Maritime Trade

A vessel, within the meaning of this Law, is any craft capable of navigation, whatever its cargo and designation, whether such navigation is intended for profit or not. All appurtenances necessary for its operation are considered part of the vessel. Vessels are movable property subject to the general rules of law, subject to the special rules provided for hereinafter.

The following debts alone are privileged and their order of priority shall be determined according to their listing:

1. 1)Court fees and expenses paid for the preservation of the sale price for the benefit of general creditors; vessel tonnage dues, lighthouse and port dues, and other dues and general charges of the same nature; pilotage fees and costs of custody and maintenance from the time of the vessel's entry into its last port.
2. 2)Debts arising from the contract of employment of the master, mariners, and other crew members.
3. 3)The remuneration due for salvage and assistance and the vessel's contribution to a general average sacrifice.
4. 4)Compensation for collision and other maritime incidents, for damage caused to ports, docks, navigational channels, and for injury to passengers and mariners and for loss of or damage to cargo and luggage.
5. 5)Debts arising from contracts concluded or operations carried out by the master away from the vessel's home port in the exercise of his legal powers for a genuine need requiring the maintenance of the vessel or the completion of the voyage, whether or not the master is the owner of the vessel, and whether the debt is owed to the suppliers, repairers, lenders, or other contracting parties.
6. 6)Compensation due to the vessel's charterers.
7. 7)The total insurance premiums on the hull of the vessel, its equipment, and gear, due in respect of the last insured voyage if the insurance was contracted per voyage, or in respect of the last insured period if the insurance was contracted for a fixed term, provided that the total does not in either case exceed the premiums for one year.

Privileged creditors must be ranked by voyage. The debts of the last voyage, whatever their ranking, shall take priority over the debts of previous voyages. However, debts arising from a single employment contract of mariners shall always be treated as debts of the last voyage even if they relate to a previous voyage.

Debts relating to the same voyage shall be ranked in the order established in Article 48; debts of the same rank relating to the same voyage shall rank pari passu. All salvage remuneration and debts incurred for the supply of provisions and repairs shall be ranked in reverse order of their date of origin.

Debts relating to the same maritime incident shall be treated as having arisen at the same time.

The privileges established by the preceding Articles arise from the time the debt is incurred. They are not subject to any formality or special condition for proof.

Mortgagees whose debt is registered on the vessel shall rank in the order of their registration, immediately after the privileged creditors listed in items 1, 2, 3, 4, and 5 of Article 48.

Privileges attach to the vessel, to the freight of the voyage in which the privileged debt arose, and to the appurtenances of the vessel and freight earned since the commencement of the voyage. However, the privilege established in the second paragraph of Article 48 attaches to the total freight due for all voyages carried out during the same period of employment.

For the purposes of the application of privileges, the following are treated as appurtenances of the vessel and freight:

1. 1)Compensation due to the shipowner for material damage suffered by his vessel that has not been compensated, or for loss of freight.
2. 2)Compensation due to the shipowner for general average losses, where such losses constitute uncompensated material damage suffered by his vessel, or for loss of freight.
3. 3)Remuneration due to the shipowner for salvage or rescue operations carried out up to the end of the voyage, after deduction of the amounts allocated to the master and other crew members.

Passenger fare and the lump-sum amount in which the liability of shipowners may be limited shall be treated as freight. Compensation due to the shipowner under insurance contracts, bonuses, financial subsidies, and similar payments shall not be treated as appurtenances of the vessel and freight for the purpose of applying privileges.

All privileges listed in Article 48 shall lapse by operation of limitation after one year, except the privilege for debts arising from the supply of provisions referred to in item 5, which lapses after six months. The limitation period for the privilege of salvage and rescue remuneration runs from the day the operations end. For the privilege of compensation for collision and other incidents and for injuries, it runs from the day the damage occurred. For the privilege for loss of, or damage to, cargo or luggage, it runs from the day of delivery of the cargo or luggage, or from the date on which it should have been delivered; and for the privilege of repairs and provisions in the cases set out in item 2 of Article 48, from the day the debt arose. In all other cases, the period runs from the due date of the debt. Debts owed to crew members listed in item 2 of Article 48 shall not be considered due until the end of the voyage, regardless of the right of those persons to demand advances or payments during the voyage. The period established above shall not run in Lebanese territorial waters where a creditor's domicile or principal place of business is in Lebanon, provided the limitation period does not exceed three years from the date the debt arose.

Privileges shall also lapse, regardless of the general modes of extinguishing obligations: By judicial sale carried out in accordance with the proper procedure established in this Law, or by any voluntary sale of the vessel under the following conditions: — That the transfer be carried out in accordance with Articles 21, 24 to 27, and 33 to 35 and 37 of this Law. — That the transfer be publicised by publication in the Official Gazette of the Lebanese Republic and in two daily newspapers appearing at the vessel's port of registry, and by a notice posted on the door of the registration office, provided that in all such publications and notices the name and address of the purchaser are invariably stated. — That no objection from a creditor reaches the purchaser within one month after publication. The creditor's right of priority over the sale price shall be preserved for as long as the price has not been paid, even after expiry of that period, provided the creditor has notified the purchaser of his claim before payment by means of an objection. The objection referred to in the preceding two paragraphs must be communicated to the creditor through a notary public.

Privileged creditors may register their privilege in order to be notified of the offer of the vessel for sale in accordance with the conditions set out in Article 48 of this Law. This registration shall not affect the rank of the privilege. The registration shall be entered on the vessel's page in the register.

The preceding provisions shall apply to vessels operated by an operator who does not own them, or by a principal charterer, unless the owner's involvement arose from an unlawful act and the creditor was in bad faith.

A mariner is a person employed on board a vessel to carry out nautical activities.

If the vessel's tonnage exceeds five barrels, the employment contract between a mariner and the vessel's operator or his agent shall be subject to the following provisions: 1. The terms of the maritime employment contract shall be entered in the crew book. The mariner shall express his consent by his signature or the imprint of his thumb. The authority responsible for maritime order shall, before the vessel's departure, inspect the entries in the crew book to verify that all mariners boarding the vessel are employed under a contract. The contract terms shall be read aloud and the parties shall be interrogated to ensure that they understand and accept its content. Completion of this procedure shall be noted in the margin of the book. 2. If the employment contract is not entered in the crew book, it may be proved by all means.

The employment contract shall state: — Whether it is concluded for a fixed period, an indefinite period, or a complete voyage. — The mariner's service or function. — The date on which service or duties are to commence. — The method of calculating the agreed remuneration. — The amount of the fixed pay or the basis for determining the share of profits. — The date and place of conclusion of the contract. The contract shall not be valid unless the mariner is free from any other employment.

The judge shall apply local custom or general custom in all matters not addressed by the agreement or the law.

If the chartered vessel is named in the agreement, the charterer may not substitute another vessel for it unless it is lost or becomes incapable of navigation by reason of force majeure occurring after the commencement of the voyage.

If the master finds goods on the vessel that have not been declared, he may order them to be landed at the nearest convenient place or charge double freight, while preserving his right to claim further damages if any. If those goods are discovered during the voyage, the master may throw into the sea goods stowed without permission if their nature could cause damage to the vessel or the rest of the cargo, or if their carriage would result in costs exceeding their value, or in government fines, or if their sale and export are prohibited by law. In all cases the master must record in the logbook the discovery of undeclared goods and the course taken, and draw up a detailed note in that regard.

If a collision occurs between seagoing vessels or between seagoing vessels and inland navigation vessels, compensation for damage caused to the vessels, their cargo, and the persons and property on board shall be paid in accordance with the following provisions; the waters in which the collision occurs shall be disregarded.

If the collision is accidental, or if it is caused by force majeure, or if it is in doubt as to its causes, the damage shall be borne by those who suffer it. This provision shall remain in force if the vessels or any of them are at anchor at the time of the collision.

If the collision is caused by the fault of one of the vessels, compensation for damage shall be payable by the party at fault.

If the fault is shared, the liability of each vessel shall be proportionate to the gravity of the fault committed; however, if it is impossible to establish the respective proportions, or if the faults appear to be equal, the liability shall be divided equally. Damage suffered by vessels, their cargoes, passengers' and crew's luggage and other property, and other persons on board shall be borne by the vessels at fault in the proportions stated, without joint and several liability as against third parties. The vessels at fault shall be jointly and severally liable to third parties for damage arising from death or injury, subject to the right of the vessel that pays a share exceeding its final share under the first paragraph of this Article to recover from the other.

If a collision occurs and the fault is that of a pilot, liability shall be established as provided in the preceding articles, even where the pilot's presence is compulsory.

The preceding provisions shall apply even without a collision to compensation for damage caused by one vessel to another or to persons or property on board, through the execution of a manoeuvre, through failure to execute a manoeuvre, or through non-observance of regulations.

The master of every vessel involved in a collision must render assistance to the other vessel, its crew, and passengers to the extent possible without serious risk to his own vessel, crew, and passengers.

The master must also, to the extent possible, notify the other vessel of his vessel's name, home port, and the port from which it came and the port to which it is bound. The shipowner shall not be held liable merely for violation of the preceding provisions.

The provisions of this Part shall not apply to warships and State vessels assigned to an official service.

Actions for compensation for damage arising from collision shall not be subject to protest or any other procedure, and no special presumption of fault relating to collision liability shall arise.

In the event of a collision, the claimant may bring the action before the court of the defendant or before the court of the home port of the colliding vessel. The court with jurisdiction over the first Lebanese port entered by either of the vessels after the collision shall have jurisdiction to conduct all investigations or technical surveys. For collisions in Lebanese territorial waters, jurisdiction shall vest in the court of the place of the collision.

The right to bring any action for compensation for damage arising from collision shall lapse by operation of limitation upon expiry of two years from the date of the incident. However, the right of action referred to in the third paragraph of Article 236 shall lapse by operation of limitation after one year from the date of payment.

Marine insurance is a contract by which the insurer undertakes to indemnify the insured against loss suffered in the course of a maritime voyage, resulting from the total loss of a specific value, in exchange for payment of a premium, provided such indemnity does not exceed the value of the lost property.

All provisions of this Part that are not expressly stated to be mandatory regardless of any contrary agreement, or whose non-observance gives rise to nullity, are merely interpretative of the contracting parties' intent and may be departed from by express provision.

The insurance contract shall be drawn up in writing in two original counterparts. It shall state: — Date of the insurance contract and whether it is a contract before or after noon. — Name of the assured, whether on his own behalf or on behalf of another, and his place of residence. — Risks assumed by the insurer and the duration and limits thereof. — The insured amount. — The premium or consideration for insurance. It shall be signed by the insurer and the assured, or by the insurance broker on behalf of the assured. It may be drawn up to a named person, to order, or to bearer. Either party may obtain a true copy of the insurance policy.

Insurers may only be summoned before the court of the place where the contract was signed. However, if the policy was signed at an agent's office, the assured may also sue before the court of the insurer's domicile. If it was signed in one place by more than half the insured value, the assured may summon all the other insurers before the court of that place, which shall have jurisdiction once a decision has been made on the same action against them.

Any concealment of information or false declaration by the assured at or after the conclusion of the contract, or any discrepancy between the insurance contract and the actual risk, whose effect would be to diminish the insurer's assessment of the risk, shall render the insurance void, even in the absence of fraud. The insurance shall likewise be void even where the concealment, discrepancy, or false declaration has no effect on the damage or the loss of the insured property. The insurer shall retain the full premium if the assured acted fraudulently, and half the premium in the absence of fraud.

The assured must notify the insurer, under penalty of the same sanction, of events subsequent to the contract that may affect the insurer's assessment of the risk.

The insurer has the right to raise against a holder of the insurance policy — even if drawn up to order or to bearer — the defences relating thereto that he could have raised against the original assured, as if the transfer had not taken place.

The insurance contract may always be rescinded at the option of the assured as long as the risk has not commenced. An assured who is unable to prove force majeure shall pay the insurer a fixed indemnity of half the premium specified in the contract.

If the subject matter of insurance is goods for both the outward and return voyage and the return cargo has not been loaded by the time the vessel reaches its first port of call, or if loading of the return cargo is not complete, the insurer shall receive only two-thirds of the agreed premium, unless otherwise agreed.

In the event of the insured's insolvency or publicly declared suspension of payment, or failure to pay a premium that has fallen due, the insurers shall have the right, after a futile notice of payment served at the insured's place of residence, to rescind all insurance contracts by simple notification — even a registered letter — from the date of the last notice, and they shall retain the premium pro rata for the period of risk elapsed, with the balance remaining as a debt owed to them. However, the notice and notification may be combined in a single instrument. The insured shall have the same rights in the event of the insurer's insolvency or publicly declared suspension of payment.

A public judicial sale of the vessel shall automatically suspend the insurance on the day of sale; the insurance shall continue in the case of a private sale covering less than half the insured value. If a private sale covers at least half the insured value, the insurance shall only continue at the consent of the insurers.

The charter of a vessel shall not give rise to the rescission of the insurance contract, unless otherwise agreed.

The insured must notify the insurers of a casualty or loss within three days of receiving the news. He must, to the extent possible, mitigate the effects of the peril, take all appropriate precautions, oversee or carry out salvage operations on the insured property, and preserve every right of action against responsible third parties.

An insured who takes part in salvage operations preserves his rights to indemnity and abandonment. He has the right to recover his expenses on the mere confirmation thereof, subject to the insurer's right to contest. The insurer also has the right to take all appropriate or useful measures without this conferring on the insured the right to object that the insurer has acted as an owner.

Consignees must contact the insurers or their agents named in the policy, if any, otherwise the competent local authority, for the purpose of a survey of the losses and maritime damage, under penalty of inadmissibility of the action. They must also, under the same penalty, complete those surveys within eight days following the day on which the carrier placed the goods at their disposal or at the disposal of their representatives or agents, provided that this period shall not exceed thirty days from the date of arrival of the goods at the intended destination. However, the thirty-day period shall not apply to a consignee who proves that he was unaware of the arrival of the goods at the intended destination.

If insurance contracts on goods are evidenced by open policies or any other policies, the insured must declare in due time in the policy all shipments made on his account or on account of others who have entrusted him with the insurance of their goods, to the extent they are covered by the insurance. If the insured fails to fulfil this obligation, the insurer may cancel the contract, retaining premiums paid in all cases and having the right to recover premiums relating to undeclared shipments. If the declared sum relates to goods insured on behalf of others, it shall have no effect if given after the occurrence of the casualty.

Insurance may be effected for the benefit of an unnamed person. Such a clause shall be equivalent to insurance for the account of the signatory and equivalent to a contract for the benefit of a third party, whether that party is known or yet to be identified. The signatory of the policy relating to insurance for an unnamed person shall be jointly and severally bound to the insurer to pay the premium; however, the defences available to the insurer against the signatory may also be raised against the person benefiting from the insurance.

A vessel shall be considered Lebanese if its home port is a Lebanese port and at least half of it is owned by Lebanese nationals or Lebanese joint-stock companies whose board of directors, including its chairman, is a majority of Lebanese nationality.

The following shall also be considered Lebanese: all vessels designed for long-range navigation, whatever their net tonnage and whatever the nationality of their owners, provided their home port is a Lebanese port, subject to their registration being made conditional upon a prior permit issued by order of the Minister of Public Works.

A vessel shall also be considered Lebanese if its home port is a Lebanese port and at least half of it is owned by: - A general partnership company, all of whose partners are Lebanese. - A limited partnership company, all of whose liable partners are Lebanese. - A limited liability company, the majority of whose members, including the manager, are Lebanese and the majority of the shares belong to those members.

The Treasury shall collect from the non-net revenues earned by the two vessel guidance stations at the ports of Beirut and Tripoli a percentage of 10% (ten per cent) on all revenues. This procedure shall apply to all other guidance stations and to licensed pilots at all other ports and river mouths. The previous fees contrary to these fees shall be cancelled, as shall any prior discount or concession granted to Lebanese vessels.

The following shall be treated as Lebanese vessels:

1. 1)Vessels adrift at sea picked up by vessels flying the Lebanese flag.
2. 2)Vessels confiscated for violating Lebanese laws.

All vessels specified in this Article and in Article 2 must fly the Lebanese flag throughout the voyage, subject to the provisions of the second paragraph of Article 16.

Lebanese vessels alone have the right to fish along the coasts, the right to engage in coastal commercial navigation between Lebanese ports, and to tow vessels entering or leaving those ports.

Lebanese vessels shall be marked in Arabic and Latin characters with the following designations:

1. 1)Steamships and motorized vessels intended for coastal navigation or high-seas navigation: the name of the vessel on both sides of the bow, and on the stern its name and the name of its port of registry.
2. 2)Sailing vessels engaged in coastal navigation. On each side of the bow: the distinguishing letters of the port of registry and the registration number. On the stern: the name of the vessel and the name of the port of registry.
3. 3)Fishing vessels. On each side of the bow: the distinguishing letters of the port of registry and the registration number.
4. 4)Rowing boats, cargo skiffs, and all floating craft (including barges, dredges, and lighters): the same markings as fishing vessels of equivalent capacity.
5. 5)Boats of official departments and concessionary companies. On the bow and stern, or on the bow alone: the name of the vessel. Inside the wheelhouse: the distinguishing letters of the port of registry together with the registration number.
6. 6)Pleasure craft. These vessels are permitted not to display their registration number externally, provided that number is engraved inside the wheelhouse.

Shipowners must officially record in their vessels the capacity reserved for use (net tonnage) and the full internal capacity plus the capacity of structures erected on deck (gross tonnage). The assessment of vessel tonnage, the preparation of measurement certificates, and their submission to the port authority shall be carried out; the authority shall issue a certificate to that effect at the expense of the owner, buyer, or mortgagee, who must provide all means necessary to carry out those procedures.

The net tonnage number of the vessel shall be inscribed in Arabic and Latin characters on the aft face of the largest deck beam or on the forward side of the main hatch coaming.

A mortgage may be constituted on vessels whose gross tonnage is two barrels or more, provided that this is agreed upon by both parties.

A maritime mortgage agreement shall be constituted in writing. It may be made by private instrument. A mortgage deed may be drawn up to order; in that case, its negotiation transfers the mortgage right.

No person other than the owner of the vessel or his specially authorised agent may enter into a conventional mortgage on the vessel. If the vessel has several owners, its operator has the right to mortgage it for the needs of outfitting or navigation, pursuant to authorisation from the majority of its owners, provided that majority holds at the same time three-quarters of the jointly-held rights. If the rights of the majority do not reach three-quarters, the co-owners may apply to the court for the decision most consistent with their common interest. No co-owner may mortgage his undivided share in the vessel except with the consent of the majority of owners, provided that majority simultaneously holds half of the jointly-held rights.

The mortgage must be registered in the registration register pursuant to Article 21 and the following articles of this Law. Registration of a mortgage shall secure, in addition to the principal, interest for two years plus interest for the current year at the time of default.

A mortgage constituted on a vessel or a share thereof shall cover the entire hull and shall also cover the equipment, tools, machinery, and other appurtenances, including wreckage, unless otherwise agreed. This mortgage does not cover the vessel's freight or governmental bonuses and subsidies. However, it covers insurance compensation, unless such compensation is earmarked for the repair and maintenance of the vessel. It does not cover insurance proceeds and the mortgage deed may not contain an express assignment to the mortgagees of such proceeds. This assignment shall not be effective against the insurers unless they have accepted it or been notified thereof.

A maritime mortgage on a vessel under construction is permissible. In this case, the mortgage must be preceded by a declaration addressed to the harbour master within whose jurisdiction the vessel is being built. The declaration shall state the length of the vessel's keel and its other approximate dimensions, its estimated tonnage, and the place of construction.

If the mortgage deed was drawn up to order, it shall be transferred by endorsing the registration certificate.

Creditors holding a mortgage registered on a vessel or a share thereof may pursue it wherever it passes in order to register their debt in its proper rank and to foreclose in accordance with the rank of registration. If the mortgage covers only a share of the vessel, the creditor may not apply for arrest or enforcement of sale except on the share assigned to him; however, if the mortgage covers more than half the vessel, the creditor may, after arrest, enforce the sale of the whole vessel on condition that the co-owners are invited to participate in that sale. If the adjudication of the vessel at a sale by auction falls upon one of the co-owners, or if the vessel falls to him on partition of his share, the mortgage shall survive the partition or sale in the same state as before, even if that co-owner is not the one who mortgaged his undivided shares in the vessel. If the sale by auction takes place before a court under the conditions set out in Article 83 and the following articles of this Law, and it is adjudicated to a person who is not a co-owner, the rights of creditors whose mortgage does not cover a share of the vessel shall be limited to the right of priority over the portion of the price attributable to the mortgaged right. Likewise, charges attaching to each share in the ownership of the vessel shall automatically transfer to the portion of the price in which the value of that share in the vessel is represented.

A person who purchases a vessel or a share thereof and wishes to avoid the actions permitted by the preceding Article must, after registering his purchase and before those actions, or within fifteen days thereof, notify a copy of the vessel's title deed to all creditors listed in that deed at the elected domicile in the original deed. The purchaser shall declare in the same deed that he is prepared to pay immediately the secured debts up to the value of the vessel, whether those debts are due or not.

Any holder of a registered debt may demand the sale of the vessel by auction or the sale of the mortgaged share thereof, by offering a premium of ten per cent over the price and providing a surety for the payment of the price and costs. The purchaser must be notified of this request, signed by the creditor, within ten days of notification. The request shall contain a summons before the primary court in whose jurisdiction the vessel is located or at whose port of registry it is registered if it is at sea, for the purpose of ordering the holding of a public auction.

The sale by auction shall be conducted at the instance of the creditor who requested it or at the instance of the purchaser in accordance with the procedure established in the following articles.

The sale of a mortgaged vessel in Lebanon or abroad is prohibited. Any sale in violation thereof may not be entered in the registration register as null and void. An owner who voluntarily sells abroad a mortgaged vessel shall be considered guilty of breach of trust and shall be subject to the penalties provided for in Article 670 of the Penal Code.

The mariner must present himself for embarkation on the vessel at the master's first request. He is obliged, whether on board or ashore, to obey the orders of his superiors in matters concerning the service of the vessel. He is obliged to work towards saving the vessel and its cargo.

Neither the master nor a mariner may load on the vessel any goods for their own private account without permission from the operator. If a violation occurs, the offenders shall be required to pay the maximum freight applicable at the place and time of loading, without prejudice to any further compensation that may be due. The master may order the throwing overboard of illegally loaded goods if they are likely to endanger the vessel or the cargo, or if their carriage would result in costs exceeding their value, or if they are subject to confiscation by public authorities, or if their sale or export is prohibited by law.

A time charter is a contract by which a vessel is let for hire for a fixed period. The owner of the vessel may choose to leave the charterer with or without the right to choose and dismiss the master, and may transfer to him both the nautical and commercial management of the vessel, or only its commercial management. A charterer who has the right to manage both the nautical and commercial aspects of the vessel must provide all its provisions, maintenance charges, and operating costs, and bear general average losses that fall on the vessel and its freight; losses and general average shall be at his risk whatever their severity, unless he proves they arise from the owner's fault. If the charterer only has commercial management, such losses and general average shall be at the owner's risk, unless he proves they arise from the charterer's fault.

Freight shall be payable by the charterer for all the time the vessel is at his disposal. In the event of the vessel being lost, requisitioned, or detained, freight shall cease as of the date of those events.

If freight is measured in periods of time, each period that has commenced shall be payable in full.

Freight for the vessel shall be payable from the day it is placed at the charterer's disposal until the day it is returned to the owner in the condition required for it to receive cargo.

Any act of assistance or salvage performed by one vessel in service to another vessel in distress, and to the property on board, and the towage or passenger fare payable upon leaving the vessel entirely in the hands of the crew, shall be subject to the following provisions:

Any act of assistance or salvage that produces a beneficial result shall give rise to a fair remuneration. No remuneration shall be due if the assistance rendered produces no benefit. The amount payable shall not in any case exceed the value of the salvaged property.

No remuneration shall be due to persons participating in salvage operations if the vessel in distress has expressly and reasonably refused their assistance.

No remuneration shall be due to a towing vessel for assisting or saving the towed vessel or its cargo unless operations beyond what can be considered the performance of the towage contract were carried out.

Remuneration shall be due even if the assistance or salvage was between vessels belonging to the same owner.

The amount of remuneration shall be fixed by agreement of the parties, or otherwise by the court. Likewise, the proportion for the distribution of that remuneration among the salvors or between the owners of each salving vessel and its master and crew. If the salvaged vessel is foreign, the distribution among its owner, master, and crew shall be governed by the law of its country.

The court may, on the application of either contracting party, cancel or modify any salvage or assistance agreement concluded during the danger and under its influence if it considers the agreement's terms unjust. It may also in all cases, on the application of the interested party, cancel or modify the agreement if it appears that one of the parties was misled by fraud or concealment of information, or if the remuneration is excessively disproportionate to the service rendered.

The court shall fix the remuneration having regard to the circumstances on the basis of: A. First: the successful outcome and the efforts and merits of the salvors; the danger that threatened the assisted vessel, its passengers, crew, and cargo; the salvors and the salving vessel; the time spent and the costs and losses incurred; the risks of liability and other risks to which the salvors were exposed; the value of the equipment they used; and, where applicable, the purpose for which the salving vessel was fitted. B. Second: the value of the salvaged property. The same provisions shall apply to the distribution referred to in the second paragraph of Article 250. The court may reduce or annul the remuneration if it is established that the salvage or assistance was necessitated by the fault of the salvors, or if they committed theft, concealment of stolen property, or other fraudulent acts.

No remuneration shall be due for saving persons. Salvors of human lives who participated in the same operations at the same risks shall be entitled to a fair share of the remuneration awarded to the salvors of the vessel, cargo, and their appurtenances.

The right to bring an action for salvage or assistance remuneration shall lapse by operation of limitation after two years from the day on which salvage or assistance operations ended. This period shall not run if the assisted or salvaged vessel was not arrested in Lebanese waters. A prison sentence of one month to two years and a fine of one hundred to three thousand Pounds, or either of these two penalties, shall be imposed on any master who personally witnesses a person at sea in danger of drowning and who fails to render assistance without serious risk to his vessel, crew, or passengers.

Any person with an insurable interest may insure the vessel, its appurtenances, vessels under construction and materials assembled for that vessel in the shipyard, outfitting costs, equipment, crew wages, vessel freight, amounts lent under bottomry, goods, money, and financial instruments on board, anticipated profits, and in general all things capable of having a monetary value and exposed to maritime risks.

The accepted value of the vessel includes all its appurtenances, in particular equipment, crew advances, rigging, and all costs, unless it can be proven that certain costs relate to an interest independent of the ownership of the vessel.

If the subject matter of insurance is the net freight, the amount of that freight shall be estimated at sixty per cent of the gross freight if no specific amount is stated in the contract.

Anticipated profit shall be fixed at ten per cent of the value at the port of departure, unless the insurers accept a higher declared estimate, in which case that higher share must be specified in the policy.

If the value of goods is not specified in the contract, it may be proved by cargo manifests, books of account, or otherwise by the current price at the time and place of loading, together with all duties and costs paid up to their delivery on board, the freight earned regardless of the outcome, the insurance premium, and anticipated profit where applicable. The same method shall apply to assess the displacement, dimensions, equipment, and fittings of the vessel, which shall be determined on the basis of their value on the day the risk commences. Equipment, fittings, and all property capable of having a monetary value shall be estimated at their value at the place and time of commencement of the risk.

The insurer may always prove that the accepted value exceeds the actual value of the insured property at the time he accepts the insured's valuation in the policy.

Insurance may be effected by one insurer against the risks assumed by another. Such reinsurance shall be subject to the provisions of this Part. The original insurer shall remain jointly and severally liable to the insured.

The insured may insure the insurance indemnity.

Any insurance contract concluded after the loss of the insured property or after its safe arrival shall be void if it is established that news of the loss or arrival reached either the insured's place of residence before the insurance order was issued, or the place of signature before the insurer signed. If the insurance was contracted on the basis of 'good or bad news', which is only admissible for insurance on an outfitted vessel, the contract shall not be void unless evidence is produced that the insured knew of the loss or the insurer knew of the safe arrival before signing. If the insured's ignorance is established, he shall pay the insurer twice the premium; if the insurer's ignorance is established, the insurer shall pay the insured twice the agreed premium.

Insurance contracted through an agent shall be void if the agent could have known the news. It shall also be void if the addressee knew of it; and if the addressee learned of the news after issuance of the order, he shall immediately issue a counter-order that shall be presumed valid where appropriate. The insurance shall be valid if it was signed before the counter-order arrived.

If the master is permitted to load goods for his own account on the vessel he commands, and he insures those goods, he shall prove to the insurers by all means the purchase of the goods and shall provide a bill of lading signed by two senior crew members.

If there is no bill of lading, or if the bill of lading lacks evidentiary value, the insured shall produce other documents proving the shipment, such as purchase account lists, cargo declarations, copies released by customs, carriage statements, and correspondence. Oral evidence shall be admissible in the absence of all other evidence.

Marine insurance must be an indemnity contract regardless of any contrary agreement, and may not place the insured in a better financial position after the occurrence of an incident than he was in before the incident.

A person may effect as many insurance contracts as he wishes on a single property, provided those contracts do not together yield a profit exceeding the actual loss suffered.

If insurance is effected for an amount exceeding the value of the insured property and fraud or misrepresentation by the insured is established, the insurer may seek annulment of the contract and shall be entitled to retain the full premium by way of compensation. In the absence of fraud or misrepresentation, the contract shall be valid for the value of the insured property as assessed or agreed. The insurer may not collect the premium on the excess, but may claim compensation for loss and damage where appropriate.

If the total of the sums insured under several contracts exceeds the value of the insured property, the contracts may be annulled in accordance with the preceding article in the event of fraud or misrepresentation by the insured. In the absence of fraud or misrepresentation, all contracts shall be valid and each shall produce its effects proportionately to the insured sum relative to the full value of the insured property. This provision may be displaced by a clause in the policy adopting the rule of chronological priority of dates, or providing for solidarity of insurers.

If the insurance contract covers only part of the value of the insured property, the insured shall be treated as his own insurer for the remaining part and shall consequently bear a proportionate share of the loss, unless it is expressly provided that the insured — within the limit of the insured sum — may receive full indemnity if the loss does not exceed the insured value.

A registration register shall be established at each of the ports of Tyre, Sidon, Beirut, and Tripoli. Each page of this register shall be numbered and signed; its number shall be the registration number of the craft to which the page is exclusively allocated. All Lebanese craft shall be recorded in this register. Registration shall be made at the following ports: Tyre: vessels from ports situated between the Palestinian border and the mouth of the Litani River. Sidon: vessels from ports situated between the mouth of the Litani River and the Damour River. Beirut: vessels from ports situated between the mouth of the Damour River and Ras al-Barbara. Tripoli: vessels from ports situated between Ras al-Barbara and the northern borders of Lebanon. These ports shall be indicated by the following distinguishing letters: For Tyre (ص ر) – For Sidon (ص أ) – For Beirut (ب) – For Tripoli (ط). A vessel is said to belong to a particular port when its owner has a real or elected domicile at that port. Vessels belonging to official departments (Customs, Police, Quarantine, the State, etc.) shall be registered at the port of their customary anchorage.

The following text was added to Article 8 pursuant to Schedule No. 9 annexed to Law No. 280 dated 15/12/1993: — The ports of Chekka, Jbeil, and Jounieh are considered ports of registry; the scope of each and its distinguishing letters shall be determined by order of the Minister of Transport.

The erasure, concealment, or covering of any official letters, numbers, or markings is in no way permitted. Any violation of these provisions shall expose the shipowner and master to a prison sentence of two to ten days and a fine ranging from five to one hundred Lebanese Pounds, or to either of these two penalties. Likewise, the affixing of forged markings shall expose the shipowner and master to the penalties provided for in the second paragraph of Article 19 of this Law.

Vessels belonging to foreigners residing in Lebanon may be registered in Lebanon by permit from the Minister of Public Works if they are intended for pleasure use or for cruising within a Lebanese port without any other form of navigation. This permit may be revoked in the event of a violation of these regulations or upon a change of vessel ownership; the permit shall automatically lapse if the vessel is used for navigation other than that for which it was registered. Foreign vessels registered at a Lebanese port shall fly the flag of the country of their owner, or the flag of the country of one of their owners if there are several.

The registration register for each vessel on its page must contain the following:

1. 1)Its name (if several vessels bear the same name, a sequential number shall be appended to each).
2. 2)Its registration number (accompanied by the distinguishing letters of the port of registry).
3. 3)The date and place of construction of the vessel.
4. 4)Its type (whether a sailing vessel, a steamer, etc.).
5. 5)Its dimensions (length, breadth, and depth).
6. 6)Its net and gross tonnage in barrels (tons).
7. 7)The type and power of the propulsion machinery.
8. 8)The names, nationalities, and addresses of the owners, with a statement of the number of shares held by each.
9. 9)The name, nationality, and place of residence of the managing operator.
10. 10)Subsequent changes to the vessel, including changes to its home port or its owner, etc.
11. 11)The reasons for its removal from the register, whether by loss, damage, or sale.
12. 12)Any arrest or mortgage placed upon it.

Registration shall be carried out at one of the ports listed in Article 8, on the basis of a declaration made by the owner after taking an oath before the harbour master and four witnesses. The form of the oath shall be: "I swear that I own in full (or state the share) the vessel whose registration I am applying for, because I have built it alone (or together with my co-owners) at my own expense (or at our expense) (or) because I purchased it from... by virtue of a deed dated..." If the vessel is the property of a company, the company's representative in that capacity shall give the declaration on its behalf and take the oath as indicated above. The declarant shall substantiate his declaration of ownership by producing all supporting documents (such as the bill of sale, invoices, etc.) or by presenting witnesses to the harbour master (such as the builder and workers, etc.) if the production of those documents or the hearing of those witnesses is necessary to establish his right. A record of the foregoing shall be drawn up as a deed of attestation, signed by the declarant, the witnesses, and the harbour master.

This deed shall be posted on the special notice board at the offices of the registration port, after which a certified true copy of the deed, certified by the head of that port, shall be sent to all other ports; those ports in turn shall post it on their respective notice boards upon receiving it. The deed must contain the particulars listed in Article 11. At each port, the posting of the deed shall be confirmed by a separate record signed by the head of the port.

Registration may not be challenged once three months have elapsed from the date of the last posting, provided no claim or objection has been raised during that period. After that date, the aggrieved party retains only the right to bring a damages action against the declarant.

Claims and objections submitted within the three-month period shall be received by the harbour master of the registration port and, upon expiry of that period, referred to the registry of the primary court to whose jurisdiction the port belongs. The court registry shall in turn notify the declarant through the bailiff within fifteen days of receiving them, and the declarant shall have fifteen days to reply. The court president shall then summon all parties to a public hearing in the same manner to adjudicate the said claims and objections. The judgment rendered by the court shall be final and not subject to objection; appeal is the only means of review, whatever the rights in dispute, and must be filed within fifteen days of notification of the judgment. It shall be subject to all appellate procedural rules provided for in Part Six of the Code of Civil Procedure. Retrial shall be accepted only in the cases referred to in items 1, 2, 4, 5, 6, and 7 of Article 537 of the Code of Civil Procedure, and shall be subject to ordinary procedure.

Vessels must be registered within fifteen days following their construction or purchase; if constructed or purchased abroad, within fifteen days of their entering Lebanese waters. The vessel need not be present at a Lebanese port for registration formalities to be carried out. A vessel purchased or built abroad is permitted, pending its registration, to sail under the Lebanese flag by virtue of a permit issued by the Lebanese State's representative at the place of sale or construction, on the basis of a declaration of purchase supported by documents. If the purchase was made in Lebanon from an owner domiciled at a port other than the buyer's port, the buyer must apply to the port of registration of the vessel to transfer the registration to the port of his domicile. The transfer shall be effected after the change of ownership has been entered on the vessel's page in the registration register; a copy of the page, certified by the previous harbour master and noting the necessity of transfer due to change of domicile, shall then be sent to the new port of registration. A new page shall be opened in the register of the new port of registry, bearing a number corresponding to its place in the register, and all entries from the previous page shall be transferred to it. The vessel's page in the previous port's register shall be cancelled. The owner of a Lebanese vessel, or the co-owner thereof, who fails to register the vessel in accordance with the provisions of this Article shall be punished with imprisonment of two to ten days and a fine of 25 to 500 Lebanese Pounds, or either of these two penalties, unless it is proven that force majeure prevented registration. By way of transitional provision, shipowners are granted a period of six months from the date of publication of this Law to register their vessels in accordance with the provisions of this Article.

If a vessel is sold to a foreigner, or is seized by the enemy, or is destroyed or lost in any way, the owner in whose name it is registered shall return its title deed to the office of the port of registry for cancellation and for the striking-off of the corresponding page of the register. This deed must be returned within fifteen days if the loss or sale occurs in Lebanese waters, and within three months if it occurs abroad. Any violation of these provisions shall expose the shipowner and master to imprisonment of two to ten days and a fine from 25 to 500 Lebanese Pounds, or to either of these two penalties. Arrest of the vessel is also possible, except where arrest proves impracticable.

Any Lebanese vessel sailing without registration, which is not being transferred from the port of its construction or sale to its port of registry, shall be stopped at the first Lebanese port it reaches. If apprehended at sea, it shall be taken to the nearest Lebanese port, where the harbour master shall detain it and draw up a record. This record shall be forwarded to the competent courts, and a copy sent to the Minister of Public Works.

If it is established that the master intended to evade registration formalities for a criminal purpose, the court shall order the confiscation and sale of the arrested vessel. The sale proceeds shall be added to the revenues of the port office to which the vessel's registration belongs, and a copy of the judgment shall be sent to the Minister of Public Works. In addition, the master shall be liable to imprisonment of three months to two years and a fine ranging from 25 to 500 Lebanese Pounds. If it is established that the matter involves only negligence or oversight, both the master and the owner shall be liable to a fine ranging from 25 to 300 Lebanese Pounds.

Every agreement, every onerous or gratuitous contract, every judgment having the force of res judicata, and in general every act whose purpose is to create, transfer, declare, modify, or extinguish a real right attached to a registered vessel shall have no effect even between the contracting parties unless it has been entered in the registration register. The right to register real rights attached to vessels is acquired from the moment of the agreement, contracts, judgments, or acts referred to in the preceding paragraph. The obligation to deliver a vessel includes the obligation to transfer it in the registration register. The transfer may be ordered by the court if one of the contracting parties refuses to perform its obligation, without prejudice to the right of the aggrieved party to claim damages, particularly where the vessel has been transferred to a third party.

Any person who has acquired a right in a registered vessel in reliance on the entries and contents of the registration register may invoke those entries against others. However, a third party who, before acquiring a right in the vessel, was aware of defects, grounds for annulment, or disqualifications may not invoke the force of the registration register entries. In any event, the aggrieved party may bring a personal action for damages against the person who caused the harm.

Any person harmed by a registration, amendment, or cancellation made without legitimate cause may request the annulment or amendment thereof. If annulment or cancellation cannot be achieved by mutual agreement of the parties, a court order must be obtained. Mere clerical errors in writing, such as discrepancies between entries on the register page and the terms of the daily record or supporting documents, may be corrected by the harbour master as of right. If an objection is raised by an interested party, the harbour master shall request the local justice of the peace to carry out the correction, having first noted the objection and the correction request on the page. Annulment or correction shall not be effective against a third party who previously registered his rights in good faith before the annulment, correction, or registration of the objection.

Registration shall be carried out on the basis of a declaration by the owner of the vessel or the person in whose favour a right therein is being transferred, and on the basis of acceptance by the person in whose favour the registration is being carried out. Both the declaration and the acceptance shall take place before the harbour master of the registration port, who shall draw up a record thereof; they may also be made before a notary public in a formal deed submitted to the harbour master. Registration shall not be considered final unless approved by the competent departments of the Ministry of Public Works. The declaration and acceptance shall contain:

1. 1)Identification of the vessel subject to registration, by reference to the register page number.
2. 2)Identity of the owner or right-holder transferring the right, and of the beneficiary of the proposed registration.
3. 3)Statement of the nature of the right to be registered.
4. 4)Statement of the method of acquisition and the price, where applicable.
5. 5)Where applicable, also the specific terms set out in the agreement (amount of the debt, interest rate, commission, the currency or money stipulated, the method of payment before maturity) or any restriction on the right of disposal or the conditions requested for registration, together with a statement of the principal right.
6. 6)No declaration is required where the applicant relies on a law, on a judgment having the force of res judicata, or on a deed that confers the right to register as of right.

The harbour master or the notary public who receives the deed shall verify, on their own responsibility, the identity and legal capacity of the applicants. This verification shall be noted in the record of attestation or in the deed. As regards deeds drawn up abroad, the identity of the contracting parties shall be deemed verified if the signatures on the deeds have been authenticated, including the conditions and proofs required by the applicable laws, under penalty of nullity.

If the contracting parties are unable to sign or read, or are incapacitated from doing so, the acknowledgement of the content of the record shall be made before the harbour master or the notary public in the presence of two witnesses who have civil capacity and can sign. The harbour master or notary public shall record the acknowledgement in the record of attestation or in the deed and sign it together with the witnesses. If the harbour master or notary public does not know the names, personal circumstances, or domicile of the contracting parties, such knowledge must be verified by two witnesses who know them and who fulfil the above-mentioned conditions. In all cases the harbour master or notary public must attest their knowledge of the witnesses in the declaration.

The harbour master shall maintain a daily register in which declarations and documents presented to him shall be entered in sequential numerical order; the applicant shall be given an acknowledgement of receipt noting the daily register number under which his declaration was registered and the number and date of registration in that register. The date of registration shall determine priority ranking. If requests relating to the same vessel are submitted on the same day, the hour at which the request was lodged shall determine the priority ranking of rights attached to that vessel. If several requests relating to the same vessel are submitted at the same time, this shall be noted in the daily register and the rights shall be registered simultaneously.

Anyone claiming a right in a registered vessel may request a provisional entry to preserve that right temporarily. The application for a provisional entry must always be supported by an order from the president of the primary court to whose jurisdiction the vessel's home port belongs. The date of the provisional entry shall determine the ranking for the subsequent registration of the right. A provisional entry shall lapse upon expiry of a one-month period and shall be struck off as of right if no court action, to be entered in the registration register, is filed within that period.

A registration or provisional entries may be struck off by virtue of any deed or any judgment having the force of res judicata establishing, as against any party with an interest in a declared right in accordance with proper procedure, the non-existence of the right to which the registration or provisional entry relates, or the extinction of that right.

The provisions of Articles 21 to 27 relating to registration shall apply to striking-off, except that the record of attestation or the deed of striking-off must state:

1. 1)Identification of the specific vessel page to which the striking-off must relate.
2. 2)Statement of the registration or provisional entry.
3. 3)Statement of the reason for the striking-off or the instrument establishing it.

The striking-off shall be entered on the vessel's page, dated and signed by the harbour master under penalty of nullity. The harbour master's signature shall be accompanied by the official seal of the port of registry, and the reasons for the striking-off shall be noted on the said page.

Applications for enforcement of an arrest placed on a vessel and for enforcement of a judgment settling a dispute regarding a vessel shall be forwarded through the enforcement department to the harbour master of the port of registration of the vessel, for entry on the page of that vessel. Real actions must also be registered in the registration register after their summonses have been notified to the harbour master of the port of registry, endorsed in accordance with proper procedure by the clerk of the court to which the summons was submitted. Notification shall be made at the instance of the party concerned.

If a real right was constituted on a vessel inter vivos and registration thereof is applied for after the death of the transferor, the application may be granted after producing a document that clearly gives rise to a right to registration, or a request signed by the transferor of the right, provided that the signature is authenticated in both cases. If the signature is not authenticated and the heirs raise an objection, the registration shall be determined by the judicial authority.

Real rights attached to a vessel and arising by inheritance may not be registered in the names of the applicants for registration when the inheritance is ordinary and not established by will, unless those persons produce, in addition to proof of the death of their predecessor, legal certificates establishing the identity of each of them and their right to the inheritance. If the inheritance is established by a will, the applicant must produce the deed of will or the order of the judicial authority competent to execute the will.

Every entry made in the registration register must be accompanied by the harbour master's signature under penalty of nullity. This signature shall be accompanied by the seal of the port of registry.

The owner of a vessel, to the exclusion of others, has the right to a full copy of his vessel's page. This named copy shall be given the official form by the harbour master with his signature and the seal of the port of registry. Other right-holders, such as mortgagees, shall receive only a certificate of their registered right.

Whenever a new entry is made on a page, that entry must be registered on the copy thereof (title deed). The harbour master shall refuse registration if this copy is not produced and the request relates to a right whose creation is presumed to require the consent of the registered owner. In all other cases, the harbour master shall carry out the registration and notify the holder of the registered right. No further registration may be requested by the holder of this right until the copy and the title deed have been reconciled. The harbour master shall attest the reconciliation of the copy with the page whenever required to do so.

When the harbour master opens a new page, he shall cancel the previous page by signing a cancellation mark and affixing the port seal on all its pages. He shall cancel the title deed in the same manner and keep it among his files.

The harbour master shall, upon request, provide any interested party with a general or specific statement of what is registered in the registration register, and a copy or summary of the documents.

If a title deed or a registration certificate is lost or destroyed, the harbour master of the registration port shall replace it in the same manner used by the head of the land registry office pursuant to Articles 92 to 94 of Order No. 188 dated 15 March 1926, to replace lost or damaged title deeds or registration certificates relating to immovable property. The rules established in those articles shall apply in the same way to this case.

The harbour master of the registration port shall be personally liable for damage arising from:

1. 1)His omission in the registers of a required provisional entry, registration, or striking-off.
2. 2)His omission in registration certificates or summaries signed by him of a provisional entry, registration, or striking-off entered in the register.
3. 3)His violation of proper procedure and the invalidity of provisional entries, registrations, or striking-offs entered in the register.
4. 4)Omissions and procedural violations in declarations and records of attestation received by him.
5. 5)This is in addition to the legal provisions in force concerning the liability of civil servants. In all the above cases, the State shall bear financial liability where its officers are unable to pay.

Arrest may not be effected until twenty-four hours have elapsed after the notice of payment.

