Article 122p. 122

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

employed by the borrower the loan shall only be valid for

the amount at which said object is appraised by experts.

The surplus principal shall be returned with legal interest

for the whole period of the duration of the disbursement.

ARTICLE 727. If the full amount of the loan contracted to

load the vessel should not be made use of for the cargo,

the surplus shall be returned before clearing.

The same procedure shall be observed with regard to the

goods taken as a loan if they could not all have been

loaded.

ARTICLE 728. The loan which the captain takes at the

point of residence of the owners of the vessel shall only

affect that part of the latter which belongs to the captain,

if the other owners or their agents should not have given

their express authorization thereto or should not have

taken part in the transaction.

If one or more of the owners should be requested to

furnish the amount necessary to repair or provision the

vessel, and should not do so within twenty-four hours, the

interest which the parties in default may have in the

vessel shall be liable for the loan in the proper proportion.

Outside of the residence of the owners the captain may

contract

loans in accordance with the provisions of

Articles 583 and 611.

ARTICLE 729. Should the goods on which money is taken

not be subjected to any risk, the contract shall be

considered an ordinary loan, the borrower being under

the obligation to return the principal and interest at the

legal rate, if the interest stipulated should not have been

lower.

ARTICLE 730. Loans made during the voyage shall have

preference over those made before the clearing of the

vessel, and they shall be graduated by the inverse order to

that of their dates.

The loans for the last voyage shall have preference over

prior ones.

Should several loans have been made at a port made

under stress and for the same purpose, all of them shall

be paid pro rata .

ARTICLE 731. The actions which may be brought by the

lender shall be extinguished by the absolute loss of the

goods on which the loan was made, if said loss arose from

an accident of the sea at the time and during the voyage

designated in the contract, and should it be proven that

the cargo was on board; but this shall not take place if the

loss were caused by the inherent defect of the thing or

through the fault or malice of the borrower, or through

barratry on the part of the captain, or if it were caused by

damages suffered by the vessel as a consequence of

being engaged in contraband, or if it arose through

loading the merchandise on a vessel other than that

designated in the contract, unless this change should

have been made by reason of force majeure .

The proof of the loss is incumbent upon the person who

received the loan, as well as the proof of the existence in

the vessel of the goods declared to the lender as the

object thereof.

ARTICLE 732. Lenders on bottomry or respondentia shall

suffer

in

proportion

to their respective interest, the

general average which may take place in the goods on

which the loan was made.

In particular averages, in the absence of an express

agreement between the contracting parties, the lender

on bottomry or respondentia shall also contribute in

proportion to his respective interest, should it not belong

to the kind of risks excepted in the foregoing article.

ARTICLE 733. Should it not have been stated in the

contract for what period the lender runs the risk, the said

risk shall last with regard to the vessel, engines, rigging,

and equipment from the moment said vessel puts to sea

until she drops anchor in the port of destination, and with

regard to the merchandise, from the time it is loaded on

the shore or wharf of the port of shipment until unloaded

in the port of consignment.

ARTICLE 734. In case of shipwreck the amount liable for

the return of the loan shall be reduced to the proceeds of

the goods saved, after the costs of the salvage have been

deducted.

If the loan were on the vessel or any of her parts, the

freightage earned during the voyage for which said loan

was contracted shall also be liable for its payment, as far

as it is available.

ARTICLE 735. If the same vessel or cargo should be the

object of a loan on bottomry or respondentia and marine

insurance, the value of what may be saved shall be

divided, in case of shipwreck, between the lender and the

underwriter, in proportion to the legitimate interest of

each one, taking into consideration, for this purpose only,

the principal with relation to the loan, and without

prejudice to the right of preference of other creditors in

accordance with Article 580.

ARTICLE 736. If there should be delay in the repayment of

the principal or premiums of the loan, the former only

shall bear legal interest.

TITLE IV Risks, Damages and Accidents of

Maritime Commerce

SECTION I Averages

ARTICLE 806. For the purposes of this Code the following

shall be considered averages:

1. All extraordinary or accidental expenses which may be

incurred during the navigation for the preservation of the

vessel or cargo, or both.

2. All damages or deterioration the vessel may suffer from

the time she puts to sea from the port of departure until

she casts anchor in the port of destination, and those

suffered by the merchandise from the time it is loaded in

the port of shipment until it is unloaded in the port of

consignment.

ARTICLE

807.

The

petty

and

ordinary

expenses

of

navigation,

such

as

pilotage

of

coasts

and

ports,

lighterage

and

towage,

anchorage

dues,

inspection,

health, quarantine, lazaretto, and other so-called port

expenses,

costs

of

barges,

and unloading, until the

merchandise is placed on the wharf, and any other

expenses common to navigation shall be considered

ordinary expenses to be defrayed by the shipowner,

unless there is a special agreement to the contrary.

ARTICLE 808. Averages shall be:

1. Simple or particular.

2. General or gross.

ARTICLE 809. Simple or particular averages shall be, as a

general rule, all the expenses and damages caused to the

vessel or to her cargo which have not redounded to the

benefit and common profit of all the persons interested

in the vessel and her cargo, and especially the following:

1. The damages suffered by the cargo from the time of its

embarkation until it is unloaded, either on account of the

nature of the goods or by reason of an accident at sea or

force majeure , and the expenses incurred to avoid and

repair the same.

2. The damages suffered by the vessel in her hull, rigging,

arms, and equipment, for the same causes and reasons,

from the time she puts to sea from the port of departure

until she anchored in the port of destination.

3. The damages suffered by the merchandise loaded on

deck,

except

in

coastwise

navigation, if the marine

ordinances allow it.

4. The wages and victuals of the crew when the vessel

should be detained or embargoed by a legitimate order

or force majeure , if the charter should have been for a

fixed sum for the voyage.

© Compiled by RGL

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