Ship Mortgage Decree (a) A valid mortgage which at the time it is

made includes the whole of any vessel of domestic

Section 3. Mortgage of Vessel of Domestic ownership shall have, in respect to such vessel and
Ownership; records. as of the date of recordation, the preferred status
(a) No mortgage, which at the time such given by the provisions of Section 17 hereof, if
mortgage is made includes a vessel of domestic 1. The mortgage is recorded as provided in Section
ownership as this term is defined in Presidential 3 hereof;
Decree No. 761, or any portion thereof, as the
whole or any part of the property mortgaged, shall 2. An affidavit is filed with the record of such
be valid, in respect to such vessel, against any mortgage to the effect that the mortgage is made in
person other than the mortgagor, his heir or assign, good faith and without any design to hinder, delay,
and a person having actual notice thereof, until or defraud any existing or future creditor of the
such mortgage is recorded in the office of the mortgagor or any lien or of the mortgaged vessel;
Philippine Coast Guard of the port of
3. The mortgage does not stipulate that the
documentation of such vessel.
mortgagee waives the preferred status thereof;
(b) The Coast Guard District or Station
Commander shall record mortgages delivered to (b) Any mortgage which complies with the
him, in the order of their reception, in books to be above conditions is hereafter called a "preferred
mortgage". For purposes of this Decree, a vessel
kept for that purpose and indexed to show
holding a Provisional Certificate of Philippine
1. The name of the vessel; Registry is considered a vessel of domestic
ownership such that it can be subject of preferred
2. The names of the parties to the mortgage; mortgage. The Philippine Coast Guard is hereby
3. The time and date of reception of the instrument; authorized to enter a vessel holding a Provisional
Certificate of Philippine Registry in the Registry of
4. The interest in the vessel so mortgaged; Vessels and to record any mortgage executed
thereon. Such mortgage shall have the preferred
5. The amount and date of maturity of the
status as of the date of recordation upon
mortgage;
compliance with the above conditions.
6. Name, citizenship, nationality and residence of
(c) There shall be endorsed upon the
owner, and
documents of a vessel covered by a preferred
7. Any material change of condition in respect to mortgage
any of the preceding items.
1. The names of the mortgagor and mortgagee;

2. The time and date the endorsement is made;

A copy of the instrument or mortgage shall be
3. The amount and date of maturity of the
furnished the Central Bank of the Philippines.
mortgage; and
Section 4. Preferred Mortgages
4. Any amount required to be endorsed by the
provisions of paragraphs (e) or (f) of this Section.
(d) Such endorsement shall be made (1) by the (f) A preferred mortgage includes more than
Coast Guard District or Station Commander of the one vessel and provides for the separate discharge
port of documentation of the mortgaged vessel, or of each vessel by the payment of a portion of
(2) by the Coast Guard District or Station mortgage indebtedness, the amount of such portion
Commander of any port in which the vessel is of such payment shall be endorsed upon the
found, if such Coast Guard District or Station documents of the vessel. In case such mortgage
Commander is directed to make the endorsement does not provide for the separate discharge of a
by the Coast Guard District or Station Commander vessel and the vessel is to be sold upon the order of
of the port of documentation. The Coast Guard a district court of the Philippines in a suit in rem in
District or Station Commander of the port of admiralty, the court shall determine the portion of
documentation shall give such direction by wire of the mortgage indebtedness increased by 20 per
letter at the request of the mortgagee and upon the centum (1) which, in the opinion of the court, the
tender of the cost of communication of such approximate value of all the vessels covered by the
direction. Whenever any new document is issued mortgage, and (2) upon the payment of which the
for the vessel, such endorsement shall be vessel shall be discharged from the mortgage.
transferred to and endorsed upon the new
document by the Coast Guard District or Station Section 10. Lien of preferred Mortgage;
Commander. foreclosure; jurisdiction; procedure