The notice must be served on the owner personally or at his domicile. If the owner is not present, the notice may be served on the master of the vessel if the debt relates to the vessel or to the cargo.

If ten and a half days have elapsed since the notice, the creditor must renew it before effecting the arrest.

The enforcement officer must state the following in the record of attestation: — Name, occupation, and address of the arresting creditor. — The instrument by virtue of which enforcement is sought. — The sum demanded. — The creditor's elected address in the locality of the court before which the sale must be sought, and in the place where the arrested vessel is anchored. — Name of the shipowner and name of the master. — Name, type, tonnage, and nationality of the craft. — A statement and description of the dinghies, boats, equipment, gear, engines, provisions, and supplies, with the designation of a custodian.

The arresting party must notify the owner within three days of a copy of the record of arrest and summon him before the court of the place of arrest to decide on the immediate sale of the arrested objects in his presence. If the owner is not domiciled within the court's jurisdiction, service shall be made within fifteen days on the master of the arrested craft in person if present, otherwise on the owner's representative or the master's representative. If the owner is a foreigner without domicile or residence in the Lebanese Republic and with no representative, the summons and service shall be effected pursuant to Article 362 of the Code of Civil Procedure.

The record of attestation shall be registered in the register of the port of registration of the vessel, or in the register of the port within whose jurisdiction the vessel is anchored, after its registration if it was under construction. The debtor under arrest retains no right to sell the vessel or to mortgage it after this registration. The authority entrusted with the registration office shall issue a statement of the entry within three days of registration (Sundays and public holidays excluded) and, within eight days of issuing that statement, shall notify the arresting creditor to the registered creditors at their elected address in their registration, through the summons described in the preceding Article. Creditors shall have fifteen days to intervene if they wish.

If the vessel is foreign, notifications shall be made within eight days of the delivery of the statement of the mortgage from the consulate to the registered creditors listed in that statement, in the manner provided for in the Code of Civil Procedure. Those creditors shall have fifteen days to intervene, plus additional time for distance.

The court of the place of arrest shall order the sale and its conditions as submitted by the arresting creditor, and shall fix the date and the reserve price. If no bid is made on the fixed date, the court shall set a new, lower reserve price and a new date for the subsequent auction.

Actions for recovery and nullity shall be brought before adjudication. If actions for recovery are not brought until after adjudication, they shall automatically convert into an objection to the release of the proceeds of the sale. Actions for recovery and nullity shall not be admissible unless they are entered in the registration register.

The claimant or objector shall be given three days to present arguments, and the defendant shall likewise be given three days to reply. A hearing date shall be fixed immediately upon the application. The action shall not suspend enforcement unless the court orders a stay for compelling reasons.

The sale shall be held at a public auction hearing in the civil court, fifteen days after the posting of the notices provided for in the following Article and after publication in two newspapers, at least one of which is in Arabic, from among the newspapers designated for the publication of judicial notices at the seat of the court, in addition to the methods of publication authorised by the court.

Notices shall be affixed to the most visible part of the arrested vessel, to the main door of the court before which the sale is to be held, on the quay of the port where the vessel is anchored, and at the commercial exchange if one exists.

The notices posted or published in newspapers must state: — Name, occupation, and address of the arresting creditor. — The instruments by virtue of which the claim is made. — The amount of the sum due. — The elected address in the locality of the court and at the port where the arrested vessel is anchored. — Name, occupation, and address of the owner of the arrested vessel. — Particulars of the vessel as entered in the registration register. — Name of the master. — Place where the vessel is located. — Reserve price and conditions of sale. — Place, day, and hour of the auction.

No supplementary bidding shall be admissible once a judicial sale has been completed.

The purchaser must, within twenty-four hours of adjudication, deposit the purchase price free of costs at one of the banks approved by the Government, under penalty of the auction being reopened at his expense.

In the event of non-payment, the vessel shall be re-offered for sale and adjudicated three days after the renewal of publication and announcement as provided in Article 84, with an auction opened at the purchaser's expense. This shall remain binding on him for the payment of any shortfall, compensation, and costs.

The judgment of adjudication shall not be subject to opposition. However, within five days of its pronouncement and solely for a defect in its form, an application may be made to the court of appeal by way of a summons on three full days' notice; the court shall rule on it by a decision not subject to opposition.

The judgment of adjudication shall be registered in the registration register at the request of the enforcement department once it has acquired the force of res judicata.

Adjudication shall free the vessel from all privileges, mortgages, and rescission actions to which persons who had been notified pursuant to Article 78 are entitled. The striking-off of the registration of such privileges, mortgages, and actions shall be made for the purchaser upon his production to the registration office of the judgment of adjudication and a certificate from the registry of the court that issued it confirming that the judgment has acquired the force of res judicata.

Distribution of the proceeds of adjudication shall be carried out in accordance with Articles 794 to 807 of the Code of Civil Procedure.

The vessel's operator shall not employ other than Lebanese mariners for coastal navigation from one Lebanese port to another Lebanese port, or for fishing on Lebanese coasts. As regards large vessels designed for long-range voyages as referred to in the second paragraph of amended Article 2, and vessels designed for international coastal navigation, the administration reserves the right to require their owners to employ up to one-fifth of Lebanese mariners, or to train that proportion of persons for navigation, on conditions determined by order of the Minister of Public Works. As regards technical workers, the vessel's operator may in cases of necessity employ foreign captains, officers, or mechanical workers who demonstrate that they hold licences or certificates at least equivalent to those required by the departments of the Ministry of Public Works from Lebanese captains, officers, or mechanical workers.

The operator of the vessel and the master may not employ young mariners under the age of fifteen. They may not employ young mariners who have not attained the legal age of majority unless written consent from their parents or guardian has been obtained.

Where the employment contract provides that all or part of a mariner's pay is a share of the vessel's freight or profits, the expenses and charges to be deducted from the gross profit to arrive at the net profit must be defined. Compensation paid to the vessel for cancellation, curtailment, or extension of the voyage, or for loss of profit or freight, shall be included in the gross profit. This provision shall not apply to insurance proceeds unless the mariner has contributed to the payment of premiums since the commencement of the voyage. Governmental bonuses and other official subsidies shall not be included in the amounts subject to division unless otherwise agreed.

In the event of extension or curtailment of the voyage, mariners who are paid by the month shall receive wages in proportion to the actual duration of their service.

If the mariners' pay is tied to the voyage, no deduction shall be made to it as a result of intentional curtailment of the voyage, whatever the reason for the curtailment. If the voyage is intentionally extended or delayed, the wages shall be increased in proportion to the duration of the extension or delay.

If the mariners are employed for a share of profits or freight, they shall be entitled to no compensation for delay, extension, or curtailment of the voyage caused by force majeure. If the cause is attributable to the act of a third party or to the shippers, the mariners shall be entitled to a share of the compensation awarded to the vessel. If the cause is attributable to the act of the vessel's operator or master and damage has been suffered by the mariners, those mariners shall be entitled, in addition to their share in the profit earned, to compensation determined having regard to the circumstances.

Any dispute concerning the payment of wages and, in general, any dispute arising between the master or the operator and the mariners must be submitted in order to attempt settlement to the maritime authority responsible for maritime order at the vessel's home port or at the port of disembarkation. If that authority is unable to reconcile the parties, it shall draw up a record noting the disputes raised by the parties and the sums paid. The record shall, upon its request, be forwarded to the competent judge. No action before the courts shall be admissible until this settlement procedure has been completed.

A voyage charter is a contract by which all or part of the vessel is let for hire for one or more specified voyages. A contract of maritime carriage is a contract by which the carrier undertakes, for a specified freight, to carry to a specified place luggage or goods by sea during all or part of the voyage.

The vessel must be ready to receive goods at the agreed time and place of loading, or the customary place. The master shall take the cargo on board at the vessel's operator's expense from under the tackle, and shall deliver it at the port of destination to the consignee under the tackle.

A charter of the whole vessel shall not include the spaces reserved for the master and crew. Nevertheless, neither the master nor the crew may load any goods therein without the charterer's consent. If the vessel is chartered in whole or as to a specific part, the master may not carry any other goods in the vessel or in the chartered part without the charterer's permission. If a violation occurs, the freight for goods carried without right shall accrue to the charterer, who may also claim compensation for loss and damage.

The vessel's owner shall be liable for all loss and damage to goods throughout the period they are in his charge, unless he proves force majeure.

The vessel's owner shall be answerable for goods consumed or sold by the master during the voyage for the vessel's needs, deducting therefrom the costs advanced by the charterer; the value shall be reckoned at the price at the port of destination if the vessel arrived safely, otherwise at the actual sale price. The vessel's owner has the right to retain freight for all goods he is obliged to pay for. If the shippers are not reimbursed for goods consumed for the vessel's needs, the loss they suffer therefrom shall be distributed proportionately over the value of those goods and over all goods that arrive safely at their destination or are saved from sinking when the right arose from a maritime incident that necessitated the sale or the consumption.

If no one appears to take delivery of goods, or if their delivery is refused, the master may request the judicial authority to sell all or part of the goods up to the amount of the vessel's freight and order the deposit of unsold goods. If the proceeds of the sale are insufficient to cover the freight, the master retains the right to sue the shippers for the difference.

If the shipper does not deliver under the tackle the quantity of goods agreed upon, freight for the full voyage shall be due on that cargo, as well as the costs incurred by the vessel as a result of the shortfall, provided the saved expenses for the vessel are deducted and three-quarters of the freight on goods loaded in substitution for his goods is credited.

No freight shall be due on goods not delivered to the consignee or not placed at his disposal at the port of destination. However, freight shall be due: — If non-delivery results from the negligence or fault of the charterers, shippers, or their successors in title. — If the goods had to be sold during the voyage due to deterioration, whatever the cause of that deterioration. — If the loss of goods is included in the general average sacrifice. — If the goods are lost due to their own inherent defect. Freight shall also be due on animals that die on the vessel, whatever the reason, except for the shipper's fault.

In all cases where no freight is due, the master must refund advances paid to him before the voyage from the amount of that freight; however, he may retain the full advance if he has paid an insurance premium thereon to the charterer or shipper.

A charterer or shipper who wishes to have the goods delivered before their arrival at the destination must pay the full freight if, during the voyage, an event of force majeure compels the vessel to call at an intermediate port.

If the vessel is detained during the voyage by the order of any State, or by an incident not attributable to the master or the vessel's owner, the agreements shall remain in force and no compensation or increase in the stipulated freight shall be claimed. During the vessel's detention, the shipper has the right to have his goods discharged at his own expense, provided he reloads them or makes them available to the master.

If the vessel is prevented from proceeding to the port of destination by force majeure arising after its departure, the shipper shall only owe freight for the outward leg of the voyage, even if the charter was agreed for both outward and return.

If the vessel is prevented from entering the intended port by blockade or any other force majeure, the master is free to act in the way that is most beneficial to the shippers if he has not been provided with instructions for such a situation.

The shipper may not free himself from freight by surrendering the goods, even if they have lost all their value during the voyage or have suffered partial deterioration. However, if a cask containing liquids has lost at least three-quarters of its contents, it may be surrendered in lieu of freight.

Laytime — the lay days for loading and discharge — shall commence, as regards loading, on the day following the operator's notification that the vessel is ready to receive goods, and, as regards discharge, on the day following the placing of the consignee in a position to commence discharge under the conditions specified in the contract. The commencement and duration of laytime shall vary according to local customs if they have not been determined by the agreement. Only working days shall count in the calculation of laytime.

Demurrage shall run automatically from the expiry of the period fixed in the contract for loading or discharge. If the contract does not specify the number of lay days, demurrage shall not commence until twenty-four hours after the master has notified the charterer, the consignee, or their representative in writing. All working and non-working days shall be counted in the demurrage days. If the agreed or customary demurrage period expires, the master may claim, for each additional day, compensation equal to one and a half times the daily rate for demurrage days.

Laytime is interrupted when loading or discharge is prevented by the fault of the shipper or consignee. On the contrary, force majeure does not interrupt the running of demurrage.

Demurrage and compensation for additional days shall be considered additional freight.

The voyage charter or carriage contract shall be automatically rescinded without compensation if force majeure makes performance entirely impossible before performance commences. If force majeure arises before the vessel's departure but after performance has begun, rescission shall be ordered with compensation if necessary. If force majeure merely prevents the vessel from proceeding except to a port other than its destination, the contract shall remain in force without any increase in freight or compensation, unless the delay would result in the rescission of the commercial transaction for which one or both parties concluded the charter or carriage contract.

The vessel's owner has a privilege over goods forming the cargo to secure the payment of the vessel's freight and its accessories for fifteen days after delivery of the goods, provided they have not passed into the hands of a third party.

The vessel's owner has the right to retain goods for non-payment of freight, unless sufficient security is provided; he may also request that the goods be deposited with a third party until the vessel's freight is paid, and may request their sale if they are in danger of deterioration.

A voyage charter and a maritime carriage contract shall be proved by written evidence; such a written document shall be called a charter party or a bill of lading, depending on the type of maritime carriage; however, the parties are excused from drawing up a written instrument in the case of short coastal navigation from port to port.

A charter party is the document evidencing the charter. It shall be drawn up in a private instrument in two original counterparts. It shall contain the following particulars:

1. 1)The names of the contracting parties.
2. 2)The name of the vessel and its tonnage, unless it was agreed that the 'vessel is to be nominated later'.
3. 3)The name of the master.
4. 4)The goods to be loaded, specifying their type and quantity.
5. 5)Freight (the price of carriage).
6. 6)The agreed time and place for loading and discharge.

A bill of lading is the receipt for goods loaded, issued by the master; it shall be drawn up in three copies: one for the shipper, one for the consignee, and one for the master. It shall contain the following particulars:

1. 1)Names of the contracting parties: the vessel's operator and the charterer.
2. 2)Description of goods loaded, including their type, weight, volume, and marks.
3. 3)Name and nationality of the vessel.
4. 4)Terms of carriage, including freight, the course of the voyage, and the port of destination.
5. 5)Date of issuance.
6. 6)Number of copies drawn up by the master.
7. 7)Signatures of the master and the shipper.

Any copy of a bill of lading that omits the particulars listed above shall be valid only as a receipted invoice.

The marks, numbers, quantity, type, and weight of packages shall be entered in the bill of lading on the basis of the written statements provided by the shipper before loading. The marks must be sufficient to identify the goods and shall be placed so that they remain clearly legible until the end of the voyage. The carrier may refuse to enter the shipper's statements in the bill of lading if he has reasonable grounds to doubt their accuracy, or if he lacks ordinary means to verify them. In that case, he must state the reasons and this qualification shall shift the burden of proving the actual value to the consignee or the receiver. A document issued to the shipper before loading of his goods shall be replaced, after that loading and at his request, by a regular bill of lading. A bill of lading drawn up in the prescribed form shall prove that the carrier has received the goods as described therein, unless contrary evidence is produced.

If the shipper's statements regarding the marks, numbers, quantity, type, or weight of goods are inaccurate, he shall be liable to the carrier for all damage arising from his statements; however, the carrier may not invoke inaccurate statements against any person other than the shipper.

Bills of lading shall be to a named person, to order, or to bearer. A bill of lading to a named person is not negotiable and the master may only deliver the goods to the person named therein. A bill of lading to order is negotiable by endorsement, which must be dated. The master may only deliver the goods to the holder of an endorsed bill of lading, even if endorsed in blank. A bill of lading to bearer is negotiable by mere delivery. The master must deliver the goods to any person who presents himself holding that bill of lading.

Copies of a bill of lading drawn up to order or to bearer must include the statement "negotiable" or "non-negotiable," the number of copies, and a clause cancelling all other copies upon use of one. The carrier may not oppose against a holder of a negotiable endorsed copy the defences that may be raised against the shipper, unless he proves that the holder of that copy does not act as a bona fide endorsee from the shipper. The endorser who endorses without recourse only guarantees the existence of the shipped goods and the validity of the contract of carriage. If, before the master delivers any goods, a dispute arises between holders of several copies of the same negotiable bill of lading, the copy bearing the earliest endorsement shall prevail over the others. After a holder of one negotiable copy has received the goods, no holder of another copy — even one bearing an earlier date — may prevail over him.

If there is a discrepancy between the bill of lading bearing the shipper's signature and the documents bearing the master's signature, each original copy shall prevail as against its signatory.

If there is a discrepancy between the charter party and the bill of lading, the terms of the charter party shall prevail in relations between the owner and the charterer. As regards relations between the charterer and the shipper, the bill of lading shall govern, unless explicit reference is made to the charter party.

A through bill of lading — issued by a first carrier who undertakes to forward the goods to the destination in successive stages — shall bind its issuer at the end of the voyage for all obligations arising therefrom; in particular, he shall be liable for the acts of successive carriers who receive the goods. Each carrier shall only be liable for losses, damage, and delay occurring during his own leg of the voyage.

If the nature of the goods or the conditions of their carriage require special agreements, all terms agreed upon relating to the carrier's rights and obligations shall be effective as long as they do not violate public policy, provided that no negotiable bill of lading is issued and that the agreement is incorporated in a document bearing the words "non-negotiable".

Written conditions shall generally prevail over printed conditions. If a charter party and a bill of lading are drawn up together and a dispute arises between written and printed conditions, the bill of lading shall prevail over the charter party.

The provisions of this sub-part shall apply only to maritime carriage based on the issuance of bills of lading and from the port of loading on board the vessel until discharge at the intended destination. They shall not apply to charter parties; however, where a vessel is chartered under a charter party, these provisions shall apply to the bills of lading issued thereunder. These provisions may not be applied to goods loaded on deck under a contract of carriage, nor to live animals.

Before the commencement of the voyage, the carrier is obliged:

1. 1)To exercise due diligence to make the vessel seaworthy.
2. 2)To properly man, equip, and supply the vessel.
3. 3)To make the holds, refrigerated and cooled chambers, and all other parts of the vessel in which goods are loaded fit and safe for their reception, carriage, and preservation.

The carrier shall be liable for all loss, damage, or injury to the goods unless he proves that such loss, damage, or injury resulted from:

1. 1)Faults in navigation attributable to the master, mariners, pilots, or other workers.
2. 2)Hidden defects in the vessel.
3. 3)Damage or losses caused by labour disputes, stoppages of work in whole or in part, and from any cause of stoppage or hindrance.
4. 4)Acts constituting a general average event or force majeure.
5. 5)A defect inherent in the goods, or their packing or marking, or wastage in volume or weight that is customary at the ports of destination.
6. 6)The rendering of assistance or the attempt to save life or property at sea, or where the vessel diverts to do so.
7. 7)In all the excepted cases above, the shipper may prove that the losses or damage result from the fault of the carrier or his acts, if those are not covered by the first paragraph of this Article.

The carrier's liability for loss and damage to goods shall in no circumstances exceed, per package or unit, an amount determined by decree issued in the week following the publication of this Law, unless the shipper has declared the type and value of those goods before loading on the vessel. This declaration shall be incorporated in the bill of lading and shall be binding on the carrier unless he proves otherwise. If the carrier disputes the accuracy of the declaration when made, he may incorporate reasoned reservations in the bill of lading. Such reservations shall shift the burden of proving the actual value to the consignee or the receiver. Any clause limiting the carrier's liability to an amount below that provided for in this Article shall be void. The said amount may be revised by decree based on fluctuations in international currency.

Any clause incorporated in a bill of lading or any other maritime carriage document drawn up in Lebanon whose direct or indirect purpose is to exempt the carrier from the liability imposed on him by general law or this Law, or to shift the burden of proof from those designated by applicable law or this Law, or to violate jurisdictional rules, shall be considered void and of no effect. A clause that reserves for the carrier the benefit of insurance on the goods, or any other clause of the same nature, shall be treated as an exemption clause.

If the shipper knowingly provides a false declaration of the value of the goods, the carrier shall incur no liability whatsoever for loss and damage to those goods.

If inflammable, explosive, or dangerous goods are loaded on the vessel without the carrier or his agent having consented to their loading with full knowledge of their nature, the carrier may at any time and in any place, after drawing up a reasoned record, unload, destroy, or render them harmless without giving rise to any compensation. Otherwise, the shipper shall be liable for all damage and costs that may result from the loading of such goods. If the carrier consented to the loading of such goods with knowledge of their nature, he may not unload, destroy, or render them harmless unless they endanger the vessel or its cargo. No compensation shall be due except for general average losses if incurred.

If goods are lost or damaged, the consignee must address to the carrier or his agent written reservations at the port of discharge and at the time of receipt at the latest. Otherwise, it shall be presumed that the goods were received in the condition described in the bill of lading. If the loss or damage is not apparent, notification of the reservations shall be valid if made within three days of delivery. Sundays and holidays shall not be included in that period. The carrier may always request an immediate survey of the goods upon their receipt.

In all circumstances, the right to bring an action against the carrier for loss or damage shall lapse by operation of limitation one year after delivery of the goods, or, if delivery has not taken place, one year after the day on which the goods should have been delivered.

After the expiry of one year from the end of the voyage, the right to bring any action arising from a voyage charter or carriage contract shall lapse by operation of limitation, subject to the provisions of the preceding Article.

The following rights shall lapse by operation of limitation: — After one year from the end of the voyage: the right to bring any pecuniary action relating to vessel freight. — After one year from delivery: the right to bring any pecuniary action arising from supplies advanced to mariners on the master's orders, or from items necessary for outfitting and provisioning. — After one year from receipt of manufactured goods: the right to bring any pecuniary action relating to the wages of workers and their delivery. — After one year from the vessel's arrival: the right to bring any action arising from the delivery of goods.

The passenger's expenses shall be included in the voyage fare unless otherwise agreed; in the latter case, the master is obliged to provide necessary provisions at fair cost.

If the voyage ticket or contract has been issued in the name of a passenger, that passenger may not transfer it to another person without the master's consent.

The carriage of a passenger's luggage shall be subject to the rules applicable to the carriage of goods, unless the passenger retains personal custody thereof. In that case, the master shall not be liable for loss and damage unless caused by the act of the crew.

The voyage fare shall be payable in the event of the passenger's failure to undertake the voyage or of his partial completion thereof, unless force majeure prevents the completion of the carriage.

If the voyage does not take place on the agreed date due to the master's fault, the passenger shall be entitled to compensation for all resulting damage and may request the rescission of the contract.

If the voyage is prevented by a blockade of the intended port or by any case of force majeure, the carriage contract shall be rescinded without giving rise to any compensation from either party to the other.

If force majeure prevents the vessel from reaching the intended port, the master shall be entitled only to reimbursement of the food costs; he shall not be entitled to voyage freight unless he ensures the passenger's transport to the intended destination.

If the interruption of the voyage results from the master's fault, he shall bear the food costs and shall be obliged to arrange carriage of the passenger to the intended destination.

If the master is compelled to carry out repairs during the voyage, the passenger shall either await completion of the repairs or pay the full voyage fare; for the entire duration of the work, the passenger is entitled to free accommodation and food, unless the master offers to complete the voyage on another vessel of the same route.

If an incident occurs to the passenger during the voyage, the carrier shall be liable for that incident unless he proves it results from force majeure or the fault of the passenger.

If a passenger dies during the voyage, the master shall take the necessary measures to preserve the luggage on board and deliver it to the heirs.

While on board the vessel, the passenger is required to observe the order imposed by the master and abide by the ship's rules.",

After the expiry of one year, the right to bring any action arising from a contract for the carriage of passengers shall lapse by operation of limitation. Actions arising from a contract for the carriage of a passenger's luggage shall be subject to the provisions of Article 215 of this Law.

If a vessel is towed while retaining control of its own propelling means, its master shall be liable to every third party for the fault of the master of the towing vessel, unless he proves that the latter was not under his direction. However, his right to sue the master of the towing vessel is preserved if it is established that the master of the towing vessel personally committed a fault.

General average (average) is any loss or damage sustained by the vessel or cargo during a maritime voyage, as well as any exceptional or extraordinary expenditure incurred to ensure the safety of the voyage.

In the absence of a special agreement among all interested parties, general average shall be settled in accordance with the following provisions.

General average is of two kinds: particular average and general average (sacrifice).

Particular average consists of all maritime losses that do not fulfil the conditions required by the following articles. Such losses are borne by the owner of the damaged property.

General average consists of damage, losses to property, and exceptional expenditure resulting from a sacrifice intentionally made by the master for the common benefit in order to meet a peril that threatened the voyage. It is not necessary that the sacrifice should produce a beneficial result, except in the cases referred to in Article 263. This includes: 1. Losses and damage — maritime losses — suffered by: (a) The cargo, by reason of goods thrown overboard, consumed as fuel, or discharged on shore to lighten the vessel or to refloat it, or in the course of nautical operations to extinguish a fire. (b) The vessel, by reason of destruction of equipment and appurtenances, beaching to save the cargo, disabling and damaging the vessel to save the cargo, or setting the engines or boilers to full power when the vessel is aground. 2. Expenditure losses — exceptional expenditure incurred by the master for the safety of the voyage, such as refloating costs, assistance to a vessel in distress, towage of a damaged vessel, cost of a compulsory port of call due to a common peril, the wages of crew paid as a result of an exceptional incident, expenditure incurred in lieu of expenditure that would have fallen within general average sacrifice (provided it does not exceed the amount of the substituted expenditure), and lastly the costs of settling general average.

Damage, losses, and expenditure directly resulting from a general average act shall also be included in and rank as general average.

The party claiming admission of expenditure or losses as general average must prove the entitlement to such admission.

No special agreement shall be recognised unless agreed to by all parties with an interest in the voyage; failing that, average shall be settled in accordance with the adjustment procedure set out below, without prejudice to the application of specific agreements among the interested parties.

For general average to give rise to an adjustment, both the vessel and the cargo, or part of them, must have been saved, unless one is completely lost in the course of protecting the other.

If the common peril is the result either of a defect in the vessel or in the goods, or of the fault of the master or shippers, the damage and expenditure qualifying as general average shall nevertheless give rise to adjustment among the other interested parties. Those parties, however, retain their right to recourse for the amount they pay against the persons responsible for the inherent defect or fault. Those persons may not in any case seek to include their own damage and expenditure in the general average. However, the vessel's operator, who is exempted from liability for the master's faults in navigation, may include in the general average, by a clause in the charter party or in the bill of lading, the acts of the master in navigation that give rise to the common peril, provided the said clause is agreed by the interested parties.

Goods for which no bill of lading has been drawn up, or for which no receipt has been given to the master, shall not be included in the general average if lost, but shall be included in the contribution if saved. The same rule applies to goods for which a false declaration has been given, unless the interested party proves his good faith. Goods lost or damaged for which a declaration was given at less than their actual value shall be included in the average at the declared value but shall contribute at their actual value.

Goods stowed on deck contrary to maritime custom shall be included in the contribution if saved; if lost, however, the owner shall not be entitled to claim adjustment, unless he proves that he did not consent to that method of stowage. This provision shall not apply to short coastal navigation.

Exempt from contribution are: postal correspondence of all kinds, crew and passenger luggage and personal effects, crew wages, vessel provisions, and in general all property carried without a bill of lading. If lost, however, their value shall be recoverable through adjustment.

Any interested party may free himself from the obligation to contribute by surrendering the property subject to contribution before any delivery thereof.

General average shall be settled at the last port of destination of the cargo on board the vessel at the time of the sacrifice, or at the place where the voyage is interrupted, and pursuant to the law of that port. It shall take into account the values existing at the time of discharge, having regard to the condition of the salvaged property. It shall consist of three parts:

1. 1)Determination of the credit side.
2. 2)Determination of the debit side.
3. 3)Calculation of the proportion in which the amount on the credit side is distributed over the debit side.

The adjustment shall be carried out by assessors appointed by the judge in urgent matters if all interested parties do not agree on them.

If not all interested parties approve the adjustment, it shall be submitted for judicial confirmation on the application of the most expedient party.

The credit side shall include the master's costs, the amount of damage to the vessel, the value of destroyed goods, the lost freight, and the costs of settling the general average.

The amount forming the general average on account of damage or loss to the vessel shall consist of the cost of repair or replacement, deducting therefrom the difference in value between old and new materials as customary; however, no deduction shall be made for temporary repairs. If there is no repair or replacement, the amount shall be determined by assessment.

Goods lost or damaged shall be valued at the current price at the port of loading, provided their owner pays the freight after deducting discharge costs and, where applicable, customs duties.

If the loss of freight is part of the general average, the costs of collecting it and any replacement for it shall be deducted from the gross amount exposed to risk.

The debit side shall include: — Goods at their full value if saved, or at their full estimated value at the port of destination if lost, after deduction of costs, customs duties, and freight, unless it is stipulated that freight is earned whatever happens. — The vessel at its actual net value at its port of call, after deduction of costs. — Vessel freight and passenger fares exposed to risk at two-thirds of their gross amounts, except where freight is stipulated to be earned whatever happens.

The master may refuse to deliver goods until adequate security for payment of the contribution is provided.

Contributions due to the vessel's operator shall be privileged over goods or their sale proceeds for fifteen days after delivery, provided they have not passed into the hands of a third party. Owners of lost goods shall have a privilege over the vessel for the contributions payable on them by the vessel's operator, and over its freight exposed to risk.

Distribution shall be made proportionately to the right due. If one contributor is unable to pay, his share shall be distributed among the others in proportion to each person's rights.

Any action disputing the general average for loss or damage shall be dismissed if a reasoned protest is not submitted within three working days (excluding holidays) of delivery of the goods.

The right to bring an adjustment action shall lapse by operation of limitation after two years from the arrival of the vessel at the last port of destination of the cargo on board at the time of the sacrifice, or at the place where the voyage was interrupted.

Insurance shall be deemed to be of a maritime character simply upon conclusion of a contract bearing the word "vessel", even if that vessel does not engage in maritime navigation. The insurance shall cover the vessel while it is being repaired and while it is in basins, dry docks, and generally in any location within the scope of the navigation specified in the policy.

Insurance on goods shall retain its maritime character even if they are subject to land or river transport, provided that such transport is only incidental to the maritime carriage.

The insurers shall cover the risk of every loss and damage suffered by the insured property from storms, fire, stranding, collision, compulsory calling into port, compulsory deviation from route, voyage, or vessel, jettison, fire and explosion, piracy, damage intentionally caused by the crew, theft, and in general all maritime accidents and perils. War risks — internal or external — shall not be at the insurer's expense. Where a contrary agreement is made, the insurer shall be liable for all damage and losses suffered by the insured property from hostile acts, acts of piracy, detention, arrest, and seizure by any government, whether friendly, enemy, recognised, or unrecognised, and in general from all fortuitous events and acts of war.

The insurer shall be liable for refloating costs, costs of assisting a vessel exposed to immediate peril, rescue costs at sea, and towing costs when the vessel is taken to a port for repair. The provisions of this Article shall not apply to beaching caused by normal tidal movements, or to beaching in maritime canals, rivers, or streams beyond the points reached by the tide.

If the costs of a temporary port of call are particular average, the crew wages shall not be at the insurer's expense. However, if the vessel is towed to a better port than the temporary port of call for the purpose of carrying out repairs at the insurers' expense, the crew wages, towage costs, and towing costs shall be at the insurers' expense. The same applies where a vessel remains at a temporary port of call awaiting spare parts essential to the continuation of the voyage, and where the repairs are at the insurers' expense.

If the vessel collides with another vessel belonging to the insured, or receives assistance from it, the settlement shall be made as if the vessels belonged to different operators; and the liability for the collision or compensation for services rendered shall be determined as between the interested parties in the hull by the sole judgment of the parties if agreed, otherwise by order of the court president in urgent matters. The same applies to a collision between the vessel and a floating body owned by the insured.

General average contributions shall be borne by the insurers in proportion to the value they insure, after deduction of any particular average that falls on them where applicable.

Insurers shall be exempt from all claims for delay in the dispatch or arrival of goods, for price differences, and for losses to the insured's commercial transactions, for whatever reason.

The insurer shall not be liable for loss and damage resulting from intentional or grossly negligent acts committed by the insured or his representatives. Any contrary agreement shall be void. The hull insurer shall not be liable for the consequences of the master's fraud and deceit if the master was selected by the vessel's operator.

Subject to what has been said regarding damage intentionally caused by the crew, and in derogation thereof, insurers shall be exempt from:

1. 1)Fraudulent and deceitful acts committed by the master, and from all incidents arising from breach of blockade, smuggling, prohibited or clandestine trade, unless the master acted without the knowledge or consent of the vessel's operator or his representative and was replaced by another who is not the second master.
2. 2)All consequences to the vessel arising from acts performed by the master or crew ashore.

Damage and losses resulting from an inherent defect in the insured property shall not be at the insurer's expense, unless the contrary is stipulated, except where the insurance is on the vessel's hull and there is a latent defect in the vessel that a diligent operator could neither have detected nor prevented.

However, such damage and loss shall be at the insurer's expense if the voyage is subject to an extraordinary delay caused by a peril covered by the insurer, provided the damage is caused by the delay itself.

The insurer shall not be liable for damage caused by the insured property to other property or persons unless the contrary is stipulated.

The risks of third-party actions brought against the vessel for its collision with another vessel, or its striking a floating body, embankments, wharves, piles, or other fixed objects, shall be borne by the insurers to the extent of nine-tenths of the adjudicated damages, up to a maximum of nine-tenths of the insured sum. The insured shall bear one-tenth of the damages and is prohibited from insuring that one-tenth; if this prohibition is violated, he shall bear two-tenths. Insurers shall be exempt from all actions brought against them by any person, for any reason, relating to the loading and undertakings of the insured vessel, and from all actions for death, injury, or any bodily harm or damage.

If the vessel is lost and the master is its owner or one of its owners, payment of his share of the insurance shall be deferred until receipt of the certificate proving the outcome of the administrative inquiry that must be conducted regarding his conduct. If the inquiry establishes that the loss is attributable to the master's fault without establishing fraud or deceit, the insurers may, having paid him a settlement payment, recover fifty per cent of the indemnity relating to the master's insured share.

If the insurance covers the vessel's hull and the period of risk is not specified in the contract, the risk under a voyage contract runs from the moment the vessel weighs anchor or sets sail and ends when it anchors or moors at the intended destination; however, if it carries cargo, the risk runs from the commencement of loading and ends as soon as discharge is complete, without exceeding fifteen days after arrival at the intended destination, unless goods are loaded at that place for another voyage before expiry of that period, in which case the risk ends immediately.

Quarantine shall be treated as part of the voyage it relates to. However, if the insured vessel is required to proceed to a quarantine station other than the intended destination, the insurer shall be entitled to an additional premium at the rate of three-quarters per cent per month, from the day of departure to the quarantine station until the day of return. The same additional premiums shall apply where a vessel is detained outside its intended port if that port is found to be blockaded, or if it is forced to deviate to another. In that event, the insurers shall none the less cover the risk during the entire period of detention and deviation, provided this extension does not exceed six months from the date of arrival outside the blockaded port; however, they shall not be liable for any additional costs arising from the detention and deviation. The insured may always set an earlier end to the risk before the six months expire. Under a continuous premium policy — a policy covering risks on both outward and return voyages — a four-month stay is allowed without additional premium from the time the vessel deviates to the first port from which it must move; if the stay extends beyond four months, the insurer shall be entitled to an additional premium of two-thirds per cent for each additional month.

If the insurance covers an outfitted vessel and the period of risk is not specified in the contract, the risk runs from when the goods leave the shore for loading and ends when they are landed at the port of destination, with the understanding that all risks incurred during direct transport by boats from shore to vessel and from vessel to shore shall be at the insurers' expense.

If the voyage is intentionally changed after the vessel's departure, the insurer shall have the right to claim compensation and shall not be liable for risks thereafter. If the change occurs before departure, the insurance shall be void and the insurer shall collect half the premium specified in the contract as a fixed indemnity.

If the vessel goes astray, the risks occurring on its correct route shall be covered, provided the insurer has the right to prove that those risks resulted from the deviation.

A change of vessel shall give rise to the nullity of the insurance contract on the vessel's hull. Likewise, insurance on the vessel shall be void if it is intentionally changed, unless the contrary is stipulated.

If the insured goods are loaded on deck, the insurers shall not be liable for the risks unless it is established maritime custom to permit such loading and no contrary agreement was made.

Every vessel registered at a Lebanese port must hold the following papers in official printed form: A. Vessels designed for high-seas navigation and coastal vessels:

1. 1)A maritime title deed from the office of the port of registry within the jurisdiction of which the owner's actual or elected domicile is located.
2. 2)A crew book containing the latest changes in the vessel's crew, signed at the last port of call by the harbour master or by the Lebanese consul abroad if one exists, otherwise by the authority representing him.
3. 3)A navigation licence for the current year. For passenger vessels: a safety certificate.
4. 4)For each member of the crew, including the master or captain: a current-year personal mariner's licence.
5. 5)A voyage permit from the harbour master.
6. 6)A cargo manifest endorsed by the customs office at the vessel's last port of call.
7. 7)A health certificate endorsed by the quarantine office at the vessel's last port of call.
8. 8)A notice of payment of port dues and lighthouse fees from the competent departments at the vessel's last port of call.
9. 9)B. For fishing vessels:
10. 10)A maritime title deed.
11. 11)A crew book.
12. 12)A navigation licence for the current year.
13. 13)A fishing licence for the current year from the port of registration.
14. 14)For each member of the crew: a current-year fisherman's mariner's licence.
15. 15)C. For pleasure craft:
16. 16)A maritime title deed.
17. 17)A crew book, where crew members are employed on the vessel.
18. 18)A navigation licence for the current year.

These papers must be produced upon any request by the authorities responsible for supervising navigation or fishing.

Every master or captain of a vessel designed for high-seas or coastal navigation registered at a Lebanese port is obliged to deposit or leave his papers at the port office within 24 hours of his arrival at the port, under penalty of a fine of twenty-five to five hundred Pounds for each period of delay of twenty-four hours. The vessel's papers shall be returned to the master or captain when the vessel departs, after verifying that all port and customs formalities have been completed. The provisions of this Article shall also apply to pleasure craft and fishing vessels if their net tonnage is twenty-five barrels or more.

Any registered Lebanese vessel inspected at sea and found not to hold the required legal papers shall be taken to the nearest Lebanese port, where it shall be detained by the port officer or the harbour master. A record of attestation shall be drawn up and forwarded to the competent courts.

If it is established that the master or captain of the vessel intended to evade the provisions of this Law for a criminal purpose, the master or captain shall be sentenced to imprisonment of three months to two years and a fine from 20 to 200 Pounds, and the court shall order the confiscation and sale of the arrested vessel. The sale proceeds shall be added to the revenues of the port office that effected the arrest.

If it is established that the matter involves only negligence or oversight, the master or captain of the vessel shall be sentenced to imprisonment of two to ten days and a fine from five to one hundred Pounds, or to either of these two penalties. Any vessel carrying forged papers or the papers of another vessel shall be arrested and sold in accordance with the provisions of Article 45, and the master or captain shall be sentenced to the penalty provided for in that Article.

For the purposes of the penalties to which the master or captain is exposed under Article 45, the identity documents that passengers are required to carry, bearing the General Security visa permitting them to board the vessel, shall be treated as vessel papers.

Any advance on wages must be entered in the crew book if taken by the mariner before departure, and in the logbook if taken during the voyage. The mariner must affix his signature or thumb print. Any advance that does not meet these conditions shall be disregarded. The total advances may not exceed one-fifth of the wages due at the time of the advance application.

Advances may be assigned to the mariner's spouse, children, or parents only, and not to others.

Unassigned advances, on-account payments, and engagement bonuses shall not be refunded to the vessel's operator unless termination of employment is caused by the mariner. This does not exempt the mariner from disciplinary penalties and compensation for loss and damage. Assigned advances shall not under any circumstances be subject to restitution, regardless of any contrary agreement.

The wages and profits of mariners may not be attached or assigned except for the following reasons and up to the following amounts: 1. Up to one quarter: — For debts owed to the State or to provident funds. — For debts arising from the supply of food, clothing, or accommodation. — For debts owed to the vessel's operator arising from the undue payment of prior wages, or from an undue advance or undue on-account payment, or for loss and damage. 2. Up to a second quarter, for a debt due under a final judgment.

In principle, the insured must bring an action for maritime loss against the insurer. However, in the event of losses usually considered as justifying abandonment, he may surrender the insured property to the insurer and claim indemnity for total loss.

All losses and damage that do not give rise to abandonment shall be treated as average and settled between insurer and insured in accordance with the following rules.

If the vessel suffers total loss, as regards particular losses, the damage shall be assessed by reference to the vessel's value. In the case of loss of expenses, the amount of damage shall be assessed by reference to the amount expended by the insured, after deduction of any share that may be due to him for the incident giving rise to the expenses.

Only the proven amount paid on the basis of invoices for the replacement or repairs deemed necessary by the assessors to make the vessel seaworthy shall be included in the assessment of the maritime loss; the insured may not claim other indemnity on account of depreciation, idle time, or any other reason, whether as particular or general average. The insurers may require that replacement and repairs be put to public or written tender. If the insured declines this requirement, 25% shall be deducted from the total amount of replacement and repair.

All crew wages shall be at the insurers' expense, and the running of premiums on time-chartered insurance shall be suspended for the period between the date on which the survey report is drawn up and the date of tender, provided this period does not exceed three days.

The master must not careen the vessel or repair its bottom at the temporary port of call if the assessors consider it possible to defer the expenditure to a more convenient time. The master must also, before carrying out repairs at the temporary port of call, consult the insurance agent if one is available, otherwise the Lebanese consul. If the repairs are urgent or costly, he shall only carry out those that are indispensable. The insurers may send the vessel to another equipped port where repairs can be carried out at a lower cost, and the vessel shall be towed there if necessary.

The value of the wreck shall be deducted from the indemnity. The indemnity shall be subject to deduction for renewal. The extent of this deduction shall be specified in the insurance documents.

Damage to goods shall be assessed on a proportional and current basis as follows:

1. 1)By measuring the value of the goods when exposed to loss against the value they would have had at the destination port if they had arrived intact, and applying the resulting percentage depreciation to their insured value.
2. 2)Without deduction of costs charged to the goods.
3. 3)Without deduction of customs duties.

Policies may stipulate deductible clauses limiting the effects of the insurance; these deductibles may be fixed optionally in the policies. Such a stipulation shall bar all indemnity if the loss suffered by the insured does not exceed the stipulated amount, and shall be deducted from the indemnity if the loss exceeds that amount.

Ordinary wear and tear and wastage during the voyage to the extent customarily accepted shall have no effect on the insurance.

Indemnities due from insurers shall be paid in cash within thirty days of submission of all supporting documents.

The rule permitting the insurer to produce evidence of facts contrary to those recorded in the supporting documents shall not prevent the court from ordering provisional payment of the indemnities due from him, provided the insured furnishes a surety. The surety's obligation shall lapse after two years if no proceedings have been brought. The same rule applies where settlement is made by way of abandonment.

If the insurer is required to pay for a loss or damage whose liability falls on a third party, the insurer may exercise the rights of the insured whom he has indemnified and may bring his actions.

In the following cases, the insured has the right to claim payment of the full indemnity on the condition of transferring to the insurance company all rights held in the insured property.

Abandonment of the insured vessel is only permissible in the following cases: missing, lost, total loss, unseaworthy due to a fortuitous force majeure event, provided the risk is covered by the insurance. Where the insurance covers war risks: arrest, detention, or seizure by order of authority.

After four months without news, all steam vessels may be abandoned; after six months, all sailing vessels other than those crossing Cape Horn or the Cape of Good Hope; and after eight months, those last-mentioned vessels. The period shall run from the date of receipt of the last news.

If the insurance was contracted for a specified period and risks were running at the time the last news was dispatched, the loss of the vessel is presumed to have occurred during the period of insurance.

A vessel shall be considered unseaworthy if the total cost of repairs required due to losses arising from a fortuitous event exceeds three-quarters of the accepted value.

A vessel rendered immobile by the absence of the ordinary means of repair shall also be treated as unseaworthy and may be abandoned to the insurers, provided it is proven that it is unable to be towed, even when lightened, or towed to another port where the necessary means are available, and provided it is proven that the operators could not deliver to its anchorage the essential spare parts. Otherwise, the vessel may not be treated as unseaworthy and abandoned to the insurers if it has only been immobilised pending the financing needed to cover the repair costs and nothing else.

Abandonment of the insured goods is only permitted in the following cases, provided the risk is covered by the insurance:

1. 1)In the event of missing goods, after the expiry of the periods established in Article 364.
2. 2)In the event of the vessel being unseaworthy if cargo transfer cannot be achieved after the expiry of the periods indicated below, and at the earliest if loading on another vessel has not commenced within those same periods: four months if the incident occurred on the shores of Europe or its islands, or on the Asian or African coasts adjoining the Mediterranean, or the Black Sea coasts, or the Atlantic seaboard or islands outside Europe; six months if the incident occurred on other coasts or islands.
3. 3)These periods shall run from the date of the insured's notification to the insurer of the vessel's unseaworthiness. If the incident occurs at a place where navigation is interrupted by ice or force majeure, the period shall be extended by the duration of that interruption.
4. 4)If goods are sold during the voyage due to material damage at the insurer's expense.
5. 5)If goods suffer total loss or material damage equal to at least three-quarters of the insured value, regardless of other costs.
6. 6)Where the insurance covers war risks:
7. 7)If the vessel is seized.
8. 8)If it is rendered immobile by order of authority or is confiscated.

If the vessel is declared unseaworthy, the cargo risks shall remain at the insurer's expense until the cargo reaches its intended destination; the insurer shall also bear the costs of discharging, storing, and reloading those goods, as well as any increase in freight resulting from their re-forwarding, and all salvage costs relating thereto.

Abandonment of vessel freight is only permissible:

1. 1)If that freight is totally lost by a fortuitous event.
2. 2)If news goes missing after expiry of the periods established in Article 364.
3. 3)If the vessel is seized where the insurance covers war risks.

The right to bring any action for abandonment shall lapse by operation of limitation if not exercised within six months beginning: — From the day the news is received, in the case of abandonment for total loss or seizure or detention by order of authority. — From the day the periods established in Article 364 expire, in the case of abandonment for missing news. — From the day the periods established in Article 368 expire, in the case of abandonment of goods for unseaworthiness. — In all other cases, from the day on which the insured became entitled to exercise his right of abandonment.

