BOOK III

Maritime Commerce
TITLE I
Vessels

ARTICLE 573. Merchant vessels constitute property which may be acquired and transferred by any of the means recognized
by law. The acquisition of a vessel must be included in a written instrument, which shall not produce any effect with regard
to third persons if not recorded in the mercantile registry. cd

The ownership of a vessel shall also be acquired by the possession thereof in good faith for three years, with a good title
duly recorded.

In the absence of any of these requisites, uninterrupted possession for ten years shall be necessary in order to acquire
ownership.

A captain cannot acquire by prescription the ship of which he is in command.

ARTICLE 574. The builders of vessels may employ the material and with regard to their construction and rigging may follow
the system which is most convenient to their interests. Ship agents and seamen shall be subject to the provisions of the
laws and regulations of the public administration on navigation, customs, health, safety of the vessels, and other similar
provisions.

ARTICLE 575. Part owners of vessels shall enjoy the right of option of purchase and withdrawal in the sales made to
strangers; but they can only exercise it within the nine days following the record of the sale in the registry and by delivering
the price at once.

ARTICLE 576. The rigging, tackle, stores, and engine of a vessel, if it is a steamer, shall always be understood as included
in the sale thereof if they are owned by the vendor at the time of the sale.

The arms, munitions of war, provisions, and fuel shall not be considered as included in the sale.

The vendor shall be under the obligation to deliver to the purchaser a certificate of the record of the vessel in the registry
up to the date of the sale.

ARTICLE 577. If the alienation of the vessel should take place while said vessel is on a voyage, the purchaser shall receive
all the freights it earns from the time it received its last cargo, and the payment of the crew and other persons which go to
make up its complement shall be paid by the purchaser for the said voyage.

If the sale takes place after the arrival of the vessel at the port of its destination, the freights shall belong to the vendors and
he shall pay the crew and other persons which go to make up its complement, unless there is an agreement to the contrary
in either case.

ARTICLE 578. If, the steamer being on a voyage or in a foreign port, her owner or owners should voluntarily alienate her
either to Spaniards * or to foreigners domiciled in the capital or in a port of another country, the bill of sale shall be executed
before the consul of Spain * of the port where she terminates her voyage, and said instrument shall have no effect with
regard to third persons if it is not recorded in the registry of the consulate. The consul shall immediately forward a true copy
of the bill of purchase of the vessel to the [commercial registry] of the port where said vessel is recorded and registered.

In every case the alienation of the vessel must be stated, indicating whether the vendor receives the full price or part thereof,
or whether he retains any interest in said vessel in full or in part. In case the sale is made to a Spaniard, * this fact shall be
stated in the certificate of navigation.

When, the ship being on a voyage, it should be rendered useless for navigation, the captain shall apply to the judge or court
of competent jurisdiction of the port of arrival, should it be a foreign port, to the consul of Spain, * should there be one or to
the judge, or court, or local authority in the absence of the former; and the consul, or the judge, or court, or in their absence,
the local authority, shall order an examination of the vessel to be made.
If the consignee or the underwriter should reside at said port, or should have representatives there, they must be cited in
order to take part in the proceedings for the account of whom it may concern.

ARTICLE 579. After the damage to the vessel has been proven as well as the impossibility of her being repaired, to continue
the voyage, her sale at public auction shall be ordered, subject to the following rules:

1. The hull of the vessel, her rigging, engines, stores, and other articles shall be appraised by means of
an inventory, said proceedings being brought to the notice of the persons who may wish to take
part in the auction.

2. The order or decree ordering the public auction shall be posted in the usual places, and shall be
advertised in the newspapers of the port where the auction is to be held, should there be any,
and in the other newspapers which the court may determine.

The period which may be fixed for the auction can not be less than twenty days.

3. These advertisements shall be repeated every ten days, and their publication shall be stated in the
proceedings.

4. The auction shall be held on the day fixed, with the formalities prescribed in the common law for judicial
sales.

5. If the sale should take place when the vessel is in a foreign country, the special provisions governing
such cases shall be observed.

ARTICLE 580. In all judicial sales of vessels for the payment of creditors, the said creditors shall have preference in the
order stated:

1. The credits in favor of the public treasury proven by means of an official certificate of the competent
authority.

2. The judicial costs of the proceedings, according to an appraisement approved by the judge or court.

3. The pilotage charges, tonnage dues, and the other sea or port charges, proven by means of proper
certificates of the officers intrusted with the collection.

4. The salaries of the caretakers and watchmen of the vessel and any other expense connected with the
preservation of said vessel, from the time of arrival until her sale, which appear to have been paid
or are due by virtue of a true account approved by the judge or court.

5. The rent of the warehouse where the rigging and stores of the vessel have been taken care of,
according to contract.

6. The salaries due the captain and crew during their last voyage, which shall be verified by virtue of the
liquidation made from the rolls of the crew and account books of the vessel, approved by the
chief of the Bureau of Merchant Marine where there is one, and in his absence by the consul, or
judge, or court.

7. The reimbursement for the parts of the freight the captain may have sold in order to repair the vessel,
provided the sale has been ordered by a judicial instrument executed with the formalities required
in such cases, and recorded in the certificate of the registry of the vessel.

8. The part of the price which has not been paid the last vendor, the credits pending for the payment of
material and work in the construction of the vessel, when it has not navigated, and those arising
from the repair and equipment of the vessel and its provisioning with victuals and fuel during its
last voyage.
In order that the credits provided for in this subdivision may enjoy the preference they must appear by contracts recorded
in the commercial registry, or if they were contracted for the vessel while on a voyage and said vessel has not returned to
the port of her registry, they must be made under the authority required for such cases and entered in the certificate of
registry of the said vessel.

9. The amounts borrowed on bottomry bonds before the departure of the vessel, proven by means of the
contracts executed according to law and recorded in the commercial registry; the amounts
borrowed during the voyage with the authority mentioned in the foregoing subdivision, filling the
same requisites, and the insurance premium, proven by the policy of the contract or certificate
taken from the books of the broker.

10. The indemnity due the shippers for the value of the goods shipped, which were not delivered to the
consignees, or for averages suffered for which the vessel is liable, provided either appear in a
judicial or arbitration decision.

ARTICLE 581. If the proceeds of the sale are not sufficient to pay all the creditors included in one number or grade, the
amount shall be divided among them pro rata.

ARTICLE 582. After the bill of the judicial sale at auction has been executed and recorded in the commercial registry, all
the other liabilities of the vessel in favor of the creditors shall be considered canceled.

But if the sale should have been voluntary, and took place while the vessel was on a voyage, the creditors shall retain their
rights against the vessel until her return to the port of her registry, and three months after the record of sale in the commercial
registry, or after her arrival.

ARTICLE 583. If the ship being on a voyage the captain should find it necessary to contract one or more of the obligations
mentioned in Nos. 8 and 9 of Article 580, he shall apply to the judge or court if he is in Spanish * territory, and otherwise to
the consul of Spain, * should there be one, and, in his absence to the judge or court or to the proper local authority, presenting
the certificate of the registry of the vessel treated of in Article 612, and the instruments proving the obligation contracted.

The judge or court, the consul or the local authority as the case may be, in view of the result of the proceedings instituted,
shall make a temporary memorandum in the certificate of their result, in order that it may be recorded in the registry when
the vessel returns to the port of her registry, or so that it can be admitted as a legal and preferred obligation in case of sale
before the return, by reason of the sale of the vessel by virtue of a declaration of unseaworthiness.

The lack of this formality shall make the captain personally liable to the creditors who may be prejudiced through his fault.

ARTICLE 584. The vessels subject to the liability for the credits mentioned in Article 580 may be attached and judicially sold
in the manner prescribed in Article 579, in the port in which they are, at the instance of any of the creditors; but if they should
be freighted and ready to sail the attachment cannot take place except for debts contracted for the preparation and
provisioning of the vessel for the same voyage, and even then the attachment shall be dissolved if any person interested in
her sailing should give bond for the return of the vessel within the period fixed in the certificate of navigation, and binding
himself to pay the debt in so far as it may be legal, should the vessel be delayed in her return even if it were caused by
some fortuitous event.

For debts of any other kind whatsoever not included in the said Article 580, the vessel can only be attached in the port of
her registry.

ARTICLE 585. For all purposes of law not modified or restricted by the provisions of this Code, vessels shall continue to be
considered as personal property.

TITLE II
Persons Who May Take Part in Maritime Commerce
SECTION I
Owners of Vessels and Ship Agents
ARTICLE 586. The owner of a vessel and the agent shall be civilly liable for the acts of the captain and for the obligations
contracted by the latter to repair, equip, and provision the vessel, provided the creditor proves that the amount claimed was
invested therein.

By agent is understood the person intrusted with the provisioning of a vessel, or who represents her in the port in which she
happens to be.

ARTICLE 587. The agent shall also be civilly liable for the indemnities in favor of third persons which arise from the conduct
of the captain in the care of the goods which the vessel carried; but he may exempt himself therefrom by abandoning the
vessel with all her equipment and the freight he may have earned during the voyage.

ARTICLE 588. Neither the owner of the vessel nor the agent shall be liable for the obligations contracted by the captain if
the latter exceeds his powers and privileges which are his by reason of his position or have been conferred upon him by
the former.

However, if the amounts claimed were made use of for the benefit of the vessel, the owner or agent shall be liable.

ARTICLE 589. If two or more persons should be part owners of a merchant vessel, an association shall be presumed as
established by the part owners.

This association shall be governed by the resolutions of a majority of the members.

A majority shall be the relative majority of the voting members.

If there should be only two-part owners, in case of disagreement the vote of the member having the largest interest shall be
decisive. If the interests are equal, it shall be decided by lot.

The representation of the smallest part in the ownership shall have one vote; and proportionately the other part owners as
many votes as they have parts equal to the smallest one.

A vessel cannot be detained, attached or levied upon execution in her entirety for the private debts of a part owner, but the
proceedings shall be limited to the interest the debtor may have in the vessel, without interfering with her navigation.

