Dutch Civil Code

Book 8 Transport law and means of transport

II  MARITIME LAW

Title 8.3 Seagoing ships and things on board thereof

Section 8.3.1 Shipowners Society regarding a seagoing ship

Article 8:160 Shipowners Society
- 1. If a seagoing ship, according to the public registers meant in Section 2 of Title 1 of Book 3 of the Civil Code, is owned by two or more persons jointly, then there shall exist a Shipowners Society between them. When the owners of the ship act under a joint name, there shall only exist a Shipowners Society if such has been expressly agreed upon by deed and this deed has been registered in the before meant public registers.
- 2. A Shipowners Society is not a legal person.

Article 8:161 Membership of a Shipowners Society
By operation of law, each co-owner is a member of the Shipowners Society. When a member stops being a co-owner, his membership shall end by operation of law.

Article 8:162 Reasonableness and fairness
The members of a Shipowners Society must behave towards one another in agreement with what is required pursuant to standards of reasonableness and fairness.

Article 8:163 Administrator
An administrator may be appointed for each Shipowners Society. A Corporation ('naamloze of besloten vennootschap’) may be appointed as administrator.

Article 8:164 Powers of the administrator
Only with the consent of the members of the Shipowners Society, the administrator may proceed to any extraordinary repairs of the ship or to the appointment or dismissal of a captain.

Article 8:165 Administrator’s accountability
Each member of the Shipowners Society may request the administrator to provide information and to disclose the state of affairs of the Shipowners Society, and also to disclose for inspection all books, letters and documents regarding his administration.

Article 8:166 Rendering account; distribution of payments
As often as this is required according to a possibly existing practice (usance), but in any event each time after expiration of one year and at the end of his administration, the administrator must, within six months, render account for his administration to the members of the Shipowners Society, under submission of all proof regarding that administration. The administrator is obliged to distribute to each of the members what is due to him.

Article 8:167 Recording and closing of the rendered accounts
Each member of the Shipowners Society is obliged to record and close the accounts rendered by the administrator within three months.

Article 8:168 Approval of the accounts rendered; binding effect
Where the majority of the members of the Shipowners Society has approved the accounts rendered, such approval shall only bind those who have participated in the rendering of accounts, except that it shall also bind a member who has not participated in the rendering of accounts if that member has not contested the rendered accounts in court within one year after he could have obtained knowledge thereof and after the approval of the majority of the members has been notified to him in writing.

Article 8:169 Ending of the position of the administrator
The position of the administrator ends when a provisional legal administrator has been appointed on his behalf, when he is placed under adult guardianship, when he is placed in a mental institution on account of insanity, when he is declared bankrupt or when the Debt Repayment Scheme for Natural Persons has been declared applicable to him.

Article 8:170 Forced take over (buy up) of the share of the administrator
- 1. Where the administrator is also a member of the Shipowners Society and the other members have caused the ending of his position or they have given him an urgent reason on the basis of which he has caused the ending of his position himself, the administrator has the right to demand that the other members of the Shipowners Society take over his share [in the ship] against payment of a price to be fixed by experts in accordance with the value of that share at the moment on which the administrator demands the taking over thereof. The administrator does not have such right if he has given an urgent reason to the members of the Shipowners Society on the basis of which they have caused the ending of his position.
- 2. If the administrator wishes to exercise the right meant in the previous paragraph, he must notify the members of the Shipowners Society thereof within one month after his position has ended. If his whish has not been executed within one month [after that notification] or if the price fixed for his share has not been paid to him within two weeks after his share was taken over (transferred), the court may order, upon the request of the administrator made within two months, that the ship is to be sold. The court shall determine the way in which such sale has to take place.
- 3. Each person who is obliged to take over the share, shall acquire a part therein in proportion to his share in the ship.