In the case of reinsurance, the insured underwriters must notify the reinsurer of the abandonment within one month from the date of receipt of the abandonment notice from the original insureds.

The insured must, when proceeding to abandonment, declare all marine insurance contracts and bottomry loans in force. The period of payment is suspended until this declaration is made; this shall not result in any extension of the period for bringing an abandonment action under Article 371. If the insured makes a false declaration in bad faith, he shall forfeit the benefits of the insurance. Upon occurrence of a maritime loss, settlement shall proceed as indicated.

Vessel insurers shall not be entitled to the vessel's net freight or to debts arising from the maritime voyage; however, all debts representing a portion of the value of the insured property must be abandoned.

Abandonment shall not be partial or subject to conditions, and shall cover only the insured property exposed to the risk.

The transfer of ownership resulting from abandonment shall be final and irrevocable. No subsequent event — such as the vessel's return to port — shall entitle the insurer to withdraw from it.

Abandonment shall be permissible in the event of the vessel's salvage after sinking or stranding.

If the abandonment is accepted or deemed valid, the insurer shall be the owner of the insured property from the time the casualty occurred.

If no time for payment is fixed in the contract, the insurer shall be obliged to pay the insurance indemnity three months after notification of abandonment.

All actions arising from an insurance contract shall lapse by operation of limitation after two years from the due date of the debt, except for actions for which the law provides a shorter period, unless the claimant proves that it was impossible for him to bring the action.

The methods of application of this Law shall be determined by decree.

A vessel, within the meaning of this Law, is any craft capable of navigation, whatever its cargo and designation, whether such navigation is intended for profit or not. All appurtenances necessary for its operation are considered part of the vessel. Vessels are movable property subject to the general rules of law, subject to the special rules provided for hereinafter.

The following debts alone are privileged and their order of priority shall be determined according to their listing:

1. 1)Court fees and expenses paid for the preservation of the sale price for the benefit of general creditors; vessel tonnage dues, lighthouse and port dues, and other dues and general charges of the same nature; pilotage fees and costs of custody and maintenance from the time of the vessel's entry into its last port.
2. 2)Debts arising from the contract of employment of the master, mariners, and other crew members.
3. 3)The remuneration due for salvage and assistance and the vessel's contribution to a general average sacrifice.
4. 4)Compensation for collision and other maritime incidents, for damage caused to ports, docks, navigational channels, and for injury to passengers and mariners and for loss of or damage to cargo and luggage.
5. 5)Debts arising from contracts concluded or operations carried out by the master away from the vessel's home port in the exercise of his legal powers for a genuine need requiring the maintenance of the vessel or the completion of the voyage, whether or not the master is the owner of the vessel, and whether the debt is owed to the suppliers, repairers, lenders, or other contracting parties.
6. 6)Compensation due to the vessel's charterers.
7. 7)The total insurance premiums on the hull of the vessel, its equipment, and gear, due in respect of the last insured voyage if the insurance was contracted per voyage, or in respect of the last insured period if the insurance was contracted for a fixed term, provided that the total does not in either case exceed the premiums for one year.

Privileged creditors must be ranked by voyage. The debts of the last voyage, whatever their ranking, shall take priority over the debts of previous voyages. However, debts arising from a single employment contract of mariners shall always be treated as debts of the last voyage even if they relate to a previous voyage.

Debts relating to the same voyage shall be ranked in the order established in Article 48; debts of the same rank relating to the same voyage shall rank pari passu. All salvage remuneration and debts incurred for the supply of provisions and repairs shall be ranked in reverse order of their date of origin.

Debts relating to the same maritime incident shall be treated as having arisen at the same time.

The privileges established by the preceding Articles arise from the time the debt is incurred. They are not subject to any formality or special condition for proof.

Mortgagees whose debt is registered on the vessel shall rank in the order of their registration, immediately after the privileged creditors listed in items 1, 2, 3, 4, and 5 of Article 48.

Privileges attach to the vessel, to the freight of the voyage in which the privileged debt arose, and to the appurtenances of the vessel and freight earned since the commencement of the voyage. However, the privilege established in the second paragraph of Article 48 attaches to the total freight due for all voyages carried out during the same period of employment.

For the purposes of the application of privileges, the following are treated as appurtenances of the vessel and freight:

1. 1)Compensation due to the shipowner for material damage suffered by his vessel that has not been compensated, or for loss of freight.
2. 2)Compensation due to the shipowner for general average losses, where such losses constitute uncompensated material damage suffered by his vessel, or for loss of freight.
3. 3)Remuneration due to the shipowner for salvage or rescue operations carried out up to the end of the voyage, after deduction of the amounts allocated to the master and other crew members.

Passenger fare and the lump-sum amount in which the liability of shipowners may be limited shall be treated as freight. Compensation due to the shipowner under insurance contracts, bonuses, financial subsidies, and similar payments shall not be treated as appurtenances of the vessel and freight for the purpose of applying privileges.

All privileges listed in Article 48 shall lapse by operation of limitation after one year, except the privilege for debts arising from the supply of provisions referred to in item 5, which lapses after six months. The limitation period for the privilege of salvage and rescue remuneration runs from the day the operations end. For the privilege of compensation for collision and other incidents and for injuries, it runs from the day the damage occurred. For the privilege for loss of, or damage to, cargo or luggage, it runs from the day of delivery of the cargo or luggage, or from the date on which it should have been delivered; and for the privilege of repairs and provisions in the cases set out in item 2 of Article 48, from the day the debt arose. In all other cases, the period runs from the due date of the debt. Debts owed to crew members listed in item 2 of Article 48 shall not be considered due until the end of the voyage, regardless of the right of those persons to demand advances or payments during the voyage. The period established above shall not run in Lebanese territorial waters where a creditor's domicile or principal place of business is in Lebanon, provided the limitation period does not exceed three years from the date the debt arose.

Privileges shall also lapse, regardless of the general modes of extinguishing obligations: By judicial sale carried out in accordance with the proper procedure established in this Law, or by any voluntary sale of the vessel under the following conditions: — That the transfer be carried out in accordance with Articles 21, 24 to 27, and 33 to 35 and 37 of this Law. — That the transfer be publicised by publication in the Official Gazette of the Lebanese Republic and in two daily newspapers appearing at the vessel's port of registry, and by a notice posted on the door of the registration office, provided that in all such publications and notices the name and address of the purchaser are invariably stated. — That no objection from a creditor reaches the purchaser within one month after publication. The creditor's right of priority over the sale price shall be preserved for as long as the price has not been paid, even after expiry of that period, provided the creditor has notified the purchaser of his claim before payment by means of an objection. The objection referred to in the preceding two paragraphs must be communicated to the creditor through a notary public.

Privileged creditors may register their privilege in order to be notified of the offer of the vessel for sale in accordance with the conditions set out in Article 48 of this Law. This registration shall not affect the rank of the privilege. The registration shall be entered on the vessel's page in the register.

The preceding provisions shall apply to vessels operated by an operator who does not own them, or by a principal charterer, unless the owner's involvement arose from an unlawful act and the creditor was in bad faith.

A mariner is a person employed on board a vessel to carry out nautical activities.

If the vessel's tonnage exceeds five barrels, the employment contract between a mariner and the vessel's operator or his agent shall be subject to the following provisions: 1. The terms of the maritime employment contract shall be entered in the crew book. The mariner shall express his consent by his signature or the imprint of his thumb. The authority responsible for maritime order shall, before the vessel's departure, inspect the entries in the crew book to verify that all mariners boarding the vessel are employed under a contract. The contract terms shall be read aloud and the parties shall be interrogated to ensure that they understand and accept its content. Completion of this procedure shall be noted in the margin of the book. 2. If the employment contract is not entered in the crew book, it may be proved by all means.

The employment contract shall state: — Whether it is concluded for a fixed period, an indefinite period, or a complete voyage. — The mariner's service or function. — The date on which service or duties are to commence. — The method of calculating the agreed remuneration. — The amount of the fixed pay or the basis for determining the share of profits. — The date and place of conclusion of the contract. The contract shall not be valid unless the mariner is free from any other employment.

The judge shall apply local custom or general custom in all matters not addressed by the agreement or the law.

If the chartered vessel is named in the agreement, the charterer may not substitute another vessel for it unless it is lost or becomes incapable of navigation by reason of force majeure occurring after the commencement of the voyage.

If the master finds goods on the vessel that have not been declared, he may order them to be landed at the nearest convenient place or charge double freight, while preserving his right to claim further damages if any. If those goods are discovered during the voyage, the master may throw into the sea goods stowed without permission if their nature could cause damage to the vessel or the rest of the cargo, or if their carriage would result in costs exceeding their value, or in government fines, or if their sale and export are prohibited by law. In all cases the master must record in the logbook the discovery of undeclared goods and the course taken, and draw up a detailed note in that regard.

If a collision occurs between seagoing vessels or between seagoing vessels and inland navigation vessels, compensation for damage caused to the vessels, their cargo, and the persons and property on board shall be paid in accordance with the following provisions; the waters in which the collision occurs shall be disregarded.

If the collision is accidental, or if it is caused by force majeure, or if it is in doubt as to its causes, the damage shall be borne by those who suffer it. This provision shall remain in force if the vessels or any of them are at anchor at the time of the collision.

If the collision is caused by the fault of one of the vessels, compensation for damage shall be payable by the party at fault.

If the fault is shared, the liability of each vessel shall be proportionate to the gravity of the fault committed; however, if it is impossible to establish the respective proportions, or if the faults appear to be equal, the liability shall be divided equally. Damage suffered by vessels, their cargoes, passengers' and crew's luggage and other property, and other persons on board shall be borne by the vessels at fault in the proportions stated, without joint and several liability as against third parties. The vessels at fault shall be jointly and severally liable to third parties for damage arising from death or injury, subject to the right of the vessel that pays a share exceeding its final share under the first paragraph of this Article to recover from the other.

If a collision occurs and the fault is that of a pilot, liability shall be established as provided in the preceding articles, even where the pilot's presence is compulsory.

The preceding provisions shall apply even without a collision to compensation for damage caused by one vessel to another or to persons or property on board, through the execution of a manoeuvre, through failure to execute a manoeuvre, or through non-observance of regulations.

The master of every vessel involved in a collision must render assistance to the other vessel, its crew, and passengers to the extent possible without serious risk to his own vessel, crew, and passengers.

The master must also, to the extent possible, notify the other vessel of his vessel's name, home port, and the port from which it came and the port to which it is bound. The shipowner shall not be held liable merely for violation of the preceding provisions.

The provisions of this Part shall not apply to warships and State vessels assigned to an official service.

Actions for compensation for damage arising from collision shall not be subject to protest or any other procedure, and no special presumption of fault relating to collision liability shall arise.

In the event of a collision, the claimant may bring the action before the court of the defendant or before the court of the home port of the colliding vessel. The court with jurisdiction over the first Lebanese port entered by either of the vessels after the collision shall have jurisdiction to conduct all investigations or technical surveys. For collisions in Lebanese territorial waters, jurisdiction shall vest in the court of the place of the collision.

The right to bring any action for compensation for damage arising from collision shall lapse by operation of limitation upon expiry of two years from the date of the incident. However, the right of action referred to in the third paragraph of Article 236 shall lapse by operation of limitation after one year from the date of payment.

Marine insurance is a contract by which the insurer undertakes to indemnify the insured against loss suffered in the course of a maritime voyage, resulting from the total loss of a specific value, in exchange for payment of a premium, provided such indemnity does not exceed the value of the lost property.

All provisions of this Part that are not expressly stated to be mandatory regardless of any contrary agreement, or whose non-observance gives rise to nullity, are merely interpretative of the contracting parties' intent and may be departed from by express provision.

The insurance contract shall be drawn up in writing in two original counterparts. It shall state: — Date of the insurance contract and whether it is a contract before or after noon. — Name of the assured, whether on his own behalf or on behalf of another, and his place of residence. — Risks assumed by the insurer and the duration and limits thereof. — The insured amount. — The premium or consideration for insurance. It shall be signed by the insurer and the assured, or by the insurance broker on behalf of the assured. It may be drawn up to a named person, to order, or to bearer. Either party may obtain a true copy of the insurance policy.

Insurers may only be summoned before the court of the place where the contract was signed. However, if the policy was signed at an agent's office, the assured may also sue before the court of the insurer's domicile. If it was signed in one place by more than half the insured value, the assured may summon all the other insurers before the court of that place, which shall have jurisdiction once a decision has been made on the same action against them.

Any concealment of information or false declaration by the assured at or after the conclusion of the contract, or any discrepancy between the insurance contract and the actual risk, whose effect would be to diminish the insurer's assessment of the risk, shall render the insurance void, even in the absence of fraud. The insurance shall likewise be void even where the concealment, discrepancy, or false declaration has no effect on the damage or the loss of the insured property. The insurer shall retain the full premium if the assured acted fraudulently, and half the premium in the absence of fraud.

The assured must notify the insurer, under penalty of the same sanction, of events subsequent to the contract that may affect the insurer's assessment of the risk.

The insurer has the right to raise against a holder of the insurance policy — even if drawn up to order or to bearer — the defences relating thereto that he could have raised against the original assured, as if the transfer had not taken place.

The insurance contract may always be rescinded at the option of the assured as long as the risk has not commenced. An assured who is unable to prove force majeure shall pay the insurer a fixed indemnity of half the premium specified in the contract.

If the subject matter of insurance is goods for both the outward and return voyage and the return cargo has not been loaded by the time the vessel reaches its first port of call, or if loading of the return cargo is not complete, the insurer shall receive only two-thirds of the agreed premium, unless otherwise agreed.

In the event of the insured's insolvency or publicly declared suspension of payment, or failure to pay a premium that has fallen due, the insurers shall have the right, after a futile notice of payment served at the insured's place of residence, to rescind all insurance contracts by simple notification — even a registered letter — from the date of the last notice, and they shall retain the premium pro rata for the period of risk elapsed, with the balance remaining as a debt owed to them. However, the notice and notification may be combined in a single instrument. The insured shall have the same rights in the event of the insurer's insolvency or publicly declared suspension of payment.

A public judicial sale of the vessel shall automatically suspend the insurance on the day of sale; the insurance shall continue in the case of a private sale covering less than half the insured value. If a private sale covers at least half the insured value, the insurance shall only continue at the consent of the insurers.

The charter of a vessel shall not give rise to the rescission of the insurance contract, unless otherwise agreed.

The insured must notify the insurers of a casualty or loss within three days of receiving the news. He must, to the extent possible, mitigate the effects of the peril, take all appropriate precautions, oversee or carry out salvage operations on the insured property, and preserve every right of action against responsible third parties.

An insured who takes part in salvage operations preserves his rights to indemnity and abandonment. He has the right to recover his expenses on the mere confirmation thereof, subject to the insurer's right to contest. The insurer also has the right to take all appropriate or useful measures without this conferring on the insured the right to object that the insurer has acted as an owner.

Consignees must contact the insurers or their agents named in the policy, if any, otherwise the competent local authority, for the purpose of a survey of the losses and maritime damage, under penalty of inadmissibility of the action. They must also, under the same penalty, complete those surveys within eight days following the day on which the carrier placed the goods at their disposal or at the disposal of their representatives or agents, provided that this period shall not exceed thirty days from the date of arrival of the goods at the intended destination. However, the thirty-day period shall not apply to a consignee who proves that he was unaware of the arrival of the goods at the intended destination.

If insurance contracts on goods are evidenced by open policies or any other policies, the insured must declare in due time in the policy all shipments made on his account or on account of others who have entrusted him with the insurance of their goods, to the extent they are covered by the insurance. If the insured fails to fulfil this obligation, the insurer may cancel the contract, retaining premiums paid in all cases and having the right to recover premiums relating to undeclared shipments. If the declared sum relates to goods insured on behalf of others, it shall have no effect if given after the occurrence of the casualty.

Insurance may be effected for the benefit of an unnamed person. Such a clause shall be equivalent to insurance for the account of the signatory and equivalent to a contract for the benefit of a third party, whether that party is known or yet to be identified. The signatory of the policy relating to insurance for an unnamed person shall be jointly and severally bound to the insurer to pay the premium; however, the defences available to the insurer against the signatory may also be raised against the person benefiting from the insurance.

A vessel shall be considered Lebanese if its home port is a Lebanese port and at least half of it is owned by Lebanese nationals or Lebanese joint-stock companies whose board of directors, including its chairman, is a majority of Lebanese nationality.

The following shall also be considered Lebanese: all vessels designed for long-range navigation, whatever their net tonnage and whatever the nationality of their owners, provided their home port is a Lebanese port, subject to their registration being made conditional upon a prior permit issued by order of the Minister of Public Works.

A vessel shall also be considered Lebanese if its home port is a Lebanese port and at least half of it is owned by: - A general partnership company, all of whose partners are Lebanese. - A limited partnership company, all of whose liable partners are Lebanese. - A limited liability company, the majority of whose members, including the manager, are Lebanese and the majority of the shares belong to those members.

The Treasury shall collect from the non-net revenues earned by the two vessel guidance stations at the ports of Beirut and Tripoli a percentage of 10% (ten per cent) on all revenues. This procedure shall apply to all other guidance stations and to licensed pilots at all other ports and river mouths. The previous fees contrary to these fees shall be cancelled, as shall any prior discount or concession granted to Lebanese vessels.

The following shall be treated as Lebanese vessels:

1. 1)Vessels adrift at sea picked up by vessels flying the Lebanese flag.
2. 2)Vessels confiscated for violating Lebanese laws.

All vessels specified in this Article and in Article 2 must fly the Lebanese flag throughout the voyage, subject to the provisions of the second paragraph of Article 16.

Lebanese vessels alone have the right to fish along the coasts, the right to engage in coastal commercial navigation between Lebanese ports, and to tow vessels entering or leaving those ports.

Lebanese vessels shall be marked in Arabic and Latin characters with the following designations:

1. 1)Steamships and motorized vessels intended for coastal navigation or high-seas navigation: the name of the vessel on both sides of the bow, and on the stern its name and the name of its port of registry.
2. 2)Sailing vessels engaged in coastal navigation. On each side of the bow: the distinguishing letters of the port of registry and the registration number. On the stern: the name of the vessel and the name of the port of registry.
3. 3)Fishing vessels. On each side of the bow: the distinguishing letters of the port of registry and the registration number.
4. 4)Rowing boats, cargo skiffs, and all floating craft (including barges, dredges, and lighters): the same markings as fishing vessels of equivalent capacity.
5. 5)Boats of official departments and concessionary companies. On the bow and stern, or on the bow alone: the name of the vessel. Inside the wheelhouse: the distinguishing letters of the port of registry together with the registration number.
6. 6)Pleasure craft. These vessels are permitted not to display their registration number externally, provided that number is engraved inside the wheelhouse.

Shipowners must officially record in their vessels the capacity reserved for use (net tonnage) and the full internal capacity plus the capacity of structures erected on deck (gross tonnage). The assessment of vessel tonnage, the preparation of measurement certificates, and their submission to the port authority shall be carried out; the authority shall issue a certificate to that effect at the expense of the owner, buyer, or mortgagee, who must provide all means necessary to carry out those procedures.

The net tonnage number of the vessel shall be inscribed in Arabic and Latin characters on the aft face of the largest deck beam or on the forward side of the main hatch coaming.

A mortgage may be constituted on vessels whose gross tonnage is two barrels or more, provided that this is agreed upon by both parties.

A maritime mortgage agreement shall be constituted in writing. It may be made by private instrument. A mortgage deed may be drawn up to order; in that case, its negotiation transfers the mortgage right.

No person other than the owner of the vessel or his specially authorised agent may enter into a conventional mortgage on the vessel. If the vessel has several owners, its operator has the right to mortgage it for the needs of outfitting or navigation, pursuant to authorisation from the majority of its owners, provided that majority holds at the same time three-quarters of the jointly-held rights. If the rights of the majority do not reach three-quarters, the co-owners may apply to the court for the decision most consistent with their common interest. No co-owner may mortgage his undivided share in the vessel except with the consent of the majority of owners, provided that majority simultaneously holds half of the jointly-held rights.

The mortgage must be registered in the registration register pursuant to Article 21 and the following articles of this Law. Registration of a mortgage shall secure, in addition to the principal, interest for two years plus interest for the current year at the time of default.

A mortgage constituted on a vessel or a share thereof shall cover the entire hull and shall also cover the equipment, tools, machinery, and other appurtenances, including wreckage, unless otherwise agreed. This mortgage does not cover the vessel's freight or governmental bonuses and subsidies. However, it covers insurance compensation, unless such compensation is earmarked for the repair and maintenance of the vessel. It does not cover insurance proceeds and the mortgage deed may not contain an express assignment to the mortgagees of such proceeds. This assignment shall not be effective against the insurers unless they have accepted it or been notified thereof.

A maritime mortgage on a vessel under construction is permissible. In this case, the mortgage must be preceded by a declaration addressed to the harbour master within whose jurisdiction the vessel is being built. The declaration shall state the length of the vessel's keel and its other approximate dimensions, its estimated tonnage, and the place of construction.

If the mortgage deed was drawn up to order, it shall be transferred by endorsing the registration certificate.

Creditors holding a mortgage registered on a vessel or a share thereof may pursue it wherever it passes in order to register their debt in its proper rank and to foreclose in accordance with the rank of registration. If the mortgage covers only a share of the vessel, the creditor may not apply for arrest or enforcement of sale except on the share assigned to him; however, if the mortgage covers more than half the vessel, the creditor may, after arrest, enforce the sale of the whole vessel on condition that the co-owners are invited to participate in that sale. If the adjudication of the vessel at a sale by auction falls upon one of the co-owners, or if the vessel falls to him on partition of his share, the mortgage shall survive the partition or sale in the same state as before, even if that co-owner is not the one who mortgaged his undivided shares in the vessel. If the sale by auction takes place before a court under the conditions set out in Article 83 and the following articles of this Law, and it is adjudicated to a person who is not a co-owner, the rights of creditors whose mortgage does not cover a share of the vessel shall be limited to the right of priority over the portion of the price attributable to the mortgaged right. Likewise, charges attaching to each share in the ownership of the vessel shall automatically transfer to the portion of the price in which the value of that share in the vessel is represented.

A person who purchases a vessel or a share thereof and wishes to avoid the actions permitted by the preceding Article must, after registering his purchase and before those actions, or within fifteen days thereof, notify a copy of the vessel's title deed to all creditors listed in that deed at the elected domicile in the original deed. The purchaser shall declare in the same deed that he is prepared to pay immediately the secured debts up to the value of the vessel, whether those debts are due or not.

Any holder of a registered debt may demand the sale of the vessel by auction or the sale of the mortgaged share thereof, by offering a premium of ten per cent over the price and providing a surety for the payment of the price and costs. The purchaser must be notified of this request, signed by the creditor, within ten days of notification. The request shall contain a summons before the primary court in whose jurisdiction the vessel is located or at whose port of registry it is registered if it is at sea, for the purpose of ordering the holding of a public auction.

The sale by auction shall be conducted at the instance of the creditor who requested it or at the instance of the purchaser in accordance with the procedure established in the following articles.

The sale of a mortgaged vessel in Lebanon or abroad is prohibited. Any sale in violation thereof may not be entered in the registration register as null and void. An owner who voluntarily sells abroad a mortgaged vessel shall be considered guilty of breach of trust and shall be subject to the penalties provided for in Article 670 of the Penal Code.

The mariner must present himself for embarkation on the vessel at the master's first request. He is obliged, whether on board or ashore, to obey the orders of his superiors in matters concerning the service of the vessel. He is obliged to work towards saving the vessel and its cargo.

Neither the master nor a mariner may load on the vessel any goods for their own private account without permission from the operator. If a violation occurs, the offenders shall be required to pay the maximum freight applicable at the place and time of loading, without prejudice to any further compensation that may be due. The master may order the throwing overboard of illegally loaded goods if they are likely to endanger the vessel or the cargo, or if their carriage would result in costs exceeding their value, or if they are subject to confiscation by public authorities, or if their sale or export is prohibited by law.

A time charter is a contract by which a vessel is let for hire for a fixed period. The owner of the vessel may choose to leave the charterer with or without the right to choose and dismiss the master, and may transfer to him both the nautical and commercial management of the vessel, or only its commercial management. A charterer who has the right to manage both the nautical and commercial aspects of the vessel must provide all its provisions, maintenance charges, and operating costs, and bear general average losses that fall on the vessel and its freight; losses and general average shall be at his risk whatever their severity, unless he proves they arise from the owner's fault. If the charterer only has commercial management, such losses and general average shall be at the owner's risk, unless he proves they arise from the charterer's fault.

Freight shall be payable by the charterer for all the time the vessel is at his disposal. In the event of the vessel being lost, requisitioned, or detained, freight shall cease as of the date of those events.

If freight is measured in periods of time, each period that has commenced shall be payable in full.

Freight for the vessel shall be payable from the day it is placed at the charterer's disposal until the day it is returned to the owner in the condition required for it to receive cargo.

Any act of assistance or salvage performed by one vessel in service to another vessel in distress, and to the property on board, and the towage or passenger fare payable upon leaving the vessel entirely in the hands of the crew, shall be subject to the following provisions:

Any act of assistance or salvage that produces a beneficial result shall give rise to a fair remuneration. No remuneration shall be due if the assistance rendered produces no benefit. The amount payable shall not in any case exceed the value of the salvaged property.

No remuneration shall be due to persons participating in salvage operations if the vessel in distress has expressly and reasonably refused their assistance.

No remuneration shall be due to a towing vessel for assisting or saving the towed vessel or its cargo unless operations beyond what can be considered the performance of the towage contract were carried out.

Remuneration shall be due even if the assistance or salvage was between vessels belonging to the same owner.

The amount of remuneration shall be fixed by agreement of the parties, or otherwise by the court. Likewise, the proportion for the distribution of that remuneration among the salvors or between the owners of each salving vessel and its master and crew. If the salvaged vessel is foreign, the distribution among its owner, master, and crew shall be governed by the law of its country.

The court may, on the application of either contracting party, cancel or modify any salvage or assistance agreement concluded during the danger and under its influence if it considers the agreement's terms unjust. It may also in all cases, on the application of the interested party, cancel or modify the agreement if it appears that one of the parties was misled by fraud or concealment of information, or if the remuneration is excessively disproportionate to the service rendered.

The court shall fix the remuneration having regard to the circumstances on the basis of: A. First: the successful outcome and the efforts and merits of the salvors; the danger that threatened the assisted vessel, its passengers, crew, and cargo; the salvors and the salving vessel; the time spent and the costs and losses incurred; the risks of liability and other risks to which the salvors were exposed; the value of the equipment they used; and, where applicable, the purpose for which the salving vessel was fitted. B. Second: the value of the salvaged property. The same provisions shall apply to the distribution referred to in the second paragraph of Article 250. The court may reduce or annul the remuneration if it is established that the salvage or assistance was necessitated by the fault of the salvors, or if they committed theft, concealment of stolen property, or other fraudulent acts.

No remuneration shall be due for saving persons. Salvors of human lives who participated in the same operations at the same risks shall be entitled to a fair share of the remuneration awarded to the salvors of the vessel, cargo, and their appurtenances.

The right to bring an action for salvage or assistance remuneration shall lapse by operation of limitation after two years from the day on which salvage or assistance operations ended. This period shall not run if the assisted or salvaged vessel was not arrested in Lebanese waters. A prison sentence of one month to two years and a fine of one hundred to three thousand Pounds, or either of these two penalties, shall be imposed on any master who personally witnesses a person at sea in danger of drowning and who fails to render assistance without serious risk to his vessel, crew, or passengers.

Any person with an insurable interest may insure the vessel, its appurtenances, vessels under construction and materials assembled for that vessel in the shipyard, outfitting costs, equipment, crew wages, vessel freight, amounts lent under bottomry, goods, money, and financial instruments on board, anticipated profits, and in general all things capable of having a monetary value and exposed to maritime risks.

The accepted value of the vessel includes all its appurtenances, in particular equipment, crew advances, rigging, and all costs, unless it can be proven that certain costs relate to an interest independent of the ownership of the vessel.

If the subject matter of insurance is the net freight, the amount of that freight shall be estimated at sixty per cent of the gross freight if no specific amount is stated in the contract.

Anticipated profit shall be fixed at ten per cent of the value at the port of departure, unless the insurers accept a higher declared estimate, in which case that higher share must be specified in the policy.

If the value of goods is not specified in the contract, it may be proved by cargo manifests, books of account, or otherwise by the current price at the time and place of loading, together with all duties and costs paid up to their delivery on board, the freight earned regardless of the outcome, the insurance premium, and anticipated profit where applicable. The same method shall apply to assess the displacement, dimensions, equipment, and fittings of the vessel, which shall be determined on the basis of their value on the day the risk commences. Equipment, fittings, and all property capable of having a monetary value shall be estimated at their value at the place and time of commencement of the risk.

The insurer may always prove that the accepted value exceeds the actual value of the insured property at the time he accepts the insured's valuation in the policy.

Insurance may be effected by one insurer against the risks assumed by another. Such reinsurance shall be subject to the provisions of this Part. The original insurer shall remain jointly and severally liable to the insured.

The insured may insure the insurance indemnity.

Any insurance contract concluded after the loss of the insured property or after its safe arrival shall be void if it is established that news of the loss or arrival reached either the insured's place of residence before the insurance order was issued, or the place of signature before the insurer signed. If the insurance was contracted on the basis of 'good or bad news', which is only admissible for insurance on an outfitted vessel, the contract shall not be void unless evidence is produced that the insured knew of the loss or the insurer knew of the safe arrival before signing. If the insured's ignorance is established, he shall pay the insurer twice the premium; if the insurer's ignorance is established, the insurer shall pay the insured twice the agreed premium.

Insurance contracted through an agent shall be void if the agent could have known the news. It shall also be void if the addressee knew of it; and if the addressee learned of the news after issuance of the order, he shall immediately issue a counter-order that shall be presumed valid where appropriate. The insurance shall be valid if it was signed before the counter-order arrived.

If the master is permitted to load goods for his own account on the vessel he commands, and he insures those goods, he shall prove to the insurers by all means the purchase of the goods and shall provide a bill of lading signed by two senior crew members.

If there is no bill of lading, or if the bill of lading lacks evidentiary value, the insured shall produce other documents proving the shipment, such as purchase account lists, cargo declarations, copies released by customs, carriage statements, and correspondence. Oral evidence shall be admissible in the absence of all other evidence.

Marine insurance must be an indemnity contract regardless of any contrary agreement, and may not place the insured in a better financial position after the occurrence of an incident than he was in before the incident.

A person may effect as many insurance contracts as he wishes on a single property, provided those contracts do not together yield a profit exceeding the actual loss suffered.

If insurance is effected for an amount exceeding the value of the insured property and fraud or misrepresentation by the insured is established, the insurer may seek annulment of the contract and shall be entitled to retain the full premium by way of compensation. In the absence of fraud or misrepresentation, the contract shall be valid for the value of the insured property as assessed or agreed. The insurer may not collect the premium on the excess, but may claim compensation for loss and damage where appropriate.

If the total of the sums insured under several contracts exceeds the value of the insured property, the contracts may be annulled in accordance with the preceding article in the event of fraud or misrepresentation by the insured. In the absence of fraud or misrepresentation, all contracts shall be valid and each shall produce its effects proportionately to the insured sum relative to the full value of the insured property. This provision may be displaced by a clause in the policy adopting the rule of chronological priority of dates, or providing for solidarity of insurers.

If the insurance contract covers only part of the value of the insured property, the insured shall be treated as his own insurer for the remaining part and shall consequently bear a proportionate share of the loss, unless it is expressly provided that the insured — within the limit of the insured sum — may receive full indemnity if the loss does not exceed the insured value.

A registration register shall be established at each of the ports of Tyre, Sidon, Beirut, and Tripoli. Each page of this register shall be numbered and signed; its number shall be the registration number of the craft to which the page is exclusively allocated. All Lebanese craft shall be recorded in this register. Registration shall be made at the following ports: Tyre: vessels from ports situated between the Palestinian border and the mouth of the Litani River. Sidon: vessels from ports situated between the mouth of the Litani River and the Damour River. Beirut: vessels from ports situated between the mouth of the Damour River and Ras al-Barbara. Tripoli: vessels from ports situated between Ras al-Barbara and the northern borders of Lebanon. These ports shall be indicated by the following distinguishing letters: For Tyre (ص ر) – For Sidon (ص أ) – For Beirut (ب) – For Tripoli (ط). A vessel is said to belong to a particular port when its owner has a real or elected domicile at that port. Vessels belonging to official departments (Customs, Police, Quarantine, the State, etc.) shall be registered at the port of their customary anchorage.

The following text was added to Article 8 pursuant to Schedule No. 9 annexed to Law No. 280 dated 15/12/1993: — The ports of Chekka, Jbeil, and Jounieh are considered ports of registry; the scope of each and its distinguishing letters shall be determined by order of the Minister of Transport.

The erasure, concealment, or covering of any official letters, numbers, or markings is in no way permitted. Any violation of these provisions shall expose the shipowner and master to a prison sentence of two to ten days and a fine ranging from five to one hundred Lebanese Pounds, or to either of these two penalties. Likewise, the affixing of forged markings shall expose the shipowner and master to the penalties provided for in the second paragraph of Article 19 of this Law.

Vessels belonging to foreigners residing in Lebanon may be registered in Lebanon by permit from the Minister of Public Works if they are intended for pleasure use or for cruising within a Lebanese port without any other form of navigation. This permit may be revoked in the event of a violation of these regulations or upon a change of vessel ownership; the permit shall automatically lapse if the vessel is used for navigation other than that for which it was registered. Foreign vessels registered at a Lebanese port shall fly the flag of the country of their owner, or the flag of the country of one of their owners if there are several.

The registration register for each vessel on its page must contain the following:

1. 1)Its name (if several vessels bear the same name, a sequential number shall be appended to each).
2. 2)Its registration number (accompanied by the distinguishing letters of the port of registry).
3. 3)The date and place of construction of the vessel.
4. 4)Its type (whether a sailing vessel, a steamer, etc.).
5. 5)Its dimensions (length, breadth, and depth).
6. 6)Its net and gross tonnage in barrels (tons).
7. 7)The type and power of the propulsion machinery.
8. 8)The names, nationalities, and addresses of the owners, with a statement of the number of shares held by each.
9. 9)The name, nationality, and place of residence of the managing operator.
10. 10)Subsequent changes to the vessel, including changes to its home port or its owner, etc.
11. 11)The reasons for its removal from the register, whether by loss, damage, or sale.
12. 12)Any arrest or mortgage placed upon it.

Registration shall be carried out at one of the ports listed in Article 8, on the basis of a declaration made by the owner after taking an oath before the harbour master and four witnesses. The form of the oath shall be: "I swear that I own in full (or state the share) the vessel whose registration I am applying for, because I have built it alone (or together with my co-owners) at my own expense (or at our expense) (or) because I purchased it from... by virtue of a deed dated..." If the vessel is the property of a company, the company's representative in that capacity shall give the declaration on its behalf and take the oath as indicated above. The declarant shall substantiate his declaration of ownership by producing all supporting documents (such as the bill of sale, invoices, etc.) or by presenting witnesses to the harbour master (such as the builder and workers, etc.) if the production of those documents or the hearing of those witnesses is necessary to establish his right. A record of the foregoing shall be drawn up as a deed of attestation, signed by the declarant, the witnesses, and the harbour master.

This deed shall be posted on the special notice board at the offices of the registration port, after which a certified true copy of the deed, certified by the head of that port, shall be sent to all other ports; those ports in turn shall post it on their respective notice boards upon receiving it. The deed must contain the particulars listed in Article 11. At each port, the posting of the deed shall be confirmed by a separate record signed by the head of the port.

Registration may not be challenged once three months have elapsed from the date of the last posting, provided no claim or objection has been raised during that period. After that date, the aggrieved party retains only the right to bring a damages action against the declarant.

Claims and objections submitted within the three-month period shall be received by the harbour master of the registration port and, upon expiry of that period, referred to the registry of the primary court to whose jurisdiction the port belongs. The court registry shall in turn notify the declarant through the bailiff within fifteen days of receiving them, and the declarant shall have fifteen days to reply. The court president shall then summon all parties to a public hearing in the same manner to adjudicate the said claims and objections. The judgment rendered by the court shall be final and not subject to objection; appeal is the only means of review, whatever the rights in dispute, and must be filed within fifteen days of notification of the judgment. It shall be subject to all appellate procedural rules provided for in Part Six of the Code of Civil Procedure. Retrial shall be accepted only in the cases referred to in items 1, 2, 4, 5, 6, and 7 of Article 537 of the Code of Civil Procedure, and shall be subject to ordinary procedure.

Vessels must be registered within fifteen days following their construction or purchase; if constructed or purchased abroad, within fifteen days of their entering Lebanese waters. The vessel need not be present at a Lebanese port for registration formalities to be carried out. A vessel purchased or built abroad is permitted, pending its registration, to sail under the Lebanese flag by virtue of a permit issued by the Lebanese State's representative at the place of sale or construction, on the basis of a declaration of purchase supported by documents. If the purchase was made in Lebanon from an owner domiciled at a port other than the buyer's port, the buyer must apply to the port of registration of the vessel to transfer the registration to the port of his domicile. The transfer shall be effected after the change of ownership has been entered on the vessel's page in the registration register; a copy of the page, certified by the previous harbour master and noting the necessity of transfer due to change of domicile, shall then be sent to the new port of registration. A new page shall be opened in the register of the new port of registry, bearing a number corresponding to its place in the register, and all entries from the previous page shall be transferred to it. The vessel's page in the previous port's register shall be cancelled. The owner of a Lebanese vessel, or the co-owner thereof, who fails to register the vessel in accordance with the provisions of this Article shall be punished with imprisonment of two to ten days and a fine of 25 to 500 Lebanese Pounds, or either of these two penalties, unless it is proven that force majeure prevented registration. By way of transitional provision, shipowners are granted a period of six months from the date of publication of this Law to register their vessels in accordance with the provisions of this Article.

If a vessel is sold to a foreigner, or is seized by the enemy, or is destroyed or lost in any way, the owner in whose name it is registered shall return its title deed to the office of the port of registry for cancellation and for the striking-off of the corresponding page of the register. This deed must be returned within fifteen days if the loss or sale occurs in Lebanese waters, and within three months if it occurs abroad. Any violation of these provisions shall expose the shipowner and master to imprisonment of two to ten days and a fine from 25 to 500 Lebanese Pounds, or to either of these two penalties. Arrest of the vessel is also possible, except where arrest proves impracticable.

Any Lebanese vessel sailing without registration, which is not being transferred from the port of its construction or sale to its port of registry, shall be stopped at the first Lebanese port it reaches. If apprehended at sea, it shall be taken to the nearest Lebanese port, where the harbour master shall detain it and draw up a record. This record shall be forwarded to the competent courts, and a copy sent to the Minister of Public Works.

If it is established that the master intended to evade registration formalities for a criminal purpose, the court shall order the confiscation and sale of the arrested vessel. The sale proceeds shall be added to the revenues of the port office to which the vessel's registration belongs, and a copy of the judgment shall be sent to the Minister of Public Works. In addition, the master shall be liable to imprisonment of three months to two years and a fine ranging from 25 to 500 Lebanese Pounds. If it is established that the matter involves only negligence or oversight, both the master and the owner shall be liable to a fine ranging from 25 to 300 Lebanese Pounds.

Every agreement, every onerous or gratuitous contract, every judgment having the force of res judicata, and in general every act whose purpose is to create, transfer, declare, modify, or extinguish a real right attached to a registered vessel shall have no effect even between the contracting parties unless it has been entered in the registration register. The right to register real rights attached to vessels is acquired from the moment of the agreement, contracts, judgments, or acts referred to in the preceding paragraph. The obligation to deliver a vessel includes the obligation to transfer it in the registration register. The transfer may be ordered by the court if one of the contracting parties refuses to perform its obligation, without prejudice to the right of the aggrieved party to claim damages, particularly where the vessel has been transferred to a third party.

Any person who has acquired a right in a registered vessel in reliance on the entries and contents of the registration register may invoke those entries against others. However, a third party who, before acquiring a right in the vessel, was aware of defects, grounds for annulment, or disqualifications may not invoke the force of the registration register entries. In any event, the aggrieved party may bring a personal action for damages against the person who caused the harm.

Any person harmed by a registration, amendment, or cancellation made without legitimate cause may request the annulment or amendment thereof. If annulment or cancellation cannot be achieved by mutual agreement of the parties, a court order must be obtained. Mere clerical errors in writing, such as discrepancies between entries on the register page and the terms of the daily record or supporting documents, may be corrected by the harbour master as of right. If an objection is raised by an interested party, the harbour master shall request the local justice of the peace to carry out the correction, having first noted the objection and the correction request on the page. Annulment or correction shall not be effective against a third party who previously registered his rights in good faith before the annulment, correction, or registration of the objection.

Registration shall be carried out on the basis of a declaration by the owner of the vessel or the person in whose favour a right therein is being transferred, and on the basis of acceptance by the person in whose favour the registration is being carried out. Both the declaration and the acceptance shall take place before the harbour master of the registration port, who shall draw up a record thereof; they may also be made before a notary public in a formal deed submitted to the harbour master. Registration shall not be considered final unless approved by the competent departments of the Ministry of Public Works. The declaration and acceptance shall contain:

1. 1)Identification of the vessel subject to registration, by reference to the register page number.
2. 2)Identity of the owner or right-holder transferring the right, and of the beneficiary of the proposed registration.
3. 3)Statement of the nature of the right to be registered.
4. 4)Statement of the method of acquisition and the price, where applicable.
5. 5)Where applicable, also the specific terms set out in the agreement (amount of the debt, interest rate, commission, the currency or money stipulated, the method of payment before maturity) or any restriction on the right of disposal or the conditions requested for registration, together with a statement of the principal right.
6. 6)No declaration is required where the applicant relies on a law, on a judgment having the force of res judicata, or on a deed that confers the right to register as of right.

The harbour master or the notary public who receives the deed shall verify, on their own responsibility, the identity and legal capacity of the applicants. This verification shall be noted in the record of attestation or in the deed. As regards deeds drawn up abroad, the identity of the contracting parties shall be deemed verified if the signatures on the deeds have been authenticated, including the conditions and proofs required by the applicable laws, under penalty of nullity.

If the contracting parties are unable to sign or read, or are incapacitated from doing so, the acknowledgement of the content of the record shall be made before the harbour master or the notary public in the presence of two witnesses who have civil capacity and can sign. The harbour master or notary public shall record the acknowledgement in the record of attestation or in the deed and sign it together with the witnesses. If the harbour master or notary public does not know the names, personal circumstances, or domicile of the contracting parties, such knowledge must be verified by two witnesses who know them and who fulfil the above-mentioned conditions. In all cases the harbour master or notary public must attest their knowledge of the witnesses in the declaration.

The harbour master shall maintain a daily register in which declarations and documents presented to him shall be entered in sequential numerical order; the applicant shall be given an acknowledgement of receipt noting the daily register number under which his declaration was registered and the number and date of registration in that register. The date of registration shall determine priority ranking. If requests relating to the same vessel are submitted on the same day, the hour at which the request was lodged shall determine the priority ranking of rights attached to that vessel. If several requests relating to the same vessel are submitted at the same time, this shall be noted in the daily register and the rights shall be registered simultaneously.

Anyone claiming a right in a registered vessel may request a provisional entry to preserve that right temporarily. The application for a provisional entry must always be supported by an order from the president of the primary court to whose jurisdiction the vessel's home port belongs. The date of the provisional entry shall determine the ranking for the subsequent registration of the right. A provisional entry shall lapse upon expiry of a one-month period and shall be struck off as of right if no court action, to be entered in the registration register, is filed within that period.

A registration or provisional entries may be struck off by virtue of any deed or any judgment having the force of res judicata establishing, as against any party with an interest in a declared right in accordance with proper procedure, the non-existence of the right to which the registration or provisional entry relates, or the extinction of that right.

The provisions of Articles 21 to 27 relating to registration shall apply to striking-off, except that the record of attestation or the deed of striking-off must state:

1. 1)Identification of the specific vessel page to which the striking-off must relate.
2. 2)Statement of the registration or provisional entry.
3. 3)Statement of the reason for the striking-off or the instrument establishing it.

The striking-off shall be entered on the vessel's page, dated and signed by the harbour master under penalty of nullity. The harbour master's signature shall be accompanied by the official seal of the port of registry, and the reasons for the striking-off shall be noted on the said page.

Applications for enforcement of an arrest placed on a vessel and for enforcement of a judgment settling a dispute regarding a vessel shall be forwarded through the enforcement department to the harbour master of the port of registration of the vessel, for entry on the page of that vessel. Real actions must also be registered in the registration register after their summonses have been notified to the harbour master of the port of registry, endorsed in accordance with proper procedure by the clerk of the court to which the summons was submitted. Notification shall be made at the instance of the party concerned.

If a real right was constituted on a vessel inter vivos and registration thereof is applied for after the death of the transferor, the application may be granted after producing a document that clearly gives rise to a right to registration, or a request signed by the transferor of the right, provided that the signature is authenticated in both cases. If the signature is not authenticated and the heirs raise an objection, the registration shall be determined by the judicial authority.

Real rights attached to a vessel and arising by inheritance may not be registered in the names of the applicants for registration when the inheritance is ordinary and not established by will, unless those persons produce, in addition to proof of the death of their predecessor, legal certificates establishing the identity of each of them and their right to the inheritance. If the inheritance is established by a will, the applicant must produce the deed of will or the order of the judicial authority competent to execute the will.

Every entry made in the registration register must be accompanied by the harbour master's signature under penalty of nullity. This signature shall be accompanied by the seal of the port of registry.

The owner of a vessel, to the exclusion of others, has the right to a full copy of his vessel's page. This named copy shall be given the official form by the harbour master with his signature and the seal of the port of registry. Other right-holders, such as mortgagees, shall receive only a certificate of their registered right.

Whenever a new entry is made on a page, that entry must be registered on the copy thereof (title deed). The harbour master shall refuse registration if this copy is not produced and the request relates to a right whose creation is presumed to require the consent of the registered owner. In all other cases, the harbour master shall carry out the registration and notify the holder of the registered right. No further registration may be requested by the holder of this right until the copy and the title deed have been reconciled. The harbour master shall attest the reconciliation of the copy with the page whenever required to do so.

