Dutch Civil Code

Book 8 Transport law and means of transport

III  INLAND NAVIGATION LAW

Title 8.8 The inland navigation vessel and the property on board thereof

Section 8.8.1 Shipowners Society concerning an inland navigation vessel

Article 8:770 Shipowners Society
- 1. If an inland navigation vessel, 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 vessel act under a joint name, there shall only exist a Shipowners Society if such has been expressly agreed upon by deed and that deed has been registered in the before meant public registers.
- 2. A Shipowners Society is not a legal person.

Article 8:771 Applicability of Section 8.3.1 to a Shipowners Society regarding an inland navgation vessel
Section 1 of Title 3 of Book 8 applies accordingly to a Shipowners Society in respect of an inland navigation vessel.

[Articles 8:772 - 8:779 reserved] for future legislation

Section 8.8.2 Rights in inland navigation vessels

Article 8:780 Definition of ‘inland navigation vessel’
- 1. In Sections 8.8.2 up to and including 8.8.6 a ‘vessel’ includes vessels under construction.
- 2. In Sections 8.8.2 up to and including 8.8.6 ‘inland navigation vessels’ include also hovercraft, ferries, as well as dredges, pontoon cranes, elevators and all floating equipment, pontoons or material of similar nature satisfying the requirements, mentioned in Articles 8:1 and 8:3 with respect to inland navigation vessels.
- 3. If a vessel under construction has become a vessel within the meaning of Article 8:1, then no new vessel has come into existence as a result.

Article 8:781 Definitions
In the present Section (Section 8.8.2):
a. the ‘Geneva Convention’ shall mean the Convention concluded at Geneva on 25 January 1965 on the registration of inland navigation vessels, together with its Protocols (Treaty series 1966, 228);
b. a ‘Contracting State’ shall mean a State for which the Geneva Convention is in force;
c. ‘Convention register’ shall mean a register kept outside the Netherlands in a Contracting State, as referred to in Article 2 of the Geneva Convention;
d. ‘public register’ shall mean the public registers meant in Section 2 of Title 1 of Book 3 of the Dutch Civil Code.

Article 8:782 Persons and entities subject to the obligations imposed by the present Section
Where the vessel 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 8.8.2) upon the shipowner shall rest also with each co-owner, managing partner or director.

Article 8:783 [repealed on 01-09-2005]

Article 8:784 Registration of inland navigation vessels in the public register
- 1. A registration is only possible:
- of an inland navigation vessel under construction: if it is under construction and made within the Netherlands;
- of a completed (phased) inland navigation vessel: if at least one of the following conditions are met:
a. the place from where the vessel is usually operated, is located in the Netherlands;
b. that, where the owner of the vessel is a natural person, he is Dutch or is domiciled in the
Netherlands;
c. that, where the owner of the vessel is a legal person or a commercial (general) partnership, it has its headquarters or principal place of business in the Netherlands;
on the understanding that, in the event of co-ownership of the inland navigation vessel, the conditions referred to under (b) and (c) are deemed not to have been met unless the natural or legal persons or the commercial (general) partnerships, fulfilling these conditions, have at
least half the ownership of the vessel.
- 2. It is not possible to register an inland navigation vessel which has been registered already in public registers, either as an inland navigation vessel or as a seagoing ship, or that has been registered in a Convention register.
- 3. In derogation from paragraph 2, it is possible to register an inland navigation vessel that already is registered in a Convention register, when that vessel, after its registration in the Convention register has been deleted, can be registered according to paragraph 1. Such registration, however, has only legal effect when it is followed by an annotation in the public registers that the registration in the Convention register had been deleted.
- 4. In derogation from paragraph 2, it is possible to register an inland navigation vessel that already is registered in a Convention register, when the keeper of that register refuses on account of Article 22, second paragraph of Protocol no. 2 to the Geneva Convention to register the right of ownership of a buyer after a forced sale.
- 5. The owner of the inland navigation vessel shall request for a registration. In doing so, he must submit for registration a statement, signed by him, indicating that to his best knowledge the vessel is suitable to be registered as inland navigation vessel.
- 6. A registration in the public registers shall have no legal effect when the requirements of the previous paragraphs of the present Article are not met.
- 7. 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 8:785 Obligation of the shipowner to request for registration
- 1. The owner of an inland navigation vessel is obliged to request for its registration. This obligation has to be fulfilled within three months after a recording registration is possible according to Article 8:784.
- 2. No obligation to make a registration exists:
a. in regard of cargo vessels with a payload (loading capacity) of less than 20 tons of 1000 kilograms payload or of other inland navigation vessels with a volume of displacement of less than 10 cubic meters, this being the displacement of water expressed in cubic meters between the level of immersion of the empty inland navigation vessel in fresh water and the level of the maximum permissible draught;
b. in regard of fully completed inland navigation vessels which are registered in a register of a non-Contracting State and which fulfil in that State at least one of the conditions referred to in the first paragraph of Article 3 of the Geneva Convention;
c. in regard of inland navigation vessels coming from a non-Contracting State and which are heading towards the country where they will have to be registered.