ARTICLE 590. The owners of a vessel shall be civilly liable in the proportion of their contribution to the common fund, for
the results of the acts of the captain, referred to in Article 587.

Each part owner may exempt himself from this liability by the abandonment before a notary of the part of the vessel
belonging to him.

ARTICLE 591. All the part owners shall be liable, in proportion to their respective ownership, for the expenses of repairs to
the vessel, and for other expenses which are incurred by virtue of a resolution of the majority.

They shall likewise be liable in the same proportion for the expenses of maintenance, equipment, and provisioning of the
vessel, necessary for navigation.

ARTICLE 592. The resolutions of the majority with regard to the repair, equipment, and provisioning of the vessel in the port
of departure shall bind the majority unless the partners in the minority renounce their participation therein, which must be
acquired by the other part owners after a judicial appraisement of the value of the portion or portions assigned.

The resolutions of the majority relating to the dissolution of the association and sale of the vessel shall also be binding on
the minority.

The sale of the vessel must take place at a public auction, subject to the provisions of the law of civil procedure unless the
part owners unanimously agree otherwise, the right of option to purchase and to withdraw mentioned in Article 575 being
always reserved in favor of said part owners.
ARTICLE 593. The owners of a vessel shall have preference in her charter to other persons, offering equal conditions and
price. If two or more of the former should claim said right the one having greater interest shall be preferred, and should they
have an equal interest it shall be decided by lot.

ARTICLE 594. The part owners shall elect the manager who is to represent them in the capacity of agent.

The appointment of director or agent shall be revocable at the will of the members.

ARTICLE 595. The agent, be he at the same time an owner of a vessel or a manager for an owner or for an association of
co-owners, must be qualified to trade and must be recorded in the merchant's registry of the province.

The agent shall represent the ownership of the vessel, and may in his own name and in such capacity take judicial and
extrajudicial steps in all that relates to commerce.

ARTICLE 596. The agent may discharge the duties of captain of the vessel, subject, in every case, to the provisions
contained in Article 609.

If two or more co-owners request the position of captain, the disagreement shall be decided by a vote of the members; and
if the vote should result in a tie, the position shall be given to the part owner having the larger interest in the vessel.

If the interest of the petitioners should be the same, and there should be a tie, the matter shall be decided by lot.

ARTICLE 597. The agent shall select and come to an agreement with the captain, and shall contract in the name of the
owners, who shall be bound in all that refers to repairs, details of equipment, armament, provisions, fuel, and freight of the
vessel, and, in general, in all that relates to the requirements of navigation.

ARTICLE 598. The agent cannot order a new voyage, nor make contracts for a new charter, nor insure the vessel, without
the authority of her owner or by virtue of a resolution of the majority of the co-owners, unless these privileges were granted
him in the certificate of his appointment.

If he should insure the vessel without authority therefor he shall be secondarily liable for the solvency of the underwriter.

ARTICLE 599. The managing agent of an association, shall give his co-owners an account of the results of each voyage of
the vessel, without prejudice to always having the books and correspondence relating to the vessel and to its voyages at
the disposal of the same.

ARTICLE 600. After the account of the managing agent has been approved by a relative majority, the co-owners shall
satisfy the expenses in proportion to their interest, without prejudice to the civil or criminal actions which the minority m ay
deem fit to institute afterwards.

In order to enforce the payment, the managing agent shall have a right of action to secure execution, which shall be instituted
by virtue of a resolution of the majority, and without further proceedings than the acknowledgment of the signatures of the
persons who voted the resolution.

ARTICLE 601. Should there be any profits, the co-owners may demand of the managing agent the amount due them, by
means of an executory action without further requisites than the acknowledgment of the signatures of the instrument
approving the account.

ARTICLE 602. The agent shall indemnify the captain for all the expenses he may have incurred from his own funds or from
those of other persons, for the benefit of the vessel.

ARTICLE 603. Before a vessel goes out to sea the agent shall have at his discretion, a right to discharge the captain and
members of the crew whose contract did not state a definite period nor a definite voyage, paying them the salaries earned
according to their contracts, and without any indemnity whatsoever, unless there is a special and specific agreement in
respect thereto.
ARTICLE 604. If the captain or any other member of the crew should be discharged during the voyage, they shall receive
their salary until the return to the place where the contract was made, unless there are good reasons for the discharge, all
in accordance with Articles 636 et seq. of this Code.

ARTICLE 605. If the contracts of the captain and members of the crew with the agent should be for a definite period or
voyage, they cannot be discharged until the fulfillment of their contracts, except for reasons of insubordination in serious
matters, robbery, theft, habitual drunkenness, and damage caused to the vessel or to its cargo by malice or manifest or
proven negligence.

ARTICLE 606. If the captain should be a part owner in the vessel, he cannot be discharged without the agent returning him
the amount of his interest therein, which, in the absence of an agreement between the parties, shall be appraised by experts
appointed in the manner established in the law of civil procedure.

ARTICLE 607. If the captain who is a part owner should have obtained the command of the vessel by virtue of a special
agreement contained in the articles of co-partnership, he cannot be deprived thereof except for the reasons mentioned in
Article 605.

ARTICLE 608. In case of the voluntary sale of the vessel, all contracts between the agent and captain shall terminate, the
right to proper indemnity being reserved in favor of the captain, according to the agreements made with the agent.

They vessel sold shall remain subject to the security of the payment of said indemnity if, after the action against the vendor
has been instituted, the latter should be insolvent.

SECTION II
Captains and Masters of Vessels

ARTICLE 609. Captains and masters of vessels must be Spaniards * having legal capacity to bind themselves in accordance
with this Code, and must prove that they have the skill, capacity, and qualifications required to command and direct the
vessel, as established by marine laws, ordinances, or regulations, or by those of navigation, and that they are not disqualified
according to the same for the discharge of the duties of that position.

If the owner of a vessel desires to be the captain thereof and does not have the legal qualifications therefor, he shall limit
himself to the financial administration of the vessel, and shall intrust her navigation to a person possessing the qualifications
required by said ordinances and regulations.

ARTICLE 610. The following powers are inherent in the position of captain or master of a vessel:

1. To appoint or make contracts with the crew in the absence of the agent and propose said crew, should
said agent be present; but the agent shall not be permitted to employ any member against the
captain's express refusal.

2. To command the crew and direct the vessel to the port of its destination, in accordance with the
instructions he may have received from the agent.

3. To impose, in accordance with the agreements and the laws and regulations of the merchants marine,
on board the vessel, correctional punishment upon those who do not comply with his orders or
who conduct themselves against discipline, holding a preliminary investigation on the crimes
committed on board the vessel on the high seas, which shall be turned over to the authorities,
who are to take cognizance thereof, at the first port touched.

4. To make contracts for the charter of the vessel in the absence of the agent or of her consignee, acting
in accordance with the instructions received and protecting the interests of the owner most
carefully.

5. To adopt all the measures which may be necessary to keep the vessel well supplied and equipped,
purchasing for the purpose all that may be necessary, provided there is no time to request
instructions of the agent.
 6. To make, in similar urgent cases and on a voyage, the repairs to the hull and engines of the vessel
and to her rigging and equipment which are absolutely necessary in order for her to be able to
continue and conclude her voyage; but if she should arrive at a point where there is a consignee
of the vessel, he shall act in concurrence with the latter.

ARTICLE 611. In order to comply with the obligations mentioned in the foregoing article, the captain, when he has no funds
and does not expect to receive any from the agent, shall procure the same in the successive order stated below:

1. By requesting said funds of the consignees or correspondents of a vessel.

2. By applying to the consignees of the cargo or to the persons interested therein.

3. By drawing on the agent.

4. By borrowing the amount required by means of a bottomry bond.

5. By selling a sufficient amount of the cargo to cover the amount absolutely necessary to repair the
vessel, and to equip her to pursue the voyage. cd

In the two latter cases he must apply to the judicial authority of the port, if in Spain * and to the Spanish * consul, if in a
foreign country; and where there should be none, to the local authority, proceeding in accordance with the prescriptions of
Article 583, and with the provisions of the law of civil procedure.

ARTICLE 612. The following obligations are inherent in the office of captain:

1. To have on board before starting on a voyage a detailed inventory of the hull, engines, rigging, tackle,
stores, and other equipment of the vessel; the navigation certificate; the roll of the persons who
make up the crew of the vessel, and the contracts entered into with the crew; the list of
passengers; the health certificate; the certificate of the registry proving the ownership of the
vessel, and all the obligations which encumber the same up to that date; the charters or
authenticated copies thereof; the invoices or manifest of the cargo, and the instrument of the
expert visit or inspection, should it have been made at the port of departure.

2. To have a copy of this Code on board.

3. To have three folioed and stamped books, placing at the beginning of each one a note of the number
of folios it contains, signed by the maritime official, and in his absence by the competent authority.

In the first book, which shall be called "log book," he shall enter every day the condition of the atmosphere, the prevailing
winds, the course sailed, the rigging carried, the horsepower of the engines, the distance covered, the maneuvers executed,
and other incidents of navigation. He shall also enter the damage suffered by the vessel in her hull, engines, rigging, and
tackle, no matter what is its cause, as well as the imperfections and averages of the cargo, and the effects and consequence
of the jettison, should there be any; and in cases of grave resolutions which require the advice or a meeting of the officers
of the vessel, or even of the passengers and crew, he shall record the decision adopted. For the informations indicated he
shall make use of the binnacle book, and of the steam or engine book kept by the engineer.

In the second book, called the "accounting book," he shall enter all the amounts collected and paid for the account of the
vessel, entering specifically article by article, the sources of the collection, and the amounts invested in provisions, repairs,
acquisition of rigging or goods, fuel, outfits, wages, and all other expenses. He shall furthermore enter therein a list of all
the members of the crew, stating their domiciles, their wages and salaries, and the amounts they may have received on
account, either directly or by delivery to their families.