Article 8:171 Decision making within the Shipowners Society
- 1. All resolutions concerning the affairs of the Shipowners Society are passed by a majority of votes of the members of the Shipowners Society.
- 2. The smallest share carries one vote; each larger share carries as many votes as the number of times that the smallest share is enclosed therein.
- 3. Unanimity is required for resolutions on:
a. the appointment of an administrator who is not a member of the Shipowners Society;
b. the extension of powers of the administrator beyond the limits drawn by Article 8:178, paragraph 1;
c. the conclusion, for more than six months, of a bareboat charter, a time charter or a contract as mentioned in Article 8:531 or Article 8:991;
d. the dissolution of the Shipowners Society during the course of a contract of carriage or a contract under which the ship has been placed at the disposal of someone else, or during a voyage for catching fish.

Article 8:172 Offshore fishing ship
Article 8:171, paragraph 3, under (a), does not apply to a Shipowners Society regarding an offshore fishing ship.

Article 8:173 Order of the court to sell the ship
If the exploitation (commercial utilization) of the ship is prevented as a result of an equality of votes, the court may order, upon the request of a member of the Shipowners Society made within two months, that the ship it to be sold. The court shall determine the way in which such sale has to take place.

Article 8:174 Protection of the minority in case of important resolutions
- 1. If a resolution has been passed on any extraordinary repairs of the ship, on the appointment or dismissal of the captain, or on entering into a contract of carriage under which the ship has been placed at the disposal of someone else, then any member of the Shipowners Society who has not participated in that resolution or who has voted against it, may claim that those who have voted in favour of that resolution, take over his share against payment of a price to be fixed by experts in accordance with the value of his share at the moment on which he demands the taking over thereof. If such member wishes to exercise the right meant in the previous sentence, he must, within one month after the resolution has been brought to his knowledge, give notice of his whish to the administrator or, if such administrator is absent, to those who have voted in favour of the resolution. If his whish has not been executed within one month [after that notification] or if the price fixed for his share has not been paid to him within two weeks after his share has been taken over (transferred), the court may order, upon a request made of the involved member made within two months, that the ship is to be sold. The court shall determine the way in which such sale has to take place.
- 2. Each person who is obliged to take over the share, shall acquire a part therein in proportion to his share in the ship.

Article 8:175 [repealed on 19-07-2006]

Article 8:176 Internal contribution duty
The members of the Shipowners Society must contribute, each in proportion to their share, to the expenditures of the Shipowners Society that have been made rightfully.

Article 8:177 Sharing of profits and losses
The members of the Shipowners Society shall share in the profits and losses in proportion to their share in the ship.

Article 8:178 Representation of the Shipowners Society
- 1. Where an administrator has been appointed for the Shipowners Society, he has the power to act with third persons on behalf of the Shipowners Society and to represent it in respect of everything that is required for the normal exploitation (commercial utilization) of the ship, all without prejudice to Article 8:360, paragraph 1, and with exclusion of any member of the Shipowners Society.
- 2. If the Shipowners Society is registered in the commercial register, then possibly existing limitations of the power (authority) of the administrator cannot be invoked against third persons who were not aware of them, unless those limitations appear from that commercial register. Where the Shipowners Society is not registered in the commercial register, possible limitations of the power of the administrator cannot be invoked against third persons unless they were aware of them.
- 3. The administrator is obliged to comply with all obligations that the law has imposed on the shipowners.

Article 8:179 Protection of third persons in regard of the appointment and dismissal of the administrator
If the Shipowners Society is registered in the commercial register, then the appointment of an administrator or the ending of his position cannot be invoked against third persons who were unaware of this fact as long as no registration thereof has taken place in the commercial register. If the Shipowners Society is not registered in the commercial register, then the appointment of an administrator or the ending of his position cannot be invoked against third persons, unless they were aware of this fact.

Article 8:180 Power of representation in the event of absence or inability of the administrator
- 1. If there is no administrator and also in the event of his absence or inability, one or more of the members may represent and act on behalf of the Shipowners Society, provided that they own, either solely or jointly, more than one half of the ship.
- 2. In the events mentioned in paragraph 1, acts which cannot suffer any delay may be performed independently, if so required, by each member, and each member is authorized to interrupt the expiration of a prescription period on behalf of the Shipowners Society.