When the harbour master opens a new page, he shall cancel the previous page by signing a cancellation mark and affixing the port seal on all its pages. He shall cancel the title deed in the same manner and keep it among his files.

The harbour master shall, upon request, provide any interested party with a general or specific statement of what is registered in the registration register, and a copy or summary of the documents.

If a title deed or a registration certificate is lost or destroyed, the harbour master of the registration port shall replace it in the same manner used by the head of the land registry office pursuant to Articles 92 to 94 of Order No. 188 dated 15 March 1926, to replace lost or damaged title deeds or registration certificates relating to immovable property. The rules established in those articles shall apply in the same way to this case.

The harbour master of the registration port shall be personally liable for damage arising from:

1. 1)His omission in the registers of a required provisional entry, registration, or striking-off.
2. 2)His omission in registration certificates or summaries signed by him of a provisional entry, registration, or striking-off entered in the register.
3. 3)His violation of proper procedure and the invalidity of provisional entries, registrations, or striking-offs entered in the register.
4. 4)Omissions and procedural violations in declarations and records of attestation received by him.
5. 5)This is in addition to the legal provisions in force concerning the liability of civil servants. In all the above cases, the State shall bear financial liability where its officers are unable to pay.

Arrest may not be effected until twenty-four hours have elapsed after the notice of payment.

The notice must be served on the owner personally or at his domicile. If the owner is not present, the notice may be served on the master of the vessel if the debt relates to the vessel or to the cargo.

If ten and a half days have elapsed since the notice, the creditor must renew it before effecting the arrest.

The enforcement officer must state the following in the record of attestation: — Name, occupation, and address of the arresting creditor. — The instrument by virtue of which enforcement is sought. — The sum demanded. — The creditor's elected address in the locality of the court before which the sale must be sought, and in the place where the arrested vessel is anchored. — Name of the shipowner and name of the master. — Name, type, tonnage, and nationality of the craft. — A statement and description of the dinghies, boats, equipment, gear, engines, provisions, and supplies, with the designation of a custodian.

The arresting party must notify the owner within three days of a copy of the record of arrest and summon him before the court of the place of arrest to decide on the immediate sale of the arrested objects in his presence. If the owner is not domiciled within the court's jurisdiction, service shall be made within fifteen days on the master of the arrested craft in person if present, otherwise on the owner's representative or the master's representative. If the owner is a foreigner without domicile or residence in the Lebanese Republic and with no representative, the summons and service shall be effected pursuant to Article 362 of the Code of Civil Procedure.

The record of attestation shall be registered in the register of the port of registration of the vessel, or in the register of the port within whose jurisdiction the vessel is anchored, after its registration if it was under construction. The debtor under arrest retains no right to sell the vessel or to mortgage it after this registration. The authority entrusted with the registration office shall issue a statement of the entry within three days of registration (Sundays and public holidays excluded) and, within eight days of issuing that statement, shall notify the arresting creditor to the registered creditors at their elected address in their registration, through the summons described in the preceding Article. Creditors shall have fifteen days to intervene if they wish.

If the vessel is foreign, notifications shall be made within eight days of the delivery of the statement of the mortgage from the consulate to the registered creditors listed in that statement, in the manner provided for in the Code of Civil Procedure. Those creditors shall have fifteen days to intervene, plus additional time for distance.

The court of the place of arrest shall order the sale and its conditions as submitted by the arresting creditor, and shall fix the date and the reserve price. If no bid is made on the fixed date, the court shall set a new, lower reserve price and a new date for the subsequent auction.

Actions for recovery and nullity shall be brought before adjudication. If actions for recovery are not brought until after adjudication, they shall automatically convert into an objection to the release of the proceeds of the sale. Actions for recovery and nullity shall not be admissible unless they are entered in the registration register.

The claimant or objector shall be given three days to present arguments, and the defendant shall likewise be given three days to reply. A hearing date shall be fixed immediately upon the application. The action shall not suspend enforcement unless the court orders a stay for compelling reasons.

The sale shall be held at a public auction hearing in the civil court, fifteen days after the posting of the notices provided for in the following Article and after publication in two newspapers, at least one of which is in Arabic, from among the newspapers designated for the publication of judicial notices at the seat of the court, in addition to the methods of publication authorised by the court.

Notices shall be affixed to the most visible part of the arrested vessel, to the main door of the court before which the sale is to be held, on the quay of the port where the vessel is anchored, and at the commercial exchange if one exists.

The notices posted or published in newspapers must state: — Name, occupation, and address of the arresting creditor. — The instruments by virtue of which the claim is made. — The amount of the sum due. — The elected address in the locality of the court and at the port where the arrested vessel is anchored. — Name, occupation, and address of the owner of the arrested vessel. — Particulars of the vessel as entered in the registration register. — Name of the master. — Place where the vessel is located. — Reserve price and conditions of sale. — Place, day, and hour of the auction.

No supplementary bidding shall be admissible once a judicial sale has been completed.

The purchaser must, within twenty-four hours of adjudication, deposit the purchase price free of costs at one of the banks approved by the Government, under penalty of the auction being reopened at his expense.

In the event of non-payment, the vessel shall be re-offered for sale and adjudicated three days after the renewal of publication and announcement as provided in Article 84, with an auction opened at the purchaser's expense. This shall remain binding on him for the payment of any shortfall, compensation, and costs.

The judgment of adjudication shall not be subject to opposition. However, within five days of its pronouncement and solely for a defect in its form, an application may be made to the court of appeal by way of a summons on three full days' notice; the court shall rule on it by a decision not subject to opposition.

The judgment of adjudication shall be registered in the registration register at the request of the enforcement department once it has acquired the force of res judicata.

Adjudication shall free the vessel from all privileges, mortgages, and rescission actions to which persons who had been notified pursuant to Article 78 are entitled. The striking-off of the registration of such privileges, mortgages, and actions shall be made for the purchaser upon his production to the registration office of the judgment of adjudication and a certificate from the registry of the court that issued it confirming that the judgment has acquired the force of res judicata.

Distribution of the proceeds of adjudication shall be carried out in accordance with Articles 794 to 807 of the Code of Civil Procedure.

The vessel's operator shall not employ other than Lebanese mariners for coastal navigation from one Lebanese port to another Lebanese port, or for fishing on Lebanese coasts. As regards large vessels designed for long-range voyages as referred to in the second paragraph of amended Article 2, and vessels designed for international coastal navigation, the administration reserves the right to require their owners to employ up to one-fifth of Lebanese mariners, or to train that proportion of persons for navigation, on conditions determined by order of the Minister of Public Works. As regards technical workers, the vessel's operator may in cases of necessity employ foreign captains, officers, or mechanical workers who demonstrate that they hold licences or certificates at least equivalent to those required by the departments of the Ministry of Public Works from Lebanese captains, officers, or mechanical workers.

The operator of the vessel and the master may not employ young mariners under the age of fifteen. They may not employ young mariners who have not attained the legal age of majority unless written consent from their parents or guardian has been obtained.

Where the employment contract provides that all or part of a mariner's pay is a share of the vessel's freight or profits, the expenses and charges to be deducted from the gross profit to arrive at the net profit must be defined. Compensation paid to the vessel for cancellation, curtailment, or extension of the voyage, or for loss of profit or freight, shall be included in the gross profit. This provision shall not apply to insurance proceeds unless the mariner has contributed to the payment of premiums since the commencement of the voyage. Governmental bonuses and other official subsidies shall not be included in the amounts subject to division unless otherwise agreed.

In the event of extension or curtailment of the voyage, mariners who are paid by the month shall receive wages in proportion to the actual duration of their service.

If the mariners' pay is tied to the voyage, no deduction shall be made to it as a result of intentional curtailment of the voyage, whatever the reason for the curtailment. If the voyage is intentionally extended or delayed, the wages shall be increased in proportion to the duration of the extension or delay.

If the mariners are employed for a share of profits or freight, they shall be entitled to no compensation for delay, extension, or curtailment of the voyage caused by force majeure. If the cause is attributable to the act of a third party or to the shippers, the mariners shall be entitled to a share of the compensation awarded to the vessel. If the cause is attributable to the act of the vessel's operator or master and damage has been suffered by the mariners, those mariners shall be entitled, in addition to their share in the profit earned, to compensation determined having regard to the circumstances.

Any dispute concerning the payment of wages and, in general, any dispute arising between the master or the operator and the mariners must be submitted in order to attempt settlement to the maritime authority responsible for maritime order at the vessel's home port or at the port of disembarkation. If that authority is unable to reconcile the parties, it shall draw up a record noting the disputes raised by the parties and the sums paid. The record shall, upon its request, be forwarded to the competent judge. No action before the courts shall be admissible until this settlement procedure has been completed.

A voyage charter is a contract by which all or part of the vessel is let for hire for one or more specified voyages. A contract of maritime carriage is a contract by which the carrier undertakes, for a specified freight, to carry to a specified place luggage or goods by sea during all or part of the voyage.

The vessel must be ready to receive goods at the agreed time and place of loading, or the customary place. The master shall take the cargo on board at the vessel's operator's expense from under the tackle, and shall deliver it at the port of destination to the consignee under the tackle.

A charter of the whole vessel shall not include the spaces reserved for the master and crew. Nevertheless, neither the master nor the crew may load any goods therein without the charterer's consent. If the vessel is chartered in whole or as to a specific part, the master may not carry any other goods in the vessel or in the chartered part without the charterer's permission. If a violation occurs, the freight for goods carried without right shall accrue to the charterer, who may also claim compensation for loss and damage.

The vessel's owner shall be liable for all loss and damage to goods throughout the period they are in his charge, unless he proves force majeure.

The vessel's owner shall be answerable for goods consumed or sold by the master during the voyage for the vessel's needs, deducting therefrom the costs advanced by the charterer; the value shall be reckoned at the price at the port of destination if the vessel arrived safely, otherwise at the actual sale price. The vessel's owner has the right to retain freight for all goods he is obliged to pay for. If the shippers are not reimbursed for goods consumed for the vessel's needs, the loss they suffer therefrom shall be distributed proportionately over the value of those goods and over all goods that arrive safely at their destination or are saved from sinking when the right arose from a maritime incident that necessitated the sale or the consumption.

If no one appears to take delivery of goods, or if their delivery is refused, the master may request the judicial authority to sell all or part of the goods up to the amount of the vessel's freight and order the deposit of unsold goods. If the proceeds of the sale are insufficient to cover the freight, the master retains the right to sue the shippers for the difference.

If the shipper does not deliver under the tackle the quantity of goods agreed upon, freight for the full voyage shall be due on that cargo, as well as the costs incurred by the vessel as a result of the shortfall, provided the saved expenses for the vessel are deducted and three-quarters of the freight on goods loaded in substitution for his goods is credited.

No freight shall be due on goods not delivered to the consignee or not placed at his disposal at the port of destination. However, freight shall be due: — If non-delivery results from the negligence or fault of the charterers, shippers, or their successors in title. — If the goods had to be sold during the voyage due to deterioration, whatever the cause of that deterioration. — If the loss of goods is included in the general average sacrifice. — If the goods are lost due to their own inherent defect. Freight shall also be due on animals that die on the vessel, whatever the reason, except for the shipper's fault.

In all cases where no freight is due, the master must refund advances paid to him before the voyage from the amount of that freight; however, he may retain the full advance if he has paid an insurance premium thereon to the charterer or shipper.

A charterer or shipper who wishes to have the goods delivered before their arrival at the destination must pay the full freight if, during the voyage, an event of force majeure compels the vessel to call at an intermediate port.

If the vessel is detained during the voyage by the order of any State, or by an incident not attributable to the master or the vessel's owner, the agreements shall remain in force and no compensation or increase in the stipulated freight shall be claimed. During the vessel's detention, the shipper has the right to have his goods discharged at his own expense, provided he reloads them or makes them available to the master.

If the vessel is prevented from proceeding to the port of destination by force majeure arising after its departure, the shipper shall only owe freight for the outward leg of the voyage, even if the charter was agreed for both outward and return.

If the vessel is prevented from entering the intended port by blockade or any other force majeure, the master is free to act in the way that is most beneficial to the shippers if he has not been provided with instructions for such a situation.

The shipper may not free himself from freight by surrendering the goods, even if they have lost all their value during the voyage or have suffered partial deterioration. However, if a cask containing liquids has lost at least three-quarters of its contents, it may be surrendered in lieu of freight.

Laytime — the lay days for loading and discharge — shall commence, as regards loading, on the day following the operator's notification that the vessel is ready to receive goods, and, as regards discharge, on the day following the placing of the consignee in a position to commence discharge under the conditions specified in the contract. The commencement and duration of laytime shall vary according to local customs if they have not been determined by the agreement. Only working days shall count in the calculation of laytime.

Demurrage shall run automatically from the expiry of the period fixed in the contract for loading or discharge. If the contract does not specify the number of lay days, demurrage shall not commence until twenty-four hours after the master has notified the charterer, the consignee, or their representative in writing. All working and non-working days shall be counted in the demurrage days. If the agreed or customary demurrage period expires, the master may claim, for each additional day, compensation equal to one and a half times the daily rate for demurrage days.

Laytime is interrupted when loading or discharge is prevented by the fault of the shipper or consignee. On the contrary, force majeure does not interrupt the running of demurrage.

Demurrage and compensation for additional days shall be considered additional freight.

The voyage charter or carriage contract shall be automatically rescinded without compensation if force majeure makes performance entirely impossible before performance commences. If force majeure arises before the vessel's departure but after performance has begun, rescission shall be ordered with compensation if necessary. If force majeure merely prevents the vessel from proceeding except to a port other than its destination, the contract shall remain in force without any increase in freight or compensation, unless the delay would result in the rescission of the commercial transaction for which one or both parties concluded the charter or carriage contract.

The vessel's owner has a privilege over goods forming the cargo to secure the payment of the vessel's freight and its accessories for fifteen days after delivery of the goods, provided they have not passed into the hands of a third party.

The vessel's owner has the right to retain goods for non-payment of freight, unless sufficient security is provided; he may also request that the goods be deposited with a third party until the vessel's freight is paid, and may request their sale if they are in danger of deterioration.

A voyage charter and a maritime carriage contract shall be proved by written evidence; such a written document shall be called a charter party or a bill of lading, depending on the type of maritime carriage; however, the parties are excused from drawing up a written instrument in the case of short coastal navigation from port to port.

A charter party is the document evidencing the charter. It shall be drawn up in a private instrument in two original counterparts. It shall contain the following particulars:

1. 1)The names of the contracting parties.
2. 2)The name of the vessel and its tonnage, unless it was agreed that the 'vessel is to be nominated later'.
3. 3)The name of the master.
4. 4)The goods to be loaded, specifying their type and quantity.
5. 5)Freight (the price of carriage).
6. 6)The agreed time and place for loading and discharge.

A bill of lading is the receipt for goods loaded, issued by the master; it shall be drawn up in three copies: one for the shipper, one for the consignee, and one for the master. It shall contain the following particulars:

1. 1)Names of the contracting parties: the vessel's operator and the charterer.
2. 2)Description of goods loaded, including their type, weight, volume, and marks.
3. 3)Name and nationality of the vessel.
4. 4)Terms of carriage, including freight, the course of the voyage, and the port of destination.
5. 5)Date of issuance.
6. 6)Number of copies drawn up by the master.
7. 7)Signatures of the master and the shipper.

Any copy of a bill of lading that omits the particulars listed above shall be valid only as a receipted invoice.

The marks, numbers, quantity, type, and weight of packages shall be entered in the bill of lading on the basis of the written statements provided by the shipper before loading. The marks must be sufficient to identify the goods and shall be placed so that they remain clearly legible until the end of the voyage. The carrier may refuse to enter the shipper's statements in the bill of lading if he has reasonable grounds to doubt their accuracy, or if he lacks ordinary means to verify them. In that case, he must state the reasons and this qualification shall shift the burden of proving the actual value to the consignee or the receiver. A document issued to the shipper before loading of his goods shall be replaced, after that loading and at his request, by a regular bill of lading. A bill of lading drawn up in the prescribed form shall prove that the carrier has received the goods as described therein, unless contrary evidence is produced.

If the shipper's statements regarding the marks, numbers, quantity, type, or weight of goods are inaccurate, he shall be liable to the carrier for all damage arising from his statements; however, the carrier may not invoke inaccurate statements against any person other than the shipper.

Bills of lading shall be to a named person, to order, or to bearer. A bill of lading to a named person is not negotiable and the master may only deliver the goods to the person named therein. A bill of lading to order is negotiable by endorsement, which must be dated. The master may only deliver the goods to the holder of an endorsed bill of lading, even if endorsed in blank. A bill of lading to bearer is negotiable by mere delivery. The master must deliver the goods to any person who presents himself holding that bill of lading.

Copies of a bill of lading drawn up to order or to bearer must include the statement "negotiable" or "non-negotiable," the number of copies, and a clause cancelling all other copies upon use of one. The carrier may not oppose against a holder of a negotiable endorsed copy the defences that may be raised against the shipper, unless he proves that the holder of that copy does not act as a bona fide endorsee from the shipper. The endorser who endorses without recourse only guarantees the existence of the shipped goods and the validity of the contract of carriage. If, before the master delivers any goods, a dispute arises between holders of several copies of the same negotiable bill of lading, the copy bearing the earliest endorsement shall prevail over the others. After a holder of one negotiable copy has received the goods, no holder of another copy — even one bearing an earlier date — may prevail over him.

If there is a discrepancy between the bill of lading bearing the shipper's signature and the documents bearing the master's signature, each original copy shall prevail as against its signatory.

If there is a discrepancy between the charter party and the bill of lading, the terms of the charter party shall prevail in relations between the owner and the charterer. As regards relations between the charterer and the shipper, the bill of lading shall govern, unless explicit reference is made to the charter party.

A through bill of lading — issued by a first carrier who undertakes to forward the goods to the destination in successive stages — shall bind its issuer at the end of the voyage for all obligations arising therefrom; in particular, he shall be liable for the acts of successive carriers who receive the goods. Each carrier shall only be liable for losses, damage, and delay occurring during his own leg of the voyage.

If the nature of the goods or the conditions of their carriage require special agreements, all terms agreed upon relating to the carrier's rights and obligations shall be effective as long as they do not violate public policy, provided that no negotiable bill of lading is issued and that the agreement is incorporated in a document bearing the words "non-negotiable".

Written conditions shall generally prevail over printed conditions. If a charter party and a bill of lading are drawn up together and a dispute arises between written and printed conditions, the bill of lading shall prevail over the charter party.

The provisions of this sub-part shall apply only to maritime carriage based on the issuance of bills of lading and from the port of loading on board the vessel until discharge at the intended destination. They shall not apply to charter parties; however, where a vessel is chartered under a charter party, these provisions shall apply to the bills of lading issued thereunder. These provisions may not be applied to goods loaded on deck under a contract of carriage, nor to live animals.

Before the commencement of the voyage, the carrier is obliged:

1. 1)To exercise due diligence to make the vessel seaworthy.
2. 2)To properly man, equip, and supply the vessel.
3. 3)To make the holds, refrigerated and cooled chambers, and all other parts of the vessel in which goods are loaded fit and safe for their reception, carriage, and preservation.

The carrier shall be liable for all loss, damage, or injury to the goods unless he proves that such loss, damage, or injury resulted from:

1. 1)Faults in navigation attributable to the master, mariners, pilots, or other workers.
2. 2)Hidden defects in the vessel.
3. 3)Damage or losses caused by labour disputes, stoppages of work in whole or in part, and from any cause of stoppage or hindrance.
4. 4)Acts constituting a general average event or force majeure.
5. 5)A defect inherent in the goods, or their packing or marking, or wastage in volume or weight that is customary at the ports of destination.
6. 6)The rendering of assistance or the attempt to save life or property at sea, or where the vessel diverts to do so.
7. 7)In all the excepted cases above, the shipper may prove that the losses or damage result from the fault of the carrier or his acts, if those are not covered by the first paragraph of this Article.

The carrier's liability for loss and damage to goods shall in no circumstances exceed, per package or unit, an amount determined by decree issued in the week following the publication of this Law, unless the shipper has declared the type and value of those goods before loading on the vessel. This declaration shall be incorporated in the bill of lading and shall be binding on the carrier unless he proves otherwise. If the carrier disputes the accuracy of the declaration when made, he may incorporate reasoned reservations in the bill of lading. Such reservations shall shift the burden of proving the actual value to the consignee or the receiver. Any clause limiting the carrier's liability to an amount below that provided for in this Article shall be void. The said amount may be revised by decree based on fluctuations in international currency.

Any clause incorporated in a bill of lading or any other maritime carriage document drawn up in Lebanon whose direct or indirect purpose is to exempt the carrier from the liability imposed on him by general law or this Law, or to shift the burden of proof from those designated by applicable law or this Law, or to violate jurisdictional rules, shall be considered void and of no effect. A clause that reserves for the carrier the benefit of insurance on the goods, or any other clause of the same nature, shall be treated as an exemption clause.

If the shipper knowingly provides a false declaration of the value of the goods, the carrier shall incur no liability whatsoever for loss and damage to those goods.

If inflammable, explosive, or dangerous goods are loaded on the vessel without the carrier or his agent having consented to their loading with full knowledge of their nature, the carrier may at any time and in any place, after drawing up a reasoned record, unload, destroy, or render them harmless without giving rise to any compensation. Otherwise, the shipper shall be liable for all damage and costs that may result from the loading of such goods. If the carrier consented to the loading of such goods with knowledge of their nature, he may not unload, destroy, or render them harmless unless they endanger the vessel or its cargo. No compensation shall be due except for general average losses if incurred.

If goods are lost or damaged, the consignee must address to the carrier or his agent written reservations at the port of discharge and at the time of receipt at the latest. Otherwise, it shall be presumed that the goods were received in the condition described in the bill of lading. If the loss or damage is not apparent, notification of the reservations shall be valid if made within three days of delivery. Sundays and holidays shall not be included in that period. The carrier may always request an immediate survey of the goods upon their receipt.

In all circumstances, the right to bring an action against the carrier for loss or damage shall lapse by operation of limitation one year after delivery of the goods, or, if delivery has not taken place, one year after the day on which the goods should have been delivered.

After the expiry of one year from the end of the voyage, the right to bring any action arising from a voyage charter or carriage contract shall lapse by operation of limitation, subject to the provisions of the preceding Article.

The following rights shall lapse by operation of limitation: — After one year from the end of the voyage: the right to bring any pecuniary action relating to vessel freight. — After one year from delivery: the right to bring any pecuniary action arising from supplies advanced to mariners on the master's orders, or from items necessary for outfitting and provisioning. — After one year from receipt of manufactured goods: the right to bring any pecuniary action relating to the wages of workers and their delivery. — After one year from the vessel's arrival: the right to bring any action arising from the delivery of goods.

The passenger's expenses shall be included in the voyage fare unless otherwise agreed; in the latter case, the master is obliged to provide necessary provisions at fair cost.

If the voyage ticket or contract has been issued in the name of a passenger, that passenger may not transfer it to another person without the master's consent.

The carriage of a passenger's luggage shall be subject to the rules applicable to the carriage of goods, unless the passenger retains personal custody thereof. In that case, the master shall not be liable for loss and damage unless caused by the act of the crew.

The voyage fare shall be payable in the event of the passenger's failure to undertake the voyage or of his partial completion thereof, unless force majeure prevents the completion of the carriage.

If the voyage does not take place on the agreed date due to the master's fault, the passenger shall be entitled to compensation for all resulting damage and may request the rescission of the contract.

If the voyage is prevented by a blockade of the intended port or by any case of force majeure, the carriage contract shall be rescinded without giving rise to any compensation from either party to the other.

If force majeure prevents the vessel from reaching the intended port, the master shall be entitled only to reimbursement of the food costs; he shall not be entitled to voyage freight unless he ensures the passenger's transport to the intended destination.

If the interruption of the voyage results from the master's fault, he shall bear the food costs and shall be obliged to arrange carriage of the passenger to the intended destination.

If the master is compelled to carry out repairs during the voyage, the passenger shall either await completion of the repairs or pay the full voyage fare; for the entire duration of the work, the passenger is entitled to free accommodation and food, unless the master offers to complete the voyage on another vessel of the same route.

If an incident occurs to the passenger during the voyage, the carrier shall be liable for that incident unless he proves it results from force majeure or the fault of the passenger.

If a passenger dies during the voyage, the master shall take the necessary measures to preserve the luggage on board and deliver it to the heirs.

While on board the vessel, the passenger is required to observe the order imposed by the master and abide by the ship's rules.",

After the expiry of one year, the right to bring any action arising from a contract for the carriage of passengers shall lapse by operation of limitation. Actions arising from a contract for the carriage of a passenger's luggage shall be subject to the provisions of Article 215 of this Law.

If a vessel is towed while retaining control of its own propelling means, its master shall be liable to every third party for the fault of the master of the towing vessel, unless he proves that the latter was not under his direction. However, his right to sue the master of the towing vessel is preserved if it is established that the master of the towing vessel personally committed a fault.

General average (average) is any loss or damage sustained by the vessel or cargo during a maritime voyage, as well as any exceptional or extraordinary expenditure incurred to ensure the safety of the voyage.

In the absence of a special agreement among all interested parties, general average shall be settled in accordance with the following provisions.

General average is of two kinds: particular average and general average (sacrifice).

Particular average consists of all maritime losses that do not fulfil the conditions required by the following articles. Such losses are borne by the owner of the damaged property.

General average consists of damage, losses to property, and exceptional expenditure resulting from a sacrifice intentionally made by the master for the common benefit in order to meet a peril that threatened the voyage. It is not necessary that the sacrifice should produce a beneficial result, except in the cases referred to in Article 263. This includes: 1. Losses and damage — maritime losses — suffered by: (a) The cargo, by reason of goods thrown overboard, consumed as fuel, or discharged on shore to lighten the vessel or to refloat it, or in the course of nautical operations to extinguish a fire. (b) The vessel, by reason of destruction of equipment and appurtenances, beaching to save the cargo, disabling and damaging the vessel to save the cargo, or setting the engines or boilers to full power when the vessel is aground. 2. Expenditure losses — exceptional expenditure incurred by the master for the safety of the voyage, such as refloating costs, assistance to a vessel in distress, towage of a damaged vessel, cost of a compulsory port of call due to a common peril, the wages of crew paid as a result of an exceptional incident, expenditure incurred in lieu of expenditure that would have fallen within general average sacrifice (provided it does not exceed the amount of the substituted expenditure), and lastly the costs of settling general average.

Damage, losses, and expenditure directly resulting from a general average act shall also be included in and rank as general average.

The party claiming admission of expenditure or losses as general average must prove the entitlement to such admission.

No special agreement shall be recognised unless agreed to by all parties with an interest in the voyage; failing that, average shall be settled in accordance with the adjustment procedure set out below, without prejudice to the application of specific agreements among the interested parties.

For general average to give rise to an adjustment, both the vessel and the cargo, or part of them, must have been saved, unless one is completely lost in the course of protecting the other.

If the common peril is the result either of a defect in the vessel or in the goods, or of the fault of the master or shippers, the damage and expenditure qualifying as general average shall nevertheless give rise to adjustment among the other interested parties. Those parties, however, retain their right to recourse for the amount they pay against the persons responsible for the inherent defect or fault. Those persons may not in any case seek to include their own damage and expenditure in the general average. However, the vessel's operator, who is exempted from liability for the master's faults in navigation, may include in the general average, by a clause in the charter party or in the bill of lading, the acts of the master in navigation that give rise to the common peril, provided the said clause is agreed by the interested parties.

Goods for which no bill of lading has been drawn up, or for which no receipt has been given to the master, shall not be included in the general average if lost, but shall be included in the contribution if saved. The same rule applies to goods for which a false declaration has been given, unless the interested party proves his good faith. Goods lost or damaged for which a declaration was given at less than their actual value shall be included in the average at the declared value but shall contribute at their actual value.

Goods stowed on deck contrary to maritime custom shall be included in the contribution if saved; if lost, however, the owner shall not be entitled to claim adjustment, unless he proves that he did not consent to that method of stowage. This provision shall not apply to short coastal navigation.

Exempt from contribution are: postal correspondence of all kinds, crew and passenger luggage and personal effects, crew wages, vessel provisions, and in general all property carried without a bill of lading. If lost, however, their value shall be recoverable through adjustment.

Any interested party may free himself from the obligation to contribute by surrendering the property subject to contribution before any delivery thereof.

General average shall be settled at the last port of destination of the cargo on board the vessel at the time of the sacrifice, or at the place where the voyage is interrupted, and pursuant to the law of that port. It shall take into account the values existing at the time of discharge, having regard to the condition of the salvaged property. It shall consist of three parts:

1. 1)Determination of the credit side.
2. 2)Determination of the debit side.
3. 3)Calculation of the proportion in which the amount on the credit side is distributed over the debit side.

The adjustment shall be carried out by assessors appointed by the judge in urgent matters if all interested parties do not agree on them.

If not all interested parties approve the adjustment, it shall be submitted for judicial confirmation on the application of the most expedient party.

The credit side shall include the master's costs, the amount of damage to the vessel, the value of destroyed goods, the lost freight, and the costs of settling the general average.

The amount forming the general average on account of damage or loss to the vessel shall consist of the cost of repair or replacement, deducting therefrom the difference in value between old and new materials as customary; however, no deduction shall be made for temporary repairs. If there is no repair or replacement, the amount shall be determined by assessment.

Goods lost or damaged shall be valued at the current price at the port of loading, provided their owner pays the freight after deducting discharge costs and, where applicable, customs duties.

If the loss of freight is part of the general average, the costs of collecting it and any replacement for it shall be deducted from the gross amount exposed to risk.

The debit side shall include: — Goods at their full value if saved, or at their full estimated value at the port of destination if lost, after deduction of costs, customs duties, and freight, unless it is stipulated that freight is earned whatever happens. — The vessel at its actual net value at its port of call, after deduction of costs. — Vessel freight and passenger fares exposed to risk at two-thirds of their gross amounts, except where freight is stipulated to be earned whatever happens.

The master may refuse to deliver goods until adequate security for payment of the contribution is provided.

Contributions due to the vessel's operator shall be privileged over goods or their sale proceeds for fifteen days after delivery, provided they have not passed into the hands of a third party. Owners of lost goods shall have a privilege over the vessel for the contributions payable on them by the vessel's operator, and over its freight exposed to risk.

Distribution shall be made proportionately to the right due. If one contributor is unable to pay, his share shall be distributed among the others in proportion to each person's rights.

Any action disputing the general average for loss or damage shall be dismissed if a reasoned protest is not submitted within three working days (excluding holidays) of delivery of the goods.

The right to bring an adjustment action shall lapse by operation of limitation after two years from the arrival of the vessel at the last port of destination of the cargo on board at the time of the sacrifice, or at the place where the voyage was interrupted.

Insurance shall be deemed to be of a maritime character simply upon conclusion of a contract bearing the word "vessel", even if that vessel does not engage in maritime navigation. The insurance shall cover the vessel while it is being repaired and while it is in basins, dry docks, and generally in any location within the scope of the navigation specified in the policy.

Insurance on goods shall retain its maritime character even if they are subject to land or river transport, provided that such transport is only incidental to the maritime carriage.

The insurers shall cover the risk of every loss and damage suffered by the insured property from storms, fire, stranding, collision, compulsory calling into port, compulsory deviation from route, voyage, or vessel, jettison, fire and explosion, piracy, damage intentionally caused by the crew, theft, and in general all maritime accidents and perils. War risks — internal or external — shall not be at the insurer's expense. Where a contrary agreement is made, the insurer shall be liable for all damage and losses suffered by the insured property from hostile acts, acts of piracy, detention, arrest, and seizure by any government, whether friendly, enemy, recognised, or unrecognised, and in general from all fortuitous events and acts of war.

The insurer shall be liable for refloating costs, costs of assisting a vessel exposed to immediate peril, rescue costs at sea, and towing costs when the vessel is taken to a port for repair. The provisions of this Article shall not apply to beaching caused by normal tidal movements, or to beaching in maritime canals, rivers, or streams beyond the points reached by the tide.

If the costs of a temporary port of call are particular average, the crew wages shall not be at the insurer's expense. However, if the vessel is towed to a better port than the temporary port of call for the purpose of carrying out repairs at the insurers' expense, the crew wages, towage costs, and towing costs shall be at the insurers' expense. The same applies where a vessel remains at a temporary port of call awaiting spare parts essential to the continuation of the voyage, and where the repairs are at the insurers' expense.

If the vessel collides with another vessel belonging to the insured, or receives assistance from it, the settlement shall be made as if the vessels belonged to different operators; and the liability for the collision or compensation for services rendered shall be determined as between the interested parties in the hull by the sole judgment of the parties if agreed, otherwise by order of the court president in urgent matters. The same applies to a collision between the vessel and a floating body owned by the insured.

General average contributions shall be borne by the insurers in proportion to the value they insure, after deduction of any particular average that falls on them where applicable.

Insurers shall be exempt from all claims for delay in the dispatch or arrival of goods, for price differences, and for losses to the insured's commercial transactions, for whatever reason.

The insurer shall not be liable for loss and damage resulting from intentional or grossly negligent acts committed by the insured or his representatives. Any contrary agreement shall be void. The hull insurer shall not be liable for the consequences of the master's fraud and deceit if the master was selected by the vessel's operator.

Subject to what has been said regarding damage intentionally caused by the crew, and in derogation thereof, insurers shall be exempt from:

1. 1)Fraudulent and deceitful acts committed by the master, and from all incidents arising from breach of blockade, smuggling, prohibited or clandestine trade, unless the master acted without the knowledge or consent of the vessel's operator or his representative and was replaced by another who is not the second master.
2. 2)All consequences to the vessel arising from acts performed by the master or crew ashore.

Damage and losses resulting from an inherent defect in the insured property shall not be at the insurer's expense, unless the contrary is stipulated, except where the insurance is on the vessel's hull and there is a latent defect in the vessel that a diligent operator could neither have detected nor prevented.

However, such damage and loss shall be at the insurer's expense if the voyage is subject to an extraordinary delay caused by a peril covered by the insurer, provided the damage is caused by the delay itself.

The insurer shall not be liable for damage caused by the insured property to other property or persons unless the contrary is stipulated.

The risks of third-party actions brought against the vessel for its collision with another vessel, or its striking a floating body, embankments, wharves, piles, or other fixed objects, shall be borne by the insurers to the extent of nine-tenths of the adjudicated damages, up to a maximum of nine-tenths of the insured sum. The insured shall bear one-tenth of the damages and is prohibited from insuring that one-tenth; if this prohibition is violated, he shall bear two-tenths. Insurers shall be exempt from all actions brought against them by any person, for any reason, relating to the loading and undertakings of the insured vessel, and from all actions for death, injury, or any bodily harm or damage.

If the vessel is lost and the master is its owner or one of its owners, payment of his share of the insurance shall be deferred until receipt of the certificate proving the outcome of the administrative inquiry that must be conducted regarding his conduct. If the inquiry establishes that the loss is attributable to the master's fault without establishing fraud or deceit, the insurers may, having paid him a settlement payment, recover fifty per cent of the indemnity relating to the master's insured share.

If the insurance covers the vessel's hull and the period of risk is not specified in the contract, the risk under a voyage contract runs from the moment the vessel weighs anchor or sets sail and ends when it anchors or moors at the intended destination; however, if it carries cargo, the risk runs from the commencement of loading and ends as soon as discharge is complete, without exceeding fifteen days after arrival at the intended destination, unless goods are loaded at that place for another voyage before expiry of that period, in which case the risk ends immediately.

Quarantine shall be treated as part of the voyage it relates to. However, if the insured vessel is required to proceed to a quarantine station other than the intended destination, the insurer shall be entitled to an additional premium at the rate of three-quarters per cent per month, from the day of departure to the quarantine station until the day of return. The same additional premiums shall apply where a vessel is detained outside its intended port if that port is found to be blockaded, or if it is forced to deviate to another. In that event, the insurers shall none the less cover the risk during the entire period of detention and deviation, provided this extension does not exceed six months from the date of arrival outside the blockaded port; however, they shall not be liable for any additional costs arising from the detention and deviation. The insured may always set an earlier end to the risk before the six months expire. Under a continuous premium policy — a policy covering risks on both outward and return voyages — a four-month stay is allowed without additional premium from the time the vessel deviates to the first port from which it must move; if the stay extends beyond four months, the insurer shall be entitled to an additional premium of two-thirds per cent for each additional month.

If the insurance covers an outfitted vessel and the period of risk is not specified in the contract, the risk runs from when the goods leave the shore for loading and ends when they are landed at the port of destination, with the understanding that all risks incurred during direct transport by boats from shore to vessel and from vessel to shore shall be at the insurers' expense.

If the voyage is intentionally changed after the vessel's departure, the insurer shall have the right to claim compensation and shall not be liable for risks thereafter. If the change occurs before departure, the insurance shall be void and the insurer shall collect half the premium specified in the contract as a fixed indemnity.

If the vessel goes astray, the risks occurring on its correct route shall be covered, provided the insurer has the right to prove that those risks resulted from the deviation.

A change of vessel shall give rise to the nullity of the insurance contract on the vessel's hull. Likewise, insurance on the vessel shall be void if it is intentionally changed, unless the contrary is stipulated.

If the insured goods are loaded on deck, the insurers shall not be liable for the risks unless it is established maritime custom to permit such loading and no contrary agreement was made.

A vessel, within the meaning of this Law, is any craft capable of navigation, whatever its cargo and designation, whether such navigation is intended for profit or not. All appurtenances necessary for its operation are considered part of the vessel. Vessels are movable property subject to the general rules of law, subject to the special rules provided for hereinafter.

The following debts alone are privileged and their order of priority shall be determined according to their listing:

1. 1)Court fees and expenses paid for the preservation of the sale price for the benefit of general creditors; vessel tonnage dues, lighthouse and port dues, and other dues and general charges of the same nature; pilotage fees and costs of custody and maintenance from the time of the vessel's entry into its last port.
2. 2)Debts arising from the contract of employment of the master, mariners, and other crew members.
3. 3)The remuneration due for salvage and assistance and the vessel's contribution to a general average sacrifice.
4. 4)Compensation for collision and other maritime incidents, for damage caused to ports, docks, navigational channels, and for injury to passengers and mariners and for loss of or damage to cargo and luggage.
5. 5)Debts arising from contracts concluded or operations carried out by the master away from the vessel's home port in the exercise of his legal powers for a genuine need requiring the maintenance of the vessel or the completion of the voyage, whether or not the master is the owner of the vessel, and whether the debt is owed to the suppliers, repairers, lenders, or other contracting parties.
6. 6)Compensation due to the vessel's charterers.
7. 7)The total insurance premiums on the hull of the vessel, its equipment, and gear, due in respect of the last insured voyage if the insurance was contracted per voyage, or in respect of the last insured period if the insurance was contracted for a fixed term, provided that the total does not in either case exceed the premiums for one year.

Privileged creditors must be ranked by voyage. The debts of the last voyage, whatever their ranking, shall take priority over the debts of previous voyages. However, debts arising from a single employment contract of mariners shall always be treated as debts of the last voyage even if they relate to a previous voyage.

Debts relating to the same voyage shall be ranked in the order established in Article 48; debts of the same rank relating to the same voyage shall rank pari passu. All salvage remuneration and debts incurred for the supply of provisions and repairs shall be ranked in reverse order of their date of origin.

Debts relating to the same maritime incident shall be treated as having arisen at the same time.

The privileges established by the preceding Articles arise from the time the debt is incurred. They are not subject to any formality or special condition for proof.

Mortgagees whose debt is registered on the vessel shall rank in the order of their registration, immediately after the privileged creditors listed in items 1, 2, 3, 4, and 5 of Article 48.

Privileges attach to the vessel, to the freight of the voyage in which the privileged debt arose, and to the appurtenances of the vessel and freight earned since the commencement of the voyage. However, the privilege established in the second paragraph of Article 48 attaches to the total freight due for all voyages carried out during the same period of employment.

For the purposes of the application of privileges, the following are treated as appurtenances of the vessel and freight:

1. 1)Compensation due to the shipowner for material damage suffered by his vessel that has not been compensated, or for loss of freight.
2. 2)Compensation due to the shipowner for general average losses, where such losses constitute uncompensated material damage suffered by his vessel, or for loss of freight.
3. 3)Remuneration due to the shipowner for salvage or rescue operations carried out up to the end of the voyage, after deduction of the amounts allocated to the master and other crew members.

Passenger fare and the lump-sum amount in which the liability of shipowners may be limited shall be treated as freight. Compensation due to the shipowner under insurance contracts, bonuses, financial subsidies, and similar payments shall not be treated as appurtenances of the vessel and freight for the purpose of applying privileges.

All privileges listed in Article 48 shall lapse by operation of limitation after one year, except the privilege for debts arising from the supply of provisions referred to in item 5, which lapses after six months. The limitation period for the privilege of salvage and rescue remuneration runs from the day the operations end. For the privilege of compensation for collision and other incidents and for injuries, it runs from the day the damage occurred. For the privilege for loss of, or damage to, cargo or luggage, it runs from the day of delivery of the cargo or luggage, or from the date on which it should have been delivered; and for the privilege of repairs and provisions in the cases set out in item 2 of Article 48, from the day the debt arose. In all other cases, the period runs from the due date of the debt. Debts owed to crew members listed in item 2 of Article 48 shall not be considered due until the end of the voyage, regardless of the right of those persons to demand advances or payments during the voyage. The period established above shall not run in Lebanese territorial waters where a creditor's domicile or principal place of business is in Lebanon, provided the limitation period does not exceed three years from the date the debt arose.

Privileges shall also lapse, regardless of the general modes of extinguishing obligations: By judicial sale carried out in accordance with the proper procedure established in this Law, or by any voluntary sale of the vessel under the following conditions: — That the transfer be carried out in accordance with Articles 21, 24 to 27, and 33 to 35 and 37 of this Law. — That the transfer be publicised by publication in the Official Gazette of the Lebanese Republic and in two daily newspapers appearing at the vessel's port of registry, and by a notice posted on the door of the registration office, provided that in all such publications and notices the name and address of the purchaser are invariably stated. — That no objection from a creditor reaches the purchaser within one month after publication. The creditor's right of priority over the sale price shall be preserved for as long as the price has not been paid, even after expiry of that period, provided the creditor has notified the purchaser of his claim before payment by means of an objection. The objection referred to in the preceding two paragraphs must be communicated to the creditor through a notary public.

Privileged creditors may register their privilege in order to be notified of the offer of the vessel for sale in accordance with the conditions set out in Article 48 of this Law. This registration shall not affect the rank of the privilege. The registration shall be entered on the vessel's page in the register.

The preceding provisions shall apply to vessels operated by an operator who does not own them, or by a principal charterer, unless the owner's involvement arose from an unlawful act and the creditor was in bad faith.

A mariner is a person employed on board a vessel to carry out nautical activities.

If the vessel's tonnage exceeds five barrels, the employment contract between a mariner and the vessel's operator or his agent shall be subject to the following provisions: 1. The terms of the maritime employment contract shall be entered in the crew book. The mariner shall express his consent by his signature or the imprint of his thumb. The authority responsible for maritime order shall, before the vessel's departure, inspect the entries in the crew book to verify that all mariners boarding the vessel are employed under a contract. The contract terms shall be read aloud and the parties shall be interrogated to ensure that they understand and accept its content. Completion of this procedure shall be noted in the margin of the book. 2. If the employment contract is not entered in the crew book, it may be proved by all means.

The employment contract shall state: — Whether it is concluded for a fixed period, an indefinite period, or a complete voyage. — The mariner's service or function. — The date on which service or duties are to commence. — The method of calculating the agreed remuneration. — The amount of the fixed pay or the basis for determining the share of profits. — The date and place of conclusion of the contract. The contract shall not be valid unless the mariner is free from any other employment.

The judge shall apply local custom or general custom in all matters not addressed by the agreement or the law.

If the chartered vessel is named in the agreement, the charterer may not substitute another vessel for it unless it is lost or becomes incapable of navigation by reason of force majeure occurring after the commencement of the voyage.

If the master finds goods on the vessel that have not been declared, he may order them to be landed at the nearest convenient place or charge double freight, while preserving his right to claim further damages if any. If those goods are discovered during the voyage, the master may throw into the sea goods stowed without permission if their nature could cause damage to the vessel or the rest of the cargo, or if their carriage would result in costs exceeding their value, or in government fines, or if their sale and export are prohibited by law. In all cases the master must record in the logbook the discovery of undeclared goods and the course taken, and draw up a detailed note in that regard.

If a collision occurs between seagoing vessels or between seagoing vessels and inland navigation vessels, compensation for damage caused to the vessels, their cargo, and the persons and property on board shall be paid in accordance with the following provisions; the waters in which the collision occurs shall be disregarded.

If the collision is accidental, or if it is caused by force majeure, or if it is in doubt as to its causes, the damage shall be borne by those who suffer it. This provision shall remain in force if the vessels or any of them are at anchor at the time of the collision.

If the collision is caused by the fault of one of the vessels, compensation for damage shall be payable by the party at fault.

If the fault is shared, the liability of each vessel shall be proportionate to the gravity of the fault committed; however, if it is impossible to establish the respective proportions, or if the faults appear to be equal, the liability shall be divided equally. Damage suffered by vessels, their cargoes, passengers' and crew's luggage and other property, and other persons on board shall be borne by the vessels at fault in the proportions stated, without joint and several liability as against third parties. The vessels at fault shall be jointly and severally liable to third parties for damage arising from death or injury, subject to the right of the vessel that pays a share exceeding its final share under the first paragraph of this Article to recover from the other.

If a collision occurs and the fault is that of a pilot, liability shall be established as provided in the preceding articles, even where the pilot's presence is compulsory.

The preceding provisions shall apply even without a collision to compensation for damage caused by one vessel to another or to persons or property on board, through the execution of a manoeuvre, through failure to execute a manoeuvre, or through non-observance of regulations.

The master of every vessel involved in a collision must render assistance to the other vessel, its crew, and passengers to the extent possible without serious risk to his own vessel, crew, and passengers.