In the third book, called "freight book," he shall record the entry and exit of all the goods, stating their marks and packages,
names of the shippers and of the consignees, ports of loading and unloading, and the freight earned. In the same book he
shall record the names and places of sailing of the passengers and the number of packages of which their baggage consists,
and the price of the passage.
4. To make, before receiving the freight, with the officers of the crew, and the two experts, if required by the shippers and
passengers, an examination of the vessel, in order to ascertain whether she is watertight, and whether the rigging and
engines are in good condition; and if she has the equipment required for good navigation, preserving a certificate of the
memorandum of this inspection, signed by all the persons who may have taken part therein, under their liability.

The experts shall be appointed one by the captain of the vessel and the other one by the persons who request the
examination, and in case of disagreement a third shall be appointed by the marine authority of the port.

5. To remain constantly on board the vessel with the crew during the time the freight is taken on board and carefully watch
the stowage thereof; not to consent to any merchandise or goods of a dangerous character to be taken on, such as
inflammable or explosive substances, without the precautions which are recommended for their packing, management and
isolation; not to permit that any freight be carried on deck which by reason of its disposition, volume, or weight makes the
work of the sailors difficult, and which might endanger the safety of the vessel; and if, on account of the nature of the
merchandise, the special character of the shipment, and principally the favorable season it takes place, he allows
merchandise to be carried on deck, he must hear the opinion of the officers of the vessel, and have the consent of the
shippers and of the agent.

6. To demand a pilot at the expense of the vessel whenever required by navigation, and principally when a port, canal, or
river, or a roadstead or anchoring place is to be entered with which neither he, the officers nor the crew are acquainted.

7. To be on deck at the time of sighting land and to take command on entering and leaving ports, canals, roadsteads, and
rivers, unless there is a pilot on board discharging his duties. He shall not spend the night away from the vessel except for
serious causes or by reason of official business.

8. To present himself, when making a port in distress, to the maritime authority if in Spain * and to the Spanish * consul if in
a foreign country, before twenty-four hours have elapsed, and make a statement of the name, registry, and port of departure
of the vessel, of its cargo, and reason of arrival, which declaration shall be vised by the authority or by the consul if after
examining the same it is found to be acceptable, giving the captain the proper certificate in order to show his arrival under
stress and the reasons therefor. In the absence of marine officials or of the consul, the declaration must be made before
the local authority.

9. To take the steps necessary before the competent authority in order to enter in the certificate of the Commercial Registry
of the vessel the obligations which he may contract in accordance with Article 583.

10. To put in a safe place and keep all the papers and belongings of any members of the crew who might die on the vessel,
drawing up a detailed inventory, in the presence of passengers as witnesses, and, in their absence, of members of the crew.

11. To conduct himself according to the rules and precepts contained in the instructions of the agent, being liable for all that
he may do in violation thereof.

12. To give an account to the agent from the port where the vessel arrives, of the reason thereof, taking advantage of the
semaphore, telegraph, mail, etc., according to the cases; notify him the freight he may have received, stating the name and
domicile of the shippers, freight earned, and amounts borrowed on bottomry bond, advise him of his departure, and give
him any information and data which may be of interest.

13. To observe the rules on the situation of lights and evolutions to prevent collisions.

14. To remain on board in case of danger to the vessel, until all hope to save her is lost, and before abandoning her to hear
the officers of the crew, abiding by the decision of the majority; and if he should have to take a boat he shall take with him,
before anything else, the books and papers, and then the articles of most value, being obliged to prove in case of the loss
of the books and papers that he did all he could to save them.

15. In case of wreck he shall make the proper protest in due form at the first port reached, before the competent authority
or the Spanish * consul, within twenty-four hours, stating therein all the incidents of the wreck, in accordance with case 8 of
this article.

16. To comply with the obligations imposed by the laws and rules of navigation, customs, health, and others.
ARTICLE 613. A captain who navigates for freight in common or on shares cannot make any transaction for his exclusive
account, and should he do so the profit shall belong to the other persons in interest, and the losses shall be for his own
exclusive account.

ARTICLE 614. A captain who, having made an agreement to make a voyage, should not fulfill his obligation, without being
prevented by an accident case or by force majeure, shall pay for all the losses his action may cause, without prejudice to
criminal penalties which may be proper.

ARTICLE 615. Without the consent of the agent, the captain cannot have himself substituted by another person; and should
he do so, besides being liable for all the acts of the substitute and bound to the indemnities mentioned in the foregoing
article, the substitute as well as the captain may be discharged by the agent.

ARTICLE 616. If the provisions and fuel of the vessel are consumed before arriving at the port of destination, the captain
shall decide, with the consent of the officers of the same, to make the nearest port to get a supply of either; but if there are
persons on board who have provisions of their own he may force them to turn said provisions over for the common
consumption of all persons on board, paying the price thereof immediately, or at the latest, at the first port reached.

ARTICLE 617. The captain cannot contract loans on respondentia, and should he do so the contracts shall be void.

Neither can he borrow money on bottomry for his own transactions, except on the portion of the vessel he owns, provided
no money has been previously borrowed on the whole vessel, and provided there does not exist any other kind of lien or
obligation thereon. When he is permitted to do so, he must necessarily state what interest he has in the vessel.

In case of violation of this article the principal, interest, and costs shall be charged to the private account of the captain, and
the agent may furthermore have the right to discharge him.

ARTICLE 618. The captain shall be civilly liable to the agent, and the latter to the third persons who may have made
contracts with the former —

1. For all the damages suffered by the vessel and his cargo by reason of want of skill or negligence on
his part. If a misdemeanor or crime has been committed he shall be liable in accordance with the
Penal Code.

2. For all the thefts committed by the crew, reserving his right of action against the guilty parties.

3. For the losses, fines, and confiscations imposed an account of violation of the laws and regulations of
customs, police, health, and navigation.

4. For the losses and damages caused by mutinies on board the vessel, or by reason of faults committed
by the crew in the service and defense of the same, if he does not prove that he made full use of
his authority to prevent or avoid them.

5. For those arising by reason of an undue use of powers and non-fulfillment of the obligations which are
his in accordance with Articles 610 and 612.

6. For those arising by reason of his going out of his course or taking a course which he should not have
taken without sufficient cause, in the opinion of the officers of the vessel, at a meeting with the
shippers or supercargoes who may be on board.

No exception whatsoever shall exempt him from this obligation.

7. For those arising by reason of his voluntarily entering a port other than his destination, with the
exception of the cases or without the formalities referred to in Article 612.

8. For those arising by reason of the non-observance of the provisions contained in the regulations for
lights and evolutions for the purpose of preventing collisions.
ARTICLE 619. The captain shall be liable for the cargo from the time it is turned over to him at the dock, or afloat alongside
the ship, at the port of loading until he delivers it on the shores or on the discharging wharf, of the port of unloading unless
the contrary has been expressly agreed upon.

ARTICLE 620. The captain shall not be liable for the damages caused to the vessel or to the cargo by reason of force
majeure; but he shall always be so — no agreement to the contrary being valid — for those arising through his own fault.

Neither shall he be personally liable for the obligations he may have contracted for the repair, equipment, and provisioning
of the vessel, which shall be incurred by the agent, unless the former has expressly bound himself personally or signed a
draft or promissory note in his name.

ARTICLE 621. A captain who borrows money on bottomry, or who pledges or sells merchandise or provisions in other cases
and without the formalities prescribed in this Code, shall be liable for the principle, interest, and costs, and shall indemnify
for the damages he may cause.

The captain who commits fraud in his accounts shall reimburse the amount defrauded, and shall be subject to the provisions
contained in the Penal Code.

ARTICLE 622. If when on a voyage the captain should receive news of the appearance of privateers or men of war against
his flag, he shall be obliged to make the nearest neutral port, inform his agent or shippers, and await an occasion to sail
under convoy or until the danger is over or to receive final orders from the agent or shippers.

ARTICLE 623. If he should find himself being attacked by a privateer and after having done all that was possible to avoid
the encounter and have resisted the delivery of the equipment of the vessel or of its cargo, they should be forcibly taken
away from him, or he should be obliged to deliver them, he shall make an entry in his freight book and shall prove the fact
before the competent authority at the first port he touches.

After the force majeure has been proven, he shall be exempted from liability.

ARTICLE 624. A captain whose vessel has gone through a hurricane or who believes that the cargo has suffered damages
or averages, shall make a protest thereon before the competent authority at the first port he touches within the twenty-four
hours following his arrival, and shall ratify it within the same period when he arrives at the place of his destination,
immediately proceeding with the proof of the facts, it not being permitted to open the hatches until this has been done.

The captain shall proceed in the same manner if, the vessel having been wrecked, he is saved alone or with part of his
crew, in which case he shall appear before the nearest authority, and make a sworn statement of the facts.

The authority or the consul abroad shall verify the said facts, receiving a sworn statement of the members of the crew and
passengers who may have been saved, and taking the other steps which may assist in arriving at the facts, drafting a
certificate of the result of the proceedings in the log book and in that of the sailing mate, and shall deliver the original records
of the proceedings to the captain, stamped and folioed, with a memorandum of the folios, which he must rubricate, for their
presentation to the judge or court of the port of destination.

The statement of the captain shall be believed if it is in accordance with those of the crew and passengers; if they disagree,
the latter shall be accepted, unless there is proof to the contrary.

ARTICLE 625. The captain, under his personal liability, as soon as he arrives at the port of destination, obtains the necessary
permission from the health and customs officers and fulfills the other formalities required by the regulations of the
administration, shall turn over the cargo, without any defalcation, to the consignees, and, in a proper case, the vessel,
rigging, and freights to the agent.

If, by reason of the absence of the consignee or on account of the nonappearance of a legal holder of the invoices, the
captain does not know to whom he is to make the legal delivery of the cargo, he shall place it at the disposal of the proper
judge or court or authority, in order that he may decide with regard to its deposit, preservation, and custody.