Article 8:181 Liability of the members
The members of the Shipowners Society are liable for its obligations, each in proportion to his share in the ship.

Article 8:182 Continued existence of the Shipowners Society in case of death or bankruptcy of one of its members
The Shipowners Society shall not dissolve when one of its members dies or goes bankrupt, is placed under adult guardianship, is placed in a mental institution on account of insanity, nor when the Debt Repayment Scheme for Natural Persons has been declared applicable to such member.

Article 8:183 No termination of membership
The membership of a Shipowners Society cannot be terminated; a member’s membership can neither be declared expired.

Article 8:184 Dissolution and sale of the ship
In the event of a resolution to dissolve the Shipowners Society, the ship has to be sold. If the ship has not yet been sold two months after such resolution, the court may order, upon a request made within two months by a member of the Shipowners Society, to proceed to such sale. The court shall determine the way in which the ship has to be sold. A resolution to sell the ship, or a court order to sell the ship rendered pursuant to Article 8:170, 8:173 or 8:174, is equated with a resolution to dissolve the Shipowners Society.

Article 8:185 Liquidation (winding-up)
- 1. After its dissolution, the Shipowners Society continues to exist insofar as this is necessary for the winding-up (liquidation) of the property involved.
- 2. The administrator, if any present, is charged with the winding-up (liquidation).

Article 8:186 Mandatory law
Any stipulation (clause) in derogation from Article 8:161 up to and including 8:163, 8:169, 8:170, paragraph 1 or 2, 8:178, paragraph 3, 8:180, 8:182

[Articles 8:187 - 8:188 reserved for future legislation]

Section 8.3.2 Rights in seagoing ships

Article 8:190 Definition of ‘seagoing ship’
- 1. In Sections 8.3.2 up to and including 8.3.5 the word ‘ships’ is deemed to include ships under construction. By 'shipowner' is understood as well the owner of a ship under construction.
- 2. If a ship under construction has become a ship within the meaning of Article 8:1, then no new ship has come into existence as a result.

Article 8:191 Definition of ‘public registers’
‘Public registers’ shall mean in the present Section (Section 8.3.2): the public registers referred to in Section 2 of Title 1 of Book 3 of the Civil Code.

Article 8:192 Persons and entities subject to the obligations imposed by the present Section
Where the ship belongs to more persons, to a commercial (general) partnership, to a limited partnership or to a legal person, the obligations imposed by the present Section (Section 8.3.2) upon the shipowner shall rest also with each co-owner, managing partner or director.

Article 8:193 [repealed on 01-09-2005]

Article 8:194 Registration of titles and interests in seagoing ships
- 1. A title or interest in a seagoing ship can be registered only:
- where it concerns a seagoing ship under construction: if it is under construction and made within the Netherlands;
- where it concerns a completed (phased) seagoing ship: if it is a Dutch ship within the meaning of Article 311 of the Commercial Code;
- or where it concerns an offshore fishing ship: if it is registered in a register kept under Article 3 of the Fisheries Act 1963 ('Visserijwet 1963').
- 2. It is not possible to register a seagoing ship that is already registered in a public register, either as a seagoing ship or as an inland navigation vessel, or in any similar foreign register.
- 3. In derogation from paragraph 2, it is possible to register a seagoing ship that is already registered in a foreign register when that ship, after its registration in that register has been deleted, shall be a Dutch ship within the meaning of Article 311 of the Commercial Code, or when that ship is registered as offshore fishing ship in a register kept under Article 3 of the Fisheries Act 1963 ('Visserijwet 1963'). Such registration, however, shall have legal effect only when it has been followed within 30 days by an annotation in the public registers, indicating that the registration in the foreign register has been deleted, or when, in the case that the keeper of that foreign register refuses to delete the registration in spite of a request to do so addressed to him, an annotation has been made in the Dutch registers of such request and of the fact that it has not been carried out.
- 4. The owner of the seagoing ship shall request for a registration. In doing so, he must submit for registration a statement, signed by him, specifying that to his best knowledge the seagoing ship is suitable to be registered. Where it concerns a request for the registration of a seagoing ship under construction, this statement shall be accompanied by proof that the ship is made and under construction in the Netherlands. Where it concerns a request for the registration of a seagoing ship, not being a seagoing ship under construction or an offshore fishing ship, this statement shall be accompanied by a declaration issued by or on behalf of the Minister of Infrastructure and Environment as referred to in Article 311a, first paragraph, of the Commercial Code. Where it concerns a request for the registration of an offshore fishing ship, this statement shall be accompanied by proof that the ship is registered in a register kept in accordance with Article 3 of the Fisheries Act 1963 ('Visserijwet 1963').
- 5. Where the requirements of the previous paragraphs of the present Article are not met, a registration in the public register shall have no legal effect.
- 6. When making a request for a registration, the applicant shall elect a domicile [give an address for service of process] within the Netherlands. This domicile is to be mentioned in the request for registration and may be replaced by a different domicile located in the Netherlands.

