. 241
\n
241.(1) In case of bankruptcy of one or more of the parties liable on a protested bill, the holder thereof may put forward his claim for the satisfaction of the whole debt against the estate of each of the bankrupts.
\n
Where one or more of the parties liable on the bill are bankrupt.
\n
(2)Where a dividend is received from the estate of one of the bankrupts, the parties liable on the bill, who are not bankrupts, as well as the estates of the other bankrupts, shall be only discharged to the extent of the dividend so received.
\n
Art. 242
\n
242.(1) Nevertheless, where the holder of a bill accepts a voluntary arrangement with the drawer or the acceptor, he shall lose his right of recourse against all the endorsers.
\n
(2)Where the arrangement is made with one of the endorsers, the holder loses his right of recourse against all the subsequent endorsers, but preserves his rights against the acceptor. He preserves his rights also against the prior endorsers and the drawer, unless su ch endorsers or d rawer prov e that t hey have b een prejudiced by such arrangement and provided the holder has expressly reserved his rights against them.
\n
(3)Where the arrangement is made with the drawer, the acce ptor, if h e has not bee n p ut i n funds, shall be entirely discharged.
\n
(4)Finally, where the arrangement is voluntarily made with the acceptor, and such acceptor has been put in funds, the holder loses Where holder accepts voluntary arrangement.
\n
COMMERCIAL CODE his right of recourse against the drawer.
\n
When right of recourse revives.
\n
Art. 243
\n
243.The right of recourse shall revive in favour of the holder against the drawer or endorser who, after the expiration of the times prescribed for the protest, the notice, and the exercise of the aforesaid right, has received on account, or by way of compensation, or in any other manner, the funds assigned for the payment of the bill.
\n
Payer entitled to have bill delivered up to him.
\n
Art. 244
\n
244.Any party liable on a bill of exchange shall, on paying the amount thereof, together with the interest and incidental expenses, be entitled to have the bill, duly discharged, delivered up to him.
\n
Acceptance and endorsements operative even if signature of drawer is forged.
\n
Art. 245
\n
245.The acceptance and the endorsements, if genuine, shall continue to be effectual, even if the signature of the drawer is forged or fraudulently altered.
\n
Where bill contains forged acceptance or endorsement.
\n
Art. 246
\n
246.If a bill contains a forged acceptance or endorsement, or a n ac c e p t a n c e o r en d or s e m e n t f r a u du l e n tl y a lt e r e d , al l t he endorsers and the drawer, whose signatures are genuine, shall continue to be liable on such bill.
\n
O F P ROTEST Protest to be drawn up by a notary public.
\n
Art. 247
\n
247.Protests for non-acceptance or non-payment shall be drawn up by a notary public, who shall go to the place of business or residence of the party bound to accept or to pay, and request him to accept the bill or to pay the amount thereof.
\n
Form of protest.
\n
Art. 248
\n
248.(1) The act of protest must contain a verbatim copy of the bill, of the acceptance, if the bill had been already accepted, of the endorsements, and of the instructions given therein, and must specify (a) the name of the person in whose favour the protest is made; (b) the demand to accept or to pay made to the party against whom the protest is made; (c) the fact whether the party bound to accept or to pay was present or absent; (d) the reason of the refusal to accept or to pay; (e) the date on which the demand was made or unsuccessfully attempted.
\n
(2)In case of acceptance or payment for honour, the protest shall specify by whom, for whose honour, and in what manner the bill has been accepted or paid.
\n
Ineffectual inquiries to be noted.
\n
Art. 249
\n
249.Where the notary has not been able to find the party bound to accept or to pay, or to ascertain whether such party has any place of business, or to discover his place of residence, he shall expressly state in the protest that his inquiries have been unsuccessful.
\n
COMMERCIAL CODE
\n
Art. 250
\n
250.Where the demand for acceptance or payment is to be made to two or more persons, it shall be sufficient to draw up a single act of protest with respect to such demand.
\n
A single act of protest to be drawn up even where the demand is to be made to several persons.
\n
Art. 251
\n
251.No other act by the holder of the bill can supply the want of the act of protest, saving the cases provided for in articles 199, 200, 201 and 202 with regard to lost bills.
\n
Want of protest cannot be supplied by other means.
\n
O F R E-EXCHANGE
\n
Art. 252
\n
252.Re-exchange is effected by means of a re-draft.
\n
How effected.
\n
Art. 253
\n
253.A re-draft is a fresh bill drawn by the holder in order to recover from the drawer or from one of the endorsers the amount due to him as holder of the protested bill, in accordance with the provisions of article 256.
\n
Definition of redraft or retraite bill.
\n
Art. 254
\n
254.Re-exchange is regulated according to the course of exchange of the place in which the re-draft is drawn on the place where the reimbursement is to be made.
\n
How re-exchange is regulated.
\n
Art. 255
\n
255.A re-draft must be accompanied by an account termed \"account of re-draft\".
\n
Re-draft to be accompanied by account of re-draft.
\n
Art. 256
\n
256.(1) Such account shall comprise (a) the amount of the protested bill;
\n
Contents of account. (b) the expenses of the protest, and other lawful expenses, such as those of commission, brokerage and postage; (c) the name of the party on whom the re-draft is drawn, and the rate of exchange at which it is negotiated, such rate of exchange to be certified by a broker or two merchants.
\n
(2)The said account shall be accompanied by the protested bill and the protest.
\n
Art. 257
\n
257.Where there is no course of exchange between the place at which, and the place on which a re-draft is drawn, the re-exchange shall be reckoned according to the course of exchange on the place nearest to that on which the re-draft is drawn.
\n
Where there is no course of exchange between place where re-draft is drawn and place on which it is drawn.
\n
Art. 258
\n
258.Interest on the sum specified in the bill protested for nonpayment, on the expenses of protest, and on all other lawful expenses, shall be recoverable as from the day of the protest.
\n
Interest.
\n
Art. 259
\n
259.No payment may be claimed on a re-draft unless the account of re-draft be accompanied by the certificate prescribed in article 256.
\n
Absence of certificate bars claims on re-draft.
\n
COMMERCIAL CODE Sub-title II O F P ROMISSORY N OTES, AND D RAFTS OR CHEQUES ON BANKERS OR CASHIERS Provisions relating to bills of exchange applicable to promissory notes.
\n
Art. 260
\n
260.The provisions applicable to bills of exchange, and relating to endorsement, joint and several liability, aval, time of maturity, payment, payment for honour, protest, duties and rights of the holder, and re-exchange, shall apply to promissory notes.
\n
Contents of promissory note.
\n
Art. 261
\n
261.(1) A promissory note shall state the date, the amount to be paid, the person in whose favour or to whose order such note is signed, the time when payment is due, and the value supplied in cash, goods, in account or in any other manner.
\n
(2)Drafts or cheques.
\n
Art. 262
\n
262.(1) Drafts or cheques on bankers or cashiers shall be dated, and shall specify the sum to be paid, and shall be made payable to a person therein named, or to his order, or to bearer.
\n
(2)Consequence of delay in presenting cheque.
\n
It may also be drawn payable to bearer.
\n
They shall be payable on presentment.
\n
Art. 263
\n
263.Where the holder of a cheque fails to cash it within three days from the date thereof, and, after such time, the banker or cashier refuses to pay, the holder who has received the cheque from a third party has no right of recourse against such party, nor against the maker of the cheque, if the latter proves that he had in the hands of the banker or cashier sufficient funds to meet the cheque, and that such funds did not cease to be available through his fault.
\n
TITLE VIII
\n
O F THE CONTRACT OF A CCOUNT CURRENT Definition of account current.
\n
Art. 264
\n
264.Account current is a contract whereby two persons covenant that their mutual remittances be entered in an account as items of debit and credit, subject to the obligation of the party against whom a balance is found at the time the account is wound up to pay such balance.
\n
Ownership of remittances.
\n
Art. 265
\n
265.Every remittance made in pursuance of such contract shall be deemed to pass in absolute ownership from the remittor to the remittee.
\n
Items of debit and credit.
\n
Art. 266
\n
266.The items of debit and credit shall be deemed to be two indivisible amounts:
\n
Provided that, in default of an agreement to the contrary, every right of action or defence relating to any act or contract giving rise to each separate remittance shall remain unimpaired; and, where COMMERCIAL CODE any such act or contract is annulled, the items relating thereto shall be struck out of the account.
\n
Art. 267
\n
267.(1) The party who has included in the account a debt secured by a pledge or a hypothec shall be entitled to enforce such security for the payment of any balance which may be found for him.
\n
Where secured claim is passed to account current.
\n
(2)The provisions of this article shall also apply with regard to any claim passed to account current which is secured by the obligation of a surety or a co-debtor.
\n
Art. 268
\n
268.(1) All remittances of debts due, whatever their origin, shall be deemed to be passed to account current under the clause \"subject to collection\".
\n
Remittances of debts due.
\n
(2)If any such debt remains unpaid, the remittee may elect either to strike the item out of the account or to sue the remittor thereof for the payment of the debt.
\n
Art. 269
\n
269.Any creditor of any of the parties to an account current may sue out a garnishee order against his debtor in the hands of the other party to the account, provided that any such order shall be operative only when and if a final balance is found for such debtor on the winding up of the account.
\n
Garnishee order against a party to an account.
\n
Art. 270
\n
270.(1) It shall not be lawful for the debtor, after the execution of the garnishee order referred to in the last preceding article, to impair his credit account by fresh remittances:
\n
Debtor not to impair his position in account current.
\n
Provided that any remittance the title to which accrued in favour of the other party to the account current before the issue of the garnishee order, shall not be deemed to be a fresh remittance.
\n
(2)The party to the account current in whose hands the attachment is made may, on being served with the garnishee order, demand the dissolution of the contract.
\n
Art. 271
\n
271.Save as otherwise agreed upon between the parties, an account current shall be wound up yearly.
\n
Account current to be wound up yearly.
\n
Art. 272
\n
272.The death, or the supervening disability, or the bankruptcy of a party to an account current shall not operate so as to determine the contract, unless the heir, or representative, or the other party to the account, as the case may be, elects to determine the contract by means of a judicial intimation to that effect within three months from the happening of any of the aforesaid events.
\n
Effects of death, disability or bankruptcy of party to an account current.
\n
PART II
\n
O F MARITIME T RADE AND OF N AVIGATION
\n
Title I
\n
O F THE CONTRACT OF A FFREIGHTMENT COMMERCIAL CODE Sub-title I G ENERAL P ROVISIONS Contract of affreightment.
\n
Different kinds of affreightment.
\n
Art. 273
\n
273.A contract of affreightment is an agreement for the hire of a vessel.
\n
Art. 274
\n
The affreightment can be (a) for the entire vessel or for a part thereof; for one or more voyages; (b) for the conveyance of goods in a general ship or á la cueillette that is, when the master receives goods separately from several persons and engages to ship and convey such goods.
\n
When contract is to be made in writing.
\n
Art. 275
\n
275.Where the vessel, chartered whether in whole or in part, is of more than thirty tons tonnage, the contract is null unless made in writing.
\n
Rules as to time for loading and discharging, in the absence of agreement.
\n
Art. 276
\n
276.If the period for loading and discharging is not fixed by agreement, the following rules shall be observed: (a) The period for loading or discharging in Malta is of eight days, if the vessel is of one hundred tons or less; of twelve days, if the vessel is of more than one hundred tons but not more than two hundred; of twenty days, if the vessel is of more than two hundred tons.
\n
Such period shall be reckoned from the time when the master declares that he is ready to load or discharge.
\n
The days mentioned in this article are successive working days. (b) Outside Malta, the period for loading or discharging shall be determined according to the laws and usages of the place of loading or discharging and if the loading or discharging is to be effected in different places, the period shall be determined according to the laws and usages of the place where the last portion of the cargo is loaded or discharged.
\n
Where loading or discharging is to be effected at different places.