SECTION III
Officers and Crews of Vessels
ARTICLE 626. In order to be a sailing mate it shall be necessary:

1. To have the conditions required by the marine or navigation laws or regulations.

2. Not to be disqualified in accordance therewith for the discharge of the position.

ARTICLE 627. The sailing mate, as the second chief of the vessel and unless the agent orders otherwise, shall take the
place of the captain in cases of absence, sickness, or death, and shall then assume all his powers, obligations, and
responsibilities.

ARTICLE 628. The sailing mate must supply himself with charts of the waters which are to be navigated, with the maps and
quadrants or sextants which are in use and which are necessary for the discharge of his duties, being liable for the accidents
which may arise by reason of his fault in this matter.

ARTICLE 629. The sailing mate shall personally and specially keep a book folioed and stamped on all its pages, called the
"binnacle book", with a memorandum at the beginning stating the number of folios it contains, signed by the competent
authority, and shall enter therein daily the distance and course travelled, the variations of the needle, the leeway, the
direction and force of the wind, the condition of the atmosphere and of the sea, the rigging set, the latitude and longitude
observed, the number of purnaces fired, the steam pressure, the number of revolutions, and under the name of "incidents"
the revolutions made, the meetings with other vessels, and all the particulars and accidents which may occur during the
voyage.

ARTICLE 630. In order to change the course and to take the one most convenient for a good voyage of the vessel, the
sailing mate shall come to an agreement with the captain. If the latter should object, the sailing mate shall make the remarks
he may consider necessary in the presence of the other officers of the vessel. If the captain should still insist on his objection,
the sailing mate shall make the proper protest, signed by him and by another one of the officers in the log book, and shall
obey the captain, who shall be the only one liable for the consequences of his order.

ARTICLE 631. The sailing mate shall be liable for all the damages suffered by the vessel and cargo by reason of his
negligence or want of skill, without prejudice to the criminal liability which may arise, if a felony or misdemeanor were
committed.

ARTICLE 632. It shall be the duty of the second mate:

1. To watch over the preservation of the hull, and rigging of the vessel, and to take charge of the tackle
and equipment which make up her outfit, suggesting to the captain the repairs necessary and the
replacement of the goods and implements which are rendered useless and lost.

2. To take care that the cargo is well arranged, keeping the vessel always ready for evolutions.

3. To preserve order, discipline, and good service among the crew, requesting the necessary orders and
instructions of the captain, and quickly informing him of any occurrence in which the intervention
of his authority may be necessary.

4. To assign to each sailor the work he is to do on board, in accordance with the instructions received,
and see that it is exactly and carefully carried out.

5. To take charge by inventory of the rigging and all the equipment of the vessel, if it should be laid up,
unless the agent has ordered otherwise.

With regard to engineers the following rules shall govern:

1. In order to be taken on board as a marine engineer forming part of the complement of a merchant
vessel it shall be necessary to possess the qualifications which the laws and regulations require,
and not to be disqualified in accordance therewith to hold said position. Engineers shall be
considered as officers of the vessel, but they shall exercise no command nor intervention except
that which refers to the motive power.
 2. When there are two or more engineers on one vessel, one of them shall be the chief, and the other
engineers and all the personnel of the engines shall be under his orders; he shall furthermore
have the motive power under his charge, as well as the spare pieces, instruments, and
implements belonging thereto, the fuel, the lubricating material and, finally, all which comes under
the jurisdiction of an engineer on board a vessel.

3. He shall keep the engines and boilers in good condition and in state of cleanliness, and shall order
what may be proper in order that they may always be ready for regular use, being liable for the
accidents or damages which may arise by reason of his want of skill or negligence to the motive
apparatus, or to the vessel and cargo, without prejudice to the criminal liability which may be
proper if a felony or misdemeanor is proven.

4. He shall make no change in the motive apparatus, nor shall he repair the averages he may have
noticed in the same, nor change the normal speed of its movement without the prior authority of
the captain, to whom, if he should object to their being made, he shall state the reasons he may
deem proper in the presence of the other engineers or officers; and if, notwithstanding this, the
captain should insist on his objection, the chief engineer shall make the proper protest, entering
the same in the engine book, and shall obey the captain, who shall be the only one liable for the
consequences of his order.

5. He shall inform the captain of any average which may occur to the motive apparatus, and shall inform
him when it may be necessary to stop the engines for some time, or when any other incident
occurs in his department of which the captain should be immediately informed, frequently
advising him furthermore of the consumption of fuel and lubricating material.

6. He shall keep a book or registry called the "Engine Book," in which there shall be entered all the data
that refer to the work of the engines, such as, for example, the number of furnaces fired, the
steam pressure in the boilers and cylinders, the vacuum in the condenser, the temperatures, the
degree of saturation of the water, the consumption of fuel and lubricating material, and under the
heading of "Noteworthy occurrences" the average and imperfections which occur in the engines
and boilers, the causes therefor, and the means employed to repair the same. There shall also
be stated, taking the information from the binnacle book, and direction of the wind, the rigging
set, and the speed of the vessel.

ARTICLE 633. The second mate shall take command of the vessel in case of the impossibility or disability of the captain
and sailing mate, assuming in such case their powers and liability.

ARTICLE 634. The captain may make up his crew with the number he may consider advisable, and in the absence of
Spanish * sailors he may ship foreigners residing in the country, the number thereof not to exceed one-fifth of the total crew.
If in foreign ports the captain should not find a sufficient number of Spanish * sailors, he may make up the crew with
foreigners, with the consent of the consul or marine authorities.

The agreements which the captain may make with the members of the crew and others who go to make up the complement
of the vessels, to which reference is made in Article 612, must be reduced to writing in the account book without the
intervention of a notary public or clerk, signed by the parties thereto, and vised by the marine authority if they are executed
in Spanish * territory, or by the consuls or consular agents of Spain * if executed abroad, stating therein all the obligations
which each one contracts and all the rights they acquire, said authorities taking care that these obligations and rights are
recorded in a concise and clear manner, which will not give rise to doubts or claims. cd

The captain shall take care to read to them the articles of this Code, which concern them, stating that they were read in the
said document.

If the book includes the requisites prescribed in Article 612, and there should not appear any signs of alterations in its
clauses, it shall be admitted as evidence in questions which may arise between the captain and the crew with regard to the
agreements contained therein and the amounts paid on account of the same.

Every member of the crew may request a copy of the captain, signed by the latter, of the agreement and of the liquidation
of his wages, as they appear in the book.
ARTICLE 635. A sailor who has been contracted to serve on a vessel can not rescind his contract nor fail to comply therewith
except by reason of a legitimate impediment which may have occurred.

Neither can he pass from the service of one vessel to another without obtaining the written consent of the vessel on which
he may be.

If, without obtaining said permission, the sailor who has signed for one vessel should sign for another one, the second
contract shall be void, and the captain may choose between forcing him to fulfill the service to which he first bound himself
or look for a person to substitute him at his expense.

Said sailor shall furthermore lose the wages earned on his first contract to the benefit of the vessel for which he may have
signed.

A captain who, knowing that a sailor is in the service of another vessel, should have made a new agreement with him,
without having requested the permission referred to in the foregoing paragraphs, shall be personally liable to the captain of
the vessel to which the sailor first belonged for that part of the indemnity, referred to in the third paragraph of this article,
which the sailor could not pay.

ARTICLE 636. Should a fixed period for which a sailor has signed not be stated, he can not be discharged until the end of
the return voyage to the port where he enrolled.

ARTICLE 637. Neither can the captain discharge a sailor during the time of his contract except for sufficient cause, the
following being considered as such:

1. The perpetration of a crime which disturbs order on the vessel.

2. Repeated offenses of insubordination, against discipline, or against the fulfillment of the service.

3. Repeated incapacity or negligence in the fulfillment of the service to be rendered.

4. Habitual drunkenness.

5. Any occurrence which incapacitates the sailor to carry out the work under his charge, with the exception
of the provisions contained in Article 644.

6. Desertion.

The captain may, however, before setting out on a voyage and without giving any reason whatsoever, refuse to permit a
sailor he may have engaged from going on board and may leave him on land, in which case he will be obliged to pay him
his wages as if he had rendered services.

This indemnity shall be paid from the funds of the vessel if the captain should have acted for reasons of prudence and in
the interest of the safety and good service of the former. Should this not be the case, it shall be paid by the captain
personally.

After the vessel has sailed, and during the voyage and until the conclusion thereof, the captain can not abandon any member
of his crew on land or on the sea, unless, by reason of being guilty of some crime, his imprisonment and delivery to the
competent authority is proper in the first port touched, which will be obligatory on the captain.

ARTICLE 638. If, the crew having been engaged, the voyage is revoked by the will of the agent or of the charterers before
or after the vessel has put to sea or if the vessel is in the same manner given a different destination than that fixed in the
agreement with the crew, the latter shall be indemnified because of the rescission of the contract according to the case, viz:

1. If the revocation of the voyage should be decided before the departure of the vessel from the port,
each sailor engaged shall be given one month's salary, besides what may be due him in
accordance with his contract, for the services rendered to the vessel up to the date of the
revocation.
 2. If the agreement should have been for a fixed amount for the whole voyage, there shall be graduated
what may be due for said month and days, calculating the same in proportion to the estimated
duration of the voyage, in the judgment of experts, in the manner established in the law of civil
procedure; and if the proposed voyage should be of such short duration that it is calculated at
one month more or less, the indemnity shall be fixed for fifteen days, discounting in all cases the
sums advanced.

3. If the revocation should take place after the vessel has put to sea, the sailors engaged for a fixed
amount for the voyage shall receive the salary which may have been offered them in full as if the
voyage had terminated, and those engaged by the month shall receive the amount corresponding
to the time they might have been on board and to the time they may require to arrive at the port
of destination, the captain being obliged, furthermore, to pay said sailors the passage to the said
port or to the port of sailing of the vessel, as may be convenient for them.

4. If the agent or the charterers of the vessel should give said vessel a destination other than that fixed
in the agreement, and the members of the crew should not agree thereto, they shall be given by
way of indemnity half the amount fixed in case No. 1, besides what may be owed them for the
part of the monthly wages corresponding to the days which have elapsed from the date of their
agreements.