The master must also, to the extent possible, notify the other vessel of his vessel's name, home port, and the port from which it came and the port to which it is bound. The shipowner shall not be held liable merely for violation of the preceding provisions.

The provisions of this Part shall not apply to warships and State vessels assigned to an official service.

Actions for compensation for damage arising from collision shall not be subject to protest or any other procedure, and no special presumption of fault relating to collision liability shall arise.

In the event of a collision, the claimant may bring the action before the court of the defendant or before the court of the home port of the colliding vessel. The court with jurisdiction over the first Lebanese port entered by either of the vessels after the collision shall have jurisdiction to conduct all investigations or technical surveys. For collisions in Lebanese territorial waters, jurisdiction shall vest in the court of the place of the collision.

The right to bring any action for compensation for damage arising from collision shall lapse by operation of limitation upon expiry of two years from the date of the incident. However, the right of action referred to in the third paragraph of Article 236 shall lapse by operation of limitation after one year from the date of payment.

Marine insurance is a contract by which the insurer undertakes to indemnify the insured against loss suffered in the course of a maritime voyage, resulting from the total loss of a specific value, in exchange for payment of a premium, provided such indemnity does not exceed the value of the lost property.

All provisions of this Part that are not expressly stated to be mandatory regardless of any contrary agreement, or whose non-observance gives rise to nullity, are merely interpretative of the contracting parties' intent and may be departed from by express provision.

The insurance contract shall be drawn up in writing in two original counterparts. It shall state: — Date of the insurance contract and whether it is a contract before or after noon. — Name of the assured, whether on his own behalf or on behalf of another, and his place of residence. — Risks assumed by the insurer and the duration and limits thereof. — The insured amount. — The premium or consideration for insurance. It shall be signed by the insurer and the assured, or by the insurance broker on behalf of the assured. It may be drawn up to a named person, to order, or to bearer. Either party may obtain a true copy of the insurance policy.

Insurers may only be summoned before the court of the place where the contract was signed. However, if the policy was signed at an agent's office, the assured may also sue before the court of the insurer's domicile. If it was signed in one place by more than half the insured value, the assured may summon all the other insurers before the court of that place, which shall have jurisdiction once a decision has been made on the same action against them.

Any concealment of information or false declaration by the assured at or after the conclusion of the contract, or any discrepancy between the insurance contract and the actual risk, whose effect would be to diminish the insurer's assessment of the risk, shall render the insurance void, even in the absence of fraud. The insurance shall likewise be void even where the concealment, discrepancy, or false declaration has no effect on the damage or the loss of the insured property. The insurer shall retain the full premium if the assured acted fraudulently, and half the premium in the absence of fraud.

The assured must notify the insurer, under penalty of the same sanction, of events subsequent to the contract that may affect the insurer's assessment of the risk.

The insurer has the right to raise against a holder of the insurance policy — even if drawn up to order or to bearer — the defences relating thereto that he could have raised against the original assured, as if the transfer had not taken place.

The insurance contract may always be rescinded at the option of the assured as long as the risk has not commenced. An assured who is unable to prove force majeure shall pay the insurer a fixed indemnity of half the premium specified in the contract.

If the subject matter of insurance is goods for both the outward and return voyage and the return cargo has not been loaded by the time the vessel reaches its first port of call, or if loading of the return cargo is not complete, the insurer shall receive only two-thirds of the agreed premium, unless otherwise agreed.

In the event of the insured's insolvency or publicly declared suspension of payment, or failure to pay a premium that has fallen due, the insurers shall have the right, after a futile notice of payment served at the insured's place of residence, to rescind all insurance contracts by simple notification — even a registered letter — from the date of the last notice, and they shall retain the premium pro rata for the period of risk elapsed, with the balance remaining as a debt owed to them. However, the notice and notification may be combined in a single instrument. The insured shall have the same rights in the event of the insurer's insolvency or publicly declared suspension of payment.

A public judicial sale of the vessel shall automatically suspend the insurance on the day of sale; the insurance shall continue in the case of a private sale covering less than half the insured value. If a private sale covers at least half the insured value, the insurance shall only continue at the consent of the insurers.

The charter of a vessel shall not give rise to the rescission of the insurance contract, unless otherwise agreed.

The insured must notify the insurers of a casualty or loss within three days of receiving the news. He must, to the extent possible, mitigate the effects of the peril, take all appropriate precautions, oversee or carry out salvage operations on the insured property, and preserve every right of action against responsible third parties.

An insured who takes part in salvage operations preserves his rights to indemnity and abandonment. He has the right to recover his expenses on the mere confirmation thereof, subject to the insurer's right to contest. The insurer also has the right to take all appropriate or useful measures without this conferring on the insured the right to object that the insurer has acted as an owner.

Consignees must contact the insurers or their agents named in the policy, if any, otherwise the competent local authority, for the purpose of a survey of the losses and maritime damage, under penalty of inadmissibility of the action. They must also, under the same penalty, complete those surveys within eight days following the day on which the carrier placed the goods at their disposal or at the disposal of their representatives or agents, provided that this period shall not exceed thirty days from the date of arrival of the goods at the intended destination. However, the thirty-day period shall not apply to a consignee who proves that he was unaware of the arrival of the goods at the intended destination.

If insurance contracts on goods are evidenced by open policies or any other policies, the insured must declare in due time in the policy all shipments made on his account or on account of others who have entrusted him with the insurance of their goods, to the extent they are covered by the insurance. If the insured fails to fulfil this obligation, the insurer may cancel the contract, retaining premiums paid in all cases and having the right to recover premiums relating to undeclared shipments. If the declared sum relates to goods insured on behalf of others, it shall have no effect if given after the occurrence of the casualty.

Insurance may be effected for the benefit of an unnamed person. Such a clause shall be equivalent to insurance for the account of the signatory and equivalent to a contract for the benefit of a third party, whether that party is known or yet to be identified. The signatory of the policy relating to insurance for an unnamed person shall be jointly and severally bound to the insurer to pay the premium; however, the defences available to the insurer against the signatory may also be raised against the person benefiting from the insurance.

A vessel shall be considered Lebanese if its home port is a Lebanese port and at least half of it is owned by Lebanese nationals or Lebanese joint-stock companies whose board of directors, including its chairman, is a majority of Lebanese nationality.

The following shall also be considered Lebanese: all vessels designed for long-range navigation, whatever their net tonnage and whatever the nationality of their owners, provided their home port is a Lebanese port, subject to their registration being made conditional upon a prior permit issued by order of the Minister of Public Works.

A vessel shall also be considered Lebanese if its home port is a Lebanese port and at least half of it is owned by: - A general partnership company, all of whose partners are Lebanese. - A limited partnership company, all of whose liable partners are Lebanese. - A limited liability company, the majority of whose members, including the manager, are Lebanese and the majority of the shares belong to those members.

The Treasury shall collect from the non-net revenues earned by the two vessel guidance stations at the ports of Beirut and Tripoli a percentage of 10% (ten per cent) on all revenues. This procedure shall apply to all other guidance stations and to licensed pilots at all other ports and river mouths. The previous fees contrary to these fees shall be cancelled, as shall any prior discount or concession granted to Lebanese vessels.

The following shall be treated as Lebanese vessels:

1. 1)Vessels adrift at sea picked up by vessels flying the Lebanese flag.
2. 2)Vessels confiscated for violating Lebanese laws.

All vessels specified in this Article and in Article 2 must fly the Lebanese flag throughout the voyage, subject to the provisions of the second paragraph of Article 16.

Lebanese vessels alone have the right to fish along the coasts, the right to engage in coastal commercial navigation between Lebanese ports, and to tow vessels entering or leaving those ports.

Lebanese vessels shall be marked in Arabic and Latin characters with the following designations:

1. 1)Steamships and motorized vessels intended for coastal navigation or high-seas navigation: the name of the vessel on both sides of the bow, and on the stern its name and the name of its port of registry.
2. 2)Sailing vessels engaged in coastal navigation. On each side of the bow: the distinguishing letters of the port of registry and the registration number. On the stern: the name of the vessel and the name of the port of registry.
3. 3)Fishing vessels. On each side of the bow: the distinguishing letters of the port of registry and the registration number.
4. 4)Rowing boats, cargo skiffs, and all floating craft (including barges, dredges, and lighters): the same markings as fishing vessels of equivalent capacity.
5. 5)Boats of official departments and concessionary companies. On the bow and stern, or on the bow alone: the name of the vessel. Inside the wheelhouse: the distinguishing letters of the port of registry together with the registration number.
6. 6)Pleasure craft. These vessels are permitted not to display their registration number externally, provided that number is engraved inside the wheelhouse.

Shipowners must officially record in their vessels the capacity reserved for use (net tonnage) and the full internal capacity plus the capacity of structures erected on deck (gross tonnage). The assessment of vessel tonnage, the preparation of measurement certificates, and their submission to the port authority shall be carried out; the authority shall issue a certificate to that effect at the expense of the owner, buyer, or mortgagee, who must provide all means necessary to carry out those procedures.

The net tonnage number of the vessel shall be inscribed in Arabic and Latin characters on the aft face of the largest deck beam or on the forward side of the main hatch coaming.

A mortgage may be constituted on vessels whose gross tonnage is two barrels or more, provided that this is agreed upon by both parties.

A maritime mortgage agreement shall be constituted in writing. It may be made by private instrument. A mortgage deed may be drawn up to order; in that case, its negotiation transfers the mortgage right.

No person other than the owner of the vessel or his specially authorised agent may enter into a conventional mortgage on the vessel. If the vessel has several owners, its operator has the right to mortgage it for the needs of outfitting or navigation, pursuant to authorisation from the majority of its owners, provided that majority holds at the same time three-quarters of the jointly-held rights. If the rights of the majority do not reach three-quarters, the co-owners may apply to the court for the decision most consistent with their common interest. No co-owner may mortgage his undivided share in the vessel except with the consent of the majority of owners, provided that majority simultaneously holds half of the jointly-held rights.

The mortgage must be registered in the registration register pursuant to Article 21 and the following articles of this Law. Registration of a mortgage shall secure, in addition to the principal, interest for two years plus interest for the current year at the time of default.

A mortgage constituted on a vessel or a share thereof shall cover the entire hull and shall also cover the equipment, tools, machinery, and other appurtenances, including wreckage, unless otherwise agreed. This mortgage does not cover the vessel's freight or governmental bonuses and subsidies. However, it covers insurance compensation, unless such compensation is earmarked for the repair and maintenance of the vessel. It does not cover insurance proceeds and the mortgage deed may not contain an express assignment to the mortgagees of such proceeds. This assignment shall not be effective against the insurers unless they have accepted it or been notified thereof.

A maritime mortgage on a vessel under construction is permissible. In this case, the mortgage must be preceded by a declaration addressed to the harbour master within whose jurisdiction the vessel is being built. The declaration shall state the length of the vessel's keel and its other approximate dimensions, its estimated tonnage, and the place of construction.

If the mortgage deed was drawn up to order, it shall be transferred by endorsing the registration certificate.

Creditors holding a mortgage registered on a vessel or a share thereof may pursue it wherever it passes in order to register their debt in its proper rank and to foreclose in accordance with the rank of registration. If the mortgage covers only a share of the vessel, the creditor may not apply for arrest or enforcement of sale except on the share assigned to him; however, if the mortgage covers more than half the vessel, the creditor may, after arrest, enforce the sale of the whole vessel on condition that the co-owners are invited to participate in that sale. If the adjudication of the vessel at a sale by auction falls upon one of the co-owners, or if the vessel falls to him on partition of his share, the mortgage shall survive the partition or sale in the same state as before, even if that co-owner is not the one who mortgaged his undivided shares in the vessel. If the sale by auction takes place before a court under the conditions set out in Article 83 and the following articles of this Law, and it is adjudicated to a person who is not a co-owner, the rights of creditors whose mortgage does not cover a share of the vessel shall be limited to the right of priority over the portion of the price attributable to the mortgaged right. Likewise, charges attaching to each share in the ownership of the vessel shall automatically transfer to the portion of the price in which the value of that share in the vessel is represented.

A person who purchases a vessel or a share thereof and wishes to avoid the actions permitted by the preceding Article must, after registering his purchase and before those actions, or within fifteen days thereof, notify a copy of the vessel's title deed to all creditors listed in that deed at the elected domicile in the original deed. The purchaser shall declare in the same deed that he is prepared to pay immediately the secured debts up to the value of the vessel, whether those debts are due or not.

Any holder of a registered debt may demand the sale of the vessel by auction or the sale of the mortgaged share thereof, by offering a premium of ten per cent over the price and providing a surety for the payment of the price and costs. The purchaser must be notified of this request, signed by the creditor, within ten days of notification. The request shall contain a summons before the primary court in whose jurisdiction the vessel is located or at whose port of registry it is registered if it is at sea, for the purpose of ordering the holding of a public auction.

The sale by auction shall be conducted at the instance of the creditor who requested it or at the instance of the purchaser in accordance with the procedure established in the following articles.

The sale of a mortgaged vessel in Lebanon or abroad is prohibited. Any sale in violation thereof may not be entered in the registration register as null and void. An owner who voluntarily sells abroad a mortgaged vessel shall be considered guilty of breach of trust and shall be subject to the penalties provided for in Article 670 of the Penal Code.

The mariner must present himself for embarkation on the vessel at the master's first request. He is obliged, whether on board or ashore, to obey the orders of his superiors in matters concerning the service of the vessel. He is obliged to work towards saving the vessel and its cargo.

Neither the master nor a mariner may load on the vessel any goods for their own private account without permission from the operator. If a violation occurs, the offenders shall be required to pay the maximum freight applicable at the place and time of loading, without prejudice to any further compensation that may be due. The master may order the throwing overboard of illegally loaded goods if they are likely to endanger the vessel or the cargo, or if their carriage would result in costs exceeding their value, or if they are subject to confiscation by public authorities, or if their sale or export is prohibited by law.

A time charter is a contract by which a vessel is let for hire for a fixed period. The owner of the vessel may choose to leave the charterer with or without the right to choose and dismiss the master, and may transfer to him both the nautical and commercial management of the vessel, or only its commercial management. A charterer who has the right to manage both the nautical and commercial aspects of the vessel must provide all its provisions, maintenance charges, and operating costs, and bear general average losses that fall on the vessel and its freight; losses and general average shall be at his risk whatever their severity, unless he proves they arise from the owner's fault. If the charterer only has commercial management, such losses and general average shall be at the owner's risk, unless he proves they arise from the charterer's fault.

Freight shall be payable by the charterer for all the time the vessel is at his disposal. In the event of the vessel being lost, requisitioned, or detained, freight shall cease as of the date of those events.

If freight is measured in periods of time, each period that has commenced shall be payable in full.

Freight for the vessel shall be payable from the day it is placed at the charterer's disposal until the day it is returned to the owner in the condition required for it to receive cargo.

Any act of assistance or salvage performed by one vessel in service to another vessel in distress, and to the property on board, and the towage or passenger fare payable upon leaving the vessel entirely in the hands of the crew, shall be subject to the following provisions:

Any act of assistance or salvage that produces a beneficial result shall give rise to a fair remuneration. No remuneration shall be due if the assistance rendered produces no benefit. The amount payable shall not in any case exceed the value of the salvaged property.

No remuneration shall be due to persons participating in salvage operations if the vessel in distress has expressly and reasonably refused their assistance.

No remuneration shall be due to a towing vessel for assisting or saving the towed vessel or its cargo unless operations beyond what can be considered the performance of the towage contract were carried out.

Remuneration shall be due even if the assistance or salvage was between vessels belonging to the same owner.

The amount of remuneration shall be fixed by agreement of the parties, or otherwise by the court. Likewise, the proportion for the distribution of that remuneration among the salvors or between the owners of each salving vessel and its master and crew. If the salvaged vessel is foreign, the distribution among its owner, master, and crew shall be governed by the law of its country.

The court may, on the application of either contracting party, cancel or modify any salvage or assistance agreement concluded during the danger and under its influence if it considers the agreement's terms unjust. It may also in all cases, on the application of the interested party, cancel or modify the agreement if it appears that one of the parties was misled by fraud or concealment of information, or if the remuneration is excessively disproportionate to the service rendered.

The court shall fix the remuneration having regard to the circumstances on the basis of: A. First: the successful outcome and the efforts and merits of the salvors; the danger that threatened the assisted vessel, its passengers, crew, and cargo; the salvors and the salving vessel; the time spent and the costs and losses incurred; the risks of liability and other risks to which the salvors were exposed; the value of the equipment they used; and, where applicable, the purpose for which the salving vessel was fitted. B. Second: the value of the salvaged property. The same provisions shall apply to the distribution referred to in the second paragraph of Article 250. The court may reduce or annul the remuneration if it is established that the salvage or assistance was necessitated by the fault of the salvors, or if they committed theft, concealment of stolen property, or other fraudulent acts.

No remuneration shall be due for saving persons. Salvors of human lives who participated in the same operations at the same risks shall be entitled to a fair share of the remuneration awarded to the salvors of the vessel, cargo, and their appurtenances.

The right to bring an action for salvage or assistance remuneration shall lapse by operation of limitation after two years from the day on which salvage or assistance operations ended. This period shall not run if the assisted or salvaged vessel was not arrested in Lebanese waters. A prison sentence of one month to two years and a fine of one hundred to three thousand Pounds, or either of these two penalties, shall be imposed on any master who personally witnesses a person at sea in danger of drowning and who fails to render assistance without serious risk to his vessel, crew, or passengers.

Any person with an insurable interest may insure the vessel, its appurtenances, vessels under construction and materials assembled for that vessel in the shipyard, outfitting costs, equipment, crew wages, vessel freight, amounts lent under bottomry, goods, money, and financial instruments on board, anticipated profits, and in general all things capable of having a monetary value and exposed to maritime risks.

The accepted value of the vessel includes all its appurtenances, in particular equipment, crew advances, rigging, and all costs, unless it can be proven that certain costs relate to an interest independent of the ownership of the vessel.

If the subject matter of insurance is the net freight, the amount of that freight shall be estimated at sixty per cent of the gross freight if no specific amount is stated in the contract.

Anticipated profit shall be fixed at ten per cent of the value at the port of departure, unless the insurers accept a higher declared estimate, in which case that higher share must be specified in the policy.

If the value of goods is not specified in the contract, it may be proved by cargo manifests, books of account, or otherwise by the current price at the time and place of loading, together with all duties and costs paid up to their delivery on board, the freight earned regardless of the outcome, the insurance premium, and anticipated profit where applicable. The same method shall apply to assess the displacement, dimensions, equipment, and fittings of the vessel, which shall be determined on the basis of their value on the day the risk commences. Equipment, fittings, and all property capable of having a monetary value shall be estimated at their value at the place and time of commencement of the risk.

The insurer may always prove that the accepted value exceeds the actual value of the insured property at the time he accepts the insured's valuation in the policy.

Insurance may be effected by one insurer against the risks assumed by another. Such reinsurance shall be subject to the provisions of this Part. The original insurer shall remain jointly and severally liable to the insured.

The insured may insure the insurance indemnity.

Any insurance contract concluded after the loss of the insured property or after its safe arrival shall be void if it is established that news of the loss or arrival reached either the insured's place of residence before the insurance order was issued, or the place of signature before the insurer signed. If the insurance was contracted on the basis of 'good or bad news', which is only admissible for insurance on an outfitted vessel, the contract shall not be void unless evidence is produced that the insured knew of the loss or the insurer knew of the safe arrival before signing. If the insured's ignorance is established, he shall pay the insurer twice the premium; if the insurer's ignorance is established, the insurer shall pay the insured twice the agreed premium.

Insurance contracted through an agent shall be void if the agent could have known the news. It shall also be void if the addressee knew of it; and if the addressee learned of the news after issuance of the order, he shall immediately issue a counter-order that shall be presumed valid where appropriate. The insurance shall be valid if it was signed before the counter-order arrived.

If the master is permitted to load goods for his own account on the vessel he commands, and he insures those goods, he shall prove to the insurers by all means the purchase of the goods and shall provide a bill of lading signed by two senior crew members.

If there is no bill of lading, or if the bill of lading lacks evidentiary value, the insured shall produce other documents proving the shipment, such as purchase account lists, cargo declarations, copies released by customs, carriage statements, and correspondence. Oral evidence shall be admissible in the absence of all other evidence.

Marine insurance must be an indemnity contract regardless of any contrary agreement, and may not place the insured in a better financial position after the occurrence of an incident than he was in before the incident.

A person may effect as many insurance contracts as he wishes on a single property, provided those contracts do not together yield a profit exceeding the actual loss suffered.

If insurance is effected for an amount exceeding the value of the insured property and fraud or misrepresentation by the insured is established, the insurer may seek annulment of the contract and shall be entitled to retain the full premium by way of compensation. In the absence of fraud or misrepresentation, the contract shall be valid for the value of the insured property as assessed or agreed. The insurer may not collect the premium on the excess, but may claim compensation for loss and damage where appropriate.

If the total of the sums insured under several contracts exceeds the value of the insured property, the contracts may be annulled in accordance with the preceding article in the event of fraud or misrepresentation by the insured. In the absence of fraud or misrepresentation, all contracts shall be valid and each shall produce its effects proportionately to the insured sum relative to the full value of the insured property. This provision may be displaced by a clause in the policy adopting the rule of chronological priority of dates, or providing for solidarity of insurers.

If the insurance contract covers only part of the value of the insured property, the insured shall be treated as his own insurer for the remaining part and shall consequently bear a proportionate share of the loss, unless it is expressly provided that the insured — within the limit of the insured sum — may receive full indemnity if the loss does not exceed the insured value.

A registration register shall be established at each of the ports of Tyre, Sidon, Beirut, and Tripoli. Each page of this register shall be numbered and signed; its number shall be the registration number of the craft to which the page is exclusively allocated. All Lebanese craft shall be recorded in this register. Registration shall be made at the following ports: Tyre: vessels from ports situated between the Palestinian border and the mouth of the Litani River. Sidon: vessels from ports situated between the mouth of the Litani River and the Damour River. Beirut: vessels from ports situated between the mouth of the Damour River and Ras al-Barbara. Tripoli: vessels from ports situated between Ras al-Barbara and the northern borders of Lebanon. These ports shall be indicated by the following distinguishing letters: For Tyre (ص ر) – For Sidon (ص أ) – For Beirut (ب) – For Tripoli (ط). A vessel is said to belong to a particular port when its owner has a real or elected domicile at that port. Vessels belonging to official departments (Customs, Police, Quarantine, the State, etc.) shall be registered at the port of their customary anchorage.

The following text was added to Article 8 pursuant to Schedule No. 9 annexed to Law No. 280 dated 15/12/1993: — The ports of Chekka, Jbeil, and Jounieh are considered ports of registry; the scope of each and its distinguishing letters shall be determined by order of the Minister of Transport.

The erasure, concealment, or covering of any official letters, numbers, or markings is in no way permitted. Any violation of these provisions shall expose the shipowner and master to a prison sentence of two to ten days and a fine ranging from five to one hundred Lebanese Pounds, or to either of these two penalties. Likewise, the affixing of forged markings shall expose the shipowner and master to the penalties provided for in the second paragraph of Article 19 of this Law.

Vessels belonging to foreigners residing in Lebanon may be registered in Lebanon by permit from the Minister of Public Works if they are intended for pleasure use or for cruising within a Lebanese port without any other form of navigation. This permit may be revoked in the event of a violation of these regulations or upon a change of vessel ownership; the permit shall automatically lapse if the vessel is used for navigation other than that for which it was registered. Foreign vessels registered at a Lebanese port shall fly the flag of the country of their owner, or the flag of the country of one of their owners if there are several.

The registration register for each vessel on its page must contain the following:

1. 1)Its name (if several vessels bear the same name, a sequential number shall be appended to each).
2. 2)Its registration number (accompanied by the distinguishing letters of the port of registry).
3. 3)The date and place of construction of the vessel.
4. 4)Its type (whether a sailing vessel, a steamer, etc.).
5. 5)Its dimensions (length, breadth, and depth).
6. 6)Its net and gross tonnage in barrels (tons).
7. 7)The type and power of the propulsion machinery.
8. 8)The names, nationalities, and addresses of the owners, with a statement of the number of shares held by each.
9. 9)The name, nationality, and place of residence of the managing operator.
10. 10)Subsequent changes to the vessel, including changes to its home port or its owner, etc.
11. 11)The reasons for its removal from the register, whether by loss, damage, or sale.
12. 12)Any arrest or mortgage placed upon it.

Registration shall be carried out at one of the ports listed in Article 8, on the basis of a declaration made by the owner after taking an oath before the harbour master and four witnesses. The form of the oath shall be: "I swear that I own in full (or state the share) the vessel whose registration I am applying for, because I have built it alone (or together with my co-owners) at my own expense (or at our expense) (or) because I purchased it from... by virtue of a deed dated..." If the vessel is the property of a company, the company's representative in that capacity shall give the declaration on its behalf and take the oath as indicated above. The declarant shall substantiate his declaration of ownership by producing all supporting documents (such as the bill of sale, invoices, etc.) or by presenting witnesses to the harbour master (such as the builder and workers, etc.) if the production of those documents or the hearing of those witnesses is necessary to establish his right. A record of the foregoing shall be drawn up as a deed of attestation, signed by the declarant, the witnesses, and the harbour master.

This deed shall be posted on the special notice board at the offices of the registration port, after which a certified true copy of the deed, certified by the head of that port, shall be sent to all other ports; those ports in turn shall post it on their respective notice boards upon receiving it. The deed must contain the particulars listed in Article 11. At each port, the posting of the deed shall be confirmed by a separate record signed by the head of the port.

Registration may not be challenged once three months have elapsed from the date of the last posting, provided no claim or objection has been raised during that period. After that date, the aggrieved party retains only the right to bring a damages action against the declarant.

Claims and objections submitted within the three-month period shall be received by the harbour master of the registration port and, upon expiry of that period, referred to the registry of the primary court to whose jurisdiction the port belongs. The court registry shall in turn notify the declarant through the bailiff within fifteen days of receiving them, and the declarant shall have fifteen days to reply. The court president shall then summon all parties to a public hearing in the same manner to adjudicate the said claims and objections. The judgment rendered by the court shall be final and not subject to objection; appeal is the only means of review, whatever the rights in dispute, and must be filed within fifteen days of notification of the judgment. It shall be subject to all appellate procedural rules provided for in Part Six of the Code of Civil Procedure. Retrial shall be accepted only in the cases referred to in items 1, 2, 4, 5, 6, and 7 of Article 537 of the Code of Civil Procedure, and shall be subject to ordinary procedure.

Vessels must be registered within fifteen days following their construction or purchase; if constructed or purchased abroad, within fifteen days of their entering Lebanese waters. The vessel need not be present at a Lebanese port for registration formalities to be carried out. A vessel purchased or built abroad is permitted, pending its registration, to sail under the Lebanese flag by virtue of a permit issued by the Lebanese State's representative at the place of sale or construction, on the basis of a declaration of purchase supported by documents. If the purchase was made in Lebanon from an owner domiciled at a port other than the buyer's port, the buyer must apply to the port of registration of the vessel to transfer the registration to the port of his domicile. The transfer shall be effected after the change of ownership has been entered on the vessel's page in the registration register; a copy of the page, certified by the previous harbour master and noting the necessity of transfer due to change of domicile, shall then be sent to the new port of registration. A new page shall be opened in the register of the new port of registry, bearing a number corresponding to its place in the register, and all entries from the previous page shall be transferred to it. The vessel's page in the previous port's register shall be cancelled. The owner of a Lebanese vessel, or the co-owner thereof, who fails to register the vessel in accordance with the provisions of this Article shall be punished with imprisonment of two to ten days and a fine of 25 to 500 Lebanese Pounds, or either of these two penalties, unless it is proven that force majeure prevented registration. By way of transitional provision, shipowners are granted a period of six months from the date of publication of this Law to register their vessels in accordance with the provisions of this Article.

If a vessel is sold to a foreigner, or is seized by the enemy, or is destroyed or lost in any way, the owner in whose name it is registered shall return its title deed to the office of the port of registry for cancellation and for the striking-off of the corresponding page of the register. This deed must be returned within fifteen days if the loss or sale occurs in Lebanese waters, and within three months if it occurs abroad. Any violation of these provisions shall expose the shipowner and master to imprisonment of two to ten days and a fine from 25 to 500 Lebanese Pounds, or to either of these two penalties. Arrest of the vessel is also possible, except where arrest proves impracticable.

Any Lebanese vessel sailing without registration, which is not being transferred from the port of its construction or sale to its port of registry, shall be stopped at the first Lebanese port it reaches. If apprehended at sea, it shall be taken to the nearest Lebanese port, where the harbour master shall detain it and draw up a record. This record shall be forwarded to the competent courts, and a copy sent to the Minister of Public Works.

If it is established that the master intended to evade registration formalities for a criminal purpose, the court shall order the confiscation and sale of the arrested vessel. The sale proceeds shall be added to the revenues of the port office to which the vessel's registration belongs, and a copy of the judgment shall be sent to the Minister of Public Works. In addition, the master shall be liable to imprisonment of three months to two years and a fine ranging from 25 to 500 Lebanese Pounds. If it is established that the matter involves only negligence or oversight, both the master and the owner shall be liable to a fine ranging from 25 to 300 Lebanese Pounds.

Every agreement, every onerous or gratuitous contract, every judgment having the force of res judicata, and in general every act whose purpose is to create, transfer, declare, modify, or extinguish a real right attached to a registered vessel shall have no effect even between the contracting parties unless it has been entered in the registration register. The right to register real rights attached to vessels is acquired from the moment of the agreement, contracts, judgments, or acts referred to in the preceding paragraph. The obligation to deliver a vessel includes the obligation to transfer it in the registration register. The transfer may be ordered by the court if one of the contracting parties refuses to perform its obligation, without prejudice to the right of the aggrieved party to claim damages, particularly where the vessel has been transferred to a third party.

Any person who has acquired a right in a registered vessel in reliance on the entries and contents of the registration register may invoke those entries against others. However, a third party who, before acquiring a right in the vessel, was aware of defects, grounds for annulment, or disqualifications may not invoke the force of the registration register entries. In any event, the aggrieved party may bring a personal action for damages against the person who caused the harm.

Any person harmed by a registration, amendment, or cancellation made without legitimate cause may request the annulment or amendment thereof. If annulment or cancellation cannot be achieved by mutual agreement of the parties, a court order must be obtained. Mere clerical errors in writing, such as discrepancies between entries on the register page and the terms of the daily record or supporting documents, may be corrected by the harbour master as of right. If an objection is raised by an interested party, the harbour master shall request the local justice of the peace to carry out the correction, having first noted the objection and the correction request on the page. Annulment or correction shall not be effective against a third party who previously registered his rights in good faith before the annulment, correction, or registration of the objection.

Registration shall be carried out on the basis of a declaration by the owner of the vessel or the person in whose favour a right therein is being transferred, and on the basis of acceptance by the person in whose favour the registration is being carried out. Both the declaration and the acceptance shall take place before the harbour master of the registration port, who shall draw up a record thereof; they may also be made before a notary public in a formal deed submitted to the harbour master. Registration shall not be considered final unless approved by the competent departments of the Ministry of Public Works. The declaration and acceptance shall contain:

1. 1)Identification of the vessel subject to registration, by reference to the register page number.
2. 2)Identity of the owner or right-holder transferring the right, and of the beneficiary of the proposed registration.
3. 3)Statement of the nature of the right to be registered.
4. 4)Statement of the method of acquisition and the price, where applicable.
5. 5)Where applicable, also the specific terms set out in the agreement (amount of the debt, interest rate, commission, the currency or money stipulated, the method of payment before maturity) or any restriction on the right of disposal or the conditions requested for registration, together with a statement of the principal right.
6. 6)No declaration is required where the applicant relies on a law, on a judgment having the force of res judicata, or on a deed that confers the right to register as of right.

The harbour master or the notary public who receives the deed shall verify, on their own responsibility, the identity and legal capacity of the applicants. This verification shall be noted in the record of attestation or in the deed. As regards deeds drawn up abroad, the identity of the contracting parties shall be deemed verified if the signatures on the deeds have been authenticated, including the conditions and proofs required by the applicable laws, under penalty of nullity.

If the contracting parties are unable to sign or read, or are incapacitated from doing so, the acknowledgement of the content of the record shall be made before the harbour master or the notary public in the presence of two witnesses who have civil capacity and can sign. The harbour master or notary public shall record the acknowledgement in the record of attestation or in the deed and sign it together with the witnesses. If the harbour master or notary public does not know the names, personal circumstances, or domicile of the contracting parties, such knowledge must be verified by two witnesses who know them and who fulfil the above-mentioned conditions. In all cases the harbour master or notary public must attest their knowledge of the witnesses in the declaration.

The harbour master shall maintain a daily register in which declarations and documents presented to him shall be entered in sequential numerical order; the applicant shall be given an acknowledgement of receipt noting the daily register number under which his declaration was registered and the number and date of registration in that register. The date of registration shall determine priority ranking. If requests relating to the same vessel are submitted on the same day, the hour at which the request was lodged shall determine the priority ranking of rights attached to that vessel. If several requests relating to the same vessel are submitted at the same time, this shall be noted in the daily register and the rights shall be registered simultaneously.

Anyone claiming a right in a registered vessel may request a provisional entry to preserve that right temporarily. The application for a provisional entry must always be supported by an order from the president of the primary court to whose jurisdiction the vessel's home port belongs. The date of the provisional entry shall determine the ranking for the subsequent registration of the right. A provisional entry shall lapse upon expiry of a one-month period and shall be struck off as of right if no court action, to be entered in the registration register, is filed within that period.

A registration or provisional entries may be struck off by virtue of any deed or any judgment having the force of res judicata establishing, as against any party with an interest in a declared right in accordance with proper procedure, the non-existence of the right to which the registration or provisional entry relates, or the extinction of that right.

The provisions of Articles 21 to 27 relating to registration shall apply to striking-off, except that the record of attestation or the deed of striking-off must state:

1. 1)Identification of the specific vessel page to which the striking-off must relate.
2. 2)Statement of the registration or provisional entry.
3. 3)Statement of the reason for the striking-off or the instrument establishing it.

The striking-off shall be entered on the vessel's page, dated and signed by the harbour master under penalty of nullity. The harbour master's signature shall be accompanied by the official seal of the port of registry, and the reasons for the striking-off shall be noted on the said page.

Applications for enforcement of an arrest placed on a vessel and for enforcement of a judgment settling a dispute regarding a vessel shall be forwarded through the enforcement department to the harbour master of the port of registration of the vessel, for entry on the page of that vessel. Real actions must also be registered in the registration register after their summonses have been notified to the harbour master of the port of registry, endorsed in accordance with proper procedure by the clerk of the court to which the summons was submitted. Notification shall be made at the instance of the party concerned.

If a real right was constituted on a vessel inter vivos and registration thereof is applied for after the death of the transferor, the application may be granted after producing a document that clearly gives rise to a right to registration, or a request signed by the transferor of the right, provided that the signature is authenticated in both cases. If the signature is not authenticated and the heirs raise an objection, the registration shall be determined by the judicial authority.

Real rights attached to a vessel and arising by inheritance may not be registered in the names of the applicants for registration when the inheritance is ordinary and not established by will, unless those persons produce, in addition to proof of the death of their predecessor, legal certificates establishing the identity of each of them and their right to the inheritance. If the inheritance is established by a will, the applicant must produce the deed of will or the order of the judicial authority competent to execute the will.

Every entry made in the registration register must be accompanied by the harbour master's signature under penalty of nullity. This signature shall be accompanied by the seal of the port of registry.

The owner of a vessel, to the exclusion of others, has the right to a full copy of his vessel's page. This named copy shall be given the official form by the harbour master with his signature and the seal of the port of registry. Other right-holders, such as mortgagees, shall receive only a certificate of their registered right.

Whenever a new entry is made on a page, that entry must be registered on the copy thereof (title deed). The harbour master shall refuse registration if this copy is not produced and the request relates to a right whose creation is presumed to require the consent of the registered owner. In all other cases, the harbour master shall carry out the registration and notify the holder of the registered right. No further registration may be requested by the holder of this right until the copy and the title deed have been reconciled. The harbour master shall attest the reconciliation of the copy with the page whenever required to do so.

When the harbour master opens a new page, he shall cancel the previous page by signing a cancellation mark and affixing the port seal on all its pages. He shall cancel the title deed in the same manner and keep it among his files.

The harbour master shall, upon request, provide any interested party with a general or specific statement of what is registered in the registration register, and a copy or summary of the documents.

If a title deed or a registration certificate is lost or destroyed, the harbour master of the registration port shall replace it in the same manner used by the head of the land registry office pursuant to Articles 92 to 94 of Order No. 188 dated 15 March 1926, to replace lost or damaged title deeds or registration certificates relating to immovable property. The rules established in those articles shall apply in the same way to this case.

The harbour master of the registration port shall be personally liable for damage arising from:

1. 1)His omission in the registers of a required provisional entry, registration, or striking-off.
2. 2)His omission in registration certificates or summaries signed by him of a provisional entry, registration, or striking-off entered in the register.
3. 3)His violation of proper procedure and the invalidity of provisional entries, registrations, or striking-offs entered in the register.
4. 4)Omissions and procedural violations in declarations and records of attestation received by him.
5. 5)This is in addition to the legal provisions in force concerning the liability of civil servants. In all the above cases, the State shall bear financial liability where its officers are unable to pay.

Arrest may not be effected until twenty-four hours have elapsed after the notice of payment.

The notice must be served on the owner personally or at his domicile. If the owner is not present, the notice may be served on the master of the vessel if the debt relates to the vessel or to the cargo.

If ten and a half days have elapsed since the notice, the creditor must renew it before effecting the arrest.

The enforcement officer must state the following in the record of attestation: — Name, occupation, and address of the arresting creditor. — The instrument by virtue of which enforcement is sought. — The sum demanded. — The creditor's elected address in the locality of the court before which the sale must be sought, and in the place where the arrested vessel is anchored. — Name of the shipowner and name of the master. — Name, type, tonnage, and nationality of the craft. — A statement and description of the dinghies, boats, equipment, gear, engines, provisions, and supplies, with the designation of a custodian.

The arresting party must notify the owner within three days of a copy of the record of arrest and summon him before the court of the place of arrest to decide on the immediate sale of the arrested objects in his presence. If the owner is not domiciled within the court's jurisdiction, service shall be made within fifteen days on the master of the arrested craft in person if present, otherwise on the owner's representative or the master's representative. If the owner is a foreigner without domicile or residence in the Lebanese Republic and with no representative, the summons and service shall be effected pursuant to Article 362 of the Code of Civil Procedure.

The record of attestation shall be registered in the register of the port of registration of the vessel, or in the register of the port within whose jurisdiction the vessel is anchored, after its registration if it was under construction. The debtor under arrest retains no right to sell the vessel or to mortgage it after this registration. The authority entrusted with the registration office shall issue a statement of the entry within three days of registration (Sundays and public holidays excluded) and, within eight days of issuing that statement, shall notify the arresting creditor to the registered creditors at their elected address in their registration, through the summons described in the preceding Article. Creditors shall have fifteen days to intervene if they wish.

If the vessel is foreign, notifications shall be made within eight days of the delivery of the statement of the mortgage from the consulate to the registered creditors listed in that statement, in the manner provided for in the Code of Civil Procedure. Those creditors shall have fifteen days to intervene, plus additional time for distance.

The court of the place of arrest shall order the sale and its conditions as submitted by the arresting creditor, and shall fix the date and the reserve price. If no bid is made on the fixed date, the court shall set a new, lower reserve price and a new date for the subsequent auction.

Actions for recovery and nullity shall be brought before adjudication. If actions for recovery are not brought until after adjudication, they shall automatically convert into an objection to the release of the proceeds of the sale. Actions for recovery and nullity shall not be admissible unless they are entered in the registration register.

The claimant or objector shall be given three days to present arguments, and the defendant shall likewise be given three days to reply. A hearing date shall be fixed immediately upon the application. The action shall not suspend enforcement unless the court orders a stay for compelling reasons.

The sale shall be held at a public auction hearing in the civil court, fifteen days after the posting of the notices provided for in the following Article and after publication in two newspapers, at least one of which is in Arabic, from among the newspapers designated for the publication of judicial notices at the seat of the court, in addition to the methods of publication authorised by the court.

Notices shall be affixed to the most visible part of the arrested vessel, to the main door of the court before which the sale is to be held, on the quay of the port where the vessel is anchored, and at the commercial exchange if one exists.

The notices posted or published in newspapers must state: — Name, occupation, and address of the arresting creditor. — The instruments by virtue of which the claim is made. — The amount of the sum due. — The elected address in the locality of the court and at the port where the arrested vessel is anchored. — Name, occupation, and address of the owner of the arrested vessel. — Particulars of the vessel as entered in the registration register. — Name of the master. — Place where the vessel is located. — Reserve price and conditions of sale. — Place, day, and hour of the auction.

No supplementary bidding shall be admissible once a judicial sale has been completed.

The purchaser must, within twenty-four hours of adjudication, deposit the purchase price free of costs at one of the banks approved by the Government, under penalty of the auction being reopened at his expense.

In the event of non-payment, the vessel shall be re-offered for sale and adjudicated three days after the renewal of publication and announcement as provided in Article 84, with an auction opened at the purchaser's expense. This shall remain binding on him for the payment of any shortfall, compensation, and costs.

The judgment of adjudication shall not be subject to opposition. However, within five days of its pronouncement and solely for a defect in its form, an application may be made to the court of appeal by way of a summons on three full days' notice; the court shall rule on it by a decision not subject to opposition.

The judgment of adjudication shall be registered in the registration register at the request of the enforcement department once it has acquired the force of res judicata.

Adjudication shall free the vessel from all privileges, mortgages, and rescission actions to which persons who had been notified pursuant to Article 78 are entitled. The striking-off of the registration of such privileges, mortgages, and actions shall be made for the purchaser upon his production to the registration office of the judgment of adjudication and a certificate from the registry of the court that issued it confirming that the judgment has acquired the force of res judicata.

Distribution of the proceeds of adjudication shall be carried out in accordance with Articles 794 to 807 of the Code of Civil Procedure.

The vessel's operator shall not employ other than Lebanese mariners for coastal navigation from one Lebanese port to another Lebanese port, or for fishing on Lebanese coasts. As regards large vessels designed for long-range voyages as referred to in the second paragraph of amended Article 2, and vessels designed for international coastal navigation, the administration reserves the right to require their owners to employ up to one-fifth of Lebanese mariners, or to train that proportion of persons for navigation, on conditions determined by order of the Minister of Public Works. As regards technical workers, the vessel's operator may in cases of necessity employ foreign captains, officers, or mechanical workers who demonstrate that they hold licences or certificates at least equivalent to those required by the departments of the Ministry of Public Works from Lebanese captains, officers, or mechanical workers.

The operator of the vessel and the master may not employ young mariners under the age of fifteen. They may not employ young mariners who have not attained the legal age of majority unless written consent from their parents or guardian has been obtained.

Where the employment contract provides that all or part of a mariner's pay is a share of the vessel's freight or profits, the expenses and charges to be deducted from the gross profit to arrive at the net profit must be defined. Compensation paid to the vessel for cancellation, curtailment, or extension of the voyage, or for loss of profit or freight, shall be included in the gross profit. This provision shall not apply to insurance proceeds unless the mariner has contributed to the payment of premiums since the commencement of the voyage. Governmental bonuses and other official subsidies shall not be included in the amounts subject to division unless otherwise agreed.

In the event of extension or curtailment of the voyage, mariners who are paid by the month shall receive wages in proportion to the actual duration of their service.

If the mariners' pay is tied to the voyage, no deduction shall be made to it as a result of intentional curtailment of the voyage, whatever the reason for the curtailment. If the voyage is intentionally extended or delayed, the wages shall be increased in proportion to the duration of the extension or delay.

If the mariners are employed for a share of profits or freight, they shall be entitled to no compensation for delay, extension, or curtailment of the voyage caused by force majeure. If the cause is attributable to the act of a third party or to the shippers, the mariners shall be entitled to a share of the compensation awarded to the vessel. If the cause is attributable to the act of the vessel's operator or master and damage has been suffered by the mariners, those mariners shall be entitled, in addition to their share in the profit earned, to compensation determined having regard to the circumstances.

Any dispute concerning the payment of wages and, in general, any dispute arising between the master or the operator and the mariners must be submitted in order to attempt settlement to the maritime authority responsible for maritime order at the vessel's home port or at the port of disembarkation. If that authority is unable to reconcile the parties, it shall draw up a record noting the disputes raised by the parties and the sums paid. The record shall, upon its request, be forwarded to the competent judge. No action before the courts shall be admissible until this settlement procedure has been completed.

A voyage charter is a contract by which all or part of the vessel is let for hire for one or more specified voyages. A contract of maritime carriage is a contract by which the carrier undertakes, for a specified freight, to carry to a specified place luggage or goods by sea during all or part of the voyage.

The vessel must be ready to receive goods at the agreed time and place of loading, or the customary place. The master shall take the cargo on board at the vessel's operator's expense from under the tackle, and shall deliver it at the port of destination to the consignee under the tackle.

A charter of the whole vessel shall not include the spaces reserved for the master and crew. Nevertheless, neither the master nor the crew may load any goods therein without the charterer's consent. If the vessel is chartered in whole or as to a specific part, the master may not carry any other goods in the vessel or in the chartered part without the charterer's permission. If a violation occurs, the freight for goods carried without right shall accrue to the charterer, who may also claim compensation for loss and damage.

The vessel's owner shall be liable for all loss and damage to goods throughout the period they are in his charge, unless he proves force majeure.

The vessel's owner shall be answerable for goods consumed or sold by the master during the voyage for the vessel's needs, deducting therefrom the costs advanced by the charterer; the value shall be reckoned at the price at the port of destination if the vessel arrived safely, otherwise at the actual sale price. The vessel's owner has the right to retain freight for all goods he is obliged to pay for. If the shippers are not reimbursed for goods consumed for the vessel's needs, the loss they suffer therefrom shall be distributed proportionately over the value of those goods and over all goods that arrive safely at their destination or are saved from sinking when the right arose from a maritime incident that necessitated the sale or the consumption.