\n
Art. 277
\n
277.Where a portion of the cargo is to be loaded or discharged in one place and the remainder in another, the time employed in proceeding from one place to another shall not be computed in the time limited for loading or discharging.
\n
Where person letting vessel makes untrue statement as to tonnage thereof.
\n
Art. 278
\n
278.(1) If the person letting the vessel declares the vessel to be of a tonnage greater than her real tonnage, he shall be liable to a proportionate abatement of the freight, and shall be answerable for damages and interest to the freighter.
\n
(2)The provisions of this article shall not apply, where the difference between the declared tonnage and the real tonnage does not exceed a fortieth part of the real tonnage.
\n
When freight can be demanded.
\n
Art. 279
\n
279.The payment of the freight can be demanded immediately after the delivery of the cargo.
\n
COMMERCIAL CODE
\n
Art. 280
\n
280.(1) Where the vessel is chartered by the month, the freight runs from the time of the commencement of the voyage.
\n
(2)A voyage is deemed to be commenced as soon as the vessel has left the place where the loading commenced, or if the vessel sails in ballast, from the place where the ballast was shipped.
\n
Art. 281
\n
281.The buyer or any other successor is bound to abide by the terms of the contract of affreightment stipulated by the seller or any other prior possessor of the vessel.
\n
When freight commences to run in cases where vessel is chartered by the month.
\n
Buyer, etc., bound by affreightment previously stipulated by the seller, etc.
\n
Sub-title II O F THE R IGHTS AND D UTIES OF THE P ERSON LETTING THE V ESSEL AND THE F REIGHTER
\n
Art. 282
\n
282.If the freighter has not shipped any portion of the cargo within the period fixed in the contract or determined by law, the person letting the vessel may, at his option, either - Where freighter does not ship any portion of cargo. (a) claim the indemnity fixed in the contract, or, failing any covenant thereanent, an indemnity to be assessed by experts; or (b) rescind the contract, and claim from the freighter half the freight; or (c) on the lapse of two days from the date of service of a protest, undertake the voyage without a cargo, and, on the completion of the voyage, claim from the freighter the freight in full, besides the amount of demurrage, if any, and the expenses incurred for the protest and for any other act which it was necessary for him to make.
\n
Art. 283
\n
283.If within the period aforesaid, the freighter has shipped only a portion of the cargo, the person letting the vessel may, at his option, either - Where freighter ships only a portion of cargo. (a) demand the indemnity mentioned in the last preceding article; or (b) on the lapse of two days from the date of service of a protest, undertake the voyage with the portion so shipped, and claim the freight, the demurrage, and the expenses, as provided in the last preceding article.
\n
Art. 284
\n
284.If during the voyage the vessel which has sailed without a cargo, or with a portion only of the cargo, sustains a loss which would have given rise to a general average in case the vessel had taken on board a full cargo, the person letting the vessel may claim from the freighter a contribution reckoned on two-thirds of the goods which the latter failed to ship.
\n
Contribution to general average where freighter fails to ship cargo, or ships only a portion thereof.
\n
Art. 285
\n
285.If the freighter has not shipped any portion of the cargo, and abandons the contract before the commencement of the period of demurrage, he must pay to the person letting the vessel half the Where freighter abandons contract.
\n
COMMERCIAL CODE freight.
\n
Person letting vessel may take in other goods in the place of those not shipped by freighter.
\n
Art. 286
\n
286.(1) Where the person letting the vessel is entitled to sail without a cargo, or with a portion only of the cargo, he may, for the purpose of securing the freight and the contribution to general average, take in other goods, even without the consent of the freighter.
\n
(2)In any such case the freight for such other goods shall be accounted to the original freighter, who shall, moreover, be discharged from such contribution to general average as shall have been paid by such other goods.
\n
When freighter ships more than agreed upon.
\n
Art. 287
\n
287.Where the freighter ships more than was agreed upon, he shall pay freight on the excess at the rate stipulated for the quantity agreed upon.
\n
Liability of person letting the vessel for delay.
\n
Art. 288
\n
288.If the vessel is not ready, and is not in a state to receive the goods at the stipulated time, the person letting the vessel shall be liable to pay damages and interest to the freighter.
\n
Time for sailing where affreightment is for conveyance of goods in a general ship.
\n
Art. 289
\n
289.Where the affreightment is for the conveyance of goods in a general ship, the master shall sail with the first favourable wind or on the first favourable opportunity after the expiration of the period during which it was agreed that the vessel would take in her lading, unless a further delay be agreed to by the shippers.
\n
Right of shippers in contract for conveyance of goods in a general ship.
\n
Art. 290
\n
290.(1) If in a contract for the conveyance of goods in a general ship, the day for the sailing of the vessel is not fixed, it shall be lawful for each of the shippers to withdraw his own goods without payment of freight, on returning the bills of lading signed by the master, or giving security for such bills as may have already been forwarded, and on paying all the expenses for the loading and unloading of such goods.
\n
(2)Nevertheless, where, in any such case, the vessel has already on board more than one-half of the cargo, the master shall sail with the first favourable wind or on the first favourable opportunity, if he is required to do so by means of a protest by the shippers representing the greater part of the cargo, and he shall so sail not later than eight days from the service of such protest; in such case no one of the shippers shall be allowed to withdraw his goods.
\n
Where vessel is arrested through fault of freighter, etc.
\n
Art. 291
\n
291.If a vessel is arrested at the time of departure, or during the voyage, or at the place of discharge, on account of the act or negligence of the freighter or any of the shippers, such freighter or shipper shall make good to the person letting the vessel and the other shippers all damages and interest.
\n
Where vessel is detained or delayed through fault of person letting the vessel.
\n
Art. 292
\n
292.The person letting the vessel shall be liable in damages and interest to the freighter, if, on account of the act or negligence of the former, the vessel is detained or delayed at the time of departure, or during the voyage, or at the place of discharge.
\n
Where freighter loads forbidden goods, etc.
\n
Art. 293
\n
293.If, without the knowledge or concurrence of the person letting the vessel or of the master, the freighter or the shipper loads goods the importation or exportation of which is prohibited, or, by COMMERCIAL CODE any other unlawful act during the time of loading or unloading, causes injury to the vessel or to other interested parties, he is bound to make good any damages, and, even though the goods are confiscated, to pay the full freight, and to contribute towards general average, if any.
\n
Art. 294
\n
294.(1) If the master is obliged to refit the vessel in the course of the voyage, the freighter or the shipper is bound to await the carrying out of such refitting, unless he elects to withdraw his goods, in which case he must pay the full freight and contribute towards general average, saving the provisions of article 324.
\n
Where vessel requires refitting.
\n
(2)If the vessel is chartered by the month, the freight shall continue to run during the time of refitting, but if the vessel is chartered by the voyage, no increase of freight may be claimed.
\n
(3)If the vessel cannot be refitted, the master must charter another vessel or other vessels to carry the goods to the place of destination.
\n
(4)If the master is unable to charter such other vessel or vessels at the same place or at a place nearby, freight is due in proportion to the part of the voyage performed.
\n
(5)In the case mentioned in sub-article (4) of this article, the duty to provide for the conveyance of the goods shall devolve on the shippers severally, but the person letting the vessel shall be bound not only to inform them as to his situation, but also to take meanwhile all such steps as may be necessary for the preservation of the cargo.
\n
Art. 295
\n
295.The person letting the vessel loses his freight and is answerable for damages and interest to the freighter, if the latter proves that the vessel was unseaworthy when she sailed.
\n
Where vessel was unseaworthy at the time of sailing.
\n
Art. 296
\n
296.The freighter may in the course of the voyage withdraw the whole of the goods, or a portion thereof, provided no injury or delay be caused thereby to the other freighters, and provided he pays to the master the whole freight for the goods withdrawn, as well as any contribution to general average or other indemnity wh i c h m a y be d u e , a c c or d i ng to c i rc um s t a n c e s , sa v in g t h e provisions of article 324.
\n
When freighter may withdraw goods in the course of the voyage.
\n
Art. 297
\n
297.Where, in the course of the voyage, the cargo has by reason of any peril of the sea become incapable of being carried, it shall be lawful for the freighter to withdraw it on paying the freight in proportion to the voyage performed; but if the cargo has become so incapable by its own inherent vice, the freighter must, if he withdraws the cargo, pay full freight.
\n
Where cargo becomes incapable of being carried.
\n
Art. 298
\n
298.The freight on goods which the master has been compelled to sell in the course of the voyage for refitting the vessel, or for buying sails, ropes, or other apparel, or provisions, shall be payable in full, if the vessel arrives in safety, or in proportion to the voyage performed, if the vessel is wrecked.
\n
Freight on goods sold during voyage.
\n
Art. 299
\n
299.The freight in respect of goods jettisoned for the common safety shall be payable by contribution as a general average.
\n
Freight in respect of jettisoned goods.
\n
COMMERCIAL CODE No freight due for goods lost by shipwreck, etc.
\n
Art. 300
\n
300.No freight is due for goods lost by shipwreck, stranding, or any other vis major, and the person letting the vessel is bound to refund the freight paid to him in advance.
\n
Freight is due where goods are saved,
\n
Art. 301
\n
301.(1) If the goods have been saved from shipwreck or other accident, freight is due to the person letting the vessel as far as the place of the accident.
\n
(2)The entire freight is due to him if he carries the goods to their place of destination. unless saved without cooperation of master.
\n
Art. 302
\n
302.No freight is due for goods, forming part of the cargo, which may have been saved at sea or on the coast, without the cooperation of the master.
\n
Discharge of cargo.
\n
Art. 303
\n
303.After the expiration of the period agreed upon in the contract, or fixed by law for unloading, the person letting the vessel or the master can compel the freighter or the consignee of the goods to proceed to the unloading of the vessel, and to pay the freight and average.
\n
When person letting vessel or master may discharge and deposit goods.
\n
Art. 304
\n
304.If, the lay days having elapsed, any dispute arises with regard to the unloading of the vessel, the person letting the vessel or the master may discharge the goods, and put them on deposit in the hands of a third party, without prejudice to his right over such goods.
\n
Master cannot detain goods on board.
\n
Art. 305
\n
305.(1) The person letting the vessel or the master cannot detain the goods on board the vessel on the plea of default of payment of the freight, the general average, and other charges.
\n
(2)Nevertheless, the person letting the vessel or the master can deposit the goods with a third party until the sum due to him is paid, and can, if such goods are perishable, demand that they be sold.
\n
(3)Where the general average cannot be immediately adjusted, it shall be lawful to demand that a judicial deposit be made of a sum to be fixed by the court.
\n
When master loses his remedy against the freighter or shipper.
\n
Art. 306
\n
306.Where the master unloads the goods without obtaining payment of the freight, average, and other charges, or without taking such precautions as are allowed to him by the laws in force at the place of discharge, he shall forfeit his right against the freighter or the shipper, if such freighter or shipper proves that he has duly settled the amount of such freight, average, and charges with the person receiving the goods, or that he cannot, owing to the bankruptcy of such person, recover back such amount.
\n
Where consignee refuses to receive the goods.
\n
Art. 307
\n
307.If the consignee refuses to receive the goods, the person letting the vessel or the master may demand the sale of such quantity of the goods as may be required for the payment of the freight, average and other charges, saving the right of resort to the freighters or the shippers in case of insufficiency of the proceeds.
\n
Lien or privilege extends to average and other charges.
\n
Art. 308
\n
308.(1) The special lien or privilege which, under the provisions of paragraph (c) of article 2009 of the Civil Code, is competent to the person letting the vessel or the master for the payment of the freight, extends also to average contributions and COMMERCIAL CODE other charges.
\n
(2)Such lien or privilege, however, both in regard to the amount of freight, and to the average and other charges, ceases on the expiration of fifteen days from the day of the delivery of the goods, notwithstanding that such goods may have not yet passed into the hands of third parties.
\n
Art. 309
\n
309.In all cases where the freight is agreed upon by the number, measure, or weight of the goods to be carried, the person letting the vessel is entitled to demand that the goods be numbered, measured, or weighed at the time of their discharge.