Article 8:195 Deletion from the public register
- 1. A registration shall be deleted only:
a. upon the request of the person who is listed in the public registers as the owner of the seagoing ship;
b. upon the declaration of the owner or ex officio:
1 °. when the ship was lost, destroyed or has become permanently unfit to float;
2 °. when no tidings have been received from the ship for six months after its last departure or after the day to which the last received message relates, and this is not imputable to a general failure in communication;
3 °. when the ship was taken by robbers or enemies;
4 °. when the ship, if it would not be registered in the public registers, would be an inland navigation vessel within the meaning of Article 8:3 or Article 8:780;
5 °. when the ship does not or no longer have the status of Dutch ship or when it is not or no longer registered in a register kept under Article 3 of the Fisheries Act 1963 ('Visserijwet 1963'). A deletion ex officio on account of the loss of the status of Dutch ship shall only take place after receipt of a notice of the withdrawal of a declaration as meant in Article 311a, first paragraph, of the Commercial Code. When the ship has lost the status of Dutch ship as a result of an allocation after a sale in execution (foreclosure) outside the Netherlands, or when the registration of the ship in a register kept under Article 3 of the Fisheries Act 1963 ('Visserijwet 1963') has been deleted, a deletion shall only take place when either the owner, the person whose right (title or interest) shows from a registration or the seizors have had the opportunity to realize their rights from the proceeds and have been given the actual opportunity to do so, or when these persons have given their consent to the deletion or their debt-claims have been satisfied in full.
- 2. In the situations mentioned in paragraph 1, under (b), the owner of the seagoing ship has to make the declaration within three months after the reason for deletion occurred.
- 3. When there are registrations or provisional entries in respect of the seagoing ship on behalf of third persons, a deletion shall only take place if none of these third persons opposes to such deletion.
- 4. A deletion can be made only with authorisation of the court granted upon the request of either party.

Article 8:196 Registration in a foreign register
- 1. As long as the registration has not been deleted from the registers, a registration of a seagoing ship in a foreign register or the creation abroad of rights (titles or interests) on (in) the ship, for which creation in the Netherlands a registration in the public registers would have been required, shall have no legal effect.
- 2. In derogation from paragraph 1, a registration or creation of rights (titles or interests) as referred to in that paragraph shall be recognized when it took place under the condition of deletion of the registration in the Dutch registers after the registration of the ship in the foreign register.

Article 8:197 Real property rights in registered seagoing ships
The only real property rights of which a registered seagoing ship may be the object, are the right of ownership, a mortgage, a usufruct and the privileges mentioned in Articles 8:211 and 8:217, paragraph 1, under (b).