If no one appears to take delivery of goods, or if their delivery is refused, the master may request the judicial authority to sell all or part of the goods up to the amount of the vessel's freight and order the deposit of unsold goods. If the proceeds of the sale are insufficient to cover the freight, the master retains the right to sue the shippers for the difference.

If the shipper does not deliver under the tackle the quantity of goods agreed upon, freight for the full voyage shall be due on that cargo, as well as the costs incurred by the vessel as a result of the shortfall, provided the saved expenses for the vessel are deducted and three-quarters of the freight on goods loaded in substitution for his goods is credited.

No freight shall be due on goods not delivered to the consignee or not placed at his disposal at the port of destination. However, freight shall be due: — If non-delivery results from the negligence or fault of the charterers, shippers, or their successors in title. — If the goods had to be sold during the voyage due to deterioration, whatever the cause of that deterioration. — If the loss of goods is included in the general average sacrifice. — If the goods are lost due to their own inherent defect. Freight shall also be due on animals that die on the vessel, whatever the reason, except for the shipper's fault.

In all cases where no freight is due, the master must refund advances paid to him before the voyage from the amount of that freight; however, he may retain the full advance if he has paid an insurance premium thereon to the charterer or shipper.

A charterer or shipper who wishes to have the goods delivered before their arrival at the destination must pay the full freight if, during the voyage, an event of force majeure compels the vessel to call at an intermediate port.

If the vessel is detained during the voyage by the order of any State, or by an incident not attributable to the master or the vessel's owner, the agreements shall remain in force and no compensation or increase in the stipulated freight shall be claimed. During the vessel's detention, the shipper has the right to have his goods discharged at his own expense, provided he reloads them or makes them available to the master.

If the vessel is prevented from proceeding to the port of destination by force majeure arising after its departure, the shipper shall only owe freight for the outward leg of the voyage, even if the charter was agreed for both outward and return.

If the vessel is prevented from entering the intended port by blockade or any other force majeure, the master is free to act in the way that is most beneficial to the shippers if he has not been provided with instructions for such a situation.

The shipper may not free himself from freight by surrendering the goods, even if they have lost all their value during the voyage or have suffered partial deterioration. However, if a cask containing liquids has lost at least three-quarters of its contents, it may be surrendered in lieu of freight.

Laytime — the lay days for loading and discharge — shall commence, as regards loading, on the day following the operator's notification that the vessel is ready to receive goods, and, as regards discharge, on the day following the placing of the consignee in a position to commence discharge under the conditions specified in the contract. The commencement and duration of laytime shall vary according to local customs if they have not been determined by the agreement. Only working days shall count in the calculation of laytime.

Demurrage shall run automatically from the expiry of the period fixed in the contract for loading or discharge. If the contract does not specify the number of lay days, demurrage shall not commence until twenty-four hours after the master has notified the charterer, the consignee, or their representative in writing. All working and non-working days shall be counted in the demurrage days. If the agreed or customary demurrage period expires, the master may claim, for each additional day, compensation equal to one and a half times the daily rate for demurrage days.

Laytime is interrupted when loading or discharge is prevented by the fault of the shipper or consignee. On the contrary, force majeure does not interrupt the running of demurrage.

Demurrage and compensation for additional days shall be considered additional freight.

The voyage charter or carriage contract shall be automatically rescinded without compensation if force majeure makes performance entirely impossible before performance commences. If force majeure arises before the vessel's departure but after performance has begun, rescission shall be ordered with compensation if necessary. If force majeure merely prevents the vessel from proceeding except to a port other than its destination, the contract shall remain in force without any increase in freight or compensation, unless the delay would result in the rescission of the commercial transaction for which one or both parties concluded the charter or carriage contract.

The vessel's owner has a privilege over goods forming the cargo to secure the payment of the vessel's freight and its accessories for fifteen days after delivery of the goods, provided they have not passed into the hands of a third party.

The vessel's owner has the right to retain goods for non-payment of freight, unless sufficient security is provided; he may also request that the goods be deposited with a third party until the vessel's freight is paid, and may request their sale if they are in danger of deterioration.

A voyage charter and a maritime carriage contract shall be proved by written evidence; such a written document shall be called a charter party or a bill of lading, depending on the type of maritime carriage; however, the parties are excused from drawing up a written instrument in the case of short coastal navigation from port to port.

A charter party is the document evidencing the charter. It shall be drawn up in a private instrument in two original counterparts. It shall contain the following particulars:

1. 1)The names of the contracting parties.
2. 2)The name of the vessel and its tonnage, unless it was agreed that the 'vessel is to be nominated later'.
3. 3)The name of the master.
4. 4)The goods to be loaded, specifying their type and quantity.
5. 5)Freight (the price of carriage).
6. 6)The agreed time and place for loading and discharge.

A bill of lading is the receipt for goods loaded, issued by the master; it shall be drawn up in three copies: one for the shipper, one for the consignee, and one for the master. It shall contain the following particulars:

1. 1)Names of the contracting parties: the vessel's operator and the charterer.
2. 2)Description of goods loaded, including their type, weight, volume, and marks.
3. 3)Name and nationality of the vessel.
4. 4)Terms of carriage, including freight, the course of the voyage, and the port of destination.
5. 5)Date of issuance.
6. 6)Number of copies drawn up by the master.
7. 7)Signatures of the master and the shipper.

Any copy of a bill of lading that omits the particulars listed above shall be valid only as a receipted invoice.

The marks, numbers, quantity, type, and weight of packages shall be entered in the bill of lading on the basis of the written statements provided by the shipper before loading. The marks must be sufficient to identify the goods and shall be placed so that they remain clearly legible until the end of the voyage. The carrier may refuse to enter the shipper's statements in the bill of lading if he has reasonable grounds to doubt their accuracy, or if he lacks ordinary means to verify them. In that case, he must state the reasons and this qualification shall shift the burden of proving the actual value to the consignee or the receiver. A document issued to the shipper before loading of his goods shall be replaced, after that loading and at his request, by a regular bill of lading. A bill of lading drawn up in the prescribed form shall prove that the carrier has received the goods as described therein, unless contrary evidence is produced.

If the shipper's statements regarding the marks, numbers, quantity, type, or weight of goods are inaccurate, he shall be liable to the carrier for all damage arising from his statements; however, the carrier may not invoke inaccurate statements against any person other than the shipper.

Bills of lading shall be to a named person, to order, or to bearer. A bill of lading to a named person is not negotiable and the master may only deliver the goods to the person named therein. A bill of lading to order is negotiable by endorsement, which must be dated. The master may only deliver the goods to the holder of an endorsed bill of lading, even if endorsed in blank. A bill of lading to bearer is negotiable by mere delivery. The master must deliver the goods to any person who presents himself holding that bill of lading.

Copies of a bill of lading drawn up to order or to bearer must include the statement "negotiable" or "non-negotiable," the number of copies, and a clause cancelling all other copies upon use of one. The carrier may not oppose against a holder of a negotiable endorsed copy the defences that may be raised against the shipper, unless he proves that the holder of that copy does not act as a bona fide endorsee from the shipper. The endorser who endorses without recourse only guarantees the existence of the shipped goods and the validity of the contract of carriage. If, before the master delivers any goods, a dispute arises between holders of several copies of the same negotiable bill of lading, the copy bearing the earliest endorsement shall prevail over the others. After a holder of one negotiable copy has received the goods, no holder of another copy — even one bearing an earlier date — may prevail over him.

If there is a discrepancy between the bill of lading bearing the shipper's signature and the documents bearing the master's signature, each original copy shall prevail as against its signatory.

If there is a discrepancy between the charter party and the bill of lading, the terms of the charter party shall prevail in relations between the owner and the charterer. As regards relations between the charterer and the shipper, the bill of lading shall govern, unless explicit reference is made to the charter party.

A through bill of lading — issued by a first carrier who undertakes to forward the goods to the destination in successive stages — shall bind its issuer at the end of the voyage for all obligations arising therefrom; in particular, he shall be liable for the acts of successive carriers who receive the goods. Each carrier shall only be liable for losses, damage, and delay occurring during his own leg of the voyage.

If the nature of the goods or the conditions of their carriage require special agreements, all terms agreed upon relating to the carrier's rights and obligations shall be effective as long as they do not violate public policy, provided that no negotiable bill of lading is issued and that the agreement is incorporated in a document bearing the words "non-negotiable".

Written conditions shall generally prevail over printed conditions. If a charter party and a bill of lading are drawn up together and a dispute arises between written and printed conditions, the bill of lading shall prevail over the charter party.

The provisions of this sub-part shall apply only to maritime carriage based on the issuance of bills of lading and from the port of loading on board the vessel until discharge at the intended destination. They shall not apply to charter parties; however, where a vessel is chartered under a charter party, these provisions shall apply to the bills of lading issued thereunder. These provisions may not be applied to goods loaded on deck under a contract of carriage, nor to live animals.

Before the commencement of the voyage, the carrier is obliged:

1. 1)To exercise due diligence to make the vessel seaworthy.
2. 2)To properly man, equip, and supply the vessel.
3. 3)To make the holds, refrigerated and cooled chambers, and all other parts of the vessel in which goods are loaded fit and safe for their reception, carriage, and preservation.

The carrier shall be liable for all loss, damage, or injury to the goods unless he proves that such loss, damage, or injury resulted from:

1. 1)Faults in navigation attributable to the master, mariners, pilots, or other workers.
2. 2)Hidden defects in the vessel.
3. 3)Damage or losses caused by labour disputes, stoppages of work in whole or in part, and from any cause of stoppage or hindrance.
4. 4)Acts constituting a general average event or force majeure.
5. 5)A defect inherent in the goods, or their packing or marking, or wastage in volume or weight that is customary at the ports of destination.
6. 6)The rendering of assistance or the attempt to save life or property at sea, or where the vessel diverts to do so.
7. 7)In all the excepted cases above, the shipper may prove that the losses or damage result from the fault of the carrier or his acts, if those are not covered by the first paragraph of this Article.

The carrier's liability for loss and damage to goods shall in no circumstances exceed, per package or unit, an amount determined by decree issued in the week following the publication of this Law, unless the shipper has declared the type and value of those goods before loading on the vessel. This declaration shall be incorporated in the bill of lading and shall be binding on the carrier unless he proves otherwise. If the carrier disputes the accuracy of the declaration when made, he may incorporate reasoned reservations in the bill of lading. Such reservations shall shift the burden of proving the actual value to the consignee or the receiver. Any clause limiting the carrier's liability to an amount below that provided for in this Article shall be void. The said amount may be revised by decree based on fluctuations in international currency.

Any clause incorporated in a bill of lading or any other maritime carriage document drawn up in Lebanon whose direct or indirect purpose is to exempt the carrier from the liability imposed on him by general law or this Law, or to shift the burden of proof from those designated by applicable law or this Law, or to violate jurisdictional rules, shall be considered void and of no effect. A clause that reserves for the carrier the benefit of insurance on the goods, or any other clause of the same nature, shall be treated as an exemption clause.

If the shipper knowingly provides a false declaration of the value of the goods, the carrier shall incur no liability whatsoever for loss and damage to those goods.

If inflammable, explosive, or dangerous goods are loaded on the vessel without the carrier or his agent having consented to their loading with full knowledge of their nature, the carrier may at any time and in any place, after drawing up a reasoned record, unload, destroy, or render them harmless without giving rise to any compensation. Otherwise, the shipper shall be liable for all damage and costs that may result from the loading of such goods. If the carrier consented to the loading of such goods with knowledge of their nature, he may not unload, destroy, or render them harmless unless they endanger the vessel or its cargo. No compensation shall be due except for general average losses if incurred.

If goods are lost or damaged, the consignee must address to the carrier or his agent written reservations at the port of discharge and at the time of receipt at the latest. Otherwise, it shall be presumed that the goods were received in the condition described in the bill of lading. If the loss or damage is not apparent, notification of the reservations shall be valid if made within three days of delivery. Sundays and holidays shall not be included in that period. The carrier may always request an immediate survey of the goods upon their receipt.

In all circumstances, the right to bring an action against the carrier for loss or damage shall lapse by operation of limitation one year after delivery of the goods, or, if delivery has not taken place, one year after the day on which the goods should have been delivered.

After the expiry of one year from the end of the voyage, the right to bring any action arising from a voyage charter or carriage contract shall lapse by operation of limitation, subject to the provisions of the preceding Article.

The following rights shall lapse by operation of limitation: — After one year from the end of the voyage: the right to bring any pecuniary action relating to vessel freight. — After one year from delivery: the right to bring any pecuniary action arising from supplies advanced to mariners on the master's orders, or from items necessary for outfitting and provisioning. — After one year from receipt of manufactured goods: the right to bring any pecuniary action relating to the wages of workers and their delivery. — After one year from the vessel's arrival: the right to bring any action arising from the delivery of goods.

The passenger's expenses shall be included in the voyage fare unless otherwise agreed; in the latter case, the master is obliged to provide necessary provisions at fair cost.

If the voyage ticket or contract has been issued in the name of a passenger, that passenger may not transfer it to another person without the master's consent.

The carriage of a passenger's luggage shall be subject to the rules applicable to the carriage of goods, unless the passenger retains personal custody thereof. In that case, the master shall not be liable for loss and damage unless caused by the act of the crew.

The voyage fare shall be payable in the event of the passenger's failure to undertake the voyage or of his partial completion thereof, unless force majeure prevents the completion of the carriage.

If the voyage does not take place on the agreed date due to the master's fault, the passenger shall be entitled to compensation for all resulting damage and may request the rescission of the contract.

If the voyage is prevented by a blockade of the intended port or by any case of force majeure, the carriage contract shall be rescinded without giving rise to any compensation from either party to the other.

If force majeure prevents the vessel from reaching the intended port, the master shall be entitled only to reimbursement of the food costs; he shall not be entitled to voyage freight unless he ensures the passenger's transport to the intended destination.

If the interruption of the voyage results from the master's fault, he shall bear the food costs and shall be obliged to arrange carriage of the passenger to the intended destination.

If the master is compelled to carry out repairs during the voyage, the passenger shall either await completion of the repairs or pay the full voyage fare; for the entire duration of the work, the passenger is entitled to free accommodation and food, unless the master offers to complete the voyage on another vessel of the same route.

If an incident occurs to the passenger during the voyage, the carrier shall be liable for that incident unless he proves it results from force majeure or the fault of the passenger.

If a passenger dies during the voyage, the master shall take the necessary measures to preserve the luggage on board and deliver it to the heirs.

While on board the vessel, the passenger is required to observe the order imposed by the master and abide by the ship's rules.",

After the expiry of one year, the right to bring any action arising from a contract for the carriage of passengers shall lapse by operation of limitation. Actions arising from a contract for the carriage of a passenger's luggage shall be subject to the provisions of Article 215 of this Law.

If a vessel is towed while retaining control of its own propelling means, its master shall be liable to every third party for the fault of the master of the towing vessel, unless he proves that the latter was not under his direction. However, his right to sue the master of the towing vessel is preserved if it is established that the master of the towing vessel personally committed a fault.

General average (average) is any loss or damage sustained by the vessel or cargo during a maritime voyage, as well as any exceptional or extraordinary expenditure incurred to ensure the safety of the voyage.

In the absence of a special agreement among all interested parties, general average shall be settled in accordance with the following provisions.

General average is of two kinds: particular average and general average (sacrifice).

Particular average consists of all maritime losses that do not fulfil the conditions required by the following articles. Such losses are borne by the owner of the damaged property.

General average consists of damage, losses to property, and exceptional expenditure resulting from a sacrifice intentionally made by the master for the common benefit in order to meet a peril that threatened the voyage. It is not necessary that the sacrifice should produce a beneficial result, except in the cases referred to in Article 263. This includes: 1. Losses and damage — maritime losses — suffered by: (a) The cargo, by reason of goods thrown overboard, consumed as fuel, or discharged on shore to lighten the vessel or to refloat it, or in the course of nautical operations to extinguish a fire. (b) The vessel, by reason of destruction of equipment and appurtenances, beaching to save the cargo, disabling and damaging the vessel to save the cargo, or setting the engines or boilers to full power when the vessel is aground. 2. Expenditure losses — exceptional expenditure incurred by the master for the safety of the voyage, such as refloating costs, assistance to a vessel in distress, towage of a damaged vessel, cost of a compulsory port of call due to a common peril, the wages of crew paid as a result of an exceptional incident, expenditure incurred in lieu of expenditure that would have fallen within general average sacrifice (provided it does not exceed the amount of the substituted expenditure), and lastly the costs of settling general average.

Damage, losses, and expenditure directly resulting from a general average act shall also be included in and rank as general average.

The party claiming admission of expenditure or losses as general average must prove the entitlement to such admission.

No special agreement shall be recognised unless agreed to by all parties with an interest in the voyage; failing that, average shall be settled in accordance with the adjustment procedure set out below, without prejudice to the application of specific agreements among the interested parties.

For general average to give rise to an adjustment, both the vessel and the cargo, or part of them, must have been saved, unless one is completely lost in the course of protecting the other.

If the common peril is the result either of a defect in the vessel or in the goods, or of the fault of the master or shippers, the damage and expenditure qualifying as general average shall nevertheless give rise to adjustment among the other interested parties. Those parties, however, retain their right to recourse for the amount they pay against the persons responsible for the inherent defect or fault. Those persons may not in any case seek to include their own damage and expenditure in the general average. However, the vessel's operator, who is exempted from liability for the master's faults in navigation, may include in the general average, by a clause in the charter party or in the bill of lading, the acts of the master in navigation that give rise to the common peril, provided the said clause is agreed by the interested parties.

Goods for which no bill of lading has been drawn up, or for which no receipt has been given to the master, shall not be included in the general average if lost, but shall be included in the contribution if saved. The same rule applies to goods for which a false declaration has been given, unless the interested party proves his good faith. Goods lost or damaged for which a declaration was given at less than their actual value shall be included in the average at the declared value but shall contribute at their actual value.

Goods stowed on deck contrary to maritime custom shall be included in the contribution if saved; if lost, however, the owner shall not be entitled to claim adjustment, unless he proves that he did not consent to that method of stowage. This provision shall not apply to short coastal navigation.

Exempt from contribution are: postal correspondence of all kinds, crew and passenger luggage and personal effects, crew wages, vessel provisions, and in general all property carried without a bill of lading. If lost, however, their value shall be recoverable through adjustment.

Any interested party may free himself from the obligation to contribute by surrendering the property subject to contribution before any delivery thereof.

General average shall be settled at the last port of destination of the cargo on board the vessel at the time of the sacrifice, or at the place where the voyage is interrupted, and pursuant to the law of that port. It shall take into account the values existing at the time of discharge, having regard to the condition of the salvaged property. It shall consist of three parts:

1. 1)Determination of the credit side.
2. 2)Determination of the debit side.
3. 3)Calculation of the proportion in which the amount on the credit side is distributed over the debit side.

The adjustment shall be carried out by assessors appointed by the judge in urgent matters if all interested parties do not agree on them.

If not all interested parties approve the adjustment, it shall be submitted for judicial confirmation on the application of the most expedient party.

The credit side shall include the master's costs, the amount of damage to the vessel, the value of destroyed goods, the lost freight, and the costs of settling the general average.

The amount forming the general average on account of damage or loss to the vessel shall consist of the cost of repair or replacement, deducting therefrom the difference in value between old and new materials as customary; however, no deduction shall be made for temporary repairs. If there is no repair or replacement, the amount shall be determined by assessment.

Goods lost or damaged shall be valued at the current price at the port of loading, provided their owner pays the freight after deducting discharge costs and, where applicable, customs duties.

If the loss of freight is part of the general average, the costs of collecting it and any replacement for it shall be deducted from the gross amount exposed to risk.

The debit side shall include: — Goods at their full value if saved, or at their full estimated value at the port of destination if lost, after deduction of costs, customs duties, and freight, unless it is stipulated that freight is earned whatever happens. — The vessel at its actual net value at its port of call, after deduction of costs. — Vessel freight and passenger fares exposed to risk at two-thirds of their gross amounts, except where freight is stipulated to be earned whatever happens.

The master may refuse to deliver goods until adequate security for payment of the contribution is provided.

Contributions due to the vessel's operator shall be privileged over goods or their sale proceeds for fifteen days after delivery, provided they have not passed into the hands of a third party. Owners of lost goods shall have a privilege over the vessel for the contributions payable on them by the vessel's operator, and over its freight exposed to risk.

Distribution shall be made proportionately to the right due. If one contributor is unable to pay, his share shall be distributed among the others in proportion to each person's rights.

Any action disputing the general average for loss or damage shall be dismissed if a reasoned protest is not submitted within three working days (excluding holidays) of delivery of the goods.

The right to bring an adjustment action shall lapse by operation of limitation after two years from the arrival of the vessel at the last port of destination of the cargo on board at the time of the sacrifice, or at the place where the voyage was interrupted.

Insurance shall be deemed to be of a maritime character simply upon conclusion of a contract bearing the word "vessel", even if that vessel does not engage in maritime navigation. The insurance shall cover the vessel while it is being repaired and while it is in basins, dry docks, and generally in any location within the scope of the navigation specified in the policy.

Insurance on goods shall retain its maritime character even if they are subject to land or river transport, provided that such transport is only incidental to the maritime carriage.

The insurers shall cover the risk of every loss and damage suffered by the insured property from storms, fire, stranding, collision, compulsory calling into port, compulsory deviation from route, voyage, or vessel, jettison, fire and explosion, piracy, damage intentionally caused by the crew, theft, and in general all maritime accidents and perils. War risks — internal or external — shall not be at the insurer's expense. Where a contrary agreement is made, the insurer shall be liable for all damage and losses suffered by the insured property from hostile acts, acts of piracy, detention, arrest, and seizure by any government, whether friendly, enemy, recognised, or unrecognised, and in general from all fortuitous events and acts of war.

The insurer shall be liable for refloating costs, costs of assisting a vessel exposed to immediate peril, rescue costs at sea, and towing costs when the vessel is taken to a port for repair. The provisions of this Article shall not apply to beaching caused by normal tidal movements, or to beaching in maritime canals, rivers, or streams beyond the points reached by the tide.

If the costs of a temporary port of call are particular average, the crew wages shall not be at the insurer's expense. However, if the vessel is towed to a better port than the temporary port of call for the purpose of carrying out repairs at the insurers' expense, the crew wages, towage costs, and towing costs shall be at the insurers' expense. The same applies where a vessel remains at a temporary port of call awaiting spare parts essential to the continuation of the voyage, and where the repairs are at the insurers' expense.

If the vessel collides with another vessel belonging to the insured, or receives assistance from it, the settlement shall be made as if the vessels belonged to different operators; and the liability for the collision or compensation for services rendered shall be determined as between the interested parties in the hull by the sole judgment of the parties if agreed, otherwise by order of the court president in urgent matters. The same applies to a collision between the vessel and a floating body owned by the insured.

General average contributions shall be borne by the insurers in proportion to the value they insure, after deduction of any particular average that falls on them where applicable.

Insurers shall be exempt from all claims for delay in the dispatch or arrival of goods, for price differences, and for losses to the insured's commercial transactions, for whatever reason.

The insurer shall not be liable for loss and damage resulting from intentional or grossly negligent acts committed by the insured or his representatives. Any contrary agreement shall be void. The hull insurer shall not be liable for the consequences of the master's fraud and deceit if the master was selected by the vessel's operator.

Subject to what has been said regarding damage intentionally caused by the crew, and in derogation thereof, insurers shall be exempt from:

1. 1)Fraudulent and deceitful acts committed by the master, and from all incidents arising from breach of blockade, smuggling, prohibited or clandestine trade, unless the master acted without the knowledge or consent of the vessel's operator or his representative and was replaced by another who is not the second master.
2. 2)All consequences to the vessel arising from acts performed by the master or crew ashore.

Damage and losses resulting from an inherent defect in the insured property shall not be at the insurer's expense, unless the contrary is stipulated, except where the insurance is on the vessel's hull and there is a latent defect in the vessel that a diligent operator could neither have detected nor prevented.

However, such damage and loss shall be at the insurer's expense if the voyage is subject to an extraordinary delay caused by a peril covered by the insurer, provided the damage is caused by the delay itself.

The insurer shall not be liable for damage caused by the insured property to other property or persons unless the contrary is stipulated.

The risks of third-party actions brought against the vessel for its collision with another vessel, or its striking a floating body, embankments, wharves, piles, or other fixed objects, shall be borne by the insurers to the extent of nine-tenths of the adjudicated damages, up to a maximum of nine-tenths of the insured sum. The insured shall bear one-tenth of the damages and is prohibited from insuring that one-tenth; if this prohibition is violated, he shall bear two-tenths. Insurers shall be exempt from all actions brought against them by any person, for any reason, relating to the loading and undertakings of the insured vessel, and from all actions for death, injury, or any bodily harm or damage.

If the vessel is lost and the master is its owner or one of its owners, payment of his share of the insurance shall be deferred until receipt of the certificate proving the outcome of the administrative inquiry that must be conducted regarding his conduct. If the inquiry establishes that the loss is attributable to the master's fault without establishing fraud or deceit, the insurers may, having paid him a settlement payment, recover fifty per cent of the indemnity relating to the master's insured share.

If the insurance covers the vessel's hull and the period of risk is not specified in the contract, the risk under a voyage contract runs from the moment the vessel weighs anchor or sets sail and ends when it anchors or moors at the intended destination; however, if it carries cargo, the risk runs from the commencement of loading and ends as soon as discharge is complete, without exceeding fifteen days after arrival at the intended destination, unless goods are loaded at that place for another voyage before expiry of that period, in which case the risk ends immediately.

Quarantine shall be treated as part of the voyage it relates to. However, if the insured vessel is required to proceed to a quarantine station other than the intended destination, the insurer shall be entitled to an additional premium at the rate of three-quarters per cent per month, from the day of departure to the quarantine station until the day of return. The same additional premiums shall apply where a vessel is detained outside its intended port if that port is found to be blockaded, or if it is forced to deviate to another. In that event, the insurers shall none the less cover the risk during the entire period of detention and deviation, provided this extension does not exceed six months from the date of arrival outside the blockaded port; however, they shall not be liable for any additional costs arising from the detention and deviation. The insured may always set an earlier end to the risk before the six months expire. Under a continuous premium policy — a policy covering risks on both outward and return voyages — a four-month stay is allowed without additional premium from the time the vessel deviates to the first port from which it must move; if the stay extends beyond four months, the insurer shall be entitled to an additional premium of two-thirds per cent for each additional month.

If the insurance covers an outfitted vessel and the period of risk is not specified in the contract, the risk runs from when the goods leave the shore for loading and ends when they are landed at the port of destination, with the understanding that all risks incurred during direct transport by boats from shore to vessel and from vessel to shore shall be at the insurers' expense.

If the voyage is intentionally changed after the vessel's departure, the insurer shall have the right to claim compensation and shall not be liable for risks thereafter. If the change occurs before departure, the insurance shall be void and the insurer shall collect half the premium specified in the contract as a fixed indemnity.

If the vessel goes astray, the risks occurring on its correct route shall be covered, provided the insurer has the right to prove that those risks resulted from the deviation.

A change of vessel shall give rise to the nullity of the insurance contract on the vessel's hull. Likewise, insurance on the vessel shall be void if it is intentionally changed, unless the contrary is stipulated.

If the insured goods are loaded on deck, the insurers shall not be liable for the risks unless it is established maritime custom to permit such loading and no contrary agreement was made.

Every vessel registered at a Lebanese port must hold the following papers in official printed form: A. Vessels designed for high-seas navigation and coastal vessels:

1. 1)A maritime title deed from the office of the port of registry within the jurisdiction of which the owner's actual or elected domicile is located.
2. 2)A crew book containing the latest changes in the vessel's crew, signed at the last port of call by the harbour master or by the Lebanese consul abroad if one exists, otherwise by the authority representing him.
3. 3)A navigation licence for the current year. For passenger vessels: a safety certificate.
4. 4)For each member of the crew, including the master or captain: a current-year personal mariner's licence.
5. 5)A voyage permit from the harbour master.
6. 6)A cargo manifest endorsed by the customs office at the vessel's last port of call.
7. 7)A health certificate endorsed by the quarantine office at the vessel's last port of call.
8. 8)A notice of payment of port dues and lighthouse fees from the competent departments at the vessel's last port of call.
9. 9)B. For fishing vessels:
10. 10)A maritime title deed.
11. 11)A crew book.
12. 12)A navigation licence for the current year.
13. 13)A fishing licence for the current year from the port of registration.
14. 14)For each member of the crew: a current-year fisherman's mariner's licence.
15. 15)C. For pleasure craft:
16. 16)A maritime title deed.
17. 17)A crew book, where crew members are employed on the vessel.
18. 18)A navigation licence for the current year.

These papers must be produced upon any request by the authorities responsible for supervising navigation or fishing.

Every master or captain of a vessel designed for high-seas or coastal navigation registered at a Lebanese port is obliged to deposit or leave his papers at the port office within 24 hours of his arrival at the port, under penalty of a fine of twenty-five to five hundred Pounds for each period of delay of twenty-four hours. The vessel's papers shall be returned to the master or captain when the vessel departs, after verifying that all port and customs formalities have been completed. The provisions of this Article shall also apply to pleasure craft and fishing vessels if their net tonnage is twenty-five barrels or more.

Any registered Lebanese vessel inspected at sea and found not to hold the required legal papers shall be taken to the nearest Lebanese port, where it shall be detained by the port officer or the harbour master. A record of attestation shall be drawn up and forwarded to the competent courts.

If it is established that the master or captain of the vessel intended to evade the provisions of this Law for a criminal purpose, the master or captain shall be sentenced to imprisonment of three months to two years and a fine from 20 to 200 Pounds, and the court shall order the confiscation and sale of the arrested vessel. The sale proceeds shall be added to the revenues of the port office that effected the arrest.

If it is established that the matter involves only negligence or oversight, the master or captain of the vessel shall be sentenced to imprisonment of two to ten days and a fine from five to one hundred Pounds, or to either of these two penalties. Any vessel carrying forged papers or the papers of another vessel shall be arrested and sold in accordance with the provisions of Article 45, and the master or captain shall be sentenced to the penalty provided for in that Article.

For the purposes of the penalties to which the master or captain is exposed under Article 45, the identity documents that passengers are required to carry, bearing the General Security visa permitting them to board the vessel, shall be treated as vessel papers.

Any advance on wages must be entered in the crew book if taken by the mariner before departure, and in the logbook if taken during the voyage. The mariner must affix his signature or thumb print. Any advance that does not meet these conditions shall be disregarded. The total advances may not exceed one-fifth of the wages due at the time of the advance application.

Advances may be assigned to the mariner's spouse, children, or parents only, and not to others.

Unassigned advances, on-account payments, and engagement bonuses shall not be refunded to the vessel's operator unless termination of employment is caused by the mariner. This does not exempt the mariner from disciplinary penalties and compensation for loss and damage. Assigned advances shall not under any circumstances be subject to restitution, regardless of any contrary agreement.

The wages and profits of mariners may not be attached or assigned except for the following reasons and up to the following amounts: 1. Up to one quarter: — For debts owed to the State or to provident funds. — For debts arising from the supply of food, clothing, or accommodation. — For debts owed to the vessel's operator arising from the undue payment of prior wages, or from an undue advance or undue on-account payment, or for loss and damage. 2. Up to a second quarter, for a debt due under a final judgment.

In principle, the insured must bring an action for maritime loss against the insurer. However, in the event of losses usually considered as justifying abandonment, he may surrender the insured property to the insurer and claim indemnity for total loss.

All losses and damage that do not give rise to abandonment shall be treated as average and settled between insurer and insured in accordance with the following rules.

If the vessel suffers total loss, as regards particular losses, the damage shall be assessed by reference to the vessel's value. In the case of loss of expenses, the amount of damage shall be assessed by reference to the amount expended by the insured, after deduction of any share that may be due to him for the incident giving rise to the expenses.

Only the proven amount paid on the basis of invoices for the replacement or repairs deemed necessary by the assessors to make the vessel seaworthy shall be included in the assessment of the maritime loss; the insured may not claim other indemnity on account of depreciation, idle time, or any other reason, whether as particular or general average. The insurers may require that replacement and repairs be put to public or written tender. If the insured declines this requirement, 25% shall be deducted from the total amount of replacement and repair.

All crew wages shall be at the insurers' expense, and the running of premiums on time-chartered insurance shall be suspended for the period between the date on which the survey report is drawn up and the date of tender, provided this period does not exceed three days.

The master must not careen the vessel or repair its bottom at the temporary port of call if the assessors consider it possible to defer the expenditure to a more convenient time. The master must also, before carrying out repairs at the temporary port of call, consult the insurance agent if one is available, otherwise the Lebanese consul. If the repairs are urgent or costly, he shall only carry out those that are indispensable. The insurers may send the vessel to another equipped port where repairs can be carried out at a lower cost, and the vessel shall be towed there if necessary.

The value of the wreck shall be deducted from the indemnity. The indemnity shall be subject to deduction for renewal. The extent of this deduction shall be specified in the insurance documents.

Damage to goods shall be assessed on a proportional and current basis as follows:

1. 1)By measuring the value of the goods when exposed to loss against the value they would have had at the destination port if they had arrived intact, and applying the resulting percentage depreciation to their insured value.
2. 2)Without deduction of costs charged to the goods.
3. 3)Without deduction of customs duties.

Policies may stipulate deductible clauses limiting the effects of the insurance; these deductibles may be fixed optionally in the policies. Such a stipulation shall bar all indemnity if the loss suffered by the insured does not exceed the stipulated amount, and shall be deducted from the indemnity if the loss exceeds that amount.

Ordinary wear and tear and wastage during the voyage to the extent customarily accepted shall have no effect on the insurance.

Indemnities due from insurers shall be paid in cash within thirty days of submission of all supporting documents.

The rule permitting the insurer to produce evidence of facts contrary to those recorded in the supporting documents shall not prevent the court from ordering provisional payment of the indemnities due from him, provided the insured furnishes a surety. The surety's obligation shall lapse after two years if no proceedings have been brought. The same rule applies where settlement is made by way of abandonment.

If the insurer is required to pay for a loss or damage whose liability falls on a third party, the insurer may exercise the rights of the insured whom he has indemnified and may bring his actions.

In the following cases, the insured has the right to claim payment of the full indemnity on the condition of transferring to the insurance company all rights held in the insured property.

Abandonment of the insured vessel is only permissible in the following cases: missing, lost, total loss, unseaworthy due to a fortuitous force majeure event, provided the risk is covered by the insurance. Where the insurance covers war risks: arrest, detention, or seizure by order of authority.

After four months without news, all steam vessels may be abandoned; after six months, all sailing vessels other than those crossing Cape Horn or the Cape of Good Hope; and after eight months, those last-mentioned vessels. The period shall run from the date of receipt of the last news.

If the insurance was contracted for a specified period and risks were running at the time the last news was dispatched, the loss of the vessel is presumed to have occurred during the period of insurance.

A vessel shall be considered unseaworthy if the total cost of repairs required due to losses arising from a fortuitous event exceeds three-quarters of the accepted value.

A vessel rendered immobile by the absence of the ordinary means of repair shall also be treated as unseaworthy and may be abandoned to the insurers, provided it is proven that it is unable to be towed, even when lightened, or towed to another port where the necessary means are available, and provided it is proven that the operators could not deliver to its anchorage the essential spare parts. Otherwise, the vessel may not be treated as unseaworthy and abandoned to the insurers if it has only been immobilised pending the financing needed to cover the repair costs and nothing else.

Abandonment of the insured goods is only permitted in the following cases, provided the risk is covered by the insurance:

1. 1)In the event of missing goods, after the expiry of the periods established in Article 364.
2. 2)In the event of the vessel being unseaworthy if cargo transfer cannot be achieved after the expiry of the periods indicated below, and at the earliest if loading on another vessel has not commenced within those same periods: four months if the incident occurred on the shores of Europe or its islands, or on the Asian or African coasts adjoining the Mediterranean, or the Black Sea coasts, or the Atlantic seaboard or islands outside Europe; six months if the incident occurred on other coasts or islands.
3. 3)These periods shall run from the date of the insured's notification to the insurer of the vessel's unseaworthiness. If the incident occurs at a place where navigation is interrupted by ice or force majeure, the period shall be extended by the duration of that interruption.
4. 4)If goods are sold during the voyage due to material damage at the insurer's expense.
5. 5)If goods suffer total loss or material damage equal to at least three-quarters of the insured value, regardless of other costs.
6. 6)Where the insurance covers war risks:
7. 7)If the vessel is seized.
8. 8)If it is rendered immobile by order of authority or is confiscated.

If the vessel is declared unseaworthy, the cargo risks shall remain at the insurer's expense until the cargo reaches its intended destination; the insurer shall also bear the costs of discharging, storing, and reloading those goods, as well as any increase in freight resulting from their re-forwarding, and all salvage costs relating thereto.

Abandonment of vessel freight is only permissible:

1. 1)If that freight is totally lost by a fortuitous event.
2. 2)If news goes missing after expiry of the periods established in Article 364.
3. 3)If the vessel is seized where the insurance covers war risks.

The right to bring any action for abandonment shall lapse by operation of limitation if not exercised within six months beginning: — From the day the news is received, in the case of abandonment for total loss or seizure or detention by order of authority. — From the day the periods established in Article 364 expire, in the case of abandonment for missing news. — From the day the periods established in Article 368 expire, in the case of abandonment of goods for unseaworthiness. — In all other cases, from the day on which the insured became entitled to exercise his right of abandonment.

In the case of reinsurance, the insured underwriters must notify the reinsurer of the abandonment within one month from the date of receipt of the abandonment notice from the original insureds.

The insured must, when proceeding to abandonment, declare all marine insurance contracts and bottomry loans in force. The period of payment is suspended until this declaration is made; this shall not result in any extension of the period for bringing an abandonment action under Article 371. If the insured makes a false declaration in bad faith, he shall forfeit the benefits of the insurance. Upon occurrence of a maritime loss, settlement shall proceed as indicated.

Vessel insurers shall not be entitled to the vessel's net freight or to debts arising from the maritime voyage; however, all debts representing a portion of the value of the insured property must be abandoned.

Abandonment shall not be partial or subject to conditions, and shall cover only the insured property exposed to the risk.

The transfer of ownership resulting from abandonment shall be final and irrevocable. No subsequent event — such as the vessel's return to port — shall entitle the insurer to withdraw from it.

Abandonment shall be permissible in the event of the vessel's salvage after sinking or stranding.

If the abandonment is accepted or deemed valid, the insurer shall be the owner of the insured property from the time the casualty occurred.

If no time for payment is fixed in the contract, the insurer shall be obliged to pay the insurance indemnity three months after notification of abandonment.

All actions arising from an insurance contract shall lapse by operation of limitation after two years from the due date of the debt, except for actions for which the law provides a shorter period, unless the claimant proves that it was impossible for him to bring the action.

The methods of application of this Law shall be determined by decree.

No mariner may be employed without first undergoing a medical examination carried out by a physician designated by the port authorities. The employment of mariners suffering from contagious diseases is prohibited and shall have no effect. Completion of this procedure and the medical permit to board the vessel shall be noted in the crew book under penalty of a fine ranging from 25 to 200 L.L., which may be doubled in the event of repetition.

If a mariner is injured while in the service of the vessel, his treatment shall be at the vessel's expense. The same applies to illness occurring after the vessel leaves its home port. However, if insubordination, gross negligence, drunkenness, or a hereditary disease such as insanity or epilepsy, or a disease caused by vice, is the cause or origin of the injury or illness, the vessel's operator must advance the treatment costs, to be charged to the account of the injured or ill mariner.

Treatment costs shall cease to be due once the injury or illness becomes incurable.

A mariner who is injured or falls ill in the service of the vessel shall be entitled to his wages as long as he remains on board. After being put ashore, he shall be entitled to a daily allowance equal to his daily wages for a maximum period of four months. If he is put ashore in a foreign country, an amount equal to four months' daily wages shall be deposited with the Lebanese consul or his representative.

The right to wages and the allowance is a personal right; it is extinguished upon death, recovery, or confirmed permanent disability.

If the mariner's injury or illness was caused by insubordination, drunkenness, or is of hereditary or vicious origin, the mariner shall have the right to treatment and food as long as he remains on board, but no right to wages or the allowance.

If a mariner dies as a result of illness or injury while in the service of the vessel, the cost of burial shall be borne by the vessel in all circumstances.

The provisions of the labour accidents law shall apply as regards permanent disability affecting mariners while in the service of the vessel.

The vessel's operator must repatriate mariners who are put ashore during the voyage for any reason other than one of the following: those who were put ashore in a foreign country by order of the foreign authority, or for an injury or illness unrelated to the service of the vessel that cannot be treated on board, and in the event of voluntary termination of the employment contract, the cost of repatriation shall be borne by the party designated by the termination agreement. For foreign mariners, the obligation is limited to returning them to the port where they were engaged, unless it was stipulated that the mariner should be returned to a Lebanese port. The right to repatriation includes accommodation and food in addition to transport.

The employment contract shall be terminated by:

1. 1)Expiry of the fixed period, in the case of a fixed-term contract.
2. 2)Completion or voluntary cancellation of the voyage, in the case of a voyage contract.
3. 3)Death of the mariner.
4. 4)Rescission of the contract by judicial order.
5. 5)Occurrence of a cause giving rise to dismissal.

If the employment contract was concluded for a fixed term and that term expires during a voyage, and it contains no provision for extension, the contract shall continue in force on the commercial vessel or fishing vessel until its arrival at a Lebanese port.

If a mariner dies during the term of the contract and was employed by the month, his wages shall be due up to the day of death. If the mariner was employed for the voyage — outward only — and his wages were a fixed sum or a share of the profits or freight, he shall be entitled to full wages or a full share if he died after the commencement of the voyage. If he was employed for both the outward and return voyage, he shall be entitled to half his wages and half his share if he died during the return leg of the voyage.

Dismissal by the vessel's operator or master for legitimate reason shall entitle the dismissed mariner to no compensation. In ports other than Lebanese ports, the master may not put a mariner ashore for a legitimate reason without the permission of the Lebanese consul if one exists, otherwise without permission from the port's maritime authority. In all cases where the master or operator decides to dismiss for a legitimate reason, the date of that decision and its reasons must be entered in the crew book. Failure to comply with this provision shall be presumed to establish the illegitimacy of the dismissal.

If a mariner is dismissed without legitimate reason, he shall be entitled to compensation for that dismissal. The compensation shall be assessed having regard to the nature of the service, the duration of the contract, and the extent of the damage suffered. It may be fixed as a lump sum in the employment contract, provided that this fixed amount does not constitute a waiver of the mariner's rights.

Rescission of the employment contract by the mariner without legitimate reason shall entitle the vessel's operator to compensation.

The full rescission of the charter by the charterer shall constitute a ground for termination of the mariner's employment contract. A mariner employed for a share of the vessel's freight shall participate in the compensation awarded to the vessel, in proportion to his share of the vessel's freight.

If the voyage is prevented by force majeure, the rescission of the employment contract shall not entitle the mariner to any compensation; however, if he was employed by the month or for the voyage, wages shall be paid to him for the days spent in the service of the vessel.

If force majeure prevents the continuation of the voyage after it has commenced, mariners employed by the month or for the voyage shall be paid their wages up to the day their work is interrupted. If the mariners are employed for a share of the vessel's freight or profits, they shall be entitled to the share stipulated in the contract from the freight or profits obtained from the partial completion of the voyage. If the vessel is lost, wrecked, or declared unfit for navigation, the courts may cancel or reduce the mariners' wages if it is established that the loss was caused by their fault or negligence, or that they failed to do everything in their power to save the vessel, passengers, cargo, or rescue any remnants.

A mariner shall share in the compensation that may be awarded by the administrative or judicial authorities on account of damage suffered, if he had not already received under the provisions of the preceding two articles the full wages to which he was entitled for the estimated duration of the voyage.

The master's wages — other than his fixed salary — are entirely subject to attachment for amounts due from him to the vessel's operator in his capacity as the vessel's agent. His fixed salary is subject to attachment for the reasons and up to the amounts provided for in Article 143.

The master has no right, whatever the duration of the contract, to rescind that contract or terminate it at his own initiative during the voyage. However, the vessel's operator has the right to dismiss the master at any time, provided compensation is paid when the dismissal is made without legitimate reason.

The provisions relating to the payment of wages in the event of delay, extension, or curtailment of the voyage shall not apply to the master if his own fault was the cause of any change to the voyage.

After the expiry of one year from the end of the maritime employment contract, the right to bring any action relating to that contract shall lapse by operation of limitation.

A vessel, within the meaning of this Law, is any craft capable of navigation, whatever its cargo and designation, whether such navigation is intended for profit or not. All appurtenances necessary for its operation are considered part of the vessel. Vessels are movable property subject to the general rules of law, subject to the special rules provided for hereinafter.

The following debts alone are privileged and their order of priority shall be determined according to their listing:

1. 1)Court fees and expenses paid for the preservation of the sale price for the benefit of general creditors; vessel tonnage dues, lighthouse and port dues, and other dues and general charges of the same nature; pilotage fees and costs of custody and maintenance from the time of the vessel's entry into its last port.
2. 2)Debts arising from the contract of employment of the master, mariners, and other crew members.
3. 3)The remuneration due for salvage and assistance and the vessel's contribution to a general average sacrifice.
4. 4)Compensation for collision and other maritime incidents, for damage caused to ports, docks, navigational channels, and for injury to passengers and mariners and for loss of or damage to cargo and luggage.
5. 5)Debts arising from contracts concluded or operations carried out by the master away from the vessel's home port in the exercise of his legal powers for a genuine need requiring the maintenance of the vessel or the completion of the voyage, whether or not the master is the owner of the vessel, and whether the debt is owed to the suppliers, repairers, lenders, or other contracting parties.
6. 6)Compensation due to the vessel's charterers.
7. 7)The total insurance premiums on the hull of the vessel, its equipment, and gear, due in respect of the last insured voyage if the insurance was contracted per voyage, or in respect of the last insured period if the insurance was contracted for a fixed term, provided that the total does not in either case exceed the premiums for one year.