\n
When goods are to be numbered, etc.
\n
Art. 310
\n
310.In no case can the freighter or the shipper demand a reduction in the freight.
\n
Freighter or shipper cannot demand reduction of freight.
\n
Art. 311
\n
311.The shipper cannot abandon for the freight goods which have decreased in value or deteriorated whether by their own inherent vice or by any fortuitous event. Nevertheless, if casks of wine, oil, honey, or other liquids have so leaked as to be empty or almost empty, such casks may be abandoned for the freight.
\n
When shipper may abandon goods for freight.
\n
Sub-title III O F THE DISSOLUTION OF CONTRACTS OF A FFREIGHTMENT
\n
Art. 312
\n
312.(1 A contract of affreightment is dissolved ipso jure, without any right of the parties to the contract to claim freight or indemnity, upon the happening, before the departure of the vessel, of any of the following circumstances:
\n
When contract of affreightment is dissolved ipso jure. (a) if the departure of the vessel is prevented by a vis major; (b) if the exportation from the place of departure of all or any of the goods included in one and the same contract of affreightment is prohibited, or if the importation thereof is prohibited at the place of destination; (c) if trade with the place to which the vessel is bound is interdicted.
\n
(2)In every such case the freighter must bear the expenses of loading and discharging.
\n
Art. 313
\n
313.(1) A contract of affreightment can be dissolved upon the demand of either of the parties if, before the commencement of the voyage, a war breaks out by reason whereof the vessel or the cargo or both ceases or cease to be considered as neutral property.
\n
(2)If neither the vessel nor the cargo is free, the person letting the vessel and the freighter have no claim upon each other for compensation, but the expenses of loading and discharging shall be borne by the freighter.
\n
Breaking out of war.
\n
COMMERCIAL CODE
\n
(3)If the cargo only is not free, the freighter must pay to the person letting the vessel all the expenses necessary for fitting out the vessel, for the wages and the maintenance of the crew up to the day on which the demand for the dissolution of the contract is made, or, if the goods be already on board, up to the day of unloading.
\n
(4)If the vessel only is not free, the expenses of loading and unloading shall be borne by the person letting the vessel.
\n
Person letting vessel maintains unimpaired his right for demurrage and average.
\n
Art. 314
\n
314.In the cases mentioned in the last two preceding articles, the person letting the vessel maintains unimpaired his rights with regard to demurrage and to general average, if any.
\n
If vessel is freighted for more than one place of destination, and war breaks out before the completion of the voyages.
\n
Art. 315
\n
315.If a vessel, freighted for more than one place of destination, after the completion of one voyage, happens to be in the port wherefrom she is to undertake another voyage, and a war breaks out before the commencement of such other voyage, the following rules shall be observed: (a) if neither the vessel nor the cargo is free the vessel shall stay in port until the conclusion of peace, or until she can sail with convoy, or in any other safe manner, or until further instructions are transmitted to the master by the owners of the vessel and of the cargo, where the vessel is laden, the master may deposit the goods in a warehouse or in any other place of safe custody, until the voyage can be continued or until other measures are adopted, the wages of the seamen and the expenses for the maintenance of the crew, warehouse rent and any other expense occasioned by the delay shall be borne, by way of general average, by the freighter and the person letting the vessel, where the vessel is not laden, two-thirds of the expenses shall be borne by the freighter; (b) if the vessel only is not free the contract for the intended voyage shall be dissolved upon the demand of the person letting the vessel, where the vessel is laden, the person letting her or the master shall pay the expenses for loading and unloading, and they can only claim freight in proportion to the voyages already performed, demurrage, and general average; (c) if the cargo only is not free, and the freighter does not otherwise effect the shipment, the master may sail without the cargo, and complete the voyage undertaken. In any such case, the person letting the vessel or the master is entitled, on completion of the voyage, to claim the whole freight, and the provisions of articles 284 and 286 shall also apply:
\n
COMMERCIAL CODE Provided that if the freighter is absent they shall use all due diligence to obtain a cargo from other persons.
\n
Art. 316
\n
316.(1) Where a vessel is freighted to proceed in ballast to another port, there to be laden for a voyage, the contract shall be dissolved if, when the vessel is on her way to, or has arrived at the place of loading, a war breaks out, which prevents the continuation of the voyage; and no claim to compensation shall be competent to either party, if the restraint affects the vessel alone, or both the vessel and the cargo.
\n
Where war breaks out before, or on arrival of the vessel at the place of loading.
\n
(2)If, on the contrary, the vessel is free, but not the cargo, the freighter shall pay half the stipulated freight.
\n
Art. 317
\n
317.If, whilst a vessel is on a voyage, trade with the country to which the vessel is proceeding is interdicted, and the vessel is obliged to return with the cargo, freight is due for the outward voyage only, even though the vessel may have been chartered \"out and home\".
\n
Interdiction of trade.
\n
Art. 318
\n
318.(1) Where an embargo or any other reason of force majeure causes a temporary suspension of the voyage of a vessel whether before the vessel’s departure or during the voyage, without any fault of the master, the owner, or the freighter, the contract shall continue to subsist, and neither party is liable for damages for delay.
\n
Embargo.
\n
(2)Freight shall also be due during the detention of the vessel, if the vessel is chartered by the month; but no increase is due, if the vessel is chartered for the voyage.
\n
(3)The shipper can have his goods discharged during the detention at his own expense, on condition of re-loading them or of indemnifying the person letting the vessel or the master.
\n
Art. 319
\n
319.If the port to which the vessel is bound is blockaded, the master must, in the absence of instructions to the contrary, proceed to such one of the neighbouring ports of the same State as he may be allowed to put into.
\n
Blockade.
\n
Art. 320
\n
320.All the rules contained in this sub-title shall apply to the contract for the conveyance of merchandise in a general ship or á la cueillette.
\n
Conveyance in a general ship.
\n
Sub-title IV O F BILLS OF LADING
\n
Art. 321
\n
321.The bill of lading shall be signed by the master, and given to the shipper, and a duplicate shall be signed by the shipper, and given to the master.
\n
Bill of lading.
\n
Art. 322
\n
322.(1) The bill of lading may be drawn to order or to bearer or in favour of a party named therein.
\n
How drawn and transferred.
\n
(2)COMMERCIAL CODE It may be transferred by endorsement even in blank.
\n
Parts of bill of lading.
\n
Art. 323
\n
323.The master shall give as many parts of a bill of lading as are asked for by the freighter or the shipper.
\n
Goods cannot be withdrawn without the bills of lading.
\n
Art. 324
\n
324.(1) Freighters or shippers cannot withdraw the goods, already shipped, without returning to the master the bills of lading received in respect of such goods.
\n
(2)If one bill of lading or more than one shall have been forwarded, it shall not be competent to the freighters or the shippers to withdraw the aforesaid goods except upon giving sufficient security in respect of any consequences which may arise from the forwarding of such bill or bills, and under the obligation, i n a l l c a s e s, o f p a y i n g t h e e nt i r e f r e i g h t , t h e e x p e n s e s f o r discharging the goods, and those occasioned by the displacement of the remainder of the cargo, saving the provisions of article 290 and any other provision of law.
\n
Persons between whom bill of lading is binding.
\n
Art. 325
\n
325.A bill of lading is conclusive evidence between all persons concerned in the cargo, as well as between them and the insurers, saving any proof to the contrary.
\n
When different parts of a bill of lading are at variance.
\n
Art. 326
\n
326.If there is a variance between bills of lading of the same cargo, the one which is in the hands of the master shall be conclusive evidence if it is filled up by the shipper or his agent; and that presented by the shipper or by the consignee is conclusive evidence, if filled up by the master.
\n
Agents or consignees to give receipt.
\n
Art. 327
\n
327.Every agent or consignee on receiving the goods specified in the bill of lading or in the contract of affreightment shall be bound to give the master a receipt for such goods, under penalty of paying all the expenses, damages, and interest, including those occasioned by the delay.
\n
Sub-title V O F PASSENGERS If passenger fails to go on board at appointed time.
\n
Art. 328
\n
328.If the passenger fails to go on board, or, without the permission of the master, absents himself from the vessel at the time appointed for the departure thereof, the master shall be at liberty to sail, and may claim the entire amount of passage money.
\n
Passenger cannot transfer his right.
\n
Art. 329
\n
329.A passenger cannot, without the consent of the master, transfer to a third party the right accruing to him from the contract.
\n
If passenger dies before commencement of voyage.
\n
Art. 330
\n
330.(1) If the passenger dies before the commencement of the voyage, only half the passage money shall be due.
\n
(2)Where in any such case the cost of provisions is included in the passage money agreed upon, such cost shall be deducted therefrom.
\n
COMMERCIAL CODE
\n
Art. 331
\n
331.(1) If the vessel’s voyage be interrupted or suspended, whether before the departure or in the course of the voyage, by a vis major, or by any cause beyond the master’s control, the passenger and the master shall be released from their mutual obligations, and neither of them can claim compensation from the other.
\n
Interruption of voyage.
\n
(2)In the case, however, of the interruption of a voyage after the commencement thereof, the passengers shall pay passage money in proportion to the part of the voyage performed.
\n
Art. 332
\n
332.If in the case contemplated in article 294 a passenger is willing to await the refitting of the vessel, the supply of provisions during the delay shall be at the charge of the master, if he has undertaken to furnish provisions during the voyage.
\n
Passenger entitled to provisions during delay.
\n
Art. 333
\n
333.Passengers shall obey the orders of the master in all matters concerning the preservation of order on board the vessel.
\n
Passengers to obey master’s orders.
\n
Art. 334
\n
334.The master is neither bound, nor authorized, to put into a port, or to stop during the voyage, at the request or for the benefit of a passenger.
\n
Master not to deviate at request of passenger.
\n
Art. 335
\n
335.Passengers shall, in the absence of an agreement to the contrary, provide for their own maintenance; but the master is, when required, bound to supply to a passenger at a fair price such provisions as may be necessary.
\n
Maintenance of passengers.
\n
Art. 336
\n
336.If a passenger dies in the course of the voyage, the master shall provide for the custody of such effects of the deceased as are found on board.
\n
Property of deceased passenger.
\n
Art. 337
\n
337.The master shall, for the payment of the passage money and the cost of provisions, have a right of retention over the effects brought on board by a passenger, in addition to the same special privilege as is competent to the creditors mentioned in paragraph (b) of article 2009 of the Civil Code.
\n
Right of retention.
\n
Title II
\n
O F CONTRACTS OF LOAN ON BOTTOMRY AND AT RESPONDENTIA Articles 338 to 360, both inclusive, repealed by: XXXVII.1988.41.
\n
Title III
\n
O F M ARINE INSURANCE Sub-title I O F THE CONTRACT OF M ARINE INSURANCE 361. (1) Contracts of insurance must be made in writing, under pain of nullity.
\n
(2)They may be made by a private writing, which is called a policy. No blank space shall be left in the policy.
\n
Contracts of insurance to be made in writing.
\n
COMMERCIAL CODE
\n
(3)There shall be stated in the contract the date of the day on which it is signed, and whether the contract was made before or after noon.
\n
One contract may contain several insurances.
\n
362.(1) The same contract may contain several insurances, whether by reason of the things insured, or of the rate of the premium, or of the several insurers.
\n
(2)Where by the same contract things, even of a different kind, shipped in the same vessel, are insured in favour of one person only, one insurance only is deemed to be made.
\n
(3)Where the insurers are two or more, and they do not sign the contract at the same time, each of them shall, before signing, state the day and hour of the affixing of his signature.
\n
Transfer by endorsement.
\n
Things that may be insured.
\n
363.The policy is transferable by endorsement.
