Section 8. ARREST OF SEAGOING VESSELS

Article 40.-Arrest of seagoing vessels
1. The arrest of a seagoing vessel is an act of banning or restricting the movement of a seagoing vessel by decisions of a court to secure the settlement of maritime claims specified in Article 41 of this Code, but excluding the seizure of the seagoing vessel in execution of a court judgment or decision or an enforcement decision of a competent state agency.
2. The procedures for arrest of seagoing vessels shall comply with regulations of the National Assembly Standing Committee.

Article 41.- Maritime claims giving rise to the right to arrest seagoing vessels
Maritime claims giving rise to the right to arrest seagoing vessels are claims in the following cases:
1. Cases specified in Article 37 of this Code;
2. Damage caused by or threatened to be caused by a seagoing vessel to the environment, coast or related interests; measures taken to avert, limit or remedy such damage; money indemnity for such damage; expenses for reasonable measures actually taken or to be taken to rehabilitate the environment; loss already inflicted or to be inflicted on a third party affected by such damage; damage, expenses or loss similar to those specified in this Clause;
3. Expenses incurred in the raising, movement, recovery, destruction or rendering harmless of a seagoing vessel which is sunk, wrecked, stranded or abandoned, including any appurtenance that is or has been on board the vessel, expenses or costs related to the abandoned seagoing vessel and expenses for its crew.
4. Agreement relating to the use or charter of a seagoing vessel, whether by charterparty or otherwise;
5. Agreement relating to the carriage of cargo or passengers on board a seagoing vessel, whether by charterparty or otherwise;
6. Loss of or damage to cargo, including luggage carried on board a seagoing vessel;
7. General average;
8. Towage;
9. Pilotage;
10. Goods, materials, food, fuel, equipment (including containers) supplied or services provided to a seagoing vessel for its operation, management, preservation and maintenance;
11. Building , transformation, reconstruction, repair or equipment of a seagoing vessel;
12. Payments made on behalf of the shipowner;
13. Insurance premiums paid by the shipowner or a person on behalf of the shipowner or bareboat charterer;
14. Commision, brokerage or agent’s expenses relating to a seagoing vessel which must be paid by its owner, bareboat charterer or an authorized person;
15. Disputes over ownership of a seagoing vessel;
16. Disputes between co-owners of a seagoing vessel over the use of the seagoing vessel or earnings of the vessel;
17. Mortgages of a seagoing vessel;
18. Disputes arising from contracts for purchase and sale of seagoing vessels.

Article 42.- Exercise of the right to arrest seagoing vessels
1. After receiving the request for arrest of a seagoing vessel made by a person who files a maritime claim specified in Article 41 of this Code, a competent court shall consider and decide on the arrest of the seagoing vessel in the following cases:
a. The shipowner is the person responsible for the maritime claim at the time of arising of the maritime claim and still owns the vessel at the time of its arrest;
b. The bareboat charterer is the person responsible for the maritime claim at the time of arising of the maritime claim and still the bareboat charterer or the owner of the vessel at the time of its arrest;
c. This maritime claim is based on the mortgage of the seagoing vessel concerned;
d. This maritime claim is related to the right to ownership or possession of the seagoing vessel concerned;
e. This maritime claim is secured by a maritime lien relating to the seagoing vessel concerned.
2. The arrest shall be also effected of another or many other seagoing vessels owned by the person who is held responsible for the maritime claim and, at the time of arising of the maritime claim, is also:
a. The owner of the seagoing vessel related to the arising maritime claim;
b. The bareboat charterer, time charterer or voyage charterer of the seagoing vessel related to the arising maritime claim.
3. The provisions of Clause 2 of this Article shall not apply to maritime claims relating to the right to ownership of seagoing vessels.

Article 43.-Financial assurances for requests for arrest of seagoing vessels
1. In order to effect the arrest of a seagoing vessel, the requester for such arrest must provide financial assurances in the form and value set by the court corresponding to the damage that might occur from the request.
2. The requester for arrest of a seagoing vessel shall be responsible for any loss or damage caused by the wrong request.

Article 44.-Release of arrested seagoing vessels
1. Immediately after the shipwoner, charterer or operator of a seagoing vessel has taken substitute security measures of fully paid the deblt, the arrested seagoing vessel must be released.
2. Failing an agreement between the involved parties on the level and form of substitute security, the court shall decide on the level and form of substitute security which, however, must not exceed the value of the arrested seagoing vessel. The requester for the arrest of a seagoing vessel must not perform any action that infringes upon the property or other interests of the shipowner, charterer or operator.
3. The arrested seagoing vessel may be released at the request of the requester for the arrest; in this case, all related expenses shall be incurred by the requester.