Privileged creditors must be ranked by voyage. The debts of the last voyage, whatever their ranking, shall take priority over the debts of previous voyages. However, debts arising from a single employment contract of mariners shall always be treated as debts of the last voyage even if they relate to a previous voyage.

Debts relating to the same voyage shall be ranked in the order established in Article 48; debts of the same rank relating to the same voyage shall rank pari passu. All salvage remuneration and debts incurred for the supply of provisions and repairs shall be ranked in reverse order of their date of origin.

Debts relating to the same maritime incident shall be treated as having arisen at the same time.

The privileges established by the preceding Articles arise from the time the debt is incurred. They are not subject to any formality or special condition for proof.

Mortgagees whose debt is registered on the vessel shall rank in the order of their registration, immediately after the privileged creditors listed in items 1, 2, 3, 4, and 5 of Article 48.

Privileges attach to the vessel, to the freight of the voyage in which the privileged debt arose, and to the appurtenances of the vessel and freight earned since the commencement of the voyage. However, the privilege established in the second paragraph of Article 48 attaches to the total freight due for all voyages carried out during the same period of employment.

For the purposes of the application of privileges, the following are treated as appurtenances of the vessel and freight:

1. 1)Compensation due to the shipowner for material damage suffered by his vessel that has not been compensated, or for loss of freight.
2. 2)Compensation due to the shipowner for general average losses, where such losses constitute uncompensated material damage suffered by his vessel, or for loss of freight.
3. 3)Remuneration due to the shipowner for salvage or rescue operations carried out up to the end of the voyage, after deduction of the amounts allocated to the master and other crew members.

Passenger fare and the lump-sum amount in which the liability of shipowners may be limited shall be treated as freight. Compensation due to the shipowner under insurance contracts, bonuses, financial subsidies, and similar payments shall not be treated as appurtenances of the vessel and freight for the purpose of applying privileges.

All privileges listed in Article 48 shall lapse by operation of limitation after one year, except the privilege for debts arising from the supply of provisions referred to in item 5, which lapses after six months. The limitation period for the privilege of salvage and rescue remuneration runs from the day the operations end. For the privilege of compensation for collision and other incidents and for injuries, it runs from the day the damage occurred. For the privilege for loss of, or damage to, cargo or luggage, it runs from the day of delivery of the cargo or luggage, or from the date on which it should have been delivered; and for the privilege of repairs and provisions in the cases set out in item 2 of Article 48, from the day the debt arose. In all other cases, the period runs from the due date of the debt. Debts owed to crew members listed in item 2 of Article 48 shall not be considered due until the end of the voyage, regardless of the right of those persons to demand advances or payments during the voyage. The period established above shall not run in Lebanese territorial waters where a creditor's domicile or principal place of business is in Lebanon, provided the limitation period does not exceed three years from the date the debt arose.

Privileges shall also lapse, regardless of the general modes of extinguishing obligations: By judicial sale carried out in accordance with the proper procedure established in this Law, or by any voluntary sale of the vessel under the following conditions: — That the transfer be carried out in accordance with Articles 21, 24 to 27, and 33 to 35 and 37 of this Law. — That the transfer be publicised by publication in the Official Gazette of the Lebanese Republic and in two daily newspapers appearing at the vessel's port of registry, and by a notice posted on the door of the registration office, provided that in all such publications and notices the name and address of the purchaser are invariably stated. — That no objection from a creditor reaches the purchaser within one month after publication. The creditor's right of priority over the sale price shall be preserved for as long as the price has not been paid, even after expiry of that period, provided the creditor has notified the purchaser of his claim before payment by means of an objection. The objection referred to in the preceding two paragraphs must be communicated to the creditor through a notary public.

Privileged creditors may register their privilege in order to be notified of the offer of the vessel for sale in accordance with the conditions set out in Article 48 of this Law. This registration shall not affect the rank of the privilege. The registration shall be entered on the vessel's page in the register.

The preceding provisions shall apply to vessels operated by an operator who does not own them, or by a principal charterer, unless the owner's involvement arose from an unlawful act and the creditor was in bad faith.

A mariner is a person employed on board a vessel to carry out nautical activities.

If the vessel's tonnage exceeds five barrels, the employment contract between a mariner and the vessel's operator or his agent shall be subject to the following provisions: 1. The terms of the maritime employment contract shall be entered in the crew book. The mariner shall express his consent by his signature or the imprint of his thumb. The authority responsible for maritime order shall, before the vessel's departure, inspect the entries in the crew book to verify that all mariners boarding the vessel are employed under a contract. The contract terms shall be read aloud and the parties shall be interrogated to ensure that they understand and accept its content. Completion of this procedure shall be noted in the margin of the book. 2. If the employment contract is not entered in the crew book, it may be proved by all means.

The employment contract shall state: — Whether it is concluded for a fixed period, an indefinite period, or a complete voyage. — The mariner's service or function. — The date on which service or duties are to commence. — The method of calculating the agreed remuneration. — The amount of the fixed pay or the basis for determining the share of profits. — The date and place of conclusion of the contract. The contract shall not be valid unless the mariner is free from any other employment.

The judge shall apply local custom or general custom in all matters not addressed by the agreement or the law.

If the chartered vessel is named in the agreement, the charterer may not substitute another vessel for it unless it is lost or becomes incapable of navigation by reason of force majeure occurring after the commencement of the voyage.

If the master finds goods on the vessel that have not been declared, he may order them to be landed at the nearest convenient place or charge double freight, while preserving his right to claim further damages if any. If those goods are discovered during the voyage, the master may throw into the sea goods stowed without permission if their nature could cause damage to the vessel or the rest of the cargo, or if their carriage would result in costs exceeding their value, or in government fines, or if their sale and export are prohibited by law. In all cases the master must record in the logbook the discovery of undeclared goods and the course taken, and draw up a detailed note in that regard.

If a collision occurs between seagoing vessels or between seagoing vessels and inland navigation vessels, compensation for damage caused to the vessels, their cargo, and the persons and property on board shall be paid in accordance with the following provisions; the waters in which the collision occurs shall be disregarded.

If the collision is accidental, or if it is caused by force majeure, or if it is in doubt as to its causes, the damage shall be borne by those who suffer it. This provision shall remain in force if the vessels or any of them are at anchor at the time of the collision.

If the collision is caused by the fault of one of the vessels, compensation for damage shall be payable by the party at fault.

If the fault is shared, the liability of each vessel shall be proportionate to the gravity of the fault committed; however, if it is impossible to establish the respective proportions, or if the faults appear to be equal, the liability shall be divided equally. Damage suffered by vessels, their cargoes, passengers' and crew's luggage and other property, and other persons on board shall be borne by the vessels at fault in the proportions stated, without joint and several liability as against third parties. The vessels at fault shall be jointly and severally liable to third parties for damage arising from death or injury, subject to the right of the vessel that pays a share exceeding its final share under the first paragraph of this Article to recover from the other.

If a collision occurs and the fault is that of a pilot, liability shall be established as provided in the preceding articles, even where the pilot's presence is compulsory.

The preceding provisions shall apply even without a collision to compensation for damage caused by one vessel to another or to persons or property on board, through the execution of a manoeuvre, through failure to execute a manoeuvre, or through non-observance of regulations.

The master of every vessel involved in a collision must render assistance to the other vessel, its crew, and passengers to the extent possible without serious risk to his own vessel, crew, and passengers.

The master must also, to the extent possible, notify the other vessel of his vessel's name, home port, and the port from which it came and the port to which it is bound. The shipowner shall not be held liable merely for violation of the preceding provisions.

The provisions of this Part shall not apply to warships and State vessels assigned to an official service.

Actions for compensation for damage arising from collision shall not be subject to protest or any other procedure, and no special presumption of fault relating to collision liability shall arise.

In the event of a collision, the claimant may bring the action before the court of the defendant or before the court of the home port of the colliding vessel. The court with jurisdiction over the first Lebanese port entered by either of the vessels after the collision shall have jurisdiction to conduct all investigations or technical surveys. For collisions in Lebanese territorial waters, jurisdiction shall vest in the court of the place of the collision.

The right to bring any action for compensation for damage arising from collision shall lapse by operation of limitation upon expiry of two years from the date of the incident. However, the right of action referred to in the third paragraph of Article 236 shall lapse by operation of limitation after one year from the date of payment.

Marine insurance is a contract by which the insurer undertakes to indemnify the insured against loss suffered in the course of a maritime voyage, resulting from the total loss of a specific value, in exchange for payment of a premium, provided such indemnity does not exceed the value of the lost property.

All provisions of this Part that are not expressly stated to be mandatory regardless of any contrary agreement, or whose non-observance gives rise to nullity, are merely interpretative of the contracting parties' intent and may be departed from by express provision.

The insurance contract shall be drawn up in writing in two original counterparts. It shall state: — Date of the insurance contract and whether it is a contract before or after noon. — Name of the assured, whether on his own behalf or on behalf of another, and his place of residence. — Risks assumed by the insurer and the duration and limits thereof. — The insured amount. — The premium or consideration for insurance. It shall be signed by the insurer and the assured, or by the insurance broker on behalf of the assured. It may be drawn up to a named person, to order, or to bearer. Either party may obtain a true copy of the insurance policy.

Insurers may only be summoned before the court of the place where the contract was signed. However, if the policy was signed at an agent's office, the assured may also sue before the court of the insurer's domicile. If it was signed in one place by more than half the insured value, the assured may summon all the other insurers before the court of that place, which shall have jurisdiction once a decision has been made on the same action against them.

Any concealment of information or false declaration by the assured at or after the conclusion of the contract, or any discrepancy between the insurance contract and the actual risk, whose effect would be to diminish the insurer's assessment of the risk, shall render the insurance void, even in the absence of fraud. The insurance shall likewise be void even where the concealment, discrepancy, or false declaration has no effect on the damage or the loss of the insured property. The insurer shall retain the full premium if the assured acted fraudulently, and half the premium in the absence of fraud.

The assured must notify the insurer, under penalty of the same sanction, of events subsequent to the contract that may affect the insurer's assessment of the risk.

The insurer has the right to raise against a holder of the insurance policy — even if drawn up to order or to bearer — the defences relating thereto that he could have raised against the original assured, as if the transfer had not taken place.

The insurance contract may always be rescinded at the option of the assured as long as the risk has not commenced. An assured who is unable to prove force majeure shall pay the insurer a fixed indemnity of half the premium specified in the contract.

If the subject matter of insurance is goods for both the outward and return voyage and the return cargo has not been loaded by the time the vessel reaches its first port of call, or if loading of the return cargo is not complete, the insurer shall receive only two-thirds of the agreed premium, unless otherwise agreed.

In the event of the insured's insolvency or publicly declared suspension of payment, or failure to pay a premium that has fallen due, the insurers shall have the right, after a futile notice of payment served at the insured's place of residence, to rescind all insurance contracts by simple notification — even a registered letter — from the date of the last notice, and they shall retain the premium pro rata for the period of risk elapsed, with the balance remaining as a debt owed to them. However, the notice and notification may be combined in a single instrument. The insured shall have the same rights in the event of the insurer's insolvency or publicly declared suspension of payment.

A public judicial sale of the vessel shall automatically suspend the insurance on the day of sale; the insurance shall continue in the case of a private sale covering less than half the insured value. If a private sale covers at least half the insured value, the insurance shall only continue at the consent of the insurers.

The charter of a vessel shall not give rise to the rescission of the insurance contract, unless otherwise agreed.

The insured must notify the insurers of a casualty or loss within three days of receiving the news. He must, to the extent possible, mitigate the effects of the peril, take all appropriate precautions, oversee or carry out salvage operations on the insured property, and preserve every right of action against responsible third parties.

An insured who takes part in salvage operations preserves his rights to indemnity and abandonment. He has the right to recover his expenses on the mere confirmation thereof, subject to the insurer's right to contest. The insurer also has the right to take all appropriate or useful measures without this conferring on the insured the right to object that the insurer has acted as an owner.

Consignees must contact the insurers or their agents named in the policy, if any, otherwise the competent local authority, for the purpose of a survey of the losses and maritime damage, under penalty of inadmissibility of the action. They must also, under the same penalty, complete those surveys within eight days following the day on which the carrier placed the goods at their disposal or at the disposal of their representatives or agents, provided that this period shall not exceed thirty days from the date of arrival of the goods at the intended destination. However, the thirty-day period shall not apply to a consignee who proves that he was unaware of the arrival of the goods at the intended destination.

If insurance contracts on goods are evidenced by open policies or any other policies, the insured must declare in due time in the policy all shipments made on his account or on account of others who have entrusted him with the insurance of their goods, to the extent they are covered by the insurance. If the insured fails to fulfil this obligation, the insurer may cancel the contract, retaining premiums paid in all cases and having the right to recover premiums relating to undeclared shipments. If the declared sum relates to goods insured on behalf of others, it shall have no effect if given after the occurrence of the casualty.

Insurance may be effected for the benefit of an unnamed person. Such a clause shall be equivalent to insurance for the account of the signatory and equivalent to a contract for the benefit of a third party, whether that party is known or yet to be identified. The signatory of the policy relating to insurance for an unnamed person shall be jointly and severally bound to the insurer to pay the premium; however, the defences available to the insurer against the signatory may also be raised against the person benefiting from the insurance.

A vessel shall be considered Lebanese if its home port is a Lebanese port and at least half of it is owned by Lebanese nationals or Lebanese joint-stock companies whose board of directors, including its chairman, is a majority of Lebanese nationality.

The following shall also be considered Lebanese: all vessels designed for long-range navigation, whatever their net tonnage and whatever the nationality of their owners, provided their home port is a Lebanese port, subject to their registration being made conditional upon a prior permit issued by order of the Minister of Public Works.

A vessel shall also be considered Lebanese if its home port is a Lebanese port and at least half of it is owned by: - A general partnership company, all of whose partners are Lebanese. - A limited partnership company, all of whose liable partners are Lebanese. - A limited liability company, the majority of whose members, including the manager, are Lebanese and the majority of the shares belong to those members.

The Treasury shall collect from the non-net revenues earned by the two vessel guidance stations at the ports of Beirut and Tripoli a percentage of 10% (ten per cent) on all revenues. This procedure shall apply to all other guidance stations and to licensed pilots at all other ports and river mouths. The previous fees contrary to these fees shall be cancelled, as shall any prior discount or concession granted to Lebanese vessels.

The following shall be treated as Lebanese vessels:

1. 1)Vessels adrift at sea picked up by vessels flying the Lebanese flag.
2. 2)Vessels confiscated for violating Lebanese laws.

All vessels specified in this Article and in Article 2 must fly the Lebanese flag throughout the voyage, subject to the provisions of the second paragraph of Article 16.

Lebanese vessels alone have the right to fish along the coasts, the right to engage in coastal commercial navigation between Lebanese ports, and to tow vessels entering or leaving those ports.

Lebanese vessels shall be marked in Arabic and Latin characters with the following designations:

1. 1)Steamships and motorized vessels intended for coastal navigation or high-seas navigation: the name of the vessel on both sides of the bow, and on the stern its name and the name of its port of registry.
2. 2)Sailing vessels engaged in coastal navigation. On each side of the bow: the distinguishing letters of the port of registry and the registration number. On the stern: the name of the vessel and the name of the port of registry.
3. 3)Fishing vessels. On each side of the bow: the distinguishing letters of the port of registry and the registration number.
4. 4)Rowing boats, cargo skiffs, and all floating craft (including barges, dredges, and lighters): the same markings as fishing vessels of equivalent capacity.
5. 5)Boats of official departments and concessionary companies. On the bow and stern, or on the bow alone: the name of the vessel. Inside the wheelhouse: the distinguishing letters of the port of registry together with the registration number.
6. 6)Pleasure craft. These vessels are permitted not to display their registration number externally, provided that number is engraved inside the wheelhouse.

Shipowners must officially record in their vessels the capacity reserved for use (net tonnage) and the full internal capacity plus the capacity of structures erected on deck (gross tonnage). The assessment of vessel tonnage, the preparation of measurement certificates, and their submission to the port authority shall be carried out; the authority shall issue a certificate to that effect at the expense of the owner, buyer, or mortgagee, who must provide all means necessary to carry out those procedures.

The net tonnage number of the vessel shall be inscribed in Arabic and Latin characters on the aft face of the largest deck beam or on the forward side of the main hatch coaming.

A mortgage may be constituted on vessels whose gross tonnage is two barrels or more, provided that this is agreed upon by both parties.

A maritime mortgage agreement shall be constituted in writing. It may be made by private instrument. A mortgage deed may be drawn up to order; in that case, its negotiation transfers the mortgage right.

No person other than the owner of the vessel or his specially authorised agent may enter into a conventional mortgage on the vessel. If the vessel has several owners, its operator has the right to mortgage it for the needs of outfitting or navigation, pursuant to authorisation from the majority of its owners, provided that majority holds at the same time three-quarters of the jointly-held rights. If the rights of the majority do not reach three-quarters, the co-owners may apply to the court for the decision most consistent with their common interest. No co-owner may mortgage his undivided share in the vessel except with the consent of the majority of owners, provided that majority simultaneously holds half of the jointly-held rights.

The mortgage must be registered in the registration register pursuant to Article 21 and the following articles of this Law. Registration of a mortgage shall secure, in addition to the principal, interest for two years plus interest for the current year at the time of default.

A mortgage constituted on a vessel or a share thereof shall cover the entire hull and shall also cover the equipment, tools, machinery, and other appurtenances, including wreckage, unless otherwise agreed. This mortgage does not cover the vessel's freight or governmental bonuses and subsidies. However, it covers insurance compensation, unless such compensation is earmarked for the repair and maintenance of the vessel. It does not cover insurance proceeds and the mortgage deed may not contain an express assignment to the mortgagees of such proceeds. This assignment shall not be effective against the insurers unless they have accepted it or been notified thereof.

A maritime mortgage on a vessel under construction is permissible. In this case, the mortgage must be preceded by a declaration addressed to the harbour master within whose jurisdiction the vessel is being built. The declaration shall state the length of the vessel's keel and its other approximate dimensions, its estimated tonnage, and the place of construction.

If the mortgage deed was drawn up to order, it shall be transferred by endorsing the registration certificate.

Creditors holding a mortgage registered on a vessel or a share thereof may pursue it wherever it passes in order to register their debt in its proper rank and to foreclose in accordance with the rank of registration. If the mortgage covers only a share of the vessel, the creditor may not apply for arrest or enforcement of sale except on the share assigned to him; however, if the mortgage covers more than half the vessel, the creditor may, after arrest, enforce the sale of the whole vessel on condition that the co-owners are invited to participate in that sale. If the adjudication of the vessel at a sale by auction falls upon one of the co-owners, or if the vessel falls to him on partition of his share, the mortgage shall survive the partition or sale in the same state as before, even if that co-owner is not the one who mortgaged his undivided shares in the vessel. If the sale by auction takes place before a court under the conditions set out in Article 83 and the following articles of this Law, and it is adjudicated to a person who is not a co-owner, the rights of creditors whose mortgage does not cover a share of the vessel shall be limited to the right of priority over the portion of the price attributable to the mortgaged right. Likewise, charges attaching to each share in the ownership of the vessel shall automatically transfer to the portion of the price in which the value of that share in the vessel is represented.

A person who purchases a vessel or a share thereof and wishes to avoid the actions permitted by the preceding Article must, after registering his purchase and before those actions, or within fifteen days thereof, notify a copy of the vessel's title deed to all creditors listed in that deed at the elected domicile in the original deed. The purchaser shall declare in the same deed that he is prepared to pay immediately the secured debts up to the value of the vessel, whether those debts are due or not.

Any holder of a registered debt may demand the sale of the vessel by auction or the sale of the mortgaged share thereof, by offering a premium of ten per cent over the price and providing a surety for the payment of the price and costs. The purchaser must be notified of this request, signed by the creditor, within ten days of notification. The request shall contain a summons before the primary court in whose jurisdiction the vessel is located or at whose port of registry it is registered if it is at sea, for the purpose of ordering the holding of a public auction.

The sale by auction shall be conducted at the instance of the creditor who requested it or at the instance of the purchaser in accordance with the procedure established in the following articles.

The sale of a mortgaged vessel in Lebanon or abroad is prohibited. Any sale in violation thereof may not be entered in the registration register as null and void. An owner who voluntarily sells abroad a mortgaged vessel shall be considered guilty of breach of trust and shall be subject to the penalties provided for in Article 670 of the Penal Code.

The mariner must present himself for embarkation on the vessel at the master's first request. He is obliged, whether on board or ashore, to obey the orders of his superiors in matters concerning the service of the vessel. He is obliged to work towards saving the vessel and its cargo.

Neither the master nor a mariner may load on the vessel any goods for their own private account without permission from the operator. If a violation occurs, the offenders shall be required to pay the maximum freight applicable at the place and time of loading, without prejudice to any further compensation that may be due. The master may order the throwing overboard of illegally loaded goods if they are likely to endanger the vessel or the cargo, or if their carriage would result in costs exceeding their value, or if they are subject to confiscation by public authorities, or if their sale or export is prohibited by law.

A time charter is a contract by which a vessel is let for hire for a fixed period. The owner of the vessel may choose to leave the charterer with or without the right to choose and dismiss the master, and may transfer to him both the nautical and commercial management of the vessel, or only its commercial management. A charterer who has the right to manage both the nautical and commercial aspects of the vessel must provide all its provisions, maintenance charges, and operating costs, and bear general average losses that fall on the vessel and its freight; losses and general average shall be at his risk whatever their severity, unless he proves they arise from the owner's fault. If the charterer only has commercial management, such losses and general average shall be at the owner's risk, unless he proves they arise from the charterer's fault.

Freight shall be payable by the charterer for all the time the vessel is at his disposal. In the event of the vessel being lost, requisitioned, or detained, freight shall cease as of the date of those events.

If freight is measured in periods of time, each period that has commenced shall be payable in full.

Freight for the vessel shall be payable from the day it is placed at the charterer's disposal until the day it is returned to the owner in the condition required for it to receive cargo.

Any act of assistance or salvage performed by one vessel in service to another vessel in distress, and to the property on board, and the towage or passenger fare payable upon leaving the vessel entirely in the hands of the crew, shall be subject to the following provisions:

Any act of assistance or salvage that produces a beneficial result shall give rise to a fair remuneration. No remuneration shall be due if the assistance rendered produces no benefit. The amount payable shall not in any case exceed the value of the salvaged property.

No remuneration shall be due to persons participating in salvage operations if the vessel in distress has expressly and reasonably refused their assistance.

No remuneration shall be due to a towing vessel for assisting or saving the towed vessel or its cargo unless operations beyond what can be considered the performance of the towage contract were carried out.

Remuneration shall be due even if the assistance or salvage was between vessels belonging to the same owner.

The amount of remuneration shall be fixed by agreement of the parties, or otherwise by the court. Likewise, the proportion for the distribution of that remuneration among the salvors or between the owners of each salving vessel and its master and crew. If the salvaged vessel is foreign, the distribution among its owner, master, and crew shall be governed by the law of its country.

The court may, on the application of either contracting party, cancel or modify any salvage or assistance agreement concluded during the danger and under its influence if it considers the agreement's terms unjust. It may also in all cases, on the application of the interested party, cancel or modify the agreement if it appears that one of the parties was misled by fraud or concealment of information, or if the remuneration is excessively disproportionate to the service rendered.

The court shall fix the remuneration having regard to the circumstances on the basis of: A. First: the successful outcome and the efforts and merits of the salvors; the danger that threatened the assisted vessel, its passengers, crew, and cargo; the salvors and the salving vessel; the time spent and the costs and losses incurred; the risks of liability and other risks to which the salvors were exposed; the value of the equipment they used; and, where applicable, the purpose for which the salving vessel was fitted. B. Second: the value of the salvaged property. The same provisions shall apply to the distribution referred to in the second paragraph of Article 250. The court may reduce or annul the remuneration if it is established that the salvage or assistance was necessitated by the fault of the salvors, or if they committed theft, concealment of stolen property, or other fraudulent acts.

No remuneration shall be due for saving persons. Salvors of human lives who participated in the same operations at the same risks shall be entitled to a fair share of the remuneration awarded to the salvors of the vessel, cargo, and their appurtenances.

The right to bring an action for salvage or assistance remuneration shall lapse by operation of limitation after two years from the day on which salvage or assistance operations ended. This period shall not run if the assisted or salvaged vessel was not arrested in Lebanese waters. A prison sentence of one month to two years and a fine of one hundred to three thousand Pounds, or either of these two penalties, shall be imposed on any master who personally witnesses a person at sea in danger of drowning and who fails to render assistance without serious risk to his vessel, crew, or passengers.

Any person with an insurable interest may insure the vessel, its appurtenances, vessels under construction and materials assembled for that vessel in the shipyard, outfitting costs, equipment, crew wages, vessel freight, amounts lent under bottomry, goods, money, and financial instruments on board, anticipated profits, and in general all things capable of having a monetary value and exposed to maritime risks.

The accepted value of the vessel includes all its appurtenances, in particular equipment, crew advances, rigging, and all costs, unless it can be proven that certain costs relate to an interest independent of the ownership of the vessel.

If the subject matter of insurance is the net freight, the amount of that freight shall be estimated at sixty per cent of the gross freight if no specific amount is stated in the contract.

Anticipated profit shall be fixed at ten per cent of the value at the port of departure, unless the insurers accept a higher declared estimate, in which case that higher share must be specified in the policy.

If the value of goods is not specified in the contract, it may be proved by cargo manifests, books of account, or otherwise by the current price at the time and place of loading, together with all duties and costs paid up to their delivery on board, the freight earned regardless of the outcome, the insurance premium, and anticipated profit where applicable. The same method shall apply to assess the displacement, dimensions, equipment, and fittings of the vessel, which shall be determined on the basis of their value on the day the risk commences. Equipment, fittings, and all property capable of having a monetary value shall be estimated at their value at the place and time of commencement of the risk.

The insurer may always prove that the accepted value exceeds the actual value of the insured property at the time he accepts the insured's valuation in the policy.

Insurance may be effected by one insurer against the risks assumed by another. Such reinsurance shall be subject to the provisions of this Part. The original insurer shall remain jointly and severally liable to the insured.

The insured may insure the insurance indemnity.

Any insurance contract concluded after the loss of the insured property or after its safe arrival shall be void if it is established that news of the loss or arrival reached either the insured's place of residence before the insurance order was issued, or the place of signature before the insurer signed. If the insurance was contracted on the basis of 'good or bad news', which is only admissible for insurance on an outfitted vessel, the contract shall not be void unless evidence is produced that the insured knew of the loss or the insurer knew of the safe arrival before signing. If the insured's ignorance is established, he shall pay the insurer twice the premium; if the insurer's ignorance is established, the insurer shall pay the insured twice the agreed premium.

Insurance contracted through an agent shall be void if the agent could have known the news. It shall also be void if the addressee knew of it; and if the addressee learned of the news after issuance of the order, he shall immediately issue a counter-order that shall be presumed valid where appropriate. The insurance shall be valid if it was signed before the counter-order arrived.

If the master is permitted to load goods for his own account on the vessel he commands, and he insures those goods, he shall prove to the insurers by all means the purchase of the goods and shall provide a bill of lading signed by two senior crew members.

If there is no bill of lading, or if the bill of lading lacks evidentiary value, the insured shall produce other documents proving the shipment, such as purchase account lists, cargo declarations, copies released by customs, carriage statements, and correspondence. Oral evidence shall be admissible in the absence of all other evidence.

Marine insurance must be an indemnity contract regardless of any contrary agreement, and may not place the insured in a better financial position after the occurrence of an incident than he was in before the incident.

A person may effect as many insurance contracts as he wishes on a single property, provided those contracts do not together yield a profit exceeding the actual loss suffered.

If insurance is effected for an amount exceeding the value of the insured property and fraud or misrepresentation by the insured is established, the insurer may seek annulment of the contract and shall be entitled to retain the full premium by way of compensation. In the absence of fraud or misrepresentation, the contract shall be valid for the value of the insured property as assessed or agreed. The insurer may not collect the premium on the excess, but may claim compensation for loss and damage where appropriate.

If the total of the sums insured under several contracts exceeds the value of the insured property, the contracts may be annulled in accordance with the preceding article in the event of fraud or misrepresentation by the insured. In the absence of fraud or misrepresentation, all contracts shall be valid and each shall produce its effects proportionately to the insured sum relative to the full value of the insured property. This provision may be displaced by a clause in the policy adopting the rule of chronological priority of dates, or providing for solidarity of insurers.

If the insurance contract covers only part of the value of the insured property, the insured shall be treated as his own insurer for the remaining part and shall consequently bear a proportionate share of the loss, unless it is expressly provided that the insured — within the limit of the insured sum — may receive full indemnity if the loss does not exceed the insured value.

A registration register shall be established at each of the ports of Tyre, Sidon, Beirut, and Tripoli. Each page of this register shall be numbered and signed; its number shall be the registration number of the craft to which the page is exclusively allocated. All Lebanese craft shall be recorded in this register. Registration shall be made at the following ports: Tyre: vessels from ports situated between the Palestinian border and the mouth of the Litani River. Sidon: vessels from ports situated between the mouth of the Litani River and the Damour River. Beirut: vessels from ports situated between the mouth of the Damour River and Ras al-Barbara. Tripoli: vessels from ports situated between Ras al-Barbara and the northern borders of Lebanon. These ports shall be indicated by the following distinguishing letters: For Tyre (ص ر) – For Sidon (ص أ) – For Beirut (ب) – For Tripoli (ط). A vessel is said to belong to a particular port when its owner has a real or elected domicile at that port. Vessels belonging to official departments (Customs, Police, Quarantine, the State, etc.) shall be registered at the port of their customary anchorage.

The following text was added to Article 8 pursuant to Schedule No. 9 annexed to Law No. 280 dated 15/12/1993: — The ports of Chekka, Jbeil, and Jounieh are considered ports of registry; the scope of each and its distinguishing letters shall be determined by order of the Minister of Transport.

The erasure, concealment, or covering of any official letters, numbers, or markings is in no way permitted. Any violation of these provisions shall expose the shipowner and master to a prison sentence of two to ten days and a fine ranging from five to one hundred Lebanese Pounds, or to either of these two penalties. Likewise, the affixing of forged markings shall expose the shipowner and master to the penalties provided for in the second paragraph of Article 19 of this Law.

Vessels belonging to foreigners residing in Lebanon may be registered in Lebanon by permit from the Minister of Public Works if they are intended for pleasure use or for cruising within a Lebanese port without any other form of navigation. This permit may be revoked in the event of a violation of these regulations or upon a change of vessel ownership; the permit shall automatically lapse if the vessel is used for navigation other than that for which it was registered. Foreign vessels registered at a Lebanese port shall fly the flag of the country of their owner, or the flag of the country of one of their owners if there are several.

The registration register for each vessel on its page must contain the following:

1. 1)Its name (if several vessels bear the same name, a sequential number shall be appended to each).
2. 2)Its registration number (accompanied by the distinguishing letters of the port of registry).
3. 3)The date and place of construction of the vessel.
4. 4)Its type (whether a sailing vessel, a steamer, etc.).
5. 5)Its dimensions (length, breadth, and depth).
6. 6)Its net and gross tonnage in barrels (tons).
7. 7)The type and power of the propulsion machinery.
8. 8)The names, nationalities, and addresses of the owners, with a statement of the number of shares held by each.
9. 9)The name, nationality, and place of residence of the managing operator.
10. 10)Subsequent changes to the vessel, including changes to its home port or its owner, etc.
11. 11)The reasons for its removal from the register, whether by loss, damage, or sale.
12. 12)Any arrest or mortgage placed upon it.

Registration shall be carried out at one of the ports listed in Article 8, on the basis of a declaration made by the owner after taking an oath before the harbour master and four witnesses. The form of the oath shall be: "I swear that I own in full (or state the share) the vessel whose registration I am applying for, because I have built it alone (or together with my co-owners) at my own expense (or at our expense) (or) because I purchased it from... by virtue of a deed dated..." If the vessel is the property of a company, the company's representative in that capacity shall give the declaration on its behalf and take the oath as indicated above. The declarant shall substantiate his declaration of ownership by producing all supporting documents (such as the bill of sale, invoices, etc.) or by presenting witnesses to the harbour master (such as the builder and workers, etc.) if the production of those documents or the hearing of those witnesses is necessary to establish his right. A record of the foregoing shall be drawn up as a deed of attestation, signed by the declarant, the witnesses, and the harbour master.

This deed shall be posted on the special notice board at the offices of the registration port, after which a certified true copy of the deed, certified by the head of that port, shall be sent to all other ports; those ports in turn shall post it on their respective notice boards upon receiving it. The deed must contain the particulars listed in Article 11. At each port, the posting of the deed shall be confirmed by a separate record signed by the head of the port.

Registration may not be challenged once three months have elapsed from the date of the last posting, provided no claim or objection has been raised during that period. After that date, the aggrieved party retains only the right to bring a damages action against the declarant.

Claims and objections submitted within the three-month period shall be received by the harbour master of the registration port and, upon expiry of that period, referred to the registry of the primary court to whose jurisdiction the port belongs. The court registry shall in turn notify the declarant through the bailiff within fifteen days of receiving them, and the declarant shall have fifteen days to reply. The court president shall then summon all parties to a public hearing in the same manner to adjudicate the said claims and objections. The judgment rendered by the court shall be final and not subject to objection; appeal is the only means of review, whatever the rights in dispute, and must be filed within fifteen days of notification of the judgment. It shall be subject to all appellate procedural rules provided for in Part Six of the Code of Civil Procedure. Retrial shall be accepted only in the cases referred to in items 1, 2, 4, 5, 6, and 7 of Article 537 of the Code of Civil Procedure, and shall be subject to ordinary procedure.

Vessels must be registered within fifteen days following their construction or purchase; if constructed or purchased abroad, within fifteen days of their entering Lebanese waters. The vessel need not be present at a Lebanese port for registration formalities to be carried out. A vessel purchased or built abroad is permitted, pending its registration, to sail under the Lebanese flag by virtue of a permit issued by the Lebanese State's representative at the place of sale or construction, on the basis of a declaration of purchase supported by documents. If the purchase was made in Lebanon from an owner domiciled at a port other than the buyer's port, the buyer must apply to the port of registration of the vessel to transfer the registration to the port of his domicile. The transfer shall be effected after the change of ownership has been entered on the vessel's page in the registration register; a copy of the page, certified by the previous harbour master and noting the necessity of transfer due to change of domicile, shall then be sent to the new port of registration. A new page shall be opened in the register of the new port of registry, bearing a number corresponding to its place in the register, and all entries from the previous page shall be transferred to it. The vessel's page in the previous port's register shall be cancelled. The owner of a Lebanese vessel, or the co-owner thereof, who fails to register the vessel in accordance with the provisions of this Article shall be punished with imprisonment of two to ten days and a fine of 25 to 500 Lebanese Pounds, or either of these two penalties, unless it is proven that force majeure prevented registration. By way of transitional provision, shipowners are granted a period of six months from the date of publication of this Law to register their vessels in accordance with the provisions of this Article.

If a vessel is sold to a foreigner, or is seized by the enemy, or is destroyed or lost in any way, the owner in whose name it is registered shall return its title deed to the office of the port of registry for cancellation and for the striking-off of the corresponding page of the register. This deed must be returned within fifteen days if the loss or sale occurs in Lebanese waters, and within three months if it occurs abroad. Any violation of these provisions shall expose the shipowner and master to imprisonment of two to ten days and a fine from 25 to 500 Lebanese Pounds, or to either of these two penalties. Arrest of the vessel is also possible, except where arrest proves impracticable.

Any Lebanese vessel sailing without registration, which is not being transferred from the port of its construction or sale to its port of registry, shall be stopped at the first Lebanese port it reaches. If apprehended at sea, it shall be taken to the nearest Lebanese port, where the harbour master shall detain it and draw up a record. This record shall be forwarded to the competent courts, and a copy sent to the Minister of Public Works.

If it is established that the master intended to evade registration formalities for a criminal purpose, the court shall order the confiscation and sale of the arrested vessel. The sale proceeds shall be added to the revenues of the port office to which the vessel's registration belongs, and a copy of the judgment shall be sent to the Minister of Public Works. In addition, the master shall be liable to imprisonment of three months to two years and a fine ranging from 25 to 500 Lebanese Pounds. If it is established that the matter involves only negligence or oversight, both the master and the owner shall be liable to a fine ranging from 25 to 300 Lebanese Pounds.

Every agreement, every onerous or gratuitous contract, every judgment having the force of res judicata, and in general every act whose purpose is to create, transfer, declare, modify, or extinguish a real right attached to a registered vessel shall have no effect even between the contracting parties unless it has been entered in the registration register. The right to register real rights attached to vessels is acquired from the moment of the agreement, contracts, judgments, or acts referred to in the preceding paragraph. The obligation to deliver a vessel includes the obligation to transfer it in the registration register. The transfer may be ordered by the court if one of the contracting parties refuses to perform its obligation, without prejudice to the right of the aggrieved party to claim damages, particularly where the vessel has been transferred to a third party.

Any person who has acquired a right in a registered vessel in reliance on the entries and contents of the registration register may invoke those entries against others. However, a third party who, before acquiring a right in the vessel, was aware of defects, grounds for annulment, or disqualifications may not invoke the force of the registration register entries. In any event, the aggrieved party may bring a personal action for damages against the person who caused the harm.

Any person harmed by a registration, amendment, or cancellation made without legitimate cause may request the annulment or amendment thereof. If annulment or cancellation cannot be achieved by mutual agreement of the parties, a court order must be obtained. Mere clerical errors in writing, such as discrepancies between entries on the register page and the terms of the daily record or supporting documents, may be corrected by the harbour master as of right. If an objection is raised by an interested party, the harbour master shall request the local justice of the peace to carry out the correction, having first noted the objection and the correction request on the page. Annulment or correction shall not be effective against a third party who previously registered his rights in good faith before the annulment, correction, or registration of the objection.

Registration shall be carried out on the basis of a declaration by the owner of the vessel or the person in whose favour a right therein is being transferred, and on the basis of acceptance by the person in whose favour the registration is being carried out. Both the declaration and the acceptance shall take place before the harbour master of the registration port, who shall draw up a record thereof; they may also be made before a notary public in a formal deed submitted to the harbour master. Registration shall not be considered final unless approved by the competent departments of the Ministry of Public Works. The declaration and acceptance shall contain:

1. 1)Identification of the vessel subject to registration, by reference to the register page number.
2. 2)Identity of the owner or right-holder transferring the right, and of the beneficiary of the proposed registration.
3. 3)Statement of the nature of the right to be registered.
4. 4)Statement of the method of acquisition and the price, where applicable.
5. 5)Where applicable, also the specific terms set out in the agreement (amount of the debt, interest rate, commission, the currency or money stipulated, the method of payment before maturity) or any restriction on the right of disposal or the conditions requested for registration, together with a statement of the principal right.
6. 6)No declaration is required where the applicant relies on a law, on a judgment having the force of res judicata, or on a deed that confers the right to register as of right.

The harbour master or the notary public who receives the deed shall verify, on their own responsibility, the identity and legal capacity of the applicants. This verification shall be noted in the record of attestation or in the deed. As regards deeds drawn up abroad, the identity of the contracting parties shall be deemed verified if the signatures on the deeds have been authenticated, including the conditions and proofs required by the applicable laws, under penalty of nullity.

If the contracting parties are unable to sign or read, or are incapacitated from doing so, the acknowledgement of the content of the record shall be made before the harbour master or the notary public in the presence of two witnesses who have civil capacity and can sign. The harbour master or notary public shall record the acknowledgement in the record of attestation or in the deed and sign it together with the witnesses. If the harbour master or notary public does not know the names, personal circumstances, or domicile of the contracting parties, such knowledge must be verified by two witnesses who know them and who fulfil the above-mentioned conditions. In all cases the harbour master or notary public must attest their knowledge of the witnesses in the declaration.

The harbour master shall maintain a daily register in which declarations and documents presented to him shall be entered in sequential numerical order; the applicant shall be given an acknowledgement of receipt noting the daily register number under which his declaration was registered and the number and date of registration in that register. The date of registration shall determine priority ranking. If requests relating to the same vessel are submitted on the same day, the hour at which the request was lodged shall determine the priority ranking of rights attached to that vessel. If several requests relating to the same vessel are submitted at the same time, this shall be noted in the daily register and the rights shall be registered simultaneously.

Anyone claiming a right in a registered vessel may request a provisional entry to preserve that right temporarily. The application for a provisional entry must always be supported by an order from the president of the primary court to whose jurisdiction the vessel's home port belongs. The date of the provisional entry shall determine the ranking for the subsequent registration of the right. A provisional entry shall lapse upon expiry of a one-month period and shall be struck off as of right if no court action, to be entered in the registration register, is filed within that period.

A registration or provisional entries may be struck off by virtue of any deed or any judgment having the force of res judicata establishing, as against any party with an interest in a declared right in accordance with proper procedure, the non-existence of the right to which the registration or provisional entry relates, or the extinction of that right.

The provisions of Articles 21 to 27 relating to registration shall apply to striking-off, except that the record of attestation or the deed of striking-off must state:

1. 1)Identification of the specific vessel page to which the striking-off must relate.
2. 2)Statement of the registration or provisional entry.
3. 3)Statement of the reason for the striking-off or the instrument establishing it.

The striking-off shall be entered on the vessel's page, dated and signed by the harbour master under penalty of nullity. The harbour master's signature shall be accompanied by the official seal of the port of registry, and the reasons for the striking-off shall be noted on the said page.

Applications for enforcement of an arrest placed on a vessel and for enforcement of a judgment settling a dispute regarding a vessel shall be forwarded through the enforcement department to the harbour master of the port of registration of the vessel, for entry on the page of that vessel. Real actions must also be registered in the registration register after their summonses have been notified to the harbour master of the port of registry, endorsed in accordance with proper procedure by the clerk of the court to which the summons was submitted. Notification shall be made at the instance of the party concerned.

If a real right was constituted on a vessel inter vivos and registration thereof is applied for after the death of the transferor, the application may be granted after producing a document that clearly gives rise to a right to registration, or a request signed by the transferor of the right, provided that the signature is authenticated in both cases. If the signature is not authenticated and the heirs raise an objection, the registration shall be determined by the judicial authority.

Real rights attached to a vessel and arising by inheritance may not be registered in the names of the applicants for registration when the inheritance is ordinary and not established by will, unless those persons produce, in addition to proof of the death of their predecessor, legal certificates establishing the identity of each of them and their right to the inheritance. If the inheritance is established by a will, the applicant must produce the deed of will or the order of the judicial authority competent to execute the will.

Every entry made in the registration register must be accompanied by the harbour master's signature under penalty of nullity. This signature shall be accompanied by the seal of the port of registry.

The owner of a vessel, to the exclusion of others, has the right to a full copy of his vessel's page. This named copy shall be given the official form by the harbour master with his signature and the seal of the port of registry. Other right-holders, such as mortgagees, shall receive only a certificate of their registered right.

Whenever a new entry is made on a page, that entry must be registered on the copy thereof (title deed). The harbour master shall refuse registration if this copy is not produced and the request relates to a right whose creation is presumed to require the consent of the registered owner. In all other cases, the harbour master shall carry out the registration and notify the holder of the registered right. No further registration may be requested by the holder of this right until the copy and the title deed have been reconciled. The harbour master shall attest the reconciliation of the copy with the page whenever required to do so.

When the harbour master opens a new page, he shall cancel the previous page by signing a cancellation mark and affixing the port seal on all its pages. He shall cancel the title deed in the same manner and keep it among his files.

The harbour master shall, upon request, provide any interested party with a general or specific statement of what is registered in the registration register, and a copy or summary of the documents.

If a title deed or a registration certificate is lost or destroyed, the harbour master of the registration port shall replace it in the same manner used by the head of the land registry office pursuant to Articles 92 to 94 of Order No. 188 dated 15 March 1926, to replace lost or damaged title deeds or registration certificates relating to immovable property. The rules established in those articles shall apply in the same way to this case.

The harbour master of the registration port shall be personally liable for damage arising from:

1. 1)His omission in the registers of a required provisional entry, registration, or striking-off.
2. 2)His omission in registration certificates or summaries signed by him of a provisional entry, registration, or striking-off entered in the register.
3. 3)His violation of proper procedure and the invalidity of provisional entries, registrations, or striking-offs entered in the register.
4. 4)Omissions and procedural violations in declarations and records of attestation received by him.
5. 5)This is in addition to the legal provisions in force concerning the liability of civil servants. In all the above cases, the State shall bear financial liability where its officers are unable to pay.

Arrest may not be effected until twenty-four hours have elapsed after the notice of payment.

The notice must be served on the owner personally or at his domicile. If the owner is not present, the notice may be served on the master of the vessel if the debt relates to the vessel or to the cargo.

If ten and a half days have elapsed since the notice, the creditor must renew it before effecting the arrest.

The enforcement officer must state the following in the record of attestation: — Name, occupation, and address of the arresting creditor. — The instrument by virtue of which enforcement is sought. — The sum demanded. — The creditor's elected address in the locality of the court before which the sale must be sought, and in the place where the arrested vessel is anchored. — Name of the shipowner and name of the master. — Name, type, tonnage, and nationality of the craft. — A statement and description of the dinghies, boats, equipment, gear, engines, provisions, and supplies, with the designation of a custodian.

The arresting party must notify the owner within three days of a copy of the record of arrest and summon him before the court of the place of arrest to decide on the immediate sale of the arrested objects in his presence. If the owner is not domiciled within the court's jurisdiction, service shall be made within fifteen days on the master of the arrested craft in person if present, otherwise on the owner's representative or the master's representative. If the owner is a foreigner without domicile or residence in the Lebanese Republic and with no representative, the summons and service shall be effected pursuant to Article 362 of the Code of Civil Procedure.

The record of attestation shall be registered in the register of the port of registration of the vessel, or in the register of the port within whose jurisdiction the vessel is anchored, after its registration if it was under construction. The debtor under arrest retains no right to sell the vessel or to mortgage it after this registration. The authority entrusted with the registration office shall issue a statement of the entry within three days of registration (Sundays and public holidays excluded) and, within eight days of issuing that statement, shall notify the arresting creditor to the registered creditors at their elected address in their registration, through the summons described in the preceding Article. Creditors shall have fifteen days to intervene if they wish.