\n
364.(1) The insurance may be upon the hull of the vessel, whether laden or in ballast, fitted out or not fitted out, sailing alone o r w i t h o th e r s ; h e r t a c k le a nd a p p a r e l ; h e r e q u i p m e n t ; h e r provisions; all that which may have been expended for the vessel up to the day of her departure; the sums lent on bottomry and the interest thereon; the cargo; the anticipated profits; the stipulated freight; and upon all other things capable of being estimated in money, and subject to the perils of navigation.
\n
(2)An insurance of the vessel, without any other explanation, includes the hull, the tackle and apparel, and the equipment.
\n
When and for what period insurance can be made.
\n
365.(1) An insurance may be made on the whole or on a part of the above-mentioned things, jointly or separately.
\n
(2)It may be made in time of peace or in time of war, before or during the voyage of the vessel.
\n
(3)It may be for a voyage \"out and home\", or only for one of t h e t w o; f o r a w ho l e v o ya ge o r f o r a de fi n it e pe r io d; fo r a determinate voyage and for a definite period jointly; for all the voyages and passages by sea, through rivers or navigable channels.
\n
Duration of risks.
\n
366.If both the voyage and the time are specified in the contract of insurance, the insurer shall run the risks of the entire voyage. Where the duration of the voyage exceeds the time specified, the premium shall be increased in proportion to the excess. Where the voyage is completed in less than the time specified, the premium agreed upon cannot in any way be reduced.
\n
Goods insured on vessel unknown to the assured.
\n
367.If the assured does not know on board of which vessel the goods are shipped, such goods can be insured as shipped on board a vessel unknown to the assured.
\n
When nature of goods is not stated in the contract.
\n
368.If the nature or the kind of the goods is not stated in the contract, the goods can be insured under the general description of merchandise; but such insurance shall not include gold or silver coins or ingots, or pieces of gold and silver, or diamonds, pearls, gold ware, or munitions of war.
\n
COMMERCIAL CODE 369. If the value of the thing insured is fixed in the contract in foreign money, it shall be reckoned at the value of such foreign money in Malta, according to the rate of exchange at the time of the stipulation of the contract.
\n
Goods valued in foreign money.
\n
370.If the value of the goods is not stated in the contract, such value can be proved by the invoices and the books: in the absence thereof, the goods shall be valued according to the market price at the time and place of loading, including all duties paid and charges incurred up to the time the goods have been shipped.
\n
Proof of value of goods.
\n
371.The anticipated profit is proved by means of the lists of prices current, or, in the absence thereof, by such other means as may establish the amount of profit which might have reasonably been obtained if the goods insured had reached their place of destination after a voyage without any accident.
\n
Proof of anticipated profit.
\n
372.Where by such lists of prices current or other means it is proved that, in case of safe arrival, the profit would have been less than the sum stated in the contract by the assured, the insurer is discharged on paying such lesser sum. If the goods insured would have yielded no profit, nothing shall be due by the insurer.
\n
Where profit is less than the sum declared by assured.
\n
373.(1) The amount of the freight is proved by the contract of affreightment, or by the bill of lading.
\n
Proof of amount of freight.
\n
(2)Failing such evidence, and in regard to goods belonging to the ship-owners themselves, the amount of the freight shall be fixed by experts.
\n
374.If the period of the risk is not stated in the contract of insurance, such risk shall commence to run and shall come to an end as provided in article 355.
\n
Period of risk.
\n
375.When goods have been insured, the period of the risk shall run without any interruption even in cases where, after the vessel had dropped anchor at an intermediate port, the master has been compelled to unload the cargo for the purpose of refitting the vessel; but the period of the risk shall end if the voyage is legally interrupted, or whenever the assured has ordered the goods not to be reshipped, or, lastly, immediately on the completion of the voyage.
\n
Period of risk in regard to goods, 376. The risk in regard to an insured freight shall commence, as far as the insurer is concerned, as and when the goods contributing to the freight are shipped, and shall end on their being landed. in regard to freight, 377. In regard to insurers of sums lent on bottomry, the period of the risk shall commence and end simultaneously with the beginning and the end of the risk of the lender, in terms of law, and according to such agreements as are notified to the insurer. in regard to insurers of loans on bottomry, 378. The period of the risk in regard to anticipated profits shall be the same as that in regard to goods. in regard to anticipated profits.
\n
379.(1) Where an insurance has been made on anticipated profits, such profits shall be estimated separately in the contract, with an indication of the goods in regard to which such profits are anticipated.
\n
Anticipated profits to be valued separately.
\n
COMMERCIAL CODE
\n
(2)In case of a valuation in gross of the subject insured, with an express covenant that the surplus value shall be considered as the anticipated profits, the insurance shall only be good to the extent of the cost of the subject insured, and of such amount of anticipated profits, over and above the cost, as may be proved under articles 370 and 371.
\n
Reinsurance.
\n
380.(1) It shall be lawful for the insurer to reinsure with another person things which he has insured.
\n
(2)The assured may insure the cost of the insurance.
\n
(3)The premium of the reinsurance may be greater or less than that of the insurance.
\n
Increase of premium on outbreak of hostilities.
\n
381.If, after the commencement of the risks contemplated in the contract of insurance, a war breaks out, and, in consequence thereof, the subject insured is exposed to greater danger, it shall be competent to the insurer to demand an increase of the premium, and, if such increase is not agreed upon by the parties, it shall be fixed by the court, regard being had to the circumstances causing the increase of the danger.
\n
Seaman or passenger having goods insured to deposit bill of lading.
\n
Amended by:
\n
XXXI.1966.2;
\n
LVIII.1974.68;
\n
XXIV.1995.362.
\n
382.(1) A member of the crew or a passenger having on board the vessel in or on which he is serving or is carried, goods insured in Malta shall deposit a bill of lading in the Civil Court, First Hall, if the shipment is made in Malta; if the shipment is made outside Malta, such bill of lading shall be deposited with the diplomatic or consular representative of the Government of Malta in that port or with a person serving in a diplomatic, consular or other foreign service of any country which, by arrangement with the Government of Malta, has undertaken to represent that Government’s interests in that port or with a person authorised in that behalf by the President of Malta, or, in the absence of such persons, with some trustworthy merchant being a citizen of Malta or other Commonwealth citizen, or with a local magistrate.
\n
(2)If the goods insured belong to the master, the bill of lading shall be signed by two of the principal members of the crew, and, in case of any disaster, the master shall also be bound to prove to the insurers the purchase of such goods.
\n
Bankruptcy of the insurer or the assured.
\n
383.(1) If the insurer becomes bankrupt before the termination of the risk, the assured may demand either that security be given or that the contract be rescinded.
\n
(2)The same right shall be competent to the insurer in case of bankruptcy of the assured, if the premium has not been paid to him.
\n
When contract of insurance is null.
\n
384.
\n
A contract of insurance is null, if made upon (a) the pay or wages of members of the crew; (b) the premium or primage payable to the master; (c) vessels or goods charged, before the commencement of the voyage, with a loan on bottomry for their entire value:
\n
COMMERCIAL CODE Provided that if such vessels or goods are only in part charged with such loans, the contract of insurance shall be valid for the excess of their value over the sum borrowed.
\n
385.(1) Any concealment, or any misrepresentation by the assured, or any discrepancy between the contract of insurance and the bill of lading, shall render the contract of insurance void, if such concealment, misrepresentation, or discrepancy is such as to lessen the estimate of the risk, or to change the subject-matter thereof.
\n
Concealment or mis-representation.
\n
(2)The insurance shall be void even if the concealment, misrepresentation, or discrepancy shall have had no effect upon the damage or loss of the things insured.
\n
Sub-title II O F THE RIGHTS AND O BLIGATIONS OF THE I NSURER AND OF THE A SSURED 386. (1) If the voyage is abandoned, even though by the act of the assured, before the insurer has begun to run the risk, the insurance becomes void, and the assured is not bound to pay the premium, or, in case he has paid it, he shall be entitled to demand from the insurer the repayment thereof.
\n
Where voyage is abandoned before commencement of risk.
\n
(2)The insurer, however, shall receive, by way of compensation, one half per centum on the sum insured, or one half of the premium, if the whole premium does not amount to one per cent.
\n
387.Any loss or damage which happens to the things insured by reason of stress of weather, shipwreck, stranding, fortuitous collision, compulsory deviations, or changes of voyage or vessel; or by reason of jettison, fire, capture, pillage, piracy, arrest and restraint of princes and peoples, declaration of war, reprisals; or in general by reason of any other peril of the sea, shall be at the risk of the insurer, unless the insurer shall have covenanted his exemption from one or more of such risks.
\n
Risks borne by insurer.
\n
388.Any voluntary deviation, or change of voyage or vessel, and any loss or damage proceeding from the act of the assured, is not at the risk of the insurer, and he shall be deemed to have earned his premium, if the time of his risk has commenced.
\n
Voluntary deviations, etc., not to be borne by insurer.
\n
389.(1) In the absence of an express agreement to the contrary, the insurer is in no case answerable for damages or averages proceeding directly from an inherent vice or from the nature of the subject insured.
\n
Inherent vice of subject insured.
\n
(2)Where an insurer is bound to pay for damages occasioned by leaking or liquefaction, the leakage or diminution to which the thing insured is ordinarily subject shall be first deducted.
\n
Barratry.
\n
COMMERCIAL CODE 390. (1) In the absence of an agreement to the contrary, the insurer shall not be answerable for such malversations or faults of the master or crew as are known by the name of barratry of the master.
\n
(2)Any such contrary agreement is ineffectual in regard to such portion of the subject insured as belongs to the master.
\n
(3)The insurer shall, however, be answerable for the unskilfulness of the master or crew.
\n
Collisions.
\n
Amended by:
\n
XXII.1976.4.
\n
391.(1) In cases of damage caused by a collision of vessels, the insurer shall be liable to make good the damage if the collision was accidental or was caused by the fault of the master or the crew of another vessel.
\n
(2)Where, however, it is proved that both the vessel insured as well as the other vessel were in fault, or where it is doubtful to whose fault the collision is imputable, the damage, in cases not provided for by the Merchant Shipping Act, shall be borne in equal portions by the colliding vessels; and, in such cases, as well as in the case of a collision caused by the fault of the master or the crew of the vessel insured, the insurer is not responsible, unless he has assumed liability also for cases of barratry of the master.
\n
(3)The liability of the insurer, in the cases contemplated in this article, is limited to the damage sustained by the vessel insured, and does not extend to any indemnity which, by reason of the collision, may be due by the vessel insured to the other vessel.
\n
Pilotage dues, etc.
\n
392.The insurer shall not be liable for ordinary pilotage and towage dues, or any other kind of dues imposed on the vessel or the goods, unless such dues have been incurred in consequence of any damage for which the insurer is liable.
\n
Clause “free from average”.
\n
393.Where the insurance is contracted with the clause \"free from average\", the insurer is not answerable for any average, whether general or particular, except in cases which give rise to an abandonment.
\n
Clause “free from hostitilities”.
\n
394.(1) Where the insurance is contracted with the clause \"free from hostilities\", the insurer shall be discharged from all liability if the goods perish or are damaged by reason of any violence, capture, pillage, arrest and restraint of princes and peoples, declaration of war, or reprisal.
\n
(2)The contract of insurance shall cease as soon as the subject insured suffers any delay, or the course of the voyage is altered, by reason of hostilities.
\n
(3)Nevertheless, the insurer shall not on such account be discharged from the obligation of making good any damage sustained before the commencement of hostilities.
\n
Vessel, etc., detained in port by hostile force.
\n
395.Where any vessel or goods insured \"free from hostilities\" are, by hostile force, taken or detained in any port, such vessel or goods shall be deemed to be captures at sea, and the risk of the insurer shall cease.
\n
COMMERCIAL CODE 396. Where the insurance is made separately on goods which are to be shipped on two or more vessels specified in the contract, with a statement of the amount insured on each vessel, and where the whole of such goods is shipped on one vessel or on a smaller number of vessels than that stated in the contract, the insurer is only liable for the amount which he has assured on the vessel or vessels receiving the goods, notwithstanding the loss of all the vessels so specified; and shall, nevertheless, be entitled to one half per centum on the amounts the insurances whereof have thus become void.