If they accept the change, and the voyage, on account of the greater distance or for other reasons, should give rise to an
increase of wages, the latter shall be privately regulated, or through amicable arbitrators in case of disagreement. Even
though the voyage may be to a nearer point, this shall not give rise to a reduction in the wages agreed upon.

If the revocation or change of the voyage should originate from the shippers or charterers, the agent shall have a right to
demand of them the indemnity which is justly due.

ARTICLE 639. If the revocation of the voyage should arise from a just cause independent of the will of the agent or
charterers, and the vessel should not have left the port, the members of the crew shall not have any other right than to
receive the wages earned up to the day on which the revocation took place.

ARTICLE 640. The following shall be just causes for the revocation of the voyage:

1. A declaration of war or interdiction of commerce with the power to whose territory the vessel was
bound.

2. The blockade of the port of destination or the breaking out of an epidemic after the agreement.

3. The prohibition to receive in said port the goods which make up the cargo of the vessel.

4. The detention or embargo of the same by order of the Government, or for any other reason independent
of the will of the agent.

5. The inability of the vessel to navigate.

ARTICLE 641. If, after a voyage has been begun, any of the first three causes mentioned in the foregoing article should
occur, the sailors shall be paid at the port the captain may deem it advisable to make for the benefit of the vessel and cargo,
according to the time they may have served thereon; but if the vessel is to continue the voyage, the captain and the crew
may mutually demand the enforcement of the contract.

In case of the occurrence of the fourth cause, the crew shall continue to be paid half wages, if the agreement is by month
but if the detention should exceed three months, the engagement shall be rescinded and the crew shall be paid what they
should have earned, according to the contract, if the voyage had been made. And if the agreement had been made for a
fixed sum for the voyage, the contract must be complied within the terms agreed upon.

In the fifth case, the crew shall not have any other right than be entitled to recover the wages earned; but if the disability of
the vessel should have been caused by the negligence or lack of skill of the captain, engineer, or sailing mate, they shall
indemnify the crew for the loss suffered, always reserving the criminal liability which may be proper.
ARTICLE 642. If the crew has been engaged to work on shares they shall not be entitled, by reason of the revocation, delay,
or greater extension of the voyage, to anything but the proportionate part of the indemnity paid into the common funds of
the vessel by the persons liable for said occurrences.

ARTICLE 643. If the vessel and her freight should be totally lost, by reason of capture or wreck, all rights of the crew to
demand any wages whatsoever shall be extinguished, as well as that of the agent for the recovery of the advances made.

If a portion of the vessel or freight should be saved, or part of either, the crew engaged on wages, including the captain,
shall retain their rights on the salvage, so far as they go, on the remainder of the vessel as well as value of the freightage
or the cargo saved; but sailors who are engaged on shares shall not have any right whatsoever to the salvage of the hull,
but only on the portion of the freightage saved. If they should have worked to collect the remainder of the ship-wrecked
vessel, they shall be given an award in proportion to the efforts made and to the risks encountered in order to accomplish
the salvage.

ARTICLE 644. A sailor who falls sick shall not lose his right to wages during the voyage, unless the sickness is the result of
his own fault. At any rate, the costs of the attendance and cure shall be defrayed from the common funds, in the form of a
loan.

If the sickness should be caused by an injury received in the service or defense of the vessel the sailor shall be attended
and cured from the common funds, there being deducted before anything else from the proceeds of the freight, the cost of
the attendance and cure.

ARTICLE 645. If a sailor should die during the voyage his heir shall be given the wages earned and not received, according
to his engagement and the reason for his death, namely —

If he should have died a natural death and should have been engaged on wages there shall be paid what may have been
earned up to the date of his death.

If the engagement had been made for a fixed sum for the whole voyage there shall be paid half the amount earned if the
sailor died on the voyage out, and the whole amount if he died on the return voyage.

And if the engagement had been made on shares and the death should have occurred after the voyage was begun, the
heirs shall be paid the entire portion due the sailor; but should the latter have died before the departure of the vessel from
the port, the heirs shall not be entitled to claim anything.

If the death should have occurred in the defense of the vessel, the sailor shall be considered as living, and his heirs shall
be paid, at the end of the voyage, the full amount of wages or the full part of the profits due him as to the others of his grade.

The sailor shall likewise be considered as present in the event of his capture when defending the vessel, in order to enjoy
the same benefits as the rest; but should he have been captured on account of carelessness or other accident not related
to the service, he shall only receive the wages due up to the day of his capture.

ARTICLE 646. The vessel with her engines, rigging, equipment, and freights shall be liable for the wages earned by the
crew engaged per month or for the trip, the liquidation and payment ought to take place between one voyage and the other.

After a new voyage has been undertaken, credits such as the former shall lose their right of preference.

ARTICLE 647. The officers and the crew of the vessel shall be exempted from all obligations contracted, if they deem it
proper, in the following cases:

1. If, before the beginning of the voyage, the captain attempts to change it, or there occurs a naval war
with the power to which the vessel was destined.

2. If a disease should break out and be officially declared epidemic in the port of destination.

3. If the vessel should change owner or captain.

ARTICLE 648. By the complement of a vessel shall be understood all the persons embarked, from the captain to the cabin
boy, necessary for the management, evolutions, and service, and there shall, therefore, be understood as included in the
complement the crew, sailing mates, engineers, stokers, and other persons not having a specific name; but there shall not
be included the passengers nor the persons the vessel is only transporting.

SECTION IV
Supercargoes

ARTICLE 649. Supercargoes shall discharge on board the vessel the administrative duties which the agent or shippers may
have assigned them; they shall keep an account and record of their transactions in a book which shall have the same
conditions and requisites as required for the accounting book of the captain, and shall respect the latter in his duties as chief
of the vessel.

The powers and liabilities of the captain shall cease, when there is a supercargo, with regard to that part of the administration
legitimately conferred upon the latter, but shall continue in force for all acts which are inseparable from his authority and
office.

ARTICLE 650. All the provisions contained in the second section of Title III, Book II, with regard to qualifications, manner of
making contracts, and liabilities of factors shall be applicable to supercargoes.

ARTICLE 651. Supercargoes cannot, without special authorization or agreement, make any transaction for their own
account during the voyage, with the exception of the ventures which, in accordance with the custom of the port of destination,
they are permitted to do.

Neither shall they be permitted to invest in the return trip more than the profits from the ventures, unless there is a special
authorization thereto from the principals.

TITLE III
Special Contracts of Maritime Commerce
SECTION I
Charter Parties
1. Forms and Effects of Charter Parties

ARTICLE 652. A charter party must be drawn in duplicate and signed by the contracting parties, and when either does not
know how or cannot do so, by two witnesses at their request.

The charter party shall include, besides the conditions unrestrictedly stipulated, the following statements:

1. The kind, name, and tonnage of the vessel.

2. Her flag and port of registry.

3. The name, surname, and domicile of the captain.

4. The name, surname, and domicile of the agent, if the latter should make the charter party.

5. The name, surname, and domicile of the charterer, and if he states that he is acting by commission,
that of the person for whose account he makes the contract.

6. The port of loading and unloading.

7. The capacity, number of tons or weight, or measure which they respectively bind themselves to load
and transport, or whether it is the total cargo.
 8. The freightage to be paid, stating whether it is to be a fixed amount for the voyage or so much per
month, or for the space to be occupied, or for the weight or measure of the goods of which the
cargo consists, or in any other manner whatsoever agreed upon.

9. The amount of primage to be paid to the captain.

10. The days agreed upon for loading and unloading.

11. The lay days and extra lay days to be allowed and the rate of demurrage.

ARTICLE 653. If the freight should be received without the charter party having been signed, the contract shall be
understood as executed in accordance with what appears in the bill of lading, which shall be the only instrument with regard
to the freight to determine the rights and obligations of the owner, of the captain, and of the charterer. cdt

ARTICLE 654. The charter parties executed with the intervention of a broker, who certifies to the authenticity of the
signatures of the contracting parties made in his presence, shall be full evidence in court; and if said signatures should not
agree the ones identical with the signatures the broker must keep in his registry, if kept in accordance to law, shall be final.

The contracts shall also be admitted as evidence, even though a broker has not taken part therein, if the contracting parties
acknowledge the signatures to be the same as their own.

Should no broker have taken part in the charter party and should the signatures not have been acknowledged, doubts shall
be decided by what is provided for in the bill of lading, and in the absence thereof by the proofs submitted by the parties.

ARTICLE 655. Charter parties executed by the captain in the absence of the agent shall be valid and efficient, even though
in executing them he should have acted in violation of the orders and instructions of the agent or shipowner; but the latter
shall have a right of action against the captain to recover damages.

ARTICLE 656. If in the charter party the time in which the loading and unloading is to take place is not stated, the customs
of the port where these acts take place shall be observed. After the period stipulated or the customary one has passed, and
should there not be in the freight contract an express clause fixing the indemnification for the delay, the captain shall be
entitled to demand demurrage for the usual and extra lay days which may have elapsed in loading and unloading.

ARTICLE 657. If during the voyage the vessel should be rendered unseaworthy the captain shall be obliged to charter
another one at his expense, in good condition, to take the cargo to its destination, for which purpose he shall be obliged to
look for a vessel not only at the port of arrival but in the other ports within a distance of 150 kilometers.

If the captain should not furnish a vessel to take the cargo to its destination, either through indolence or malice, the freighters,
after a demand of the captain to charter a vessel within an unextendible period, may charter one and apply to the judicial
authority requesting that the charter party which may have been made be immediately approved.

The same authority shall judicially compel the captain to confirm the charter made by the shippers for his account and under
his responsibility.

If the captain, notwithstanding his efforts, should not find a vessel to charter, he shall deposit the cargo at the disposal of
the freighters, to whom he shall communicate the facts on the first opportunity presenting itself, the charter being regulated
in such cases by the distance covered by the vessel, there being no right to any indemnification whatsoever.