Article 8:198 [repealed on 01-01-1992]

Article 8:199 Registered property
- 1. A seagoing ship registered in the public registers is considered as registered property.
- 2. In applying Article 301 of Book 3 of the Civil Code in respect of deeds (instruments) that are drawn up on the basis of Article 89, paragraph 1 and 3, of Book 3 of the Civil Code in order to transfer (deliver) such ship, the judicial decision of a Dutch court referred to in the first mentioned Article cannot be registered as long as it has not become final and binding (res judicata).

Article 8:200 [repealed on 01-01-1992]

Article 8:201 Acquisitive prescription
A bona fide possessor (possessor acting in good faith) shall acquire the right of ownership of a registered seagoing ship or, where this is applicable, a mortgage or usufruct thereon after a continuous uninterrupted possession of five year.

Article 8:202 Mortgage on a specified seagoing ship
Without prejudice to Article 260, paragraph 1, of Book 3 of the Civil Code, the notarial deed (instrument) drawn up for the purpose of establishing a mortgage on a registered seagoing ship or an a right with which such ship is encumbered shall specify clearly which seagoing ship is subject to the mortgage.

Article 8:203 Things covered by a mortgage
Except in the event of derogating stipulations (clauses) that appear from the public registers, the mortgage shall cover all things that on account of their intended use are continuously attached to the ship and that belong to the owner of the ship. Article 266 of Book 3 of the Civil Code is not applicable.

Article 8:204 Ranking order of the mortgage
A debt-claim secured by mortgage is ranked after and behind the debt-claims mentioned in Articles 8:210, 8:211, 8:221, 8:222, paragraph 1, 2:831 and 8:832, paragraph 1, but before and above all other debt-claims to which a privilege is attached pursuant to this Code or any other legislation.

Article 8:205 Mortgage to secure a debt-claim on interest
If the secured debt-claim bears interest, the mortgage shall serve also as security (collateral) for the interest on the principal sum as far as this interest has fallen due (has accrued) during the three years prior to the recovery and foreclosure (execution proceedings) or during the period of recovery and foreclosure. Article 263 of Book 3 of the Civil Code is not applicable.

Article 8:206 Mortgage on a share in a registered seagoing ship
Article 177 of Book 3 of the Civil Code does not apply to a mortgage on a share in a registered seagoing ship; the mortgage remains existing (and in force) after a transfer, alienation or apportionment of the ship.

Article 8:207 Applicability and inapplicability of certain statutory provisions on chartering
- 1. Where a mortgage is taken on a registered seagoing ship, the first two paragraphs of Article 264 of Book 3 of the Civil Code shall apply also to chartering (charter agreements).
- 2. Articles 234 and 261 of Book 3 of the Civil Code do not apply to such mortgage.

Article 8:208 Usufruct on a registered seagoing ship
In case of a usufruct on a registered seagoing ship, the provisions of Article 217 of Book 3 of the Civil Code apply also to chartering, as far as these provisions, to their nature, do not apply exclusively to farm leases, leases of business premises or leases of residential spaces.

[Article 8:209 reserved for future legislation]

Section 8.3.3 Privileges on seagoing ships

Article 8:210 Recovery by foreclosure (sale in execution)
- 1. In the event of a recovery by foreclosure (sale in execution) of a seagoing ship, the costs of foreclosure, the costs of guarding the ship during the foreclosure proceedings or the sale, and the costs of the judicial ranking and distribution of proceeds amongst the creditors, are paid from the sale proceeds prior to and above all other debt-claims to which a privilege is attached pursuant to this Code or any other legislation.
- 2. In case of the sale of a grounded (stranded), dismantled or sunken seagoing ship, which the government has raised (cleared) in the public interest, the costs of raising the wreck (wreck removal) are paid from the sale proceeds prior to and above all other debt-claims to which a privilege is attached pursuant to this Code or any other legislation.
- 3. The debt-claims meant in the previous paragraphs are ranked equally and are settled proportionally.