Article 8:786 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 inland navigation vessel;
1 ° if the registration is not or no longer compulsory;
2 ° if the vessel is registered in a Convention register under the condition that the registration in the public registers shall be deleted;
3 ° if the vessel will be registered in the register of a non-Contracting State and in that State it will fulfil at least one of the conditions mentioned in the first paragraph of Article 3 of the Geneva Convention. In that case a deletion shall have legal effect only if, within 30 days thereafter, the owner submits a statement, signed by him, indicating that the vessel is registered in the register of that State and that it there fulfils at least one of the conditions of the first paragraph of Article 3 of the Geneva Convention.
b. upon the declaration of the owner or ex officio:
1 ° when the vessel is lost (wrecked), destroyed or has become permanently unfit to float;
2 ° when the vessel has been taken by robbers (pirates) or enemies;
3 ° when the vessel, if it would not have been recorded in the public registers, would be a seagoing ship within the meaning of Article 8:2 or such a seagoing ship under construction;
4 ° when the vessel does not or no longer fulfils at least one of the conditions set in Article 8:784 for registration;
5° when the vessel is registered in a Convention register without the
condition emclosed therein that the registration in the public registers is to be deleted.
- 2. In the situations mentioned in paragraph 1, under (b), the owner of the inland navigation vessel is obliged to make the declaration within three months after the reason for deletion did occur.
- 3. When there are registrations or provisional entries in respect of the inland navigation vessel on behalf of third persons, a deletion shall only take place if none of these third persons opposes to this.
- 4. A deletion can be made only with authorisation of the court granted upon the request of either party.

Article 8:787 Registrations made in a foreign register
- 1. As long as the registration has not been deleted from the public registers, a registration of an inland navigation vessel in a register of a non-Contracting State or the establishment of rights (titles or interests) therein in a non-Contracting State, for which establishment 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 of the inland navigation vessel or of the establishment of rights (titles or interests) therein as referred to in that paragraph, shall be recognized when such registration took place under the condition of deletion of the registration in the public registers within 30 days after the registration of the vessel in the foreign register.

Article 8:788 Real property rights in inland navigation vessels
The only real property rights that can be vested in an inland navigation vessel which is registered in the register, are ownership, mortgage, usufruct and the privileges mentioned in Articles 8:821 and 8:827, paragraph 1, under (b).

Article 8:789 [repealed on 1 January 1992]

Article 8:790 Registered property
- 1. An inland navigation vessel registered in the public register is considered as registered property.
- 2. In applying Article 3:301 in respect of deeds (instruments) that are drawn up on the basis of Article 3:89, paragraph 1 and 3, in order to transfer (deliver) such an inland navigation vessel, the judicial decision of the 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 8:791 Acquisitive prescription
A bona fide possessor (possessor acting in good faith) shall acquire the right of ownership of a registered inland navigation vessel or, where this is applicable, a mortgage or usufruct therein after a continuous uninterrupted possession of five year.

Article 8:792 Mortgage on a specified inland navigation vessel
Without prejudice to Article 3:260, paragraph 1, the notarial deed (instrument) drawn up for the purpose of establishing a mortgage on a registered inland navigation vessel or of a right with which such vessel is encumbered, shall specify clearly:
a. the vessel subject to the mortgage;
b. the conditions under which the debt for which the mortgage serves as security (collateral) becomes due and demandable or a document registered at the office of registration in which the conditions are enclosed under which the debt for which the mortgage serves as security (collateral) becomes due and demandable;
c. the stipulated interest and the moment or moments on which it becomes due and demandable.