ARTICLE 658. The freight shall be paid according to the conditions stipulated in the contract, and should they not be specific,
or should they be ambiguous, the following rules shall be observed:

1. If the vessel has been chartered by months or by days, the freight shall begin to run from the day the
loading of the vessel is begun.

2. In charters made for a fixed period, the freight shall begin from that very day.
 3. If the freight is charged according to weight, the payment shall be made according to gross weight,
including the containers, such as barrels or any other objects containing the cargo.

ARTICLE 659. The merchandise sold by the captain to pay for the necessary repairs to the hull, machinery or equipment,
or for unavoidable and urgent requirements, shall pay freight.

The price of this merchandise shall be fixed according to the success of the voyage, namely:

1. If the vessel should arrive safely at the port of destination, the captain shall pay the price which the
sale of merchandise of the same kind brings at that port.

2. If the vessel should be lost, the captain shall pay the price said merchandise would have brought in
the sale.

The same rule shall be observed in the payment of the freight which shall be in full if the vessel arrives at her destination,
and in proportion to the distance covered if she should be lost beforehand.

ARTICLE 660. Merchandise jettisoned for the common safety shall not pay freight; but its value shall be considered as
general average, and shall be computed in proportion to the distance covered when it was jettisoned.

ARTICLE 661. Neither shall merchandise which was lost by reason of shipwreck or stranding pay freight, nor that seized
by pirates or enemies.

If the freight should have been paid in advance, it shall be returned, unless there was an agreement to the contrary.

ARTICLE 662. If the vessel or the merchandise should be recovered, or should the goods of the shipwreck be picked up,
the freight corresponding to the distance covered by the vessel transporting the cargo shall be paid; and should the vessel
be repaired and transport said merchandise to the port of destination, the full freight shall be paid, without prejudice to what
may be due by reason of the average.

ARTICLE 663. Merchandise which is damaged or reduced on account of its own defects or bad quality and condition of the
packing, or by reason of an accidental case, shall pay full freight, and as was stipulated in the charter party.

ARTICLE 664. The natural increase in weight or size of the merchandise loaded on the vessel shall accrue to the benefit of
the owner, and shall pay the proper freight fixed in the contract for the same.

ARTICLE 665. The cargo shall be specially liable for the payment of the freight expenses, and duties arising therefrom,
which must be reimbursed by the shippers, as well as for the part of the general average which may be due, but it shall not
be legal for the captain to delay unloading on account of delay in complying with this obligation.

Should there be reasons for distrust, the judge or court, at the instance of the captain, may order the deposit of the
merchandise until he has been paid in full.

ARTICLE 666. The captain may request the sale of the cargo to the amount necessary to pay the freight, expenses, and
averages due him, reserving the right to demand the balance due him therefor if the proceeds of the sale should not have
sufficed to cover his credit.

ARTICLE 667. The goods loaded shall be liable in the first place for their freight and expenses during twenty days, to be
counted from the date of their delivery or deposit. During this period, the sale of the same may be requested, even though
there be other creditors and the case of bankruptcy of the freighter or consignee should occur.

This right cannot be made use of, however, on the goods which after being delivered, were turned over to a third person
without malice on the part of the latter and for a valuable consideration.

ARTICLE 668. If the consignee should not be found or should refuse to receive the cargo, the judge or court, at the instance
of the captain, shall order its deposit and the sale of the merchandise in so far as necessary to pay the freight and other
expenses on the same.
The sale shall likewise take place when the goods deposited run the risk of deteriorating or by reason of their condition or
for other reasons the expenses of preservation and custody should be disproportionate to the value thereof.

2. Rights and Obligations of Owners

ARTICLE 669. The owners or the captain shall observe in charter parties the capacity of the vessel or that expressly
designated in the registry of the same, a difference greater than 2 per cent between that stated and her true capacity not
being permissible.

If the owners or the captain should contract to carry a greater amount of cargo than the vessel can hold, in view of her
tonnage, they shall indemnify the freighters whose contracts they do not fulfill for the losses they may have caused them by
reason of their default, according to the cases, viz:

If the vessel has been chartered by one freighter only, and there should appear to be an error or fraud in her capacity, and
the charterer should not wish to rescind the contract, when he has a right to do so, the charter should be reduced in
proportion to the cargo the vessel cannot receive, the person from whom the vessel is chartered being furthermore obliged
to indemnify the charterer for the losses he may have caused.

If, on the contrary, there should be several charter parties, and by reason of the want of space all the cargo contracted for
cannot be received, and none of the charterers desires to rescind the contract, preference shall be given to the person who
has already loaded and arranged the freight in the vessel, and the rest shall take the place corresponding to them in the
order of the dates of their contracts.

Should there be no priority, the charterers may load, if they wish, pro rata of the amounts of weight or space they may have
engaged, and the person from whom the vessel was chartered shall be obliged to indemnify them for the loss and damage.

ARTICLE 670. If the person from whom the vessel is chartered, after receiving a part of the freight, should not find sufficient
to make up at least three-fifths of the amount which the vessel can hold, at the price he may have fixed, he may substitute
for the transportation another vessel inspected and declared suitable for the same voyage, the expenses of transfer being
defrayed by him, as well as the increase, should there be any, in the price of the charter. Should he not be able to make
this change, the voyage shall be undertaken at the time agreed upon; and should no time have been fixed, within fifteen
days from the time of beginning to load, should nothing to the contrary have been stipulated.

If the owner of the part of the freight already loaded should procure some more at the same price and under similar or
proportionate conditions to those accepted for the freight received, the person from whom the vessel is chartered or the
captain can not refuse to accept the rest of the cargo; and should he do so, the freighter shall have a right to demand that
the vessel put to sea with the cargo she may have on board.

ARTICLE 671. After three-fifths of the vessel is loaded, the person from whom she is chartered can not, without the consent
of the charterers or freighters substitute the vessel designated in the charter party by another one, under the penalty of
making himself thereby liable for all the losses and damages occurring during the voyage to the cargo of the person who
did not consent to the change.

ARTICLE 672. If the vessel has been chartered in whole, the captain can not, without the consent of the person chartering
her, accept freight from any other person; and should he do so, said charterer may oblige him to unload it and require him
to indemnify him for the losses suffered thereby.

ARTICLE 673. The person from whom the vessel is chartered shall be liable for all the losses caused the charterer by
reason of the voluntary delay of the captain in putting to sea, according to the rules prescribed, provided he has been
requested to put to sea at the proper time through a notary or judicially.

ARTICLE 674. If the charterer should carry to the vessel more freight than that contracted for, the excess may be admitted
in accordance with the price stipulated in the contract, if it can be well stowed without injuring the other freighters, but if in
order to stow said freight it should be necessary to stow it in such manner as to throw the vessel out of trim the captain must
refuse it or unload it at the expense of its owner.

The captain may likewise, before leaving the port, unload the merchandise placed on board clandestinely, or transport it, if
he can do so and keep the vessel in trim, demanding by way of freightage the highest price which may have been stipulated
for said voyage.
ARTICLE 675. If the vessel has been chartered to receive the cargo in another port, the captain shall appear before the
consignee designated in the charter party, and, should the latter not deliver the cargo to him, he shall inform the charterer
and await his instructions, and in the meantime the lay days agreed upon shall begin to run, or those allowed by custom in
the port, unless there is a special agreement to the contrary.

Should the captain not receive an answer within the time necessary therefor, he shall make efforts to find freight; and should
he not find any after the lay days and extra lay days have elapsed, he shall make a protest and return to the port where the
charter was made.

The charterer shall pay the freightage in full, discounting that which may have been earned on the merchandise which may
have been carried on the voyage out or on the return trip, if carried for the account of third persons.

The same shall be done if a vessel, having been chartered for the round trip, should not be given any cargo for her return.

ARTICLE 676. The captain shall lose the freightage and shall indemnify the charterers if the latter should prove, even
against the certificate of inspection, should one have taken place at the port of departure, that the vessel was not in a
condition to navigate at the time of receiving the cargo.

ARTICLE 677. The charter party shall be enforced if the captain should not have any instructions from the charterer, and a
declaration of war or a blockade should take place during the voyage.

In such case the captain shall be obliged to make the nearest safe and neutral port, and request and await orders from the
freighter; and the expenses incurred and salaries earned during the detention shall be paid as general average.

If, by orders of the freighter, the cargo should be discharged at the port of arrival, the freight for the voyage out shall be paid
in full.

ARTICLE 678. If the time necessary, in the opinion of the judge or court, in which to receive orders from the freighters
should have elapsed without the captain having received any instructions, the cargo shall be deposited, and it shall be liable
for the payment of the freight and expenses incurred by reason of the delay which shall be paid from the proceeds of the
part first sold.

3. Obligations of Charterers

ARTICLE 679. The charterer of an entire vessel may subcharter the whole or part thereof for the amounts he may consider
most convenient, without the captain being allowed to refuse to receive on board the freight delivered by the second
charterers, provided the conditions of the first charter are not changed, and that the person from whom the vessel is
chartered be paid the full price agreed upon even though the full cargo is not embarked, with the limitation established in
the next article.

ARTICLE 680. A charterer who does not make up the full cargo he bound himself to ship shall pay the freightage of the
amount he fails to ship, if the captain did not take other freight to make up the cargo of the vessel, in which case he shall
pay the first charterer the difference should there be any.

ARTICLE 681. If the charterer should ship goods different from those indicated at the time of executing the charter party,
without the knowledge of the person from whom the vessel was chartered or of the captain, and should thereby give rise to
losses, by reason of confiscation, embargo, detention, or other causes, to the person from whom the vessel was chartered
or to the shippers, the person giving rise thereto shall be liable with the value of his shipment and furthermore with his
property, for the full indemnity to all those injured through his fault.

ARTICLE 682. If the merchandise shipped should have been for the purpose of illicit commerce, and was taken on board
with the knowledge of the person from whom the vessel was chartered or of the captain, the latter, jointly with the owner of
the same, shall be liable for all the losses which may be caused the other shippers, and even though it may have been
agreed, they can not demand any indemnity whatsoever of the charterer for the damage caused the vessel.