\n
Insurance on goods to be shipped on two or more vessels.
\n
397.(1) The insurer’s risk ceases, and he shall be entitled to the premium, if the assured sends the vessel to a more distant port than that stated in the contract, even though it be in the same course.
\n
Where voyage is prolonged or shortened.
\n
(2)The insurance shall have its full effect if the voyage is shortened.
\n
398.(1) The assured is bound to communicate without delay to the insurer any information which he receives concerning the loss of the subject insured, and to furnish the insurers, if required, with copies or extracts of any document conveying such information.
\n
(2)Assured to give notice of disaster to insurer.
\n
Otherwise, he shall bear the damages and costs.
\n
399.Unless and until the assured shall exercise the right of abandonment competent to him, he is bound to use his best endeavours for the preservation or recovery of the subject insured.
\n
Assured to endeavour to preserve or recover thing insured.
\n
400.In case of an insurance on a loan on bottomry, the insurer, in the absence of an agreement to the contrary, shall not be responsible for any fraud on the part of the borrower.
\n
Insurer of loan on bottomry not liable for fraud of borrower.
\n
401.Where the things insured are not dispatched, or only a part thereof is dispatched, the insurer shall receive one half per centum, or one half of the premium, according to the provisions of article 386, on the sum insured or on the sum exceeding the value of the goods dispatched, as the case may be.
\n
If things insured are not dispatched.
\n
402.A person effecting an insurance on behalf of another person without disclosing the name of the latter, shall not be entitled to recover the premium if such other person fails to dispatch the goods insured, or dispatches only a part thereof.
\n
Where undisclosed principal fails to dispatch goods.
\n
403.(1) An insurance effected for an amount exceeding the value of the subject insured is void as regards the assured only, if fraud or deceit on his part be proved.
\n
Insurance for an amount over or under the real value.
\n
(2)If no fraud or deceit is proved, the insurance is valid up to the value of the subject insured, and, in regard to the excess, the insurers shall receive one half per centum, or one half of the premium, according to the provisions of article 386.
\n
(3)An agreement that the insurer shall be answerable for the whole amount stated in the contract, independently of the value of the subject insured, is valid.
\n
COMMERCIAL CODE
\n
(4)Where the insurance is effected for a value less than the real value, the insurer shall only be liable in proportion to the value stated.
\n
Several contracts of insurance of the same subject.
\n
404.(1) Where there are several contracts of insurance effected without fraud on the same subject, and the first contract covers the entire value thereof, such first contract only shall hold good.
\n
(2)The insurers who have signed the subsequent contracts shall be discharged, and shall only receive one half per centum on the sum insured, or one half of the premium, according to the provisions of article 386.
\n
(3)If the entire value of the goods loaded is not covered by the first contract, the insurers who have signed the subsequent contracts shall be answerable for the remaining value, according to the order of the date of the contracts.
\n
If there are goods on board to the full amount of the several insurances made.
\n
405.If there be goods on board to the full amount of the sums insured, and a portion of such goods is lost, the loss shall be borne by all the insurers of such goods ratably in proportion to their respective interest.
\n
If master is allowed to touch at different ports.
\n
406.If the master is allowed to touch at different ports for the purpose of completing or changing his cargo, the insurer runs the risks of the goods insured, as provided in article 355.
\n
Return of premium in case of nullity of contract, 407. In case of total or partial nullity of the contract of insurance, the insurer shall, provided the assured has acted in good faith, return the premium or, as the case may be, such proportionate part thereof as corresponds to the amount received by him in respect of risks which did not attach, deducting one-half per centum, or one-half of the premium as provided in article 386. except in case of fraud, etc., of assured.
\n
408.If the contract is avoided by reason of any deceit, fraud, or bad faith on the part of the assured, the insurer is not bound to return the premium.
\n
Insurance is null where insurer is aware of safe arrival of vessel, etc.
\n
409.Where an insurance is effected on vessels or goods which, at the time of the stipulation of the contract of insurance, had already reached their place of destination, or had sustained a disaster, such insurance is void, if it is proved, or can be presumed that, at the time of the signing of the contract, the insurer was aware of the arrival of the subject insured, or, as the case may be, the assured was aware of the happening of the disaster.
\n
Facts which give rise to presumption of knowledge of arrival or loss.
\n
410.Such presumption shall be deemed to exist whensoever, reckoning at the rate of four miles to the hour, or whensoever, regard being had to the means of communication or other circumstances, it is shown that the information relating to the arrival or loss of the vessel, from the place of such arrival or loss, or from the place whence such information first came, could have reached the place where the contract was made, before the signing of the same.
\n
Other facts giving rise to such presumption.
\n
411.
\n
Such presumption shall also be deemed to exist whensoever, before the signing of the contract of insurance, any COMMERCIAL CODE vessel shall have come to the place where the contract was made, from the place of the arrival or loss, or from the place whence information of such arrival or loss first came, provided such vessel shall have sailed from the said place after the arrival or loss.
\n
412.(1) The presumption mentioned in the last preceding article shall not arise if the insurance is effected under the clause \"good or bad news\", or any other like clause.
\n
Clause “good or bad news”.
\n
(2)In such case the insurance cannot be avoided, unless it is proved that the insurer was aware of the arrival, or the insured of the loss, before the signing of the contract.
\n
Sub-title III O F A BANDONMENT 413. (1) The things insured may be abandoned in the following cases:
\n
Cases in which abandonment can be made. (a) shipwreck; (b) stranding or running aground with partial wreck; (c) unseaworthiness occasioned by a peril of the sea; (d) forced abandonment; (e) capture; (f) arrest and restraint of princes and peoples; (g) loss or deterioration of the things insured amounting to at least three-fourths of their value.
\n
(2)Any other damage shall be deemed to be an average loss, and shall be settled between the insurer and the assured in accordance with their agreements, and according to their respective interest.
\n
414.The sale of the goods in consequence of a peril of the sea, during the voyage and before the arrival of such goods at the place of destination, is deemed to be a case of loss which authorises the abandonment, whatever the proceeds of such sale may be.
\n
When sale of goods gives rise to abandonment.
\n
415.Where it is necessary to ascertain whether there is deterioration or loss corresponding to three-fourths of the value of the goods insured, the damages which arise from general average contributions are not taken into consideration. The expenses relating to the sale of the said goods, and the expenses of the acts preparatory to the sale are, however, taken into consideration.
\n
Contributions to general average not considered in establishing value of loss or deterioration.
\n
416.(1) In cases where the things insured may be abandoned, the assured may elect either to make the abandonment or to bring an action for average.
\n
Assured may sue for abandonment or for average.
\n
(2)It shall not be lawful for the assured, after having elected to bring an action for average, to waive such action, and bring an COMMERCIAL CODE action for abandonment. He may, however, waive the abandonment, if not yet accepted by the insurers, and bring an action for average.
\n
No abandonment before risk attaches.
\n
417.It shall not be lawful to make an abandonment before the risk insured against has attached.
\n
Abandonment cannot be conditional or partial.
\n
418.The abandonment of the subject insured cannot be partial or conditional. It extends only to the property which is the subject of the insurance and of the risk.
\n
Time within which abandonment is to be made.
\n
419.(1) An abandonment to the insurer must be made within the time following: (a) six months from the day on which information of the disaster is received, if it has happened on the coasts of Europe, or on those of Asia or of Africa in the Mediterranean, or, in the case of capture, from the day on which information is received that the prize was carried into any of the ports or places situated on the above-mentioned coasts; (b) eighteen months to run from the aforesaid days respectively, if the disaster happened in, or the prize was conveyed to any other part of the world.
\n
(2)When the said times have expired, it shall not be competent to the assured to make the abandonment.
\n
Assured to give notice to insurer.
\n
420.(1) In every case in which the right to abandon is competent, and in case of any other peril the risk whereof is to be borne by the insurer, the assured must give notice to the insurer of any information which he may have received thereon.
\n
(2)Such notice shall be given without delay under pain of damages and interest.
\n
When lapse of time gives right to abandonment without necessity of proving loss.
\n
421.(1) If, upon the expiration of one year from the day of the vessel’s departure, or from the day to which the last news of the vessel relates, in the case of ordinary voyages, or upon the expiration of two years, in the case of long voyages, the assured declares that he has received no news of the vessel, he shall be entitled to abandon, and to claim payment of the sum insured without any necessity of proving the loss of the vessel.
\n
(2)Upon the expiration of the aforesaid times of one year or of two years, the assured shall be allowed, for the purpose of commencing proceedings, the times fixed in article 419.
\n
When loss is presumed to have happened in the case of “time policies”.
\n
422.(1) In the case of an insurance effected for a fixed period of time, when the times mentioned in the last preceding article have elapsed, the loss of the vessel shall be presumed to have happened within the period of the insurance.
\n
(2)If there are several successive insurances for a fixed period of time, the loss is presumed to have happened within the period of the first insurance; or, in case of news received as contemplated in the last preceding article, within the period of that particular insurance to which the date of the last news corresponds.
\n
COMMERCIAL CODE 423. Long voyages are those having for their destination any coast or country situated beyond the Straits of Gibraltar, excepting the European sea coast as far as the Sound, the African sea coast as far as Cape Verde, the Baltic Sea, the British Isles, the Madeiras and the Canary Islands.
\n
Definition of “long voyages”.
\n
424.The assured may, by means of the notice mentioned in article 420, either abandon, and claim from the insurer payment of the sum assured within the time fixed in the contract, or reserve his right to abandon within the times fixed by law.
\n
Assured may abandon at once or reserve his right to do so.
\n
425.The assured shall, when making the abandonment, state all the insurances made, or caused to be made, or ordered by him, and the sums of money borrowed on bottomry or at respondentia. In default of so doing, the time for payment, which is to run from the day of the abandonment, shall be suspended until the day on which the assured shall make and notify such statement, but the period prescribed for making the abandonment shall not be enlarged thereby.
\n
Statement to be made by assured in making abandonment.
\n
426.If the statement be fraudulent, the assured shall be deprived of the benefits of the insurance, and shall be bound to pay the sums b orrow ed on bottom ry or at respon dentia, notwithstanding the loss or the capture of the vessel.
\n
Consequences of fraudulent statement.
\n
427.(1) In case of shipwreck or stranding with partial wreck, the assured is bound to labour for the recovery of the things insured, without prejudice to the abandonment to be made in due time and at the proper place.
\n
Duty of insured in case of shipwreck, etc.
\n
(2)The assured is entitled to the reimbursement of the expenses for recovery up to the value of the things recovered.
\n
428.(1) If the time for payment is not stated in the contract, the insurer shall pay the sum insured four months after the notice of the abandonment.
\n
When sum insured is to be paid.
\n
(2)After the expiration of such time, the insurer shall also pay interest at the legal rate. The things abandoned shall be charged with the payment.
\n
429.The insurer cannot be sued for the payment of the sums insured before the documents proving the shipment and the loss of the goods insured are notified to him.
\n
Insurer cannot be sued before proof of shipment and loss is furnished to him.
\n
430.(1) Where, in the opinion of the court, the defence of the insurers is such as to require a separate trial, the court shall order the insurers to make provisional payment to the assured of the sum insured, subject to the obligation of the assured to give security.
\n
When court is to order provisional payment.
\n
(2)Such security shall cease to be binding on the expiration of two years, if within such time no action shall have been brought by the insurers.
\n
431.Where an abandonment has been notified and accepted, or adjudged valid, the property in the thing insured vests in the insurer from the day of the abandonment, and the insurer cannot, under the excuse of the vessel’s return, avoid payment of the sum insured.
\n
Effect of abandonment.
\n
COMMERCIAL CODE Abandonment of ship to include freight of things saved.
\n
432.The freight of goods saved, even if paid in advance, is included in the abandonment of the vessel, and becomes likewise the property of the insurer, without prejudice to the rights of the lenders on bottomry, or of the seamen for their wages, or of other parties for the recovery of the expenses incurred during the voyage.