Article 8:793 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 inland navigation vessel and that belong to the owner of that vessel. Article 3:266 is not applicable.

Article 8:794 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 8:795 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 3:263 is not applicable.

Article 8:796 Mortgage on a share in a registered inland navigation vessel
Article 3:177 does not apply to a mortgage on a share in a registered inland navigation vessel; the mortgage remains existing (and in force) after a transfer, alienation or apportionment of the vessel.

Article 8:797 Applicability and inapplicability of certain statutory provisions on chartering
- 1. Where a mortgage is taken on a registered inland navigation vessel, the first two paragraphs of Article 3:264 shall apply also to chartering (charter agreements).
- 2. Articles 3:234 and 3:261 do not apply to such mortgage.

Article 8:798 Usufruct on a registerd inland navigation vessel
In case of a usufruct on a registered inland navigation vessel, the provisions of Article 3:217 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 8:799 [reserved for future legislation]

Section 8.8.3 Hire-purchase of registered inland navigation vessels

Article 8:800 Hire-purchase contract regarding inland navigation vessels
- 1. A hire-purchase contract regarding an inland navigation vessel registered in the register meant in Article 8:783, comes to existence through a notarial deed, in which the buyer has engaged himself to pay the price in instalments, of which two or more instalments become due and demandable after the seller has placed the vessel at the disposal of the buyer, and in which the seller engages himself to a transfer of ownership of the inland navigation vessel after total payment of what the buyer is indebted to him by virtue of the contract.
- 2. The hire-purchase contract shall only have effect if a written approval regarding that effect has been obtained of the persons whose limited property rights or seizures appear from a registration in the public registers, which registration already existed at the day of registration of the mortgage meant in Article 8:805.
- 3. Where it concerns stipulations (clauses) in respect of the conditions under which the vessel must be placed at the disposal of the buyer, parties may refer to a document signed by them, that is attached to the notarial deed.
- 4. The procuration (proxy) to enter into a hire-purchase contract regarding an inland navigation vessel, must be granted by authentic (notarial) deed.

Article 8:801 Registration of the hire-purchase contract
- 1. The hire-purchase contract regarding an inland navigation vessel may be registered in the public register meant in Section 3.1.2.
- 2. In the event that the ownership of an inland navigation vessel, in respect of which a hire-purchase contract has been registered already in the public register meant in Section 3.1.2, passes to a third person, this third person shall by operation of mandatory law enter into all rights and liabilities of the hire-vendor that arise from the hire-purchase contract, yet the initial hire-vendor remains bound by the hire-purchase contract, next and in addition to the new owner of the vessel.
- 3. Rights and liabilities that had become due and demandable prior to the passage of ownership do not pass to the third person (new owner of the vessel).

Article 8:802 Definition ‘hire-purchaser’ and ‘hire-vendor’
In Articles 8:803 up to and including 8:812, ‘buyer’ shall mean the hire-purchaser of an inland navigation vessel, and ‘seller’ shall mean the hire-vendor of such a vessel.

Article 8:803 Content of the notarial deed
- 1. Parties must mention in the notarial deed which part of each of the instalments to be paid serves as payment of the purchase price (the price for buying the vessel and acquiring eventually the ownership thereof), which part serves as payment of possibly indebted interest, and which part possibly serves as payment for the use of the vessel which has been placed at the disposal of the buyer.
- 2. Null and void is any stipulation (clause) derogating from or in violation with paragraph 1, on the understanding that, in case of a fault or vagueness in the description of the partition (splitting up) meant in that paragraph, that partition can be assessed by the court upon the request of either party.

Article 8:804 No increase of the purchase price allowed
Null and void is any stipulation (clause) according to which it is possible to increase the purchase price during the period of the contract.