ARTICLE 683. In case of making a port to repair the hull, machinery, or equipment of the vessel, the freighters must wait
until the vessel is repaired, being permitted to unload her at their own expense should they deem it advisable.
If, for the benefit of the cargo subject to deterioration, the freighters or the court, or the consul, or the competent authority
in a foreign land should order the merchandise to be unloaded, the expenses of loading and unloading shall be for the
account of the former.

ARTICLE 684. If the charterer, without the occurrence of any of the cases of force majeure mentioned in the foregoing
article, should wish to unload his merchandise before arriving at the port of destination, he shall pay the full freight, the
expenses of the stop made at his request, and the losses and damages caused the other freighters, should there be any.

ARTICLE 685. In charters for transportation of general freight any of the freighters may unload the merchandise before the
beginning of the voyage, by paying one-half the freight, the expense of stowing and restowing the cargo, and any other
damage which may be caused the other shippers.

ARTICLE 686. After the vessel has been unloaded and the cargo placed at the disposal of the consignee, the latter must
immediately pay the captain the freight due and the other expenses to which he may be liable for said cargo.

The primage must be paid in the same proportion and at the same time as the freight, all the changes and modifications to
which the latter should be subject also governing the former.

ARTICLE 687. The charters and freighters cannot abandon merchandise damaged on account of the inherent vice of the
goods or by reason of an accidental case, for the payment of the freight and other expenses.

The abandonment shall be proper, however, if the cargo should consist of liquids and should they have leaked out, there
not remaining in the containers more than one-quarter of their contents.

4. Total or Partial Rescissions of Charter Parties

ARTICLE 688. A charter party may be annulled at the request of the charterer:

1. If before loading the vessel he should abandon the charter, paying half of the freightage agreed upon.

2. If the capacity of the vessel should not agree with that stated in the certificate of the tonnage, or if there
is an error in the statement of the flag under which she sails.

3. If the vessel should not be placed at the disposal of the charterer within the period and in the manner
agreed upon.

4. If, after the vessel has put to sea, she should return to the port of departure, on account of risk of
pirates, enemies, or bad weather, and the freighters should agree to unload her.

In the second and third cases the person from whom the vessel was chartered shall indemnify the charterer for the losses
he may suffer.

In the fourth case the person from whom the vessel was chartered shall have a right to the freightage in full for the voyage
out.

If the charter should have been made by the months, the charterers shall pay the full freightage for one month, if the voyage
were to a port in the same waters, and two months, if the voyage were to a port in different waters.

From one port to another of the Peninsula and adjacent islands, the freightage for one month only shall be paid.

5. If a vessel should make a port during the voyage in order to make urgent repairs and the freighters
should prefer to dispose of the merchandise.

When the delay does not exceed thirty days, the freighters shall pay the full freight for the voyage out.

Should the delay exceed thirty days, they shall only pay the freight in proportion to the distance covered by the vessel.

ARTICLE 689. At the request of the person from whom the vessel is chartered the charter party may be rescinded:
1. If the charterer at the termination of the extra lay days does not place the cargo alongside the vessel.

In such case the charterer must pay half the freight stipulated besides the demurrage for the lay days and extra lay days
elapsed.

2. If the person from whom the vessel was chartered should sell her before the charterer has begun to load her and the
purchaser should load her for his own account.

In such case the vendor shall indemnify the charterer for the losses he may suffer.

If the new owner of the vessel should not load her for his own account the charter party shall be respected, and the vendor
shall indemnify the purchaser if the former did not inform him of the charter pending at the time of making the sale.

ARTICLE 690. The charter party shall be rescinded and all action arising therefrom shall be extinguished if, before the
vessel puts to sea from the port of departure, any of the following cases should occur:

1. A declaration of war or interdiction of commerce with the power to whose ports the vessel was going
to sail.

2. A condition of blockade of the port of destination of said vessel, or the breaking out of an epidemic
after the contract was executed.

3. The prohibition to receive the merchandise of the vessel at the said port.

4. An indefinite detention, by reason of an embargo of the vessel by order of the government or for any
other reason independent of the will of the agent.

5. The impossibility of the vessel to navigate, without fault of the captain or agent.

The unloading shall be made for the account of the charterer.

ARTICLE 691. If the vessel cannot put to sea on account of the closing of the port of departure, or any other temporary
cause, the charter shall be in force without any of the contracting parties having a right to claim damages.

The subsistence and wages of the crew shall be considered as general average.

During the interruption the charterer may, at the proper time and for his own account, unload and load the merchandise,
paying demurrage if the reloading should continue after the reason for the detention has ceased.

ARTICLE 692. A charter party shall be partially rescinded, unless there is an agreement to the contrary, and the captain
shall only be entitled to the freight for the voyage out, if, by reason of a declaration of war, closing of ports, or interdiction of
commercial relations during the voyage, the vessel should make the port designated for such a case in the instructions of
the charterer.

5. Passengers on Sea Voyages

ARTICLE 693. Should the passage price not have been agreed upon, the judge or court shall summarily fix it, after a
statement of experts.

ARTICLE 694. Should the passenger not arrive on board at the time fixed, or should leave the vessel without permission
from the captain, when the latter is ready to leave the port, the captain may continue the voyage and demand the full
passage price.

ARTICLE 695. The right to passage, if issued to a specified person, cannot be transferred without the consent of the captain
or of the consignee.

ARTICLE 696. If before beginning the voyage the passenger should die, his heirs shall only be obliged to pay half of the
passage agreed upon.
If there should be understood in the price stipulated the expenses of subsistence, the judge, or court, hearing experts if he
considers it necessary, shall fix the amount to be paid the vessel.

Should another passenger be received in the place of the deceased, nothing shall be paid by said heirs.

ARTICLE 697. If before beginning the voyage it should be suspended through the sole fault of the captain or agent, the
passengers shall be entitled to have their passage refunded and to recover for losses and damages; but if the suspension
was due to an accidental cause, or to force majeure, or to any other cause beyond the control of the captain or agent, the
passengers shall only be entitled to the return of the passage money. cd

ARTICLE 698. In case a voyage already begun should be interrupted the passengers shall be obliged only to pay the
passage in proportion to the distance covered, and shall not be entitled to recover for losses and damages if the interruption
is due to an accidental cause or to force majeure, but have a right to indemnity if the interruption should have been caused
by the captain exclusively. If the interruption should be by reason of the disability of the vessel, and the passenger should
agree to await her repair, he can not be required to pay any increased price of passage, but his living expenses during the
delay shall be for his own account.

In case the departure of the vessel is delayed the passengers have a right to remain on board and to be furnished with food
for the account of the vessel, unless the delay is due to an accidental cause or to force majeure. If the delay should exceed
ten days, the passengers who request it shall be entitled to the return of the passage; and if it were due exclusively to the
captain or agent they may furthermore demand indemnity for losses and damages.

A vessel which is exclusively destined to the transportation of passengers must take them directly to the port or ports of
destination, no matter what the number of passengers may be, making all the stops indicated in her itinerary.

ARTICLE 699. After the contract has been rescinded, before or after the commencement of the voyage, the captain shall
have a right to claim payment for what he may have furnished the passengers.

ARTICLE 700. In all that relates to the preservation of order and police on board the vessel the passengers shall conform
to the orders given by the captain, without any distinction whatsoever.

ARTICLE 701. The convenience or the interest of the passengers shall not obligate nor empower the captain to stand in
shore or enter places which may take the vessel out of her course, nor to remain in the ports he must or is under the
necessity of touching for a period longer than that required for the business of the navigation.

ARTICLE 702. In the absence of an agreement to the contrary, it shall be understood that the maintenance of the
passengers during the voyage is included in the price of the passage; but should said maintenance be for the account of
the latter, the captain shall be under the obligation, in case of necessity, to furnish them the victuals at a reasonable price
necessary for their maintenance.

ARTICLE 703. A passenger shall be looked upon as a shipper in so far as the goods he carries on board are concerned,
and the captain shall not be liable for what said passenger may preserve under his immediate and special custody unless
the damage arises from an act of the captain or of the crew.

ARTICLE 704. The captain, in order to collect the price of the passage and expenses of maintenance, may retain the goods
belonging to the passenger, and in case of the sale of the same he shall be given preference over the other creditors, acting
in the same way as in the collection of freight.

ARTICLE 705. In case of the death of a passenger during the voyage the captain is authorized, with regard to the body, to
take the steps required by the circumstances, and shall carefully take care of the papers and goods there may be on board
belonging to the passenger, observing the provisions of Case No. 10 of Article 612 with regard to members of the crew.

6. Bills of Lading

ARTICLE 706. The captain and the freighter of the vessel are obliged to draft the bill of lading, in which there shall be stated:

1. The name, registry, and tonnage of the vessel.

 2. The name of the captain and his domicile.

3. The port of loading and that of unloading.

4. The name of the shipper.

5. The name of the consignee, if the bill of lading is issued to order.

6. The quantity, quality, number of packages, and marks of the merchandise.

7. The freight and the primage stipulated.

The bill of lading may be issued to bearer, to order, or in the name of a specific person, and must be signed within twenty-
four hours after the cargo has been received on board, the freighter being able to request the unloading thereof at the
expense of the captain should he not sign it, and in every case indemnity for the losses and damages suffered thereby.

ARTICLE 707. Four true copies of the original bill of lading shall be made, all of which shall be signed by the captain and
by the freighter. Of these copies the freighter shall keep one and send another to the consignee; the captain shall take two,
one for himself and another for the agent.

There may, furthermore, be made as many copies of the bill of lading as may be considered necessary by the persons
interested; but when they are issued to order or to the bearer there shall be stated in all the copies, be they either of the first
four or of the subsequent ones, the destination of each one, stating whether it is for the agent, for the captain, for the
freighter, or for the consignee. If the copy sent to the latter should be duplicated there must be stated in said duplicate this
fact, and that it is not valid except in case of the loss of the first one.

