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SALVAGE GUARANTEE FORM I.S.U.2
To:
Dear Sirs,
"..........................................." Salvage
Lloyd's Standard Form of Salvage Agreement dated .........................................("the LOF")
- In consideration of your not causing delay to the "........................................" at the port or ports of
.................................................................... by the detention or arrest of the cargo and/or other salved
property described in paragraph 5 ("the Unsecured Property") for the purpose of obtaining security
from the Unsecured Property in connection with your claim for salvage remuneration in respect of
salvage services rendered pursuant to the LOF in accordance with the requirements of Clause 4.5 of the
Lloyd?s Standard Salvage and Arbitration Clauses (the "LSSA Clauses") we hereby undertake to pay to
you on demand any sum or sums together with interest and costs which may either be agreed between
you and the owners of the Unsecured Property or which may be awarded to you in respect thereof by an
arbitrator or appeal arbitrator appointed by the Council of Lloyd's under the LOF provided always that:-
-
you will continue your efforts to obtain from the owners of the Unsecured Property security in
accordance with your requirements such efforts to comprise:-
- notifying your security requirements to the Council of Lloyd's in accordance with Clause 4.1 of the LSSA Clauses
- liaising with the owners and/or charterers of the vessel to ensure that none of the Unsecured Property is released to its owners until security has been provided to you in respect of it in accordance with Clause 4.5 of the LSSA Clauses;
- if so requested by the owners and/or charterers of the vessel taking such action as
may be possible to enforce your maritime lien (the right to which is not to be affected
by this agreement) against the Unsecured Property at the port or ports where it is
discharged
- our liability hereunder inclusive of any liability for interest and/or costs shall not exceed the
sum of .................................................................and we shall cease to have any liability
in respect of Unsecured Property when security has been provided in respect of it in
accordance with your requirement.
- In the event of an amicable settlement of your claim under the LOF being reached, and in the absence
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of any agreement as to date of payment and interest accruing thereafter, it is agreed that payment of the
settlement monies will be effected within 28 calendar days after the date of such settlement and, in the
event of non-payment within that period, we undertake to pay, in addition to the principal sum, interest
thereon at the rate of........................percent per annum from and including the day after the due date for
payment specified above until and including the date upon which payment is received and credited for
value to your account with ................................. Bank, at ................
- Any monies paid by the undersigned hereunder shall be deemed to have been paid by the undersigned
as surety for the party or parties hereby guaranteed, provided that, notwithstanding anything
hereinbefore contained, the liability of the undersigned as between the undersigned on the one hand and
you on the other hand shall be that of a principal debtor; and the undersigned shall not be released by
time being given or other indulgence shown to the party or parties hereby guaranteed or by any other
act, matter or thing whereby the undersigned, if liable as a surety only, would or might have been
released.
- This undertaking shall be governed by and construed in accordance with English law and we undertake,
when called upon to do so, to give irrevocable instructions to English solicitors to accept service of
proceedings issued by you against us in relation to this undertaking.
- This undertaking is given in respect of ..................................................................................................
Signed this [ ] day of [ ] 20[ ]
By..............................................................
Authorised signatory of...............................................................
SEE OVER FOR NOTES ON COMPLETION OF THIS GUARANTEE FORM
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GUIDANCE NOTES ON THE COMPLETION
OF SALVAGE GUARANTEE I.S.U. 2
- The guarantee should be addressed to the contractors named in the LOF.
- Paragraph 1
Insert the name of the salved vessel, e.g. m.v "......................................................."
Insert the date of the LOF.
The guarantee is designed for a single guarantor. If there are two or more
guarantors amends the 6th line
to read "we hereby jointly and severally undertake to pay you on demand
…………………………."
- Paragraph 1 (b)
Insert the amount of the guarantee in words and figures.
- Paragraph 2
Insert the appropriate rate of interest.
At the end of this paragraph insert the name of the company or firm, or the
bank and account no to
whom the contractors wish payment to be made. If unknown amend to read "for
value to an account to
be specified by you".
-
- Insert details of the salved cargo and/or other salved property on
whose behalf the Guarantee is
given, e,g.
the bunkers aboard m.v. "............................................";
or
the cargo aboard m.v. "...............................................";
or
the cargo aboard m.v. "...................................",
carried under Bills of Lading, New York to
London Nos. 1, 4, 8, 9.
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