Article 8:805 Obligations of the seller under the hire-purchase contract
- 1. The seller must:
a. place the vessel at the disposal of the buyer and leave it at his disposal;
b. indemnify the buyer for the consequences of:
1° the condition or a quality of the vessel;
2° a seizure of the vessel;
3° the seller’s bankruptcy or the seller’s subjection to a debt repayment scheme for natural persons;
4° any personal circumstance concerning the seller,
provided that these circumstances have the result that the vessel cannot be placed or remain at the disposal of the buyer in a way as he was allowed to expect when he entered into the hire-purchase contract. The seller does not have to indemnify the buyer against the consequences of an actual disturbance by third persons without a claim of that third person of having a right in or to the vessel, nor against a claim of a third person of having a right in or to the vessel without any actual disturbance by that third person.
c. ensure that on the day of the hire-purchase contract a mortgage is taken on the ownership of the vessel on behalf of the buyer to an amount equal to three times the purchase price, as security for the buyer for what the seller is or will be indebted to him in connection with the hire-purchase contract or the rescission of that contract.
d. refrain from transferring the ownership of the vessel to someone else, and transfer the ownership of the vessel to the buyer as soon as the buyer has complied with his obligations from the hire-purchase contract, which transfer must de made free from any mortgage taken on the vessel on behalf of third persons after the conclusion of the hire-purchase contract, free from privileges with priority over a mortgage, and free from seizures in regard of debts of the seller.
- 2. Null and void is any stipulation (clause) derogating to the detriment of the buyer from what is provided in paragraph 1, under (a), (c) or (d), on the understanding that the mortgage meant in paragraph 1, under (c), shall be granted under conditions still to be agreed between parties or, in the absence of such an agreement, under conditions to be set by the court, upon the request of one of the parties, in which case the court shall have to take into account the use of the vessel as much as possible.
- 3. Null and void is any stipulation (clause) derogating to the detriment of the buyer from what is provided in paragraph 1, under (b), in respect of a fact that the seller knew when he entered into the hire-purchase contract.
- 4. Null and void is any stipulation (clause) fixing (assessing) in advance the damages that the seller possibly shall have to pay in case of a non-performance of an obligation from the hire-purchase contract.

Article 8:806 Obligation of the buyer to accept the right of ownership
The buyer who has complied with his obligations for payment as specified in the hire-purchase contract, must accept the right of ownership of the vessel, provided that it is free from mortgages taken on the vessel on behalf of third persons after the conclusion of the hire-purchase contract, free from privileges with priority over a mortgage, and free from seizures in regard of debts of the seller.

Article 8:807 Instalments used by the buyer to pay off a mortgage creditor
- 1. Without prejudice to Article 8:808, the buyer is entitled to use the parts of the instalments indebted by him to the seller, insofar as these relate to the purchase price and interest, for direct payment to the creditor (of the seller or a third person) whose debt-claim is secured by a mortgage taken on the vessel (‘mortgage creditor’), this in order to pay off the due and demandable parts of that mortgaged debt-claim and the due and demandable interest accrued on it.
- 2. If and insofar a separate instalment indebted by the buyer to the seller is less than what is owed for interest and redemption (repayments) to the mortgage creditor, then that creditor is obliged, in derogation from Article 6:29, to accept the instalments paid pursuant to paragraph 1, without prejudice to the obligation of the debtor whose debt is secured by that mortgage (mortgage debtor) to pay off the rest of what he is indebted to the mortgage creditor. The mortgage creditor must inform the mortgage debtor about the due and demandable repayments and interest that are paid by the buyer.
- 3. Where the buyer has made known to the mortgage creditor meant in paragraph 1, that he wants to exercise the right granted to him under the present Article, the mortgage creditor is obliged to inform the buyer about the amount and extent of the remaining mortgage debt.
- 4. Payments made in accordance with the present Article to the mortgage creditor serve to reduce the debt owed by the buyer to the seller. The buyer must immediately inform the seller about these payments.
- 5. A transfer (assignment) of the debt-claim which the seller has against the buyer, the encumbrance of that debt-claim with a pledge on behalf of a third person or the seizure of that debt-claim, does not harm the rights that the buyer derives from the provisions of the present Article.
- 6. In the event of a public, a self-willed or a foreclosure sale of the vessel on behalf of a creditor with a mortgage on the vessel or who has seized the vessel, the buyer shall have the right meant in Article 3:269. When he makes use of this right, paragraph 3 shall apply accordingly.