Article 8:210a Right of retention
Article 292 of Book 3 of the Civil Code and Articles 60, second paragraph, first sentence, third paragraph and fourth paragraph, and 299b, the third up to and including the fifth paragraph of the Bankruptcy Act, do not apply to seagoing ships.

Article 8:211 Privileged debt-claims rank above debt-claims secured by mortgage
The following debt-claims are privileged with regard to [the sale proceeds of] the seagoing ship and take as such priority over all other debt-claims for which this Code or any other legislation, with the exception of Article 8:210, attaches a privilege (charge) to that ship:
a. in case of a seizure (attachment): debt-claims for costs of seizing the ship made to preserve it, including the costs of repairs which are essential for the preservation of the ship;
b. debt-claims arising from maritime (seafarers’) employment agreements*), on the understanding that debt-claims relating to wages, salary or remuneration are privileged only to an amount due over a period of twelve months;
c. debt-claims in relation to salvage and in respect of the contribution of the ship in general average;
d. debt-claims in respect of port dues and measures relating to the ship that were necessary to ensure the safety of the port or third parties, on the understanding that this privilege ceases to exist when the ship begins a new journey.

*) Due to the implementation of the Maritime Labour Convention of 23 February 2006 (Geneva), the words 'employment agreements of the captain or of other members of the crew', as mentioned earlier under (b), have been replaced by 'maritime employment agreements', which in that Convention are called 'seafarers’ employment agreements'.

Article 8:212 Interest and costs
When a debt-claim is privileged pursuant to Article 8:211, then the interests thereon and the costs made for obtaining an enforceable order are equally privileged.

Article 8:213 Mutual ranking order of privileged debt-claims
- 1. The privileged debt-claims referred to in Article 8:211 take rank in the order in which they are arranged.
- 2. Privileged debt-claims that are listed under the same letter are ranked equally, but the debt-claims referred to in Article 8:211, under (c), rank amongst each other in the reverse order of the dates on which they arose.
- 3. Debt-claims that are ranked equally are paid proportionally.

Article 8:214 Extend of the privileges of Article 8:211
Privileges specified in Article 8:211, extend to:
a. all things that by virtue of their intended use are continuously attached to the ship and that belong to the owner of the ship;
b. damages due for the loss of the ship or for non repaired damage thereto, including that part of a reward for salvage assistance, a reward for refloating or a compensation for general average, that stands opposite to such loss or damage. This applies as well where those damages or debt-claims for a reward or compensation have been transferred or encumbered with a pledge. These damages, however, do not comprise compensations due by virtue of an agreement of insurance of the ship, that provides coverage against the risk of loss or damage. Article 283 of Book 3 of the Civil Code is not applicable.

Article 8:215 Real effect
- 1. A creditor who has obtained a privilege under Article 8:211 upholds his privilege on (in) the ship irrespective of the question in whose hands (under whose control) that ship may be.
- 2. Privileges as referred to in Article 8:211 may be entered (registered) in the public registers referred to in Section 2 of Title 1 of Book 3 of the Civil Code. Article 24 paragraph 1 of Book 3 of the Civil Code is not applicable.

Article 8:216 Privileges of Article 8:211 when the ship is in exploitation of another person than its owner
The debt-claims mentioned in Article 8:211, under (a) and (c), cause the creation of a privilege on [the sale proceeds of] the ship and may, after that, be recovered from [the sale proceeds of] the ship, even when they have arisen during the time that the ship was placed at the disposal of a charterer, or during the time that it was in exploitation (commercial utilization) of another person than the shipowner, unless that shipowner has been deprived of the physical control of the ship through an unlawful act and the creditor did not act in good faith. The debt-claims mentioned in Article 8:211, under (b), cause the creation of a privilege on the [sale proceeds of the] ship and may be recovered from [the sale proceeds of] the ship, irrespective whether the shipowner is the employer of the seafarer.