\n
Arrest and restraint of princes and peoples.
\n
433.(1) In the case of arrest and restraint of princes and peoples, the assured shall, without delay, give notice to the insurer of the information received.
\n
(2)The abandonment of the property arrested cannot be made until after six months from the day of such notice, if the arrest is effected in the Mediterranean or other European sea; or until after one year, if the arrest is effected in a more distant place.
\n
(3)Such times shall commence to run from the day of the notice of the arrest. Where the goods arrested are of a perishable nature, the aforesaid times shall be reduced to two months in the former case, and to three months in the latter case.
\n
Assured to endeavour to secure release of goods arrested.
\n
434.(1) During the running of the times fixed in the last preceding article, the assured is bound to use all due diligence to obtain the release of the goods arrested.
\n
(2)The insurers on their part may, either in concert with the assured or separately, endeavour to secure such release.
\n
Abandonment on the ground of unseaworthiness.
\n
435.An abandonment on the ground of unseaworthiness cannot be made if the vessel can be repaired and made fit to continue the voyage to her place of destination, unless the expense of refitting the vessel is such as to exceed three-fourths of the value thereof, saving the right of action of the assured against the insurers for the recovery of the amount of the expenses incurred and the average sustained.
\n
Notice to be given to insurers of cargo.
\n
436.Where the vessel has been declared unfit for navigation, the party whose goods have been insured is bound to give without delay notice to the insurer of the information received.
\n
Master to procure another vessel.
\n
437.The master is bound in such case to use all due diligence to procure another vessel to carry the goods to their place of destination.
\n
Risks in case of reshipment.
\n
438.The insurer shall run the risks of the goods reshipped on another vessel, in the case referred to in the last preceding article, up to the time of the arrival and discharge of such goods.
\n
Charges for which insurer is liable.
\n
439.The insurer shall moreover be liable for all averages and all expenses incurred for the unloading, storage and safe keeping in warehouses, and reshipment of the goods, for any excess of freight, and for any other expense incurred in saving the goods, to the extent of the sum insured.
\n
If master fails to reship goods within two months, the assured may make abandonment.
\n
440.If within the time of two months the master is unable to procure another vessel for the reshipment of the goods and the carriage thereof to the place of destination, it shall be lawful for the assured to abandon the goods.
\n
COMMERCIAL CODE
\n
Title IV
\n
O F AVERAGE AND OF J ETTISON AND AVERAGE CONTRIBUTION Sub-title I O F AVERAGE 441. Every extraordinary expenditure made on behalf of the vessel or of the cargo, or of both, and every damage sustained by the vessel or the cargo from the time of the loading or the sailing up to the time of the return or discharge, fall under the description of average.
\n
Average.
\n
442.Failing special agreements between all the parties, averages are regulated in accordance with the following provisions.
\n
Rules to be observed in the absence of special agreements.
\n
443.There are two kinds of average: gross or general average, and simple or particular average.
\n
General or particular average.
\n
444.
\n
The following are general averages: (a) goods thrown overboard for the common safety, or for the benefit of the vessel and the cargo jointly; (b) cables, masts, sails, and other rigging, cut away or broken for the said purpose; (c) anchors, cordage or other things abandoned for the said purpose; (d) any damage done by jettison to goods remaining on board; (e) any damage voluntarily done to the vessel in order to facilitate the jettison, to lighten the vessel, or to save the goods, or in order to facilitate the running out of the water; and any damage sustained by the cargo from these causes; (f) the maintenance of the seamen during the carrying out of the repairs of the damage voluntarily sustained for the common safety; (g) the expenses of unloading in order to lighten the vessel, and of putting into any port or other place, when the vessel is compelled to do so by stress of weather, pursuit of enemies or pirates, or any other cause for the safety of the vessel and the cargo; (h) any damage caused to the vessel or to the cargo, or to both, if the vessel is voluntarily run ashore to avoid her capture or loss, or to save the vessel or the cargo from any other imminent peril; the expenses and wages for getting the vessel afloat; and the salvage payable for extraordinary services to avoid loss or capture in the aforesaid cases; (i) generally, any damage voluntarily sustained in cases of danger, and all expenses incurred, for the common General averages.
\n
COMMERCIAL CODE benefit and preservation of the vessel and of the goods, from the time of loading and sailing, up to the time of the return and discharge.
\n
Things which contribute towards general average.
\n
445.The goods, the vessel according to her condition at the time of her arrival, and the clear amount of the freight after deducting the wages of the seamen, their maintenance, and other expenses of the voyage, shall each and all contribute in proportion to their respective values or amounts, towards general average.
\n
How price of goods is fixed.
\n
446.The price of the goods shall be fixed according to their value at the place of discharge.
\n
Particular averages.
\n
447.
\n
The following are particular averages: (a) any damage sustained by the goods through inherent defects, or by reason of stress of weather, capture, shipwreck, or stranding; (b) expenses incurred to save the goods; (c) the loss of cables, anchors, sails, masts, or cordage, occasioned by stress of weather or other marine accident; the expenses of putting into any place owing to the fortuitous loss of the said things, or to the necessity of victualling the vessel, or for the purpose of repairing her in case of leakage; (d) the wages and maintenance of the seamen during the refitting of the vessel for any of the causes mentioned in this article; (e) the wages and maintenance quarantine; and (f) of seamen during generally, all expenses incurred for and any damage sustained by the vessel alone, or the goods alone, from the time of the loading and sailing to that of the return and discharge, whenever such expenses and damage were not incurred or caused voluntarily, and for the common safety of the vessel and cargo.
\n
By whom particular averages are borne.
\n
448.Particular averages are borne and paid by the owner of the thing which has sustained the damage or occasioned the expense.
\n
Damage to goods occasioned by negligence of master or crew.
\n
449.(1) Any damage sustained by the goods by reason of the master having neglected to secure the hatches, to moor the vessel, or to provide good cables, or by reason of any other accident occasioned by the neglect of the master or the crew, are likewise particular averages to be borne by the owner of such goods; but for any such damage the owner has a remedy against the master, the vessel and the freight.
\n
(2)Any damage which the owners of the vessel sustain through an unnecessary and unreasonably long stay in port shall be made good by the master.
\n
Expenses for pilotage, towage, etc., are not averages.
\n
450.Pilotage and towage dues in order to put into or sail from any port or place, the expenses relating to sea-protests, tonnage and other navigation dues, are not averages but simple charges on the COMMERCIAL CODE vessel, saving the provisions of paragraph (g) of article 444.
\n
451.No action for general average can be brought if such average does not exceed one per centum of the joint value of the vessel and cargo, and no action for particular average can be brought if such average does not exceed one per centum of the value of the thing damaged.
\n
When action for average loss is not maintainable.
\n
Sub-title II O F JETTISON AND AVERAGE CONTRIBUTION 452. (1) If by reason of stress of weather or the pursuit of an enemy, the master deems it his duty, for the safety of the vessel, to throw anything overboard, or to cut away the masts, or to abandon the anchors, he is bound to consult the parties interested who may be on board the vessel and the principal members of the crew.
\n
Jettison.
\n
(2)If there is a difference of opinion, the opinion of the master shall prevail.
\n
453.The things least useful, the heaviest, and the least valuable, shall be the first to be thrown overboard.
\n
Things to be thrown first.
\n
454.(1) The master shall, as soon as possible, draw up a statement of the deliberation as to the jettison.
\n
Deliberation to be reduced into writing.
\n
(2)The statement shall indicate the grounds on which it was decided to make the jettison, and shall mention the goods thrown overboard or damaged; it shall include the names of those who agreed and of those who disagreed with the master; and it shall be copied in the log-book.
\n
455.The statement of the losses and damage shall be made at the place of discharge of the vessel.
\n
Statement of losses and damage.
\n
456.Goods thrown overboard shall be valued according to the market price at the place of discharge; their nature and quality shall be proved chiefly by the bills of lading and invoices, if any.
\n
How things thrown overboard are valued.
\n
457.The apportionment of the losses and damages shall be made on the goods thrown overboard and on those saved, on the vessel and on the freight, in proportion to their value at the place of discharge.
\n
Adjustment of average loss.
\n
458.(1) In cases where the quality of the goods has not been truly described in the bill of lading, if the goods are found to be of greater value than that stated, they shall, if saved, contribute according to their valuation; but, if lost, they shall be paid for according to the quality as stated in the bill of lading.
\n
Where quality of goods is not truly stated.
\n
(2)If the goods are found to be of an inferior quality to that stated in the bill of lading, they shall, if saved, contribute on the basis of the quality shown in the bill of lading, but, if jettisoned or damaged, they shall be paid for according to their value.
\n
Ammunition, victuals, etc., do not contribute to general average.
\n
COMMERCIAL CODE 459. (1) Ammunition, victuals, the effects of the crew, and the wearing apparel of the passengers do not contribute to general average.
\n
(2)The value of such things, however, if they are jettisoned, shall be paid for by a contribution on all the other things.
\n
Goods for which there is no bill of lading.
\n
460.Goods for which there is no bill of lading, nor a declaration of the master, are not paid for, if jettisoned, but shall contribute, if saved.
\n
Deck-cargo.
\n
461.(1) Goods carried on deck shall contribute, if saved; if they are jettisoned, or damaged by the jettison, no claim for contribution can be made by the owner thereof, who shall, however, have a right of recourse against the master, where the latter is liable according to law.
\n
(2)The provisions of this article shall not apply in the case of voyages between Malta and Sicily, or between Malta and Tripoli or Tunis, or in the case of goods which it is customary to carry on deck.
\n
Where jettison does not save vessel.
\n
462.If the jettison does not save the vessel, there shall be no contribution, and the goods which have not been jettisoned, and which have been saved, shall not be liable to pay for the things jettisoned, or to make good the damage sustained by other goods.
\n
Where the vessel is saved by the jettison, but is afterwards lost.
\n
463.If the jettison saves the vessel and if, in prosecuting her voyage, she should be afterwards lost, the effects saved shall contribute towards the jettison, according to their value in the condition in which they may be found, after deducting salvage expenses.
\n
Damage sustained after the jettison.
\n
464.(1) Goods jettisoned do not, in any case, contribute to the payment for any damage which the goods saved sustain after the jettison.
\n
(2)The cargo does not contribute to the payment of the vessel which is lost or has become unseaworthy, except in the cases mentioned in article 444.
\n
Goods contribute to repair of vessel damaged for saving them.
\n
465.Where the vessel has been cut open to extract the goods, such goods shall contribute to the repair of the damage caused to the vessel.
\n
No contribution by goods put into boats.
\n
466.Where the vessel is lost with the remainder of the cargo, there shall be no claim for contribution against goods put into boats to lighten the vessel, even though such goods arrive in safety.
\n
Where goods jettisoned are recovered.
\n
467.Where, after the apportionment of the contribution, the goods jettisoned are recovered by their owners, such owners must return to the master and to the interested parties what they received out of the contribution, deducting the damages caused by the jettison, and the expenses of recovering the goods.
\n
Owner of goods not to contribute beyond value thereof.
\n
468.The owner of the goods can in no case be called upon to contribute to general average beyond the value of the goods at the time of their arrival.
\n
COMMERCIAL CODE
\n
Title V
\n
O F P RIVILEGED D EBTS ON S HIPS AND OTHER S EA-GOING V ESSELS Articles 469 to 476, both inclusive, repealed by: XXXVII.1988.41.
\n
PART III
\n
O F B ANKRUPTCY
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Title I
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OF THE DECLARATION OF BANKRUPTCY Substituted by:
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XXIII.2022.5.
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477.(1) Every trader who, having regard also to his contingent and prospective liabilities, is unable to pay his commercial debts, shall suspend the payment of all his debts, and shall, upon the suspension thereof, be in a state of bankruptcy.
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State of bankruptcy.
