Article 121p. 121

COMMERCIAL LAWS NEGOTIABLE INSTRUMENTS, CORPORATION, INSURANCE, TRANSPORTATION, BANKING

unloading, obliging the latter thereby to unload it and

place

it

in

deposit,

shall

be

liable

for

the

cost of

warehousing and other expenses arising therefrom.

ARTICLE 712. The captain can not himself change the

destination of merchandise. In admitting this change at

the instance of the freighter, he must first take up the

bills of lading he may have issued, under the penalty of

being liable for the cargo to the legitimate holder of the

same.

ARTICLE 713. If before delivering the cargo a new bill of

lading should be demanded of the captain, it being

alleged that the previous ones are not presented on

account of their loss or for any other sufficient cause, he

shall be obliged to issue it, provided security for the value

of the cargo is given to his satisfaction; but without

changing

the

consignment

and

stating therein the

circumstances prescribed in the last paragraph of Article

707, when the bills of lading referred to therein are in

question, under the penalty otherwise to be liable for said

cargo if not properly delivered through his fault.

ARTICLE 714. If before the vessel puts to sea the captain

should die or should discontinue in his position through

any accident, the freighters shall have a right to demand

of the new captain the ratification of the first bills of

lading, and the latter must do so, provided all the copies

previously issued be presented or returned to him, and it

should appear from an examination of the cargo that

they are correct.

The expenses arising from the examination of the cargo

shall be defrayed by the agent, without prejudice to the

right of action of the latter against the first captain, if he

ceased to be such through his own fault. Should said

examination not be made, it shall be understood that the

new captain accepts the cargo as it appears from the bills

of lading issued.

ARTICLE 715. Bills of lading will give rise to a most

summary action or to judicial compulsion, according to

the case, for the delivery of the cargo and the payment of

the freightage and proper expenses.

ARTICLE 716. If several persons should present bills of

lading issued to bearer or to order, indorsed in their favor,

demanding the same merchandise, the captain shall

prefer in delivering the same, the person presenting the

copy first issued, with the exception of the case when the

latter one was issued on account of the loss of the first

one, and if they are held by different persons.

In such case, as well as when only second or subsequent

copies

issued

without this proof are presented, the

captain shall apply to the judge or court, so that he may

order the deposit of the merchandise, and that through

him it may be delivered to the proper person.

ARTICLE 717. The delivery of the bill of lading shall effect

the cancellation of all the provisional receipts of prior date

given by the captain or his subalterns for partial deliveries

of the cargo which may have been made.

ARTICLE 718. After the cargo has been delivered, the bills

of lading which the captain signed shall be returned to

him, or at least the copy by reason of which the delivery is

made, with the receipt for the merchandise mentioned

therein.

The delay on the part of the consignee shall make him

liable for the damages which may be caused the captain

thereby.

SECTION II Loans on Bottomry and Respondentia

ARTICLE 719. A loan on bottomry or respondentia shall be

considered that which the repayment of the sum loaned

and

the

premium

stipulated,

under

any

condition

whatsoever, depends on the safe arrival in port of the

goods on which it is made, or of their value in case of

accident.

ARTICLE 720. Loans on bottomry or respondentia may be

executed:

1. By means of a public instrument.

2. By means of a bond signed by the contracting parties

and the broker who took part therein. t

3. By means of a private instrument.

Under whichever of these forms the contract is executed,

it shall be entered in the certificate of the registry of the

vessel and shall be recorded in the commercial registry,

without which requisites the credits originating from the

same shall not have, with regard to other credits, the

preference which, according to their nature, they should

have, although the obligation shall be valid between the

contracting parties.

The contracts made during a voyage shall be governed by

the provisions of Articles 583 and 611, and shall be

effective with regard to third persons from the date of

their

execution,

if

they

should

be

recorded

in

the

commercial registry of the port of registry of the vessel

before eight days have elapsed from the date of her

arrival. If said eight days should elapse without the record

having

been

made

in

the

commercial registry, the

contracts made during the voyage of a vessel shall not

have any effect with regard to third persons, except from

the day and date of their entry.

In order that the bonds of the contracts celebrated in

accordance with No. 2 may have legal force, they must

conform to the registry of the broker who took part

therein. In those celebrated in accordance with No. 3 the

acknowledgment of the signature must precede.

Contracts which are not reduced to writing shall not be

the basis for a judicial action.

ARTICLE 721. In a bottomry or respondentia bond there

must be stated:

1. The kind, name, and registry of the vessel.

2. The name, surname, and domicile of the captain.

3. The names, surnames, and domicile of the person

giving and of the person receiving the loan.

4. The amount of the loan and the premium stipulated.

5. The time for repayment.

6. The goods pledged to secure repayment.

7. The voyage for which the risk is run.

ARTICLE 722. The bonds may be issued to order, in which

case they shall be transferable by indorsement, and the

assignee shall acquire all the rights and run all the risks

corresponding to the indorser.

ARTICLE 723. Loans may be made in goods and in

merchandise,

their

value

being

fixed

in

order

to

determine the amount of the loan.

ARTICLE 724. The loans may be constituted jointly or

separately:

1. On the hull of the vessel.

2. On the rigging.

3. On the equipment, provisions, and fuel.

4. On the engine, if the vessel is a steamer.

5. On the cargo.

If the loan is constituted on the hull of the vessel, there

shall be understood as also subject to the liability of the

loan, the rigging, equipment and other goods, provisions,

fuel, steam engines, and the freight earned during the

voyage subject to the loan.

If the loan is made on the cargo, all that constitutes the

same shall be subject to the repayment; and if on a

particular object of the vessel or of the cargo, the object

exclusively and specifically mentioned only shall be liable.

ARTICLE 725. No loans can be made on the salaries of the

crew, nor on the profits which it is expected to earn.

ARTICLE 726. If the lender should prove that he loaned a

larger amount than the value of the article liable for the

bottomry

loan,

by

reason

of

fraudulent

measures

© Compiled by RGL

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