If the vessel is foreign, notifications shall be made within eight days of the delivery of the statement of the mortgage from the consulate to the registered creditors listed in that statement, in the manner provided for in the Code of Civil Procedure. Those creditors shall have fifteen days to intervene, plus additional time for distance.

The court of the place of arrest shall order the sale and its conditions as submitted by the arresting creditor, and shall fix the date and the reserve price. If no bid is made on the fixed date, the court shall set a new, lower reserve price and a new date for the subsequent auction.

Actions for recovery and nullity shall be brought before adjudication. If actions for recovery are not brought until after adjudication, they shall automatically convert into an objection to the release of the proceeds of the sale. Actions for recovery and nullity shall not be admissible unless they are entered in the registration register.

The claimant or objector shall be given three days to present arguments, and the defendant shall likewise be given three days to reply. A hearing date shall be fixed immediately upon the application. The action shall not suspend enforcement unless the court orders a stay for compelling reasons.

The sale shall be held at a public auction hearing in the civil court, fifteen days after the posting of the notices provided for in the following Article and after publication in two newspapers, at least one of which is in Arabic, from among the newspapers designated for the publication of judicial notices at the seat of the court, in addition to the methods of publication authorised by the court.

Notices shall be affixed to the most visible part of the arrested vessel, to the main door of the court before which the sale is to be held, on the quay of the port where the vessel is anchored, and at the commercial exchange if one exists.

The notices posted or published in newspapers must state: — Name, occupation, and address of the arresting creditor. — The instruments by virtue of which the claim is made. — The amount of the sum due. — The elected address in the locality of the court and at the port where the arrested vessel is anchored. — Name, occupation, and address of the owner of the arrested vessel. — Particulars of the vessel as entered in the registration register. — Name of the master. — Place where the vessel is located. — Reserve price and conditions of sale. — Place, day, and hour of the auction.

No supplementary bidding shall be admissible once a judicial sale has been completed.

The purchaser must, within twenty-four hours of adjudication, deposit the purchase price free of costs at one of the banks approved by the Government, under penalty of the auction being reopened at his expense.

In the event of non-payment, the vessel shall be re-offered for sale and adjudicated three days after the renewal of publication and announcement as provided in Article 84, with an auction opened at the purchaser's expense. This shall remain binding on him for the payment of any shortfall, compensation, and costs.

The judgment of adjudication shall not be subject to opposition. However, within five days of its pronouncement and solely for a defect in its form, an application may be made to the court of appeal by way of a summons on three full days' notice; the court shall rule on it by a decision not subject to opposition.

The judgment of adjudication shall be registered in the registration register at the request of the enforcement department once it has acquired the force of res judicata.

Adjudication shall free the vessel from all privileges, mortgages, and rescission actions to which persons who had been notified pursuant to Article 78 are entitled. The striking-off of the registration of such privileges, mortgages, and actions shall be made for the purchaser upon his production to the registration office of the judgment of adjudication and a certificate from the registry of the court that issued it confirming that the judgment has acquired the force of res judicata.

Distribution of the proceeds of adjudication shall be carried out in accordance with Articles 794 to 807 of the Code of Civil Procedure.

The vessel's operator shall not employ other than Lebanese mariners for coastal navigation from one Lebanese port to another Lebanese port, or for fishing on Lebanese coasts. As regards large vessels designed for long-range voyages as referred to in the second paragraph of amended Article 2, and vessels designed for international coastal navigation, the administration reserves the right to require their owners to employ up to one-fifth of Lebanese mariners, or to train that proportion of persons for navigation, on conditions determined by order of the Minister of Public Works. As regards technical workers, the vessel's operator may in cases of necessity employ foreign captains, officers, or mechanical workers who demonstrate that they hold licences or certificates at least equivalent to those required by the departments of the Ministry of Public Works from Lebanese captains, officers, or mechanical workers.

The operator of the vessel and the master may not employ young mariners under the age of fifteen. They may not employ young mariners who have not attained the legal age of majority unless written consent from their parents or guardian has been obtained.

Where the employment contract provides that all or part of a mariner's pay is a share of the vessel's freight or profits, the expenses and charges to be deducted from the gross profit to arrive at the net profit must be defined. Compensation paid to the vessel for cancellation, curtailment, or extension of the voyage, or for loss of profit or freight, shall be included in the gross profit. This provision shall not apply to insurance proceeds unless the mariner has contributed to the payment of premiums since the commencement of the voyage. Governmental bonuses and other official subsidies shall not be included in the amounts subject to division unless otherwise agreed.

In the event of extension or curtailment of the voyage, mariners who are paid by the month shall receive wages in proportion to the actual duration of their service.

If the mariners' pay is tied to the voyage, no deduction shall be made to it as a result of intentional curtailment of the voyage, whatever the reason for the curtailment. If the voyage is intentionally extended or delayed, the wages shall be increased in proportion to the duration of the extension or delay.

If the mariners are employed for a share of profits or freight, they shall be entitled to no compensation for delay, extension, or curtailment of the voyage caused by force majeure. If the cause is attributable to the act of a third party or to the shippers, the mariners shall be entitled to a share of the compensation awarded to the vessel. If the cause is attributable to the act of the vessel's operator or master and damage has been suffered by the mariners, those mariners shall be entitled, in addition to their share in the profit earned, to compensation determined having regard to the circumstances.

Any dispute concerning the payment of wages and, in general, any dispute arising between the master or the operator and the mariners must be submitted in order to attempt settlement to the maritime authority responsible for maritime order at the vessel's home port or at the port of disembarkation. If that authority is unable to reconcile the parties, it shall draw up a record noting the disputes raised by the parties and the sums paid. The record shall, upon its request, be forwarded to the competent judge. No action before the courts shall be admissible until this settlement procedure has been completed.

A voyage charter is a contract by which all or part of the vessel is let for hire for one or more specified voyages. A contract of maritime carriage is a contract by which the carrier undertakes, for a specified freight, to carry to a specified place luggage or goods by sea during all or part of the voyage.

The vessel must be ready to receive goods at the agreed time and place of loading, or the customary place. The master shall take the cargo on board at the vessel's operator's expense from under the tackle, and shall deliver it at the port of destination to the consignee under the tackle.

A charter of the whole vessel shall not include the spaces reserved for the master and crew. Nevertheless, neither the master nor the crew may load any goods therein without the charterer's consent. If the vessel is chartered in whole or as to a specific part, the master may not carry any other goods in the vessel or in the chartered part without the charterer's permission. If a violation occurs, the freight for goods carried without right shall accrue to the charterer, who may also claim compensation for loss and damage.

The vessel's owner shall be liable for all loss and damage to goods throughout the period they are in his charge, unless he proves force majeure.

The vessel's owner shall be answerable for goods consumed or sold by the master during the voyage for the vessel's needs, deducting therefrom the costs advanced by the charterer; the value shall be reckoned at the price at the port of destination if the vessel arrived safely, otherwise at the actual sale price. The vessel's owner has the right to retain freight for all goods he is obliged to pay for. If the shippers are not reimbursed for goods consumed for the vessel's needs, the loss they suffer therefrom shall be distributed proportionately over the value of those goods and over all goods that arrive safely at their destination or are saved from sinking when the right arose from a maritime incident that necessitated the sale or the consumption.

If no one appears to take delivery of goods, or if their delivery is refused, the master may request the judicial authority to sell all or part of the goods up to the amount of the vessel's freight and order the deposit of unsold goods. If the proceeds of the sale are insufficient to cover the freight, the master retains the right to sue the shippers for the difference.

If the shipper does not deliver under the tackle the quantity of goods agreed upon, freight for the full voyage shall be due on that cargo, as well as the costs incurred by the vessel as a result of the shortfall, provided the saved expenses for the vessel are deducted and three-quarters of the freight on goods loaded in substitution for his goods is credited.

No freight shall be due on goods not delivered to the consignee or not placed at his disposal at the port of destination. However, freight shall be due: — If non-delivery results from the negligence or fault of the charterers, shippers, or their successors in title. — If the goods had to be sold during the voyage due to deterioration, whatever the cause of that deterioration. — If the loss of goods is included in the general average sacrifice. — If the goods are lost due to their own inherent defect. Freight shall also be due on animals that die on the vessel, whatever the reason, except for the shipper's fault.

In all cases where no freight is due, the master must refund advances paid to him before the voyage from the amount of that freight; however, he may retain the full advance if he has paid an insurance premium thereon to the charterer or shipper.

A charterer or shipper who wishes to have the goods delivered before their arrival at the destination must pay the full freight if, during the voyage, an event of force majeure compels the vessel to call at an intermediate port.

If the vessel is detained during the voyage by the order of any State, or by an incident not attributable to the master or the vessel's owner, the agreements shall remain in force and no compensation or increase in the stipulated freight shall be claimed. During the vessel's detention, the shipper has the right to have his goods discharged at his own expense, provided he reloads them or makes them available to the master.

If the vessel is prevented from proceeding to the port of destination by force majeure arising after its departure, the shipper shall only owe freight for the outward leg of the voyage, even if the charter was agreed for both outward and return.

If the vessel is prevented from entering the intended port by blockade or any other force majeure, the master is free to act in the way that is most beneficial to the shippers if he has not been provided with instructions for such a situation.

The shipper may not free himself from freight by surrendering the goods, even if they have lost all their value during the voyage or have suffered partial deterioration. However, if a cask containing liquids has lost at least three-quarters of its contents, it may be surrendered in lieu of freight.

Laytime — the lay days for loading and discharge — shall commence, as regards loading, on the day following the operator's notification that the vessel is ready to receive goods, and, as regards discharge, on the day following the placing of the consignee in a position to commence discharge under the conditions specified in the contract. The commencement and duration of laytime shall vary according to local customs if they have not been determined by the agreement. Only working days shall count in the calculation of laytime.

Demurrage shall run automatically from the expiry of the period fixed in the contract for loading or discharge. If the contract does not specify the number of lay days, demurrage shall not commence until twenty-four hours after the master has notified the charterer, the consignee, or their representative in writing. All working and non-working days shall be counted in the demurrage days. If the agreed or customary demurrage period expires, the master may claim, for each additional day, compensation equal to one and a half times the daily rate for demurrage days.

Laytime is interrupted when loading or discharge is prevented by the fault of the shipper or consignee. On the contrary, force majeure does not interrupt the running of demurrage.

Demurrage and compensation for additional days shall be considered additional freight.

The voyage charter or carriage contract shall be automatically rescinded without compensation if force majeure makes performance entirely impossible before performance commences. If force majeure arises before the vessel's departure but after performance has begun, rescission shall be ordered with compensation if necessary. If force majeure merely prevents the vessel from proceeding except to a port other than its destination, the contract shall remain in force without any increase in freight or compensation, unless the delay would result in the rescission of the commercial transaction for which one or both parties concluded the charter or carriage contract.

The vessel's owner has a privilege over goods forming the cargo to secure the payment of the vessel's freight and its accessories for fifteen days after delivery of the goods, provided they have not passed into the hands of a third party.

The vessel's owner has the right to retain goods for non-payment of freight, unless sufficient security is provided; he may also request that the goods be deposited with a third party until the vessel's freight is paid, and may request their sale if they are in danger of deterioration.

A voyage charter and a maritime carriage contract shall be proved by written evidence; such a written document shall be called a charter party or a bill of lading, depending on the type of maritime carriage; however, the parties are excused from drawing up a written instrument in the case of short coastal navigation from port to port.

A charter party is the document evidencing the charter. It shall be drawn up in a private instrument in two original counterparts. It shall contain the following particulars:

1. 1)The names of the contracting parties.
2. 2)The name of the vessel and its tonnage, unless it was agreed that the 'vessel is to be nominated later'.
3. 3)The name of the master.
4. 4)The goods to be loaded, specifying their type and quantity.
5. 5)Freight (the price of carriage).
6. 6)The agreed time and place for loading and discharge.

A bill of lading is the receipt for goods loaded, issued by the master; it shall be drawn up in three copies: one for the shipper, one for the consignee, and one for the master. It shall contain the following particulars:

1. 1)Names of the contracting parties: the vessel's operator and the charterer.
2. 2)Description of goods loaded, including their type, weight, volume, and marks.
3. 3)Name and nationality of the vessel.
4. 4)Terms of carriage, including freight, the course of the voyage, and the port of destination.
5. 5)Date of issuance.
6. 6)Number of copies drawn up by the master.
7. 7)Signatures of the master and the shipper.

Any copy of a bill of lading that omits the particulars listed above shall be valid only as a receipted invoice.

The marks, numbers, quantity, type, and weight of packages shall be entered in the bill of lading on the basis of the written statements provided by the shipper before loading. The marks must be sufficient to identify the goods and shall be placed so that they remain clearly legible until the end of the voyage. The carrier may refuse to enter the shipper's statements in the bill of lading if he has reasonable grounds to doubt their accuracy, or if he lacks ordinary means to verify them. In that case, he must state the reasons and this qualification shall shift the burden of proving the actual value to the consignee or the receiver. A document issued to the shipper before loading of his goods shall be replaced, after that loading and at his request, by a regular bill of lading. A bill of lading drawn up in the prescribed form shall prove that the carrier has received the goods as described therein, unless contrary evidence is produced.

If the shipper's statements regarding the marks, numbers, quantity, type, or weight of goods are inaccurate, he shall be liable to the carrier for all damage arising from his statements; however, the carrier may not invoke inaccurate statements against any person other than the shipper.

Bills of lading shall be to a named person, to order, or to bearer. A bill of lading to a named person is not negotiable and the master may only deliver the goods to the person named therein. A bill of lading to order is negotiable by endorsement, which must be dated. The master may only deliver the goods to the holder of an endorsed bill of lading, even if endorsed in blank. A bill of lading to bearer is negotiable by mere delivery. The master must deliver the goods to any person who presents himself holding that bill of lading.

Copies of a bill of lading drawn up to order or to bearer must include the statement "negotiable" or "non-negotiable," the number of copies, and a clause cancelling all other copies upon use of one. The carrier may not oppose against a holder of a negotiable endorsed copy the defences that may be raised against the shipper, unless he proves that the holder of that copy does not act as a bona fide endorsee from the shipper. The endorser who endorses without recourse only guarantees the existence of the shipped goods and the validity of the contract of carriage. If, before the master delivers any goods, a dispute arises between holders of several copies of the same negotiable bill of lading, the copy bearing the earliest endorsement shall prevail over the others. After a holder of one negotiable copy has received the goods, no holder of another copy — even one bearing an earlier date — may prevail over him.

If there is a discrepancy between the bill of lading bearing the shipper's signature and the documents bearing the master's signature, each original copy shall prevail as against its signatory.

If there is a discrepancy between the charter party and the bill of lading, the terms of the charter party shall prevail in relations between the owner and the charterer. As regards relations between the charterer and the shipper, the bill of lading shall govern, unless explicit reference is made to the charter party.

A through bill of lading — issued by a first carrier who undertakes to forward the goods to the destination in successive stages — shall bind its issuer at the end of the voyage for all obligations arising therefrom; in particular, he shall be liable for the acts of successive carriers who receive the goods. Each carrier shall only be liable for losses, damage, and delay occurring during his own leg of the voyage.

If the nature of the goods or the conditions of their carriage require special agreements, all terms agreed upon relating to the carrier's rights and obligations shall be effective as long as they do not violate public policy, provided that no negotiable bill of lading is issued and that the agreement is incorporated in a document bearing the words "non-negotiable".

Written conditions shall generally prevail over printed conditions. If a charter party and a bill of lading are drawn up together and a dispute arises between written and printed conditions, the bill of lading shall prevail over the charter party.

The provisions of this sub-part shall apply only to maritime carriage based on the issuance of bills of lading and from the port of loading on board the vessel until discharge at the intended destination. They shall not apply to charter parties; however, where a vessel is chartered under a charter party, these provisions shall apply to the bills of lading issued thereunder. These provisions may not be applied to goods loaded on deck under a contract of carriage, nor to live animals.

Before the commencement of the voyage, the carrier is obliged:

1. 1)To exercise due diligence to make the vessel seaworthy.
2. 2)To properly man, equip, and supply the vessel.
3. 3)To make the holds, refrigerated and cooled chambers, and all other parts of the vessel in which goods are loaded fit and safe for their reception, carriage, and preservation.

The carrier shall be liable for all loss, damage, or injury to the goods unless he proves that such loss, damage, or injury resulted from:

1. 1)Faults in navigation attributable to the master, mariners, pilots, or other workers.
2. 2)Hidden defects in the vessel.
3. 3)Damage or losses caused by labour disputes, stoppages of work in whole or in part, and from any cause of stoppage or hindrance.
4. 4)Acts constituting a general average event or force majeure.
5. 5)A defect inherent in the goods, or their packing or marking, or wastage in volume or weight that is customary at the ports of destination.
6. 6)The rendering of assistance or the attempt to save life or property at sea, or where the vessel diverts to do so.
7. 7)In all the excepted cases above, the shipper may prove that the losses or damage result from the fault of the carrier or his acts, if those are not covered by the first paragraph of this Article.

The carrier's liability for loss and damage to goods shall in no circumstances exceed, per package or unit, an amount determined by decree issued in the week following the publication of this Law, unless the shipper has declared the type and value of those goods before loading on the vessel. This declaration shall be incorporated in the bill of lading and shall be binding on the carrier unless he proves otherwise. If the carrier disputes the accuracy of the declaration when made, he may incorporate reasoned reservations in the bill of lading. Such reservations shall shift the burden of proving the actual value to the consignee or the receiver. Any clause limiting the carrier's liability to an amount below that provided for in this Article shall be void. The said amount may be revised by decree based on fluctuations in international currency.

Any clause incorporated in a bill of lading or any other maritime carriage document drawn up in Lebanon whose direct or indirect purpose is to exempt the carrier from the liability imposed on him by general law or this Law, or to shift the burden of proof from those designated by applicable law or this Law, or to violate jurisdictional rules, shall be considered void and of no effect. A clause that reserves for the carrier the benefit of insurance on the goods, or any other clause of the same nature, shall be treated as an exemption clause.

If the shipper knowingly provides a false declaration of the value of the goods, the carrier shall incur no liability whatsoever for loss and damage to those goods.

If inflammable, explosive, or dangerous goods are loaded on the vessel without the carrier or his agent having consented to their loading with full knowledge of their nature, the carrier may at any time and in any place, after drawing up a reasoned record, unload, destroy, or render them harmless without giving rise to any compensation. Otherwise, the shipper shall be liable for all damage and costs that may result from the loading of such goods. If the carrier consented to the loading of such goods with knowledge of their nature, he may not unload, destroy, or render them harmless unless they endanger the vessel or its cargo. No compensation shall be due except for general average losses if incurred.

If goods are lost or damaged, the consignee must address to the carrier or his agent written reservations at the port of discharge and at the time of receipt at the latest. Otherwise, it shall be presumed that the goods were received in the condition described in the bill of lading. If the loss or damage is not apparent, notification of the reservations shall be valid if made within three days of delivery. Sundays and holidays shall not be included in that period. The carrier may always request an immediate survey of the goods upon their receipt.

In all circumstances, the right to bring an action against the carrier for loss or damage shall lapse by operation of limitation one year after delivery of the goods, or, if delivery has not taken place, one year after the day on which the goods should have been delivered.

After the expiry of one year from the end of the voyage, the right to bring any action arising from a voyage charter or carriage contract shall lapse by operation of limitation, subject to the provisions of the preceding Article.

The following rights shall lapse by operation of limitation: — After one year from the end of the voyage: the right to bring any pecuniary action relating to vessel freight. — After one year from delivery: the right to bring any pecuniary action arising from supplies advanced to mariners on the master's orders, or from items necessary for outfitting and provisioning. — After one year from receipt of manufactured goods: the right to bring any pecuniary action relating to the wages of workers and their delivery. — After one year from the vessel's arrival: the right to bring any action arising from the delivery of goods.

The passenger's expenses shall be included in the voyage fare unless otherwise agreed; in the latter case, the master is obliged to provide necessary provisions at fair cost.

If the voyage ticket or contract has been issued in the name of a passenger, that passenger may not transfer it to another person without the master's consent.

The carriage of a passenger's luggage shall be subject to the rules applicable to the carriage of goods, unless the passenger retains personal custody thereof. In that case, the master shall not be liable for loss and damage unless caused by the act of the crew.

The voyage fare shall be payable in the event of the passenger's failure to undertake the voyage or of his partial completion thereof, unless force majeure prevents the completion of the carriage.

If the voyage does not take place on the agreed date due to the master's fault, the passenger shall be entitled to compensation for all resulting damage and may request the rescission of the contract.

If the voyage is prevented by a blockade of the intended port or by any case of force majeure, the carriage contract shall be rescinded without giving rise to any compensation from either party to the other.

If force majeure prevents the vessel from reaching the intended port, the master shall be entitled only to reimbursement of the food costs; he shall not be entitled to voyage freight unless he ensures the passenger's transport to the intended destination.

If the interruption of the voyage results from the master's fault, he shall bear the food costs and shall be obliged to arrange carriage of the passenger to the intended destination.

If the master is compelled to carry out repairs during the voyage, the passenger shall either await completion of the repairs or pay the full voyage fare; for the entire duration of the work, the passenger is entitled to free accommodation and food, unless the master offers to complete the voyage on another vessel of the same route.

If an incident occurs to the passenger during the voyage, the carrier shall be liable for that incident unless he proves it results from force majeure or the fault of the passenger.

If a passenger dies during the voyage, the master shall take the necessary measures to preserve the luggage on board and deliver it to the heirs.

While on board the vessel, the passenger is required to observe the order imposed by the master and abide by the ship's rules.",

After the expiry of one year, the right to bring any action arising from a contract for the carriage of passengers shall lapse by operation of limitation. Actions arising from a contract for the carriage of a passenger's luggage shall be subject to the provisions of Article 215 of this Law.

If a vessel is towed while retaining control of its own propelling means, its master shall be liable to every third party for the fault of the master of the towing vessel, unless he proves that the latter was not under his direction. However, his right to sue the master of the towing vessel is preserved if it is established that the master of the towing vessel personally committed a fault.

General average (average) is any loss or damage sustained by the vessel or cargo during a maritime voyage, as well as any exceptional or extraordinary expenditure incurred to ensure the safety of the voyage.

In the absence of a special agreement among all interested parties, general average shall be settled in accordance with the following provisions.

General average is of two kinds: particular average and general average (sacrifice).

Particular average consists of all maritime losses that do not fulfil the conditions required by the following articles. Such losses are borne by the owner of the damaged property.

General average consists of damage, losses to property, and exceptional expenditure resulting from a sacrifice intentionally made by the master for the common benefit in order to meet a peril that threatened the voyage. It is not necessary that the sacrifice should produce a beneficial result, except in the cases referred to in Article 263. This includes: 1. Losses and damage — maritime losses — suffered by: (a) The cargo, by reason of goods thrown overboard, consumed as fuel, or discharged on shore to lighten the vessel or to refloat it, or in the course of nautical operations to extinguish a fire. (b) The vessel, by reason of destruction of equipment and appurtenances, beaching to save the cargo, disabling and damaging the vessel to save the cargo, or setting the engines or boilers to full power when the vessel is aground. 2. Expenditure losses — exceptional expenditure incurred by the master for the safety of the voyage, such as refloating costs, assistance to a vessel in distress, towage of a damaged vessel, cost of a compulsory port of call due to a common peril, the wages of crew paid as a result of an exceptional incident, expenditure incurred in lieu of expenditure that would have fallen within general average sacrifice (provided it does not exceed the amount of the substituted expenditure), and lastly the costs of settling general average.

Damage, losses, and expenditure directly resulting from a general average act shall also be included in and rank as general average.

The party claiming admission of expenditure or losses as general average must prove the entitlement to such admission.

No special agreement shall be recognised unless agreed to by all parties with an interest in the voyage; failing that, average shall be settled in accordance with the adjustment procedure set out below, without prejudice to the application of specific agreements among the interested parties.

For general average to give rise to an adjustment, both the vessel and the cargo, or part of them, must have been saved, unless one is completely lost in the course of protecting the other.

If the common peril is the result either of a defect in the vessel or in the goods, or of the fault of the master or shippers, the damage and expenditure qualifying as general average shall nevertheless give rise to adjustment among the other interested parties. Those parties, however, retain their right to recourse for the amount they pay against the persons responsible for the inherent defect or fault. Those persons may not in any case seek to include their own damage and expenditure in the general average. However, the vessel's operator, who is exempted from liability for the master's faults in navigation, may include in the general average, by a clause in the charter party or in the bill of lading, the acts of the master in navigation that give rise to the common peril, provided the said clause is agreed by the interested parties.

Goods for which no bill of lading has been drawn up, or for which no receipt has been given to the master, shall not be included in the general average if lost, but shall be included in the contribution if saved. The same rule applies to goods for which a false declaration has been given, unless the interested party proves his good faith. Goods lost or damaged for which a declaration was given at less than their actual value shall be included in the average at the declared value but shall contribute at their actual value.

Goods stowed on deck contrary to maritime custom shall be included in the contribution if saved; if lost, however, the owner shall not be entitled to claim adjustment, unless he proves that he did not consent to that method of stowage. This provision shall not apply to short coastal navigation.

Exempt from contribution are: postal correspondence of all kinds, crew and passenger luggage and personal effects, crew wages, vessel provisions, and in general all property carried without a bill of lading. If lost, however, their value shall be recoverable through adjustment.

Any interested party may free himself from the obligation to contribute by surrendering the property subject to contribution before any delivery thereof.

General average shall be settled at the last port of destination of the cargo on board the vessel at the time of the sacrifice, or at the place where the voyage is interrupted, and pursuant to the law of that port. It shall take into account the values existing at the time of discharge, having regard to the condition of the salvaged property. It shall consist of three parts:

1. 1)Determination of the credit side.
2. 2)Determination of the debit side.
3. 3)Calculation of the proportion in which the amount on the credit side is distributed over the debit side.

The adjustment shall be carried out by assessors appointed by the judge in urgent matters if all interested parties do not agree on them.

If not all interested parties approve the adjustment, it shall be submitted for judicial confirmation on the application of the most expedient party.

The credit side shall include the master's costs, the amount of damage to the vessel, the value of destroyed goods, the lost freight, and the costs of settling the general average.

The amount forming the general average on account of damage or loss to the vessel shall consist of the cost of repair or replacement, deducting therefrom the difference in value between old and new materials as customary; however, no deduction shall be made for temporary repairs. If there is no repair or replacement, the amount shall be determined by assessment.

Goods lost or damaged shall be valued at the current price at the port of loading, provided their owner pays the freight after deducting discharge costs and, where applicable, customs duties.

If the loss of freight is part of the general average, the costs of collecting it and any replacement for it shall be deducted from the gross amount exposed to risk.

The debit side shall include: — Goods at their full value if saved, or at their full estimated value at the port of destination if lost, after deduction of costs, customs duties, and freight, unless it is stipulated that freight is earned whatever happens. — The vessel at its actual net value at its port of call, after deduction of costs. — Vessel freight and passenger fares exposed to risk at two-thirds of their gross amounts, except where freight is stipulated to be earned whatever happens.

The master may refuse to deliver goods until adequate security for payment of the contribution is provided.

Contributions due to the vessel's operator shall be privileged over goods or their sale proceeds for fifteen days after delivery, provided they have not passed into the hands of a third party. Owners of lost goods shall have a privilege over the vessel for the contributions payable on them by the vessel's operator, and over its freight exposed to risk.

Distribution shall be made proportionately to the right due. If one contributor is unable to pay, his share shall be distributed among the others in proportion to each person's rights.

Any action disputing the general average for loss or damage shall be dismissed if a reasoned protest is not submitted within three working days (excluding holidays) of delivery of the goods.

The right to bring an adjustment action shall lapse by operation of limitation after two years from the arrival of the vessel at the last port of destination of the cargo on board at the time of the sacrifice, or at the place where the voyage was interrupted.

Insurance shall be deemed to be of a maritime character simply upon conclusion of a contract bearing the word "vessel", even if that vessel does not engage in maritime navigation. The insurance shall cover the vessel while it is being repaired and while it is in basins, dry docks, and generally in any location within the scope of the navigation specified in the policy.

Insurance on goods shall retain its maritime character even if they are subject to land or river transport, provided that such transport is only incidental to the maritime carriage.

The insurers shall cover the risk of every loss and damage suffered by the insured property from storms, fire, stranding, collision, compulsory calling into port, compulsory deviation from route, voyage, or vessel, jettison, fire and explosion, piracy, damage intentionally caused by the crew, theft, and in general all maritime accidents and perils. War risks — internal or external — shall not be at the insurer's expense. Where a contrary agreement is made, the insurer shall be liable for all damage and losses suffered by the insured property from hostile acts, acts of piracy, detention, arrest, and seizure by any government, whether friendly, enemy, recognised, or unrecognised, and in general from all fortuitous events and acts of war.

The insurer shall be liable for refloating costs, costs of assisting a vessel exposed to immediate peril, rescue costs at sea, and towing costs when the vessel is taken to a port for repair. The provisions of this Article shall not apply to beaching caused by normal tidal movements, or to beaching in maritime canals, rivers, or streams beyond the points reached by the tide.

If the costs of a temporary port of call are particular average, the crew wages shall not be at the insurer's expense. However, if the vessel is towed to a better port than the temporary port of call for the purpose of carrying out repairs at the insurers' expense, the crew wages, towage costs, and towing costs shall be at the insurers' expense. The same applies where a vessel remains at a temporary port of call awaiting spare parts essential to the continuation of the voyage, and where the repairs are at the insurers' expense.

If the vessel collides with another vessel belonging to the insured, or receives assistance from it, the settlement shall be made as if the vessels belonged to different operators; and the liability for the collision or compensation for services rendered shall be determined as between the interested parties in the hull by the sole judgment of the parties if agreed, otherwise by order of the court president in urgent matters. The same applies to a collision between the vessel and a floating body owned by the insured.

General average contributions shall be borne by the insurers in proportion to the value they insure, after deduction of any particular average that falls on them where applicable.

Insurers shall be exempt from all claims for delay in the dispatch or arrival of goods, for price differences, and for losses to the insured's commercial transactions, for whatever reason.

The insurer shall not be liable for loss and damage resulting from intentional or grossly negligent acts committed by the insured or his representatives. Any contrary agreement shall be void. The hull insurer shall not be liable for the consequences of the master's fraud and deceit if the master was selected by the vessel's operator.

Subject to what has been said regarding damage intentionally caused by the crew, and in derogation thereof, insurers shall be exempt from:

1. 1)Fraudulent and deceitful acts committed by the master, and from all incidents arising from breach of blockade, smuggling, prohibited or clandestine trade, unless the master acted without the knowledge or consent of the vessel's operator or his representative and was replaced by another who is not the second master.
2. 2)All consequences to the vessel arising from acts performed by the master or crew ashore.

Damage and losses resulting from an inherent defect in the insured property shall not be at the insurer's expense, unless the contrary is stipulated, except where the insurance is on the vessel's hull and there is a latent defect in the vessel that a diligent operator could neither have detected nor prevented.

However, such damage and loss shall be at the insurer's expense if the voyage is subject to an extraordinary delay caused by a peril covered by the insurer, provided the damage is caused by the delay itself.

The insurer shall not be liable for damage caused by the insured property to other property or persons unless the contrary is stipulated.

The risks of third-party actions brought against the vessel for its collision with another vessel, or its striking a floating body, embankments, wharves, piles, or other fixed objects, shall be borne by the insurers to the extent of nine-tenths of the adjudicated damages, up to a maximum of nine-tenths of the insured sum. The insured shall bear one-tenth of the damages and is prohibited from insuring that one-tenth; if this prohibition is violated, he shall bear two-tenths. Insurers shall be exempt from all actions brought against them by any person, for any reason, relating to the loading and undertakings of the insured vessel, and from all actions for death, injury, or any bodily harm or damage.

If the vessel is lost and the master is its owner or one of its owners, payment of his share of the insurance shall be deferred until receipt of the certificate proving the outcome of the administrative inquiry that must be conducted regarding his conduct. If the inquiry establishes that the loss is attributable to the master's fault without establishing fraud or deceit, the insurers may, having paid him a settlement payment, recover fifty per cent of the indemnity relating to the master's insured share.

If the insurance covers the vessel's hull and the period of risk is not specified in the contract, the risk under a voyage contract runs from the moment the vessel weighs anchor or sets sail and ends when it anchors or moors at the intended destination; however, if it carries cargo, the risk runs from the commencement of loading and ends as soon as discharge is complete, without exceeding fifteen days after arrival at the intended destination, unless goods are loaded at that place for another voyage before expiry of that period, in which case the risk ends immediately.

Quarantine shall be treated as part of the voyage it relates to. However, if the insured vessel is required to proceed to a quarantine station other than the intended destination, the insurer shall be entitled to an additional premium at the rate of three-quarters per cent per month, from the day of departure to the quarantine station until the day of return. The same additional premiums shall apply where a vessel is detained outside its intended port if that port is found to be blockaded, or if it is forced to deviate to another. In that event, the insurers shall none the less cover the risk during the entire period of detention and deviation, provided this extension does not exceed six months from the date of arrival outside the blockaded port; however, they shall not be liable for any additional costs arising from the detention and deviation. The insured may always set an earlier end to the risk before the six months expire. Under a continuous premium policy — a policy covering risks on both outward and return voyages — a four-month stay is allowed without additional premium from the time the vessel deviates to the first port from which it must move; if the stay extends beyond four months, the insurer shall be entitled to an additional premium of two-thirds per cent for each additional month.

If the insurance covers an outfitted vessel and the period of risk is not specified in the contract, the risk runs from when the goods leave the shore for loading and ends when they are landed at the port of destination, with the understanding that all risks incurred during direct transport by boats from shore to vessel and from vessel to shore shall be at the insurers' expense.

If the voyage is intentionally changed after the vessel's departure, the insurer shall have the right to claim compensation and shall not be liable for risks thereafter. If the change occurs before departure, the insurance shall be void and the insurer shall collect half the premium specified in the contract as a fixed indemnity.

If the vessel goes astray, the risks occurring on its correct route shall be covered, provided the insurer has the right to prove that those risks resulted from the deviation.

A change of vessel shall give rise to the nullity of the insurance contract on the vessel's hull. Likewise, insurance on the vessel shall be void if it is intentionally changed, unless the contrary is stipulated.

If the insured goods are loaded on deck, the insurers shall not be liable for the risks unless it is established maritime custom to permit such loading and no contrary agreement was made.

A vessel, within the meaning of this Law, is any craft capable of navigation, whatever its cargo and designation, whether such navigation is intended for profit or not. All appurtenances necessary for its operation are considered part of the vessel. Vessels are movable property subject to the general rules of law, subject to the special rules provided for hereinafter.

The following debts alone are privileged and their order of priority shall be determined according to their listing:

1. 1)Court fees and expenses paid for the preservation of the sale price for the benefit of general creditors; vessel tonnage dues, lighthouse and port dues, and other dues and general charges of the same nature; pilotage fees and costs of custody and maintenance from the time of the vessel's entry into its last port.
2. 2)Debts arising from the contract of employment of the master, mariners, and other crew members.
3. 3)The remuneration due for salvage and assistance and the vessel's contribution to a general average sacrifice.
4. 4)Compensation for collision and other maritime incidents, for damage caused to ports, docks, navigational channels, and for injury to passengers and mariners and for loss of or damage to cargo and luggage.
5. 5)Debts arising from contracts concluded or operations carried out by the master away from the vessel's home port in the exercise of his legal powers for a genuine need requiring the maintenance of the vessel or the completion of the voyage, whether or not the master is the owner of the vessel, and whether the debt is owed to the suppliers, repairers, lenders, or other contracting parties.
6. 6)Compensation due to the vessel's charterers.
7. 7)The total insurance premiums on the hull of the vessel, its equipment, and gear, due in respect of the last insured voyage if the insurance was contracted per voyage, or in respect of the last insured period if the insurance was contracted for a fixed term, provided that the total does not in either case exceed the premiums for one year.

Privileged creditors must be ranked by voyage. The debts of the last voyage, whatever their ranking, shall take priority over the debts of previous voyages. However, debts arising from a single employment contract of mariners shall always be treated as debts of the last voyage even if they relate to a previous voyage.

Debts relating to the same voyage shall be ranked in the order established in Article 48; debts of the same rank relating to the same voyage shall rank pari passu. All salvage remuneration and debts incurred for the supply of provisions and repairs shall be ranked in reverse order of their date of origin.

Debts relating to the same maritime incident shall be treated as having arisen at the same time.

The privileges established by the preceding Articles arise from the time the debt is incurred. They are not subject to any formality or special condition for proof.

Mortgagees whose debt is registered on the vessel shall rank in the order of their registration, immediately after the privileged creditors listed in items 1, 2, 3, 4, and 5 of Article 48.

Privileges attach to the vessel, to the freight of the voyage in which the privileged debt arose, and to the appurtenances of the vessel and freight earned since the commencement of the voyage. However, the privilege established in the second paragraph of Article 48 attaches to the total freight due for all voyages carried out during the same period of employment.

For the purposes of the application of privileges, the following are treated as appurtenances of the vessel and freight:

1. 1)Compensation due to the shipowner for material damage suffered by his vessel that has not been compensated, or for loss of freight.
2. 2)Compensation due to the shipowner for general average losses, where such losses constitute uncompensated material damage suffered by his vessel, or for loss of freight.
3. 3)Remuneration due to the shipowner for salvage or rescue operations carried out up to the end of the voyage, after deduction of the amounts allocated to the master and other crew members.

Passenger fare and the lump-sum amount in which the liability of shipowners may be limited shall be treated as freight. Compensation due to the shipowner under insurance contracts, bonuses, financial subsidies, and similar payments shall not be treated as appurtenances of the vessel and freight for the purpose of applying privileges.

All privileges listed in Article 48 shall lapse by operation of limitation after one year, except the privilege for debts arising from the supply of provisions referred to in item 5, which lapses after six months. The limitation period for the privilege of salvage and rescue remuneration runs from the day the operations end. For the privilege of compensation for collision and other incidents and for injuries, it runs from the day the damage occurred. For the privilege for loss of, or damage to, cargo or luggage, it runs from the day of delivery of the cargo or luggage, or from the date on which it should have been delivered; and for the privilege of repairs and provisions in the cases set out in item 2 of Article 48, from the day the debt arose. In all other cases, the period runs from the due date of the debt. Debts owed to crew members listed in item 2 of Article 48 shall not be considered due until the end of the voyage, regardless of the right of those persons to demand advances or payments during the voyage. The period established above shall not run in Lebanese territorial waters where a creditor's domicile or principal place of business is in Lebanon, provided the limitation period does not exceed three years from the date the debt arose.

Privileges shall also lapse, regardless of the general modes of extinguishing obligations: By judicial sale carried out in accordance with the proper procedure established in this Law, or by any voluntary sale of the vessel under the following conditions: — That the transfer be carried out in accordance with Articles 21, 24 to 27, and 33 to 35 and 37 of this Law. — That the transfer be publicised by publication in the Official Gazette of the Lebanese Republic and in two daily newspapers appearing at the vessel's port of registry, and by a notice posted on the door of the registration office, provided that in all such publications and notices the name and address of the purchaser are invariably stated. — That no objection from a creditor reaches the purchaser within one month after publication. The creditor's right of priority over the sale price shall be preserved for as long as the price has not been paid, even after expiry of that period, provided the creditor has notified the purchaser of his claim before payment by means of an objection. The objection referred to in the preceding two paragraphs must be communicated to the creditor through a notary public.

Privileged creditors may register their privilege in order to be notified of the offer of the vessel for sale in accordance with the conditions set out in Article 48 of this Law. This registration shall not affect the rank of the privilege. The registration shall be entered on the vessel's page in the register.

The preceding provisions shall apply to vessels operated by an operator who does not own them, or by a principal charterer, unless the owner's involvement arose from an unlawful act and the creditor was in bad faith.

A mariner is a person employed on board a vessel to carry out nautical activities.

If the vessel's tonnage exceeds five barrels, the employment contract between a mariner and the vessel's operator or his agent shall be subject to the following provisions: 1. The terms of the maritime employment contract shall be entered in the crew book. The mariner shall express his consent by his signature or the imprint of his thumb. The authority responsible for maritime order shall, before the vessel's departure, inspect the entries in the crew book to verify that all mariners boarding the vessel are employed under a contract. The contract terms shall be read aloud and the parties shall be interrogated to ensure that they understand and accept its content. Completion of this procedure shall be noted in the margin of the book. 2. If the employment contract is not entered in the crew book, it may be proved by all means.

The employment contract shall state: — Whether it is concluded for a fixed period, an indefinite period, or a complete voyage. — The mariner's service or function. — The date on which service or duties are to commence. — The method of calculating the agreed remuneration. — The amount of the fixed pay or the basis for determining the share of profits. — The date and place of conclusion of the contract. The contract shall not be valid unless the mariner is free from any other employment.

The judge shall apply local custom or general custom in all matters not addressed by the agreement or the law.

If the chartered vessel is named in the agreement, the charterer may not substitute another vessel for it unless it is lost or becomes incapable of navigation by reason of force majeure occurring after the commencement of the voyage.

If the master finds goods on the vessel that have not been declared, he may order them to be landed at the nearest convenient place or charge double freight, while preserving his right to claim further damages if any. If those goods are discovered during the voyage, the master may throw into the sea goods stowed without permission if their nature could cause damage to the vessel or the rest of the cargo, or if their carriage would result in costs exceeding their value, or in government fines, or if their sale and export are prohibited by law. In all cases the master must record in the logbook the discovery of undeclared goods and the course taken, and draw up a detailed note in that regard.

If a collision occurs between seagoing vessels or between seagoing vessels and inland navigation vessels, compensation for damage caused to the vessels, their cargo, and the persons and property on board shall be paid in accordance with the following provisions; the waters in which the collision occurs shall be disregarded.

If the collision is accidental, or if it is caused by force majeure, or if it is in doubt as to its causes, the damage shall be borne by those who suffer it. This provision shall remain in force if the vessels or any of them are at anchor at the time of the collision.

If the collision is caused by the fault of one of the vessels, compensation for damage shall be payable by the party at fault.

If the fault is shared, the liability of each vessel shall be proportionate to the gravity of the fault committed; however, if it is impossible to establish the respective proportions, or if the faults appear to be equal, the liability shall be divided equally. Damage suffered by vessels, their cargoes, passengers' and crew's luggage and other property, and other persons on board shall be borne by the vessels at fault in the proportions stated, without joint and several liability as against third parties. The vessels at fault shall be jointly and severally liable to third parties for damage arising from death or injury, subject to the right of the vessel that pays a share exceeding its final share under the first paragraph of this Article to recover from the other.

If a collision occurs and the fault is that of a pilot, liability shall be established as provided in the preceding articles, even where the pilot's presence is compulsory.

The preceding provisions shall apply even without a collision to compensation for damage caused by one vessel to another or to persons or property on board, through the execution of a manoeuvre, through failure to execute a manoeuvre, or through non-observance of regulations.

The master of every vessel involved in a collision must render assistance to the other vessel, its crew, and passengers to the extent possible without serious risk to his own vessel, crew, and passengers.

The master must also, to the extent possible, notify the other vessel of his vessel's name, home port, and the port from which it came and the port to which it is bound. The shipowner shall not be held liable merely for violation of the preceding provisions.

The provisions of this Part shall not apply to warships and State vessels assigned to an official service.

Actions for compensation for damage arising from collision shall not be subject to protest or any other procedure, and no special presumption of fault relating to collision liability shall arise.

In the event of a collision, the claimant may bring the action before the court of the defendant or before the court of the home port of the colliding vessel. The court with jurisdiction over the first Lebanese port entered by either of the vessels after the collision shall have jurisdiction to conduct all investigations or technical surveys. For collisions in Lebanese territorial waters, jurisdiction shall vest in the court of the place of the collision.

The right to bring any action for compensation for damage arising from collision shall lapse by operation of limitation upon expiry of two years from the date of the incident. However, the right of action referred to in the third paragraph of Article 236 shall lapse by operation of limitation after one year from the date of payment.

Marine insurance is a contract by which the insurer undertakes to indemnify the insured against loss suffered in the course of a maritime voyage, resulting from the total loss of a specific value, in exchange for payment of a premium, provided such indemnity does not exceed the value of the lost property.

All provisions of this Part that are not expressly stated to be mandatory regardless of any contrary agreement, or whose non-observance gives rise to nullity, are merely interpretative of the contracting parties' intent and may be departed from by express provision.

The insurance contract shall be drawn up in writing in two original counterparts. It shall state: — Date of the insurance contract and whether it is a contract before or after noon. — Name of the assured, whether on his own behalf or on behalf of another, and his place of residence. — Risks assumed by the insurer and the duration and limits thereof. — The insured amount. — The premium or consideration for insurance. It shall be signed by the insurer and the assured, or by the insurance broker on behalf of the assured. It may be drawn up to a named person, to order, or to bearer. Either party may obtain a true copy of the insurance policy.

Insurers may only be summoned before the court of the place where the contract was signed. However, if the policy was signed at an agent's office, the assured may also sue before the court of the insurer's domicile. If it was signed in one place by more than half the insured value, the assured may summon all the other insurers before the court of that place, which shall have jurisdiction once a decision has been made on the same action against them.

Any concealment of information or false declaration by the assured at or after the conclusion of the contract, or any discrepancy between the insurance contract and the actual risk, whose effect would be to diminish the insurer's assessment of the risk, shall render the insurance void, even in the absence of fraud. The insurance shall likewise be void even where the concealment, discrepancy, or false declaration has no effect on the damage or the loss of the insured property. The insurer shall retain the full premium if the assured acted fraudulently, and half the premium in the absence of fraud.

The assured must notify the insurer, under penalty of the same sanction, of events subsequent to the contract that may affect the insurer's assessment of the risk.

The insurer has the right to raise against a holder of the insurance policy — even if drawn up to order or to bearer — the defences relating thereto that he could have raised against the original assured, as if the transfer had not taken place.

The insurance contract may always be rescinded at the option of the assured as long as the risk has not commenced. An assured who is unable to prove force majeure shall pay the insurer a fixed indemnity of half the premium specified in the contract.