A preferred mortgage shall constitute a lien upon

In the case of a vessel holding a provincial
certificate of Philippine Registry, the endorsement the mortgaged vessel in the amount of the
shall be made by the Philippine consul abroad upon outstanding mortgage indebtedness secured by
such vessel. Upon the default of any term or
direction by wire or letter from the Maritime
Industry Authority at the request of the mortgagee condition of the mortgage such lien may be
and upon tender of the cost of communication of enforced by the mortgagee by suit in remaining
such direction. A certificate of such endorsement, admiralty, wherein the vessel itself may be made a
giving the place, time and description of the partly defendant and be arrested in the manner as
endorsement, shall be recorded with the records of provided in Section 11 hereof. Original jurisdiction
registration to be maintained at the Philippine of all such suits is granted to the Court of First
Consulate. Instance of the Philippines exclusively. In addition to
any notice by publication, actual notice of
(e) A mortgage which includes property other commencement of any such suit shall direct, to (1)
than a vessel shall not be held a preferred mortgage the master, other ranking officer, or caretaker of
unless the mortgage provides for the separate the vessel, and (2) any person who has recorded a
discharge of such property by the payment of a notice of claim of an undischarged lien upon the
specified portion of the mortgage indebtedness. If a vessel, as provided in Section 7 hereof, unless after
preferred mortgage so provides for the separate search by the mortgage satisfactory to the court,
discharge, the amount of the portion of such such mortgagor, master, other ranking officer,
payment shall be endorsed upon the documents of caretaker, or claimant is not found within the
the vessel. Philippines. Failure to give notice to any such
person, as required by this Section, shall be liable to
such person for damages in the amount of his arrest being issued, the sheriff shall immediately
interest in the vessel terminated by the suit. take possession of the vessel or vessels for the
purpose of foreclosure and sale. The vessel may
In case of judicial foreclosure as provided herein, only be released in accordance with the provisions
the provisions of Rule 68 of the New Rules of Court,
of Section 13 of this Act, or when the debtor pays
if not inconsistent herewith, shall apply. the outstanding obligation.
The lien of a preferred ship mortgage may also be Section 18. Suit in Personam in Admiralty on
enforced by a suit in rem in admiralty or otherwise
Default
in any foreign country in which the vessel may be
found pursuant to the procedure of said country for (a) Upon the default of any term or condition
the enforcement of ship mortgages constituting of a preferred mortgage upon a vessel, the
maritime liens on vessels documented under the mortgagee may, in addition to all other remedies
laws of said country. granted by this Decree, bring suit in personal in
admiralty in a district court of the Philippines,
Section 11. Arrest of Vessels Upon the filing of the
against the mortgagor for the amount of the
petition for the judicial foreclosure of a Preferred outstanding mortgage indebtedness secured by
Ship Mortgage, or immediately thereafter, the such vessel or any deficiency in the full payment
applicant may apply ex-parte for an order for the
thereof.
arrest of the mortgaged vessel or vessels and the
judge shall immediately issue the same, provided (b) This Decree shall not be construed, in the
that it is made to appear by affidavit of the case of a mortgage covering, in addition to vessels,
applicant, or of some other person who personally realty or personality other than vessels, or both, to
knows the facts that a default in the mortgage has authorize the enforcement by suit in rem in
occurred and that applicant files a bond executed to admiralty of the rights of the mortgage in respect to
the adverse party in an amount to be fixed by the such realty or personality other than vessels.
judge, not exceeding the applicant's claim,
conditioned that the latter will pay all the costs Section 20. Who May Bid in the Foreclosure Sale
which may be adjudged to the adverse party and all The following persons are qualified to bid in the
damages which he may sustain by reason of such foreclosure sale of the mortgaged vessel:
arrest, if the court shall finally adjudge that the (a) Citizens of the Philippines or corporations
applicant was not entitled thereto. 60% of the capital of which is owned by Filipino
Section 14. Extrajudicial Foreclosure The provisions citizens.
of the Chattel Mortgage Law on the remedy of (b) A foreign mortgagee or foreign national
extra-judicial foreclosure of mortgages in so far as whose country has diplomatic relations with the
they are not inconsistent herewith shall still apply. Philippines or whose country grants reciprocal
For the purpose of taking possession of the vessel rights to Filipino citizens.
or vessels, the foreclosing creditor may secure from
a judge of the Court of First Instance of the province In case the purchaser is a foreign individual or
where the vessel may be found or where the entity, the Philippine Coast Guard shall, upon
creditor or debtor resides an order for the arrest or presentation of the certificate of sale, cancel the
seizure of the vessel. Upon such order of seizure or
registration of the vessel and issue a certificate to arrived at the port of its destination, the freightage
that effect upon request. shall pertain to the vendor, and the payment of the
crew and other individuals who make up its
complement shall before his account, unless the
Code of Commerce contrary is stipulated in either case.