Article 8:808 Right of the buyer to pay off the hire-purchase debts sooner than agreed
- 1. One year after the conclusion of the hire-purchase contract, the buyer is entitled to pay off, in full or in part, the remaining purchase price, even prior to the dates on which the instalments would have become due and demandable pursuant to the contract, with a recalculation of the interest which formed a part of the instalments that otherwise would have been indebted, which recalculation has to be done under conditions agreed or still to be agreed upon by the parties or, in the absence of such agreement, under conditions to be set by the court upon a request of one of the parties.
- 2. Null and void is any stipulation (clause) derogating to the detriment of the buyer from the present Article.

Article 8:809 Mandatory official notice of default to the buyer
- 1. When the buyer does not perform his obligation to pay off the purchase price or to pay the agreed interest or when he does not perform his obligation to pay one or more of the agreed instalments, the seller, who wants to appeal to such non-performance in order to claim the return of the vessel on the basis of a possibly made stipulation (clause) concluded to this end, can only do so after he has sent an official notice of default to the buyer in which he grants the buyer a reasonable period to perform his obligation after all, and the buyer, after that, still remains in default with the performance of his obligation after the expiration of that period.
- 2. Null and void is any stipulation (clause) in derogation from the present Article.

Article 8:810 Legal effects of a rescission of the hire-purchase contract
- 1. If the hire-purchase contract is rescinded due to the fact that the buyer remains in default with his obligation to pay the purchase price or agreed interest or to pay one or more agreed instalments, and the seller or the buyer would enter, as a result of that rescission, into a better financial position than he would have been if the contract had remained in force, then parties are obliged to compensate the advantage and disadvantage to each other without delay.
- 2. A stipulation (clause) in which the seller has reserved for himself the right to assess the value of the vessel, cannot affect the right of the buyer to request the court to assess that value instead.
- 3. Null and void is any stipulation (clause) in derogation from the present Article.

Article 8:811 [repealed on 1 January 1992]

Article 8:812 No ending of the hire-purchase contract on the basis if a stipulation
Null and void is any stipulation (clause) due to which the hire-purchase contract shall end automatically.

[Articles 8:813 - 8:819 reserved for future legislation]

Section 8.8.4 Privileges on inland navigation vessels

Article 8:820 Recovery by foreclosure (sale in execution)
- 1. In the event of a recovery by foreclosure (sale in execution) of an inland navigation vessel, the costs of foreclosure, the costs of guarding the vesse; 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 inland navigation vessel, 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 8:820a Right of retention
Article 3:292 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 inland navigation vessels.

Article 8:821 Privileged debt-claims rank above debt-claims secured by mortgage
The following debt-claims are privileged with regard to [the sale proceeds of] an inland navigation vessel and take as such priority over all other debt-claims for which this Code or any other legislation, with the exception of Article 8:820, attaches a privilege (charge) to that vessel:
a. in case of a seizure (attachment): debt-claims for costs of seizing the vessel made to preserve it, including the costs of repairs which are essential for the preservation of the vessel;
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 six months;
c. debt-claims in relation to salvage and in respect of the contribution of the vessel in general average.

Article 8:822 Interest and costs
When a debt-claim is privileged pursuant to Article 8:821, then the interests thereon and the costs made for obtaining an enforceable official order are equally privileged.

Article 8:823 Mutual ranking order of privileged debt-claims
- 1. The privileged debt-claims referred to in Article 8:821 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 8:821, 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 8:824 Extend of the privileges of Article 8:821
Privileges specified in Article 8:821, extend to:
a. all things that by virtue of their intended use are continuously attached to the vessel and that belong to the owner of the vessel;
b. damages due for the loss of the vessel 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 vessel, that provides coverage against the risk of loss or damage. Article 3:283 is not applicable.

Article 8:825 Real effect of privileges
- 1. A creditor who has obtained a privilege under Article 8:821 upholds his privilege on (in) the vessel irrespective of the question in whose hands (under whose control) that vessel may be.
- 2. Privileges as referred to in Article 8:821 may be entered (registered) in the public registers referred to in Section 2 of Title 1 of Book 3 of the Civil Code. Article 3:24 paragraph 1, is not applicable.

