Section 3. BAREBOAT CHARTER

Article 152.- Bareboat charterparties
1. A bareboat charterparty is a charterparty whereby a shipowner supplies a specific vessel together without crew to a charterer.
2. A time charterparty contains the following details:
a. The name of the shipowner, the name of the charterer;
b. The name, nationality, class, tonnage and engine capacity of the vessel;
c. The operation area of the vessel, employment purpose and term of the charterparty;
d. The time, place of and conditions on the delivery and redelivery of the vessel;
e. Inspection, maintenance and repair of the vessel;
f. The charter hire, mode of payment;
g. Insurance of the vessel;
h. Time and conditions for termination of the charterparty;
i. Other related contents.

Article 153.- Obligations of shipowners under bareboat charter
1. The shipowner must perform with due diligence his/her obligations to deliver a seaworthy vessel together with its documents to the bareboat charterer at the place and time agreed upon in the charterparty.
2. During the term of a charterparty, without the charterer’s written consent, the shipowner shall not be allowed to mortgage the vessel; where the shipowner acts against this provision, he/she must compensate for the damage caused to the charterer.
3. Where the vessel is arrested on account of disputes over the ownership of the vessel or the shipowner’s debts, the shipowner must secure that the interests of the charterer not be affected and must compensate for the damage caused to the charterer.

Article 154.- Obligations of charterers under bareboat charter
1. The charterer shall be obliged to carry out the maintenance of the vessel and equipment on board during the currency of the bareboat charter.
2. The charterer shall be obliged to repair breakdowns of the vessel and to keep the shipowner informed thereof. The shipowner shall have to refund the repair costs occurred beyond the scope of the charterer’s liability.
3. During the currency of the bareboat charter, the charterer shall bear the costs of insurance for the vessel with the value and mode as agreed upon in the charterparty.
4. During the currency of the bareboat charter, if the employment and operation of the vessel by the charterer causes damage to the shipowner, he/she shall be obliged to remedy or compensate for such damage.

Article 155.- Obligation to redeliver vessels, employment of vessels beyond the term of the charter, and termination of bareboat charterparties.
The obligation to redeliver vessels, employment of vessels beyond the term of the charter, and termination of bareboat charterparties shall comply with the provisions of Clause 3 of Article 146, Article 149 and Article 151 of this Code.

Article 156.- Payment of hires under bareboat charter
The bareboat charterer shall have to pay the hire as agreed upon in the charterparty. Where the vessel suffers from total loss or is missing, the payment of the hire shall terminate from the time the vessel suffers from total loss or the date of receipt of the last information on the vessel. Part of the hire paid in advance must be refunded corresponding to the time the vessel is not employed.

Article 157.- Hire-purchase of vessels
Where there is a term on the hire-purchase of the vessel in the bareboat charterparty, the ownership of the vessel under the bareboat charterparty shall be transferred to the charterer as agreed upon in the contract.