Article 8:217 Privileged debt-claims related to the commercial operation of the ship; privileged maritime debt-claims
- 1. The following debt-claims are privileged with regard to [the sale proceeds of] the seagoing ship, which for the purpose of this Article does not include a seagoing ship under construction, and take as such priority over all other debt-claims for which this Code or any other legislation provides a privilege, but are ranked after and behind the privileged debt-claims mentioned in Article 8:211 and debt-claims secured by a mortgage, debt-claims mentioned in Articles 8:222 and 8:832 and the debt-claims of the pledgee:
a. debt-claims resulting from juridical acts that bind the shipowner or bareboat charterer and that directly intend to start or maintain the commercial operation of the ship, and debt-claims that can be exercised against a transport operator (carrier) within the meaning of Article 8:461 read in connection with Article 8:462 or within the meaning of Article 8:943 read in connection with Article 8:944; for the purpose of this paragraph a juridical act includes taking receipt of a declaration or notice;
b. debt-claims incumbent upon the shipowner pursuant to Section 8.6.1;
c. debt-claims listed in Article 8:752 insofar as they are incumbent upon the shipowner.
- 2. The debt-claims mentioned in paragraph 1 are ranked equally and are paid proportionally.
- 3. Articles 8:212, 8:214, under (a), and 8:216 shall apply to debt-claims mentioned in paragraph 1. Article 8:215 applies in addition to the debt-claims mentioned in paragraph 1, under (b).
- 4. Article 283 of Book 3 of the Civil Code is not applicable.

Article 8:218 Privileges in connection with the preservation of the ship or construction
The debt-claims referred to in Articles 284 and 285 of Book 3 of the Civil Code may be recovered with priority from [the sale proceeds of] the ship after and behind the debt-claims referred to in Article 8:217, as far as they are not ranked as such pursuant to any other Article of the present Title (Title 8.3).

Article 8:219 End of privileges
- 1. Privileges granted under the present Section (Section 8.3.3) cease to exist after the expiration of one year, unless the creditor has started legal proceedings to realize his debt-claim. This period starts to run from the day following the one on which the debt-claim becomes due and demandable. For salvage rewards, however, this period starts to run from the day following the one on which the assistance has ended.
- 2. Privileges cease to exist when the debt-claim ceases to exist.
- 3. In case of a foreclosure (sale in execution) the privileges also cease to exist at the moment on which the official record of distribution has been closed.

Section 8.3.4 Privileges on things on board of seagoing ships

Article 8:220 Applicability of the present Section
The present Section (Section 8.3.4) is applicable without prejudice to Title 8.15*).

*) Title 8.15 provides rules for privileges on aircraft that are based on the Geneva Convention of 1948 and that cannot be set aside by the Articles of Section 8.3.4. This means that Section 8.3.4 does not apply to aircraft on board of a seagoing ship.

Article 8:221 Costs of foreclosure
- 1. In the event of a recovery by foreclosure (sale in execution) of things on board of a seagoing ship, the costs of foreclosure, the costs of guarding those things during the foreclosure proceedings, and the costs of the judicial ranking and distribution of proceeds amongst the creditors, are paid from the sale proceeds prior to and above all other debt-claims to which a privilege is attached pursuant to this Code or any other legislation
- 2. The debt-claims mentioned in paragraph 1 are ranked equally and are paid proportionally.

Article 8:222 Privileges for salvage, general average and cargo
- 1. Privileged with regard to [the sale proceeds of] things on board of a seagoing ship are debt-claims in relation to salvage and to contribution of those things in general average. As a result these debt-claims take rank after and behind those mentioned in Articles 8:210, 8:211, 8:221, 8:820, 8:821 and 8:831, but prior to and above all other debt-claims to which a privilege is attached pursuant to this Code or any other legislation.
- 2. Privileged with regard to [the sale proceeds of] goods that have been received for transport (cargo), are debt-claims arisen from a contract of carriage concluded in connection with those goods, yet only to the extent that a right of retention in respect of those goods is granted to the carrier under Article 8:489 or 8:954. For this purpose, these debt-claims take rank after and behind those mentioned in Articles 8:204, paragraph 1, and 8:794, paragraph 1, but prior to and above all other debt-claims to which a privilege is attached pursuant to this Code or any other legislation.