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(2)Without prejudice to the provisions of sub-article (1), if a commercial debt due by the trader has remained unsatisfied in whole or in part after twenty-four (24) weeks from the enforcement of an executive title against the trader by any of the executive acts specified in article 273 of the Code of Organization and Civil Procedure, the trader shall suspend the payment of all his debts and be deemed to be in a state of bankruptcy.
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(3)For the purposes of this Part, the term \"trader\" shall, in addition to the persons referred to in article 4, also include any other natural or legal person, in respect of commercial debts for which such person is, or becomes, liable, whether as principal debtor or otherwise.
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(4)In this Part, unless the context otherwise requires, the following expressions have the meaning hereby assigned to them: (a) \"commercial debt\" means any liability incurred by any person, whether as principal debtor or otherwise, insofar as that liability was incurred, or otherwise arises as a result of any liability which was originally incurred in the course of, in connection with, or for the purposes of, the exercise of any trade, business, craft or profession by the original debtor, and any other liabilities as the Minister responsible for the Malta Business Registry may, by regulations prescribe; (b) \"personal debt\" means any liability incurred by any person, whether as principal debtor or otherwise, which is not a commercial debt;
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COMMERCIAL CODE (c) \"debt\", when used alone, means any liability incurred by any person, whether as principal debtor or otherwise, and whether a commercial debt or a personal debt; and (d) \"competent authority\" means the same as the definition assigned to it in the Insolvency Practitioners Act.
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(5)A debt falling under sub-article (4)(a), which is not exclusively incurred in the pursuit of the activities described in sub-article (4)(a), shall, for the purposes of this Part, be treated as a commercial debt to the extent of that part of the debt which has been incurred, or which has arisen as a result of the activities provided for in sub-article (4)(a), and the term \"commercial debt\" shall, for the purposes of this Part, be read and construed accordingly.
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(6)Any transfer of assets, payment of debts, or act of trade made by a trader who is in a state of bankruptcy, and which are made between the date of the suspension of payments and the date of the judgment declaring bankruptcy, shall, unless a determination is made by the court in accordance with article 482(3) that the debtor is not in a state of bankruptcy, be null and void.
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Declaration in court.
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478.Upon the suspension of payments, every trader shall, without undue delay, file a declaration of bankruptcy in the Civil Court (Commercial Section).
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Contents of the declaration of bankruptcy.
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479.(1) The declaration of bankruptcy filed by the trader must be confirmed on oath and include the following: (a) the trader’s name and his identification or registration number; (b) the nature of the trade, business, craft or profession, in respect of which the debts have been incurred; (c) the name, identification or registration number, and other particulars of each of the trader’s creditors together with their registered address or, in the absence of a registered address, the address of their place of business or place of residence; (d) the value and nature of the trader’s debts, both commercial and personal, and the security, if any, enjoyed by the respective creditors; and (e) such other information as the Minister may, by notice, prescribe.
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(2)In case of the bankruptcy of a legal person, the declaration must also include the name and the place of residence of each of the natural persons jointly and severally liable for the debts of the legal COMMERCIAL CODE person.
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480.On making the declaration mentioned in the foregoing articles, the trader shall, at the same time, file in the Civil Court (Commercial Section), all his commercial books, records and other papers:
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Production of books.
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Provided that, where the trader is not a person bound to keep trade books in terms of article 13, it shall be sufficient for such person to file in the Civil Court (Commercial Section), all information and documentation as may be necessary to ascertain the circumstances in which the respective debts were incurred, together with a statement of the financial position of the person at the time listing all assets and liabilities of such person.
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481.(1) Any creditor may, whether the debt owing to him is a commercial debt or otherwise, and even though such debt has not yet fallen due, proceed summarily before the Civil Court (Commercial Section), against a trader who is his debtor, or his lawful representative, demanding a declaration that such trader is in a state of bankruptcy.
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Declaration of bankruptcy on demand of creditor.
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(2)A declaration of bankruptcy may not be sought by a child against their parent, or by a parent against their child, or by one spouse against the other.
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Declaration may not be sought by child against parent or vice versa, etc.
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(3)The bankruptcy of a trader, being a natural person, may be declared after his death, if prior to his death he had suspended payments; in such case the declaration of bankruptcy cannot be demanded by the creditors except within three (3) months from the death of the debtor.
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When declaration may be sought after death of trader.
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(4)In the case of a demand for a declaration of bankruptcy as provided in this article, the creditor making the demand shall, simultaneously with the demand, give security in an amount that shall be equivalent to the greater of ten percent (10%) of the debt owing to such creditor, or one thousand euro (€1,000) in favour of the party against whom the demand is made, for the due prosecution of the case without delay and the substantiation of his claim; in default whereof, the court may order the amount of the security to be paid, in whole or in part, to the party in whose favour such security has been given:
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Creditor demanding adjudication of bankruptcy to give security.
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Provided that such payment shall not operate as a bar to an action against the creditor for damages and interest arising from such proceedings.
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482.(1)Where a declaration of bankruptcy has been filed in terms of article 479, the registrar shall, by notice, call upon the creditors mentioned in the declaration to appear before the Civil Court (Commercial Section), on such date, and at such a time, as shall be specified in the relevant notice, being a date not later than thirty (30) days from the date on which the declaration is made, to show cause why their debtor should not be declared to be in a state Summoning of creditors.
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COMMERCIAL CODE of bankru ptcy, and to m ake representations concerni ng the appointment by the court of a bankruptcy trustee. The registrar shall cause the notice to be served on the creditors mentioned in the declaration, and for the notice together with the declaration to be published by means of a notice containing an abstract in the Gazette and in one (1) or more daily newspapers.
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(2)Where a declaration of bankruptcy is demanded in terms of article 481, the registrar shall, by notice, call upon the debtor mentioned in the declaration to appear before the Civil Court (Commercial Section), on such date, and at such a time, as shall be specified in the relevant notice, being a date not be later than thirty
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(30)days from the date on which the declaration is demanded, to show cause why he should not be declared to be in a state of bankruptcy. The registrar shall cause the notice to be served on the creditor making the demand, and for the notice together with the declaration to be published by means of a notice containing an abstract in the Gazette and in one (1) or more daily newspapers, calling upon interested persons to show cause why the debtor should not be declared to be in a state of bankruptcy, and to make representations concerning the appointment by the court of a bankruptcy trustee.
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(3)Where the court, during the proceedings referred to above, is satisfied that cause has been shown why the debtor should not be declared to be in a state of bankruptcy, the court shall, by judgment, declare that the debtor is not in a state of bankruptcy and shall award costs against the party cast. The court shall also order that an abstract of the judgment be published, by means of a notice in the Gazette.
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(4)Where the court, during the proceedings referred to above, is satisfied that cause has been shown why the debtor should be declared to be in a state of bankruptcy, the court shall deliver a judgment declaring the bankruptcy.
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(5)In the event that the court is of the view that the declaration of bankruptcy made by the debtor in terms of article 479, or the declaration of bankruptcy demanded by the creditor in terms of article 481, is frivolous or vexatious, the court may award double costs against the party cast.
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Suing out of acts and proceedings.
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483.(1) If the creditor on whose demand the bankruptcy has been declared neglects to sue out, at his own expense, such acts and proceedings as are necessary to arrive at the making of a bankruptcy order, any other creditor, or even the bankrupt himself, may proceed to sue out such acts or proceedings.
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Reimburse-ment of expenses incurred by the creditor.
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(2)Subject to the provisions of article 499, all necessary expenses incurred during bankruptcy proceedings shall be repaid to the creditor disbursing them, out of moneys received on account of the bankruptcy estate in preference to any other debt.
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Stay of claims.
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484.(1) The execution of claims of a monetary nature against COMMERCIAL CODE the bankrupt or the bankruptcy estate shall be stayed in respect of all debts referred to in article 487 upon the delivery of the judgment declaring bankruptcy.
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(2)The stay of the execution of claims as provided for in subarticle (1) shall cease with regard to the bankrupt, upon the rehabilitation of the bankrupt in terms of articles 524(1)(b) or 534(1)(b), as the case may be.
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485.Every act transferring property, whether corporeal or incorporeal, including any renunciation of any succession or of an acquired prescription, and every obligation incurred, or other act made by the bankrupt which defrauds his creditors, shall be null and void, even though the parties interested have acted, and, or are in good faith.
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Acts in fraud of creditors are void or voidable.
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486.(1) Upon the appointment of a bankruptcy trustee in accordance with article 488, the bankrupt shall be ipso jure relieved of his existing title to all assets other than those assets referred to in article 492, whether corporeal or incorporeal, and whether relating to his business or not. The ownership of such assets shall, by operation of law, devolve upon and vest in the bankruptcy trustee who shall receive and hold such assets for the benefit of the body of creditors. All debts, including the debts referred to in article 487, sh all, by opera tion of law, be come due and payable by the bankruptcy estate as vested in the bankruptcy trustee:
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The bankrupt is relieved of ownership of property.
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Provided that, notwithstanding anything stated in any other law, no charge, levy or other dues shall become payable in Malta by way of tax, duty or other government tariff or levy, notwithstanding the manner in which it is described, upon, or as a result of the transfers contemplated in terms of this article.
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(2)Everything that devolves on the bankrupt after the bankruptcy but prior to the occurrence of the events referred to in articles 524(1) or 534(1), as the case may be, shall, by operation of law, when and as the same so devolves, vest in the bankruptcy trustee who shall receive and hold the thing for the benefit of the body of creditors:
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Provided that, notwithstanding anything stated in any other law, no charge, levy or other dues shall become payable in Malta by way of tax, duty or other government tariff or levy, notwithstanding the manner in which it is described, upon, or as a result of the transfer contemplated in terms of this article.
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(3)Any assets that shall devolve upon the bankruptcy trustee by operation of sub-articles (1) and (2) shall be received by the bankruptcy trustee subject to any third-party rights, whether real or personal, in existence at the time, which rights shall be preserved and shall not be prejudiced thereby.
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COMMERCIAL CODE Debts owing by bankrupt not yet due, become payable on declaration of bankruptcy.
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487.Debts owing by the bankrupt which have not fallen due, even if privileged, secured by pledge or hypothecary, shall become payable upon the judgment of the court declaring the bankruptcy.
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Substituted by:
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XXIII.2022.6.
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Title II
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OF THE RIGHTS AND DUTIES OF THE BANKRUPTCY TRUSTEE Appointment of bankruptcy trustee.
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488.(1)The court shall, in the judgment declaring bankruptcy, appoint one (1) or more persons as the bankruptcy trustee to exercise the functions assigned to the bankruptcy trustee under this Part:
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Provided that, where more than one (1) person is appointed as the bankruptcy trustee, the persons so appointed shall be appointed to act jointly as the bankruptcy trustee and they shall be jointly responsible for the exercise of the functions assigned to the bankruptcy trustee under this Part.
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(2)The bankruptcy trustee shall be deemed to be an officer of the court, and as such shall be subject to the orders of the same.
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(3)In the event of the death, interdiction, incapacitation or resignation of the bankruptcy trustee or any one (1) or more of the persons so appointed, the court shall, at the instance of any interested person or on its own motion, release the said person or persons of their appointment. The court shall appoint one (1) or more other persons as the substitute bankruptcy trustee, and immediately upon the appointment being made, the provisions of articles 486, 489 and 490 shall apply mutatis mutandis to the substitute bankruptcy trustee.
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Authorisation of bankruptcy trustee.
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Publication of abstract of judgment in Gazette.
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(4)Any interested party may, within twenty (20) days from the publication of the notice referred to in article 490, apply to the court for the substitution of the bankruptcy trustee on the basis that the latter is not fit and proper, whether due to the subsistence of a conflict of interest or for any other valid reason.
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489.The bankruptcy trustee appointed by the court shall be a person duly authorised to act as such, in terms of article 4 of the Insolvency Practitioners Act and whom the court deems fit to faithfully discharge the duties of his office.
