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SALVAGE GUARANTEE FORM ISU 4
Article 14 Special Compensation
To:
Dear Sirs,
".......................................................................................”
Salvage
Standard Form of Salvage Agreement dated........................................................
("the LOF")
- In consideration of, and upon condition that, you refrain from arresting
or otherwise detaining the
“........................................ “ or any other ship
or property in the same beneficial or associated ownership or
management, and that you refrain from calling for the completion of security
by means of a guarantee in the form
prescribed by the Council of Lloyds in connection with your claim for Art.
14 Special Compensation for services
rendered to the “.................................. “ under the
terms of the LOF we hereby undertake to pay to you on demand
any Special Compensation together with interest and costs in relation thereto,
which may be due to you whether by
final unappealable award or judgement or by written agreement between you,
the undersigned and the owners of
the m.v. "…………………….”
- In the event of an amicable settlement of your Article 14 claim being reached,
and in the absence of any
agreement as to date of payment and interest accruing thereafter, it is hereby
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 ............. per
cent 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
……………………………………
- 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.
- Provided always that our liability hereunder shall not in any circumstances
exceed the sum of ..........................
inclusive of interest and costs.
Signed this [ ] day of [ ] 20[ ]
SEE OVER FOR NOTES ON COMPLETION OF THIS GUARANTEE FORM
19.03.96
12.06.01
By ………………………………………………..
Authorised signatory of ………………………….
GUIDANCE NOTES ON THE COMPLETION
OF Article 14 SPECIAL COMPENSATION GUARANTEE ISU 4
N.B. The wording of this undertaking was agreed with the
International Group of P&I Clubs
for use in Article 14 special compensation cases in accordance with the term
of “Understanding between
the International Group of P&I Clubs and the ISU”
- The guarantee should be addressed to the contractors named in the LOF
- Paragraph 1:
- Insert name of vessel
- Insert the date of the LOF
- The guarantee is designed for a single guarantor. If there are two
guarantors amend the 5th line to read
"...........we hereby jointly and severally undertake to pay you
..................”
- Paragraph 2:
- Insert the appropriate rate of interest.
- At end of this paragraph insert the name of the company or firm, or
the bank and account no. to whom
the contractor wish payment to be made. If unknown amend to read "……………………………….
for
value to an account to be specified by you".
- Paragraph 5:
Insert the currency and amount in words and numbers of the limit of liability
of the guarantee.
19.03.96
12.06.01