Article 8:826 Privileges of Article 8:821 when the vessel is in commercial operation of another person than its owner
The debt-claims mentioned in Article 8:821, cause the creation of a privilege on [the sale proceeds of] the inland navigation vessel and may, after that, be recovered from [the sale proceeds of] the vessel, even when they have arisen during the time that the vessel was in commercial operation of another person than the shipowner, unless that shipowner has been deprived of the physical control of the vessel through an unlawful act and the creditor did not act in good faith.

Article 8:827 Privileged debt-claims related to the commercial operation of the vessel; privileged maritime debt-claims
- 1. The following debt-claims are privileged with regard to [the sale proceeds of] the inland navigation vessel, which for the purpose of this Article does not include an inland navigation vessel 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 8:821 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, the hire-purchaser of the vessel or the 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 8:1062 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 8:822, 8:824, under (a), and 8:826 shall apply to debt-claims mentioned in paragraph 1. Article 8:825 applies in addition to the debt-claims mentioned in paragraph 1, under (b).
- 4. Article 6:283 is not applicable.

Article 8:828 Privileges in connection with the preservation of the vessel or a construction
The debt-claims referred to in Articles 3:284 and 3:285 may be recovered with priority from [the sale proceeds of] the inland navigation vessel after and behind the debt-claims referred to in Article 8:277, as far as they are not ranked as such pursuant to any other Article of the present Title (Title 8.8).

Article 8:829 End of privileges
- 1. Privileges granted under the present Section (Section 8.8.3) 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 under execution) the privileges also cease to exist at the moment on which the official record of distribution has been closed.

Section 8.8.5 Privileges on things on board of an inland navigation vessel

Article 8:830 Applicability of the present Section
The present Section (Section 8.8.4) 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 8.8.4. This means that Section 8.8.4 does not apply to aircraft on board of an inland navigation vessel.

Article 8:831 Costs of foreclosure
- 1. In the event of a recovery by foreclosure (sale under execution) of things on board of an inland navigation vessel, 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 8:832 Privileges for salvage, general average and cargo
- 1. Privileged with regard to [the sale proceeds of] things on board of an inland navigation vessel 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 or resulting from Article 8:488 or 8:951, 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 8:833 Interest and costs
When a debt-claim is privileged pursuant to Article 8:832, then the interests thereon and the costs made for obtaining an enforceable official order are equally privileged.

Article 8:834 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 8:832, paragraph 2, are ranked equally.
- 3. The debt-claim mentioned in Article 3:284 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 8:835 Extend of the privileges
The privileges specified in Article 8:832, 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 3:283 is not applicable.

Article 8:836 Recovery of debt-claims from the sale proceeds of things that do not belong to the debtor
The debt-claims mentioned in Article 8:832 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 8:837 End of a privilege on cargo
- 1. The privileges mentioned in Article 8:832 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 8:832 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 8:838 Right of reclamation
The seller of fuel for the machinery, of boiler water, of food or of the vessel’s provision may only exercise during a period of 48 hours after the end of the delivery 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 shipowner, the hire-purchaser of the vessel or a bareboat charterer or time charterer of the vessel.

[Article 8:839 reserved for future legislation]

Section 8.8.6 Final provisions

Article 8:840 Inland navigation vessels belonging to the government
- 1. Sections 8.8.2 up to and including 8.8.5 do not apply to inland navigation vessels 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 3:24, paragraph 1, is not applicable;
- 3. Such registration authorizes the keeper of the public registers to delete the registered inland navigation vessel from the public registers referred to in Section 2 of Title 1 of Book 3 of the Civil Code.

Article 8:841 Delegation
- 1. Where, in the interest of a proper implementation of the law, the subjects which are dealt with in Sections 8.8.2 up to and including 8.8.6 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').
- 2. The Order in Council referred to in paragraph 1 may, in derogation from Article 8:786, paragraph 2, contain an additional regulation in respect of the period in which the owner of an inland navigation vessel - to which paragraph 1, under (b), and paragraph 5 of that Article apply and of which a registration in a foreign register has occurred – is obliged, prior to the moment on which the Geneva Convention has entered into force in that State, to make a report for the deletion of the registration.

[Articles 8:842 - 8:859 are reserved for future legislation]