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490.(1)The bankruptcy trustee shall, within fourteen (14) days from the judgment declaring bankruptcy, notify the competent authority and the registrar of the said judgment, and cause a notice containing an abstract of the judgment to be published in the Gazette and in one (1) or more newspapers, which notice shall clearly indicate the name, surname and business address of the person or persons appointed as the bankruptcy trustee.
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(2)An abstract of the judgment declaring the bankruptcy shall also be enrolled in the Public Registry within fourteen (14) days from the judgment.
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COMMERCIAL CODE 491. (1) The court may, at any stage of the proceedings, of its own motion or upon the demand of one (1) or more creditors or of the bankrupt, remove the bankruptcy trustee.
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Removal of bankruptcy trustees.
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(2)No appeal shall lie against the pronouncement of the court made in terms of sub-article (1).
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(3)Upon the removal of the bankruptcy trustee by the court, the court shall appoint a substitute bankruptcy trustee and the provisions of article 488 shall apply mutatis mutandis.
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492.Where the bankrupt is a natural person, the bankrupt shall be entitled to retain the use, possession and ownership of any property that, as the bankrupt may reasonably demonstrate to the satisfaction of the bankruptcy trustee, comprises: (a) Property which may be retained by the bankrupt. the bankrupt’s main residence; (b) any vehicle, tools, or equipment of the bankrupt, insofar as the bankrupt may reasonably demonstrate these to be necessary for the performance, by him, of an activity permissible in terms of article 498(3); (c) any apparel and other movable effects necessary for the personal use of the bankrupt or that of any person related to him by consanguinity or affinity to the third degree inclusively; (d) any medical supplies or equipment of the bankrupt, insofar as the bankrupt may reasonably demonstrate these to be necessary for his own physical or mental wellbeing or that of any person related to him by consanguinity or affinity to the third degree inclusively; and (e) any right of nomination that the bankrupt may have to any vacant ecclesiastical benefice.
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493.(1) In order to secure possession of the property of the bankrupt, including his books, records and other papers, the bankruptcy trustee, shall apply to the Civil Court (Commercial Section), for the issue of a warrant of seizure against any person who may have possession of the property, including the bankrupt.
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(2)In the case of bankruptcy of a legal person, the warrant of seizure shall be executed not only at the principal offices or premises of the bankrupt, but also at the residence or premises of each of the persons jointly and severally liable for the debts of the legal person.
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494.The books, records and other papers of the bankrupt shall be kept at such place as the court may direct, and shall be open to inspection by all interested parties on a written request made to the bankruptcy trustee, provided that the bankruptcy trustee is satisfied that the person making the request is an interested party.
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Seizure of property.
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Books open to inspection by the interested parties.
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Bankruptcy estate.
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COMMERCIAL CODE 495. (1)The bankruptcy estate shall include all sums due to the bankrupt, including any amounts derived by the bankrupt from the conduct of any activities in terms of articles 496, 497 and 498:
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Provided that the provisions of this article shall cease to have effect until they are superseded by a debt agreement or bankruptcy order made in terms of this Part, and shall, in no event, apply for a period longer than three (3) years from the date of the judgment declaring bankruptcy.
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(2)Where the bankrupt carries out activities in terms of article 498(3), the bankrupt shall be entitled to receive from the bankruptcy trustee, out of any sum due to the bankrupt by way of remuneration for the said activities, an amount to be determined by the bankruptcy trustee, which amount shall not be less than the national minimum wage established for persons of eighteen (18) years and over, calculated pro rata throughout the duration of the appointment of the bankruptcy trustee.
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(3)Where the bankrupt is unable, for reasons which the bankruptcy trustee finds to be legitimate, to carry out activities in terms of article 498(3), the bankrupt shall be entitled to receive, from the bankruptcy estate, an allowance which shall not be less than the national minimum wage established for persons of eighteen (18) years and over, calculated pro rata throughout the duration of time during which the bankruptcy trustee is appointed.
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(4)The amount referred to in sub-articles (2) and (3) shall exceed the national minimum wage where the bankrupt reasonably demonstrates to the satisfaction of the bankruptcy trustee, that the bankrupt has an overriding need for the additional amount on account of grave and justifiable circumstances specific to the bankrupt or his dependants.
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Sale of perishables.
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496.(1) The bankruptcy trustee shall, without delay sell, whether by means of a licensed auctioneer or otherwise, such assets as the bankruptcy trustee shall deem to be perishable.
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(2)Any perishables in respect of which a right of recovery in terms of Title III has not been exercised prior to their sale, shall be sold in terms of sub-article (1), and any respective right of recovery shall be extinguished and the moneys realised shall form part of the bankruptcy estate in terms of article 495.
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Sale of nonperishable assets.
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497.(1) Non-perishable assets cannot be sold by the bankruptcy trustee prior to the confirmation of the proposed terms of a debt agreement in terms of Title V or the sale of assets held on trust in terms of Title VI, as the case may be, except in pursuance of a summary judgment of the court, upon a sworn application issued against the parties interested.
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(2)In deciding upon the sworn application, the court shall, among other things, consider:
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COMMERCIAL CODE (a) whether the value of the asset will be substantially preserved by its immediate sale; (b) whether the bankruptcy trustee requires additional liquidity to continue the trade, business, craft or profession of the bankrupt in accordance with article 498; and (c) whether the bankrupt is urgently in need of moneys to satisfy his ordinary and reasonable daily expenses.
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(3)No appeal shall lie against the pronouncement of the court made in terms of sub-article (1).
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498.(1) It shall be lawful for the bankruptcy trustee, with the authority of the court, by a decree, to, where possible, cause the continuation of the trade, business, craft or profession of the bankrupt, where the bankruptcy trustee is of the opinion that the said continuation will afford a means of increasing his assets for the benefit of the body of creditors:
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Bankruptcy trustee may continue business.
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Provided that, as may be necessary for the continuation of the trade, business, craft or profession of the bankrupt, the bankruptcy trustee may request the authority of the court to make use of any property held on trust in the exercise of the said trade, business, craft or profession.
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(2)The court shall, when granting such authority, give such directions by a decree as the court deems most advantageous to the interests of the body of creditors:
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Provided that where any creditor files an opposition to a decree by the court in terms of this article, the court may, on just cause being shown, after hearing the bankruptcy trustee, withdraw the authority.
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(3)Without prejudice to the provisions of sub-article (1), the bankrupt shall not carry out any act of trade until rehabilitated in terms of this Part. Any bankrupt who is a natural person may, prior to the rehabilitation in terms of articles 524(1)(b) or 534(1)(b), as the case may be, pursue the lawful conduct of any activity:
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Provided that the conduct of that activity shall not require, give rise to, or necessitate, the performance of any acts of trade by the bankrupt:
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Provided further that the exercise of any act of extraordinary administration in terms of article 1322 of the Civil Code by the bankrupt after the declaration of bankruptcy but prior to the rehabilitation in terms of articles 524(1)(b) or 534(1)(b), as the case may be, shall, at all times, require the express prior written consent of the bankruptcy trustee.
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Sum of money which bankruptcy trustee may hold on trust.
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COMMERCIAL CODE 499. (1) The bankruptcy trustee may appropriate such sum or sums as the court shall determine, to remunerate the bankruptcy trustee and to meet any expenses as the bankruptcy trustee may reasonably incur in the performance of his duties in terms of this Part, as a first charge out of the bankruptcy estate in preference to any other expense. All other moneys shall continue to be held by the bankruptcy trustee on trust, distinct and separate from the personal property of the bankruptcy trustee and from other property held by the bankruptcy trustee under any other trust.
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(2)The Minister may, in consultation with the competent authority mentioned in the Insolvency Practitioners Act, make regulations for the payment of the expenses and remuneration of the bankruptcy trustee.
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(3)The Court shall have the power to order that of the expenses and remuneration of the bankruptcy trustee are paid in terms of regulations made in terms of sub-article (2).
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Action against bankruptcy trustee.
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500.(1) An action against the bankruptcy trustee may be brought by an interested party only on the grounds that the bankruptcy trustee has failed to carry out his functions, whether arising in terms of this Part or by order of the court.
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(2)The bankruptcy trustee shall be unlimitedly and personally liable for any damages caused as a result of fraud or gross negligence on his part.
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Preservation of rights.
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501.
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(1)The bankruptcy trustee, once appointed, shall take every necessary step for the preservation of rights previously pertaining to the bankrupt as against his debtors and shall also cause to be registered in the Public Registry any hypothec affecting the property of the debtors of the bankrupt, if the bankrupt has failed to do so.
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(2)It shall be the duty of the bankruptcy trustee to sue for the payment of any debts due to the bankrupt, for the benefit of the bankruptcy estate.
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Making up of inventory.
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(3)It shall not be lawful for the bankruptcy trustee to make any compromise or refer any dispute to arbitration without the consent in writing of the majority in value of the creditors of the bankrupt and the authority of the court.
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502.(1) Within thirty (30) days from the judgment declaring bankruptcy, the bankruptcy trustee shall make up an inventory of the property comprising the bankruptcy estate and file such inventory in the registry:
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Provided that the inventory shall be updated by the bankruptcy trustee with such frequency as the bankruptcy trustee may deem appropriate, having regard to the facts and circumstances, and in no case later than three (3) months from the last filing of the inventory.
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COMMERCIAL CODE
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(2)The period for the making up of the original inventory may, on the request of the bankruptcy trustee and for just cause, be extended to not more than forty-five (45) days.
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(3)Every creditor has a right, and the bankrupt is bound, to assist in the making up of the inventory.
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503.The inventory shall contain a true list, together with a description and the estimated value, of all the property movable and immovable comprising the bankruptcy estate held on trust by the bankruptcy trustee, a statement of the debts owing to or due by the bankruptcy estate, a statement of the profits and losses of the bankrupt, and a statement of the expenses.
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Contents of inventory.
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504.It shall be lawful for the Civil Court (Commercial Section), of its own motion or on the demand of the bankruptcy trustee or of one
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(1)or more of the creditors, to compel the bankrupt and any other person to declare on oath all such information as it may deem necessary or useful in the interest of the body of creditors or for the making up of the inventory, or to confirm on oath the correctness of the inventory.
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Power of the court.
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Title III
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OF THE RIGHTS OF RECOVERY Substituted by:
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XXIII.2022.7.
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505.In case of bankruptcy, it shall be lawful to recover all bills of exchange and other documents of title yet unpaid which are found in kind in the possession of the bankrupt at the time of the bankruptcy, whenever such bills of exchange or documents of title shall have been endorsed by the owner for collection for his own account.
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Recovery of bills of exchange, etc.
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506.(1) It shall likewise be lawful to recover goods delivered to the bankrupt by way of deposit or sold on account of the owner, so long as the same exist in kind, wholly or in part.
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Recovery of goods.
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(2)It shall also be lawful to recover the price or part of the price of such goods, which has not been paid in cash or otherwise, or set off in account current between the bankrupt and the buyer.
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507.(1) Goods sold to the bankrupt or forwarded to his account may be recovered, so long as they are in his possession or in the possession of the bankruptcy trustee.
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(2)Nevertheless, such right of recovery may not subsist in cases where, before their arrival, the goods have been, without fraud, sold on invoices or bills of lading signed by the party forwarding the goods.
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(3)The party recovering the goods shall be bound to return to the bankruptcy estate the sums received by him on account, and all advances made in respect of freight, commission, insurance or Recovery of goods sold to bankrupt.
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COMMERCIAL CODE other expenses, and shall pay what remains due in respect of such charges.
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Goods not yet delivered to bankrupt.
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508.It shall be lawful for the seller to retain any goods sold by him to the bankrupt that are yet unpaid for by the bankrupt, and which have not yet been delivered to the bankrupt or not yet forwarded to him or to a third party on his behalf.
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Bankruptcy trustee’s power to withdraw goods.
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509.In the cases mentioned in articles 507 and 508, the bankruptcy trustee shall have the power to take the goods on paying the seller the price agreed upon between him and the bankrupt.
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Substituted by:
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XXIII.2022.8.