ARTICLE 708. The bills of lading issued to the bearer sent to the consignee shall be transferable by the actual delivery of
the instrument; and by virtue of an indorsement, those issued to order.

In either case, the person to whom the bill of lading is transferred shall acquire all the rights and actions of the assignor or
indorser with regard to the merchandise mentioned in the same.

ARTICLE 709. A bill of lading drawn up in accordance with the provisions of this title shall be proof as between all those
interested in the cargo and between the latter and the underwriters, proof to the contrary being reserved by the latter.

ARTICLE 710. Should the bills of lading not agree, and there should not be observed any correction or erasure in any of
them, those possessed by the freighter or consignee signed by the captain shall be proof against the captain or agent in
favor of the consignee or freighter; and those possessed by the captain or agent signed by the freighter shall be proof
against the freighter or consignee in favor of the captain or agent.

ARTICLE 711. The legitimate holder of a bill of lading who does not present it to the captain of the vessel before her
unloading, obliging the latter thereby to unload it and place it in deposit, shall be liable for the cost of warehousing and other
expenses arising therefrom.

ARTICLE 712. The captain cannot himself change the destination of merchandise. In admitting this change at the instance
of the freighter, he must first take up the bills of lading he may have issued, under the penalty of being liable for the cargo
to the legitimate holder of the same.

ARTICLE 713. If before delivering the cargo a new bill of lading should be demanded of the captain, it being alleged that
the previous ones are not presented on account of their loss or for any other sufficient cause, he shall be obliged to issue
it, provided security for the value of the cargo is given to his satisfaction; but without changing the consignment and stating
therein the circumstances prescribed in the last paragraph of Article 707, when the bills of lading referred to therein are in
question, under the penalty otherwise to be liable for said cargo if not properly delivered through his fault.

ARTICLE 714. If before the vessel puts to sea the captain should die or should discontinue in his position through any
accident, the freighters shall have a right to demand of the new captain the ratification of the first bills of lading, and the
latter must do so, provided all the copies previously issued be presented or returned to him, and it should appear from an
examination of the cargo that they are correct.
The expenses arising from the examination of the cargo shall be defrayed by the agent, without prejudice to the right of
action of the latter against the first captain, if he ceased to be such through his own fault. Should said examination not be
made, it shall be understood that the new captain accepts the cargo as it appears from the bills of lading issued.

ARTICLE 715. Bills of lading will give rise to a most summary action or to judicial compulsion, according to the case, for the
delivery of the cargo and the payment of the freightage and proper expenses.

ARTICLE 716. If several persons should present bills of lading issued to bearer or to order, indorsed in their favor,
demanding the same merchandise, the captain shall prefer in delivering the same, the person presenting the copy first
issued, with the exception of the case when the latter one was issued on account of the loss of the first one, and if they are
held by different persons.

In such case, as well as when only second or subsequent copies issued without this proof are presented, the captain shall
apply to the judge or court, so that he may order the deposit of the merchandise, and that through him it may be delivered
to the proper person.

ARTICLE 717. The delivery of the bill of lading shall effect the cancellation of all the provisional receipts of prior date given
by the captain or his subalterns for partial deliveries of the cargo which may have been made.

ARTICLE 718. After the cargo has been delivered, the bills of lading which the captain signed shall be returned to him, or
at least the copy by reason of which the delivery is made, with the receipt for the merchandise mentioned therein.

The delay on the part of the consignee shall make him liable for the damages which may be caused the captain thereby.

SECTION II
Loans on Bottomry and Respondentia

ARTICLE 719. A loan on bottomry or respondentia shall be considered that which the repayment of the sum loaned and the
premium stipulated, under any condition whatsoever, depends on the safe arrival in port of the goods on which it is made,
or of their value in case of accident.

ARTICLE 720. Loans on bottomry or respondentia may be executed:

1. By means of a public instrument.

2. By means of a bond signed by the contracting parties and the broker who took part therein.

3. By means of a private instrument.

Under whichever of these forms the contract is executed, it shall be entered in the certificate of the registry of the vessel
and shall be recorded in the commercial registry, without which requisites the credits originating from the same shall not
have, with regard to other credits, the preference which, according to their nature, they should have, although the obligation
shall be valid between the contracting parties.

The contracts made during a voyage shall be governed by the provisions of Articles 583 and 611, and shall be effective with
regard to third persons from the date of their execution, if they should be recorded in the commercial registry of the port of
registry of the vessel before eight days have elapsed from the date of her arrival. If said eight days should elapse without
the record having been made in the commercial registry, the contracts made during the voyage of a vessel shall not have
any effect with regard to third persons, except from the day and date of their entry.

In order that the bonds of the contracts celebrated in accordance with No. 2 may have legal force, they must conform to the
registry of the broker who took part therein. In those celebrated in accordance with No. 3 the acknowledgment of the
signature must precede.

Contracts which are not reduced to writing shall not be the basis for a judicial action.
ARTICLE 721. In a bottomry or respondentia bond there must be stated:

1. The kind, name, and registry of the vessel.

2. The name, surname, and domicile of the captain.

3. The names, surnames, and domicile of the person giving and of the person receiving the loan.

4. The amount of the loan and the premium stipulated.

5. The time for repayment.

6. The goods pledged to secure repayment.

7. The voyage for which the risk is run.

ARTICLE 722. The bonds may be issued to order, in which case they shall be transferable by indorsement, and the assignee
shall acquire all the rights and run all the risks corresponding to the indorser.

ARTICLE 723. Loans may be made in goods and in merchandise, their value being fixed in order to determine the amount
of the loan.

ARTICLE 724. The loans may be constituted jointly or separately:

1. On the hull of the vessel.

2. On the rigging.

3. On the equipment, provisions, and fuel.

4. On the engine, if the vessel is a steamer.

5. On the cargo.

If the loan is constituted on the hull of the vessel, there shall be understood as also subject to the liability of the loan, the
rigging, equipment and other goods, provisions, fuel, steam engines, and the freight earned during the voyage subject to
the loan.

If the loan is made on the cargo, all that constitutes the same shall be subject to the repayment; and if on a particular object
of the vessel or of the cargo, the object exclusively and specifically mentioned only shall be liable.

ARTICLE 725. No loans can be made on the salaries of the crew, nor on the profits which it is expected to earn.

ARTICLE 726. If the lender should prove that he loaned a larger amount than the value of the article liable for the bottomry
loan, by reason of fraudulent measures employed by the borrower the loan shall only be valid for the amount at which said
object is appraised by experts.

The surplus principal shall be returned with legal interest for the whole period of the duration of the disbursement.

ARTICLE 727. If the full amount of the loan contracted to load the vessel should not be made use of for the cargo, the
surplus shall be returned before clearing.

The same procedure shall be observed with regard to the goods taken as a loan if they could not all have been loaded.

ARTICLE 728. The loan which the captain takes at the point of residence of the owners of the vessel shall only affect that
part of the latter which belongs to the captain, if the other owners or their agents should not have given their express
authorization thereto or should not have taken part in the transaction.
If one or more of the owners should be requested to furnish the amount necessary to repair or provision the vessel, and
should not do so within twenty-four hours, the interest which the parties in default may have in the vessel shall be liable for
the loan in the proper proportion.

Outside of the residence of the owners the captain may contract loans in accordance with the provisions of Articles 583 and
611.

ARTICLE 729. Should the goods on which money is taken not be subjected to any risk, the contract shall be considered an
ordinary loan, the borrower being under the obligation to return the principal and interest at the legal rate, if the interest
stipulated should not have been lower.

ARTICLE 730. Loans made during the voyage shall have preference over those made before the clearing of the vessel,
and they shall be graduated by the inverse order to that of their dates.

The loans for the last voyage shall have preference over prior ones.

Should several loans have been made at a port made under stress and for the same purpose, all of them shall be paid pro
rata.

ARTICLE 731. The actions which may be brought by the lender shall be extinguished by the absolute loss of the goods on
which the loan was made, if said loss arose from an accident of the sea at the time and during the voyage designated in
the contract, and should it be proven that the cargo was on board; but this shall not take place if the loss were caused by
the inherent defect of the thing or through the fault or malice of the borrower, or through barratry on the part of the captain,
or if it were caused by damages suffered by the vessel as a consequence of being engaged in contraband, or if it arose
through loading the merchandise on a vessel other than that designated in the contract, unless this change should have
been made by reason of force majeure.

The proof of the loss is incumbent upon the person who received the loan, as well as the proof of the existence in the vessel
of the goods declared to the lender as the object thereof.

ARTICLE 732. Lenders on bottomry or respondentia shall suffer in proportion to their respective interest, the general
average which may take place in the goods on which the loan was made.

In particular averages, in the absence of an express agreement between the contracting parties, the lender on bottomry or
respondentia shall also contribute in proportion to his respective interest, should it not belong to the kind of risks excepted
in the foregoing article.

ARTICLE 733. Should it not have been stated in the contract for what period the lender runs the risk, the said risk shall last
with regard to the vessel, engines, rigging, and equipment from the moment said vessel puts to sea until she drops anchor
in the port of destination, and with regard to the merchandise, from the time it is loaded on the shore or wharf of the port of
shipment until unloaded in the port of consignment.

ARTICLE 734. In case of shipwreck the amount liable for the return of the loan shall be reduced to the proceeds of the
goods saved, after the costs of the salvage have been deducted.

If the loan were on the vessel or any of her parts, the freightage earned during the voyage for which said loan was contracted
shall also be liable for its payment, as far as it is available.

ARTICLE 735. If the same vessel or cargo should be the object of a loan on bottomry or respondentia and marine insurance,
the value of what may be saved shall be divided, in case of shipwreck, between the lender and the underwriter, in proportion
to the legitimate interest of each one, taking into consideration, for this purpose only, the principal with relation to the loan,
and without prejudice to the right of preference of other creditors in accordance with Article 580.

ARTICLE 736. If there should be delay in the repayment of the principal or premiums of the loan, the former only shall bear
legal interest.