Article 8:223 Interest and costs
When a debt-claim is privileged pursuant to Article 8:222, then the interests thereon and the costs made for obtaining an enforceable order are equally privileged.

Article 8:224 Mutual ranking order of privileges
- 1. Debt-claims for salvage or contribution in general average, that are privileged under Article 8:211, Article 8:222, paragraph 1, Article 8:821 or Article 8:832, paragraph 1, rank amongst each other in the reverse order of the moment on which they arose.
- 2. The privileged debt-claims mentioned in Article 8:222, paragraph 2, are ranked equally.
- 3. The debt-claim mentioned in Article 284 of Book 3 of the Civil Code takes rank after and behind the debt-claims mentioned in the previous paragraphs, regardless of when those debt-claims arose.
- 4. Debt-claims that are ranked equally are paid proportionally.

Article 8:225 Extend of the privileges
The privileges specified in Article 8:222, extend to the damages due for the loss of the ship or for non repaired damage thereto, including that part of a reward for salvage assistance, a reward for refloating or a compensation for general average, that stands opposite to such loss or damage. This applies as well where those damages or debt-claims for a reward or compensation have been transferred or encumbered with a pledge. These damages, however, do not comprise compensations due by virtue of an agreement of insurance that provides coverage against the risk of loss or damage. Article 283 of Book 3 of the Civil Code is not applicable.

Article 8:226 Recovery of debt-claims from the sale proceeds of things that do not belong to the debtor
The debt-claims mentioned in Article 8:211 cause the creation of a privilege on [the sale proceeds of the] the things mentioned in that Article and may, after that, be recovered from [the sale proceeds of] these things, even when the owner of these things is not the debtor at the moment that the privilege came into existence.

Article 8:227 End of a privilege on cargo
- 1. The privileges mentioned in Article 8:222 cease to exist as soon as the goods are handed over to the person entitled to take delivery of them, except in the case of Article 8:559. They shall cease to exist also when the debt-claim ceases to exist and, in the event of a sale in execution (sale by foreclosure), when no timely objection has been made against the distribution of the sale proceeds, or by a judicial order of priority of creditors.
- 2. The privileges mentioned in Article 8:222 remain in force as long as the things are stored on the basis of Articles 8:490, 8:955 or 8:574 or have been seized (arrested) on the basis of Article 626 or Article 636 of the Code of Civil Procedure.

Article 8:228 Right of reclamation
The seller of fuel for the machinery, of boiler water, of food or of ship’s provision may ) only for 48 hours after the end of the delivery exercise the right granted to him under Section 8 of Title 1 of Book 7 of the Civil Code (right of reclamation, but he may do so as well when these things are in the hands (under control) of the owner, a bareboat charterer or a time charterer of the ship.

[Article 8:229 reserved for future legislation]

Section 8.3.5 Final provisions

Article 8:230 Seagoing ships belonging to the government
- 1. Sections 8.3.2 up to and including 8.3.4 do not apply to seagoing ships which belong to the State or any public body and which are intended to be used exclusively for the exercise of:
a. public power, or;
b. non-commercial public services.
- 2. The decision in which the intended use meant in paragraph 1 has been established, can be registered in the public registers referred to in Section 2 of Title 1 of Book 3 of the Civil Code. Article 24 paragraph 1 of Book 3 of the Civil Code is not applicable;
- 3. Such registration authorizes the keeper of the public registers to delete the registered ship from the public registers referred to in Section 2 of Title 1 of Book 3 of the Civil Code.

Article 8:231 Delegation
Where, in the interest of a proper implementation of the law, the subjects which are dealt with in Sections 8.3.2 up to and including 8.3.5 require the issuance of further rules, this shall be done by or pursuant to Order in Council, without prejudice to provide a regulation pursuant to the Land Register Act ('Kadasterwet').