ARTICLE 573.Merchant vessels constitute property ARTICLE 578.If the vessel being on a voyage or in a
which may be acquired and transferred by any of foreign port, its owner or owners should voluntarily
the means recognized by law. The acquisition of a alienate it, either to Filipinos or to foreigners
vessel must appear in a written instrument, which domiciled in the capital or in a port of another
shall not produce any effect with respect to third country, the bill of sale shall be executed before the
persons if not inscribed in the registry of vessels. consul of the Republic of the Philippines at the port
The ownership of a vessel shall likewise be acquired where it terminates its voyage and said instrument
by possession in good faith, continued for three shall produce no effect with respect to third
years, with a just title duly recorded. In the absence persons if it is not inscribed in the registry of the
of any of these requisites, continuous possession for consulate. The consul shall immediately forward a
ten years shall be necessary in order to acquire true copy of the instrument of purchase and sale of
ownership. the vessel to the registry of vessels of the port
where said vessel is inscribed and registered. In
ARTICLE 575.Co-owners of vessels shall have the every case the alienation of the vessel must be
right of repurchase and redemption in sales made made to appear with a statement of whether the
to strangers, but they may exercise the same only vendor receives its price in whole or in part, or
within the nine days following the inscription of the whether he preserves in whole or in part any claim
sale in the registry, and by depositing the price at on said vessel. In case the sale is made to a Filipino,
the same time. this fact shall be stated in the certificate of
navigation. When a vessel, being on a voyage, shall
ARTICLE 576.In the sale of a vessel it shall always be
be rendered useless for navigation, the captain shall
understood as included the rigging, masts, stores
apply to the competent judge on court of the port
and engine of a streamer appurtenant thereto,
of arrival, should it be in the Philippines; and should
which at the time belongs to the vendor. The arms,
it be in a foreign country, to the consul of the
munitions of war, provisions and fuel shall not be
Republic of the Philippines, should there be one, or,
considered as included in the sale. The vendor shall
where there is none, to the judge or court or to the
be under the obligation to deliver to the purchaser
local authority; and the consul, or the judge or
a certified copy of the record sheet of the vessel in
court, shall order an examination of the vessel to be
the registry up to the date of the sale.
made.
ARTICLE 577.If the alienation of the vessel should
ARTICLE 586.The shipowner and the ship agent shall
be made while it is on a voyage, the freightage
be civilly liable for the acts of the captain and for
which it earns from the time it receives its last cargo
the obligations contracted by the latter to repair,
shall pertain entirely to the purchaser, and the
equip, and provision the vessel, provided the
payment of the crew and other persons who make
creditor proves that the amount claimed was
up its complement for the same voyage shall be for
invested for the benefit of the same. By ship agent
his account. If the sale is made after the vessel has
is understood the person entrusted with captain, referred to in Article 587.Each co-owner
provisioning or representing the vessel in the port in may exempt himself from this liability by the
which it may be found. abandonment, before a notary, of the partof the
vessel belonging to him.ARTICLE 591.All the part
ARTICLE 587.The ship agent shall also be civilly
owners shall be liable, in proportion to their
liable for the indemnities in favor of third persons respective ownership,for the expenses for repairing
which may arise from the conduct of the captain in the vessel, and for other expenses which are
the care of the goods which he loaded on the incurred by virtue of aresolution of the
vessel; but he may exempt himself therefrom by majority.They shall likewise be liable in the same
abandoning the vessel with all her equipments and proportion for the expenses for the maintenance,
the freight it may have earned during the voyage. equipment,and provisioning of the vessel, necessary
ARTICLE 588.Neither the shipowner nor the ship for navigation.ARTICLE 592.The resolution of the
agent shall be liable for the obligations contracted majority with regard to the repair, equipment, and
by the captain, if the latter exceeds the powers and provisioning of the vessel in the port of departure
privileges pertaining to him by reason of his position shall bind the minority, unless the minority
or conferred upon him by the former. Nevertheless, membersrenounce their interests, which must be
if the amounts claimed were invested for the acquired by the other co-owners, after a judicial
benefit of the vessel, the responsibility therefor appraisementof the value of the portion or portions
shall devolve upon its owner or agent. assigned.The resolutions of the majority relating to
the dissolution of the partnership and sale of the
ARTICLE 589.If two or more persons should be part vessel shallalso be binding on the minority.The sale
owners of a merchant vessel, a partnership shall be of the vessel must be made at public auction,
presumed as established by the co-owners. This subject to the provisions of the law of civil
partnership shall be governed by the resolutions of procedure, unless the co-owners unanimously agree
the majority of the members. If the part owners otherwise, saying always the right of repurchaseand
should not be more than two, the disagreement of redemption provided for in Article 575.ARTICLE
views, if any, shall be decided by the vote of the 593.The owners of a vessel shall have preference in
member having the largest interest. If the interests her charter over other persons,under the same
are equal, it should be decided by lot. The person conditions and price. If two or more of them should
having the smallest share in the ownership shall claim this right, the one having the
have one vote; and proportionately the other part
owners as many votes as they have parts equal to
the smallest one. A vessel may not be detained,
greater interest shall be preferred; and should they
attached or levied upon in execution in its entirety, have equal interests, the matter shall be decided
for the private debts of a part owner, but the bylot.ARTICLE 594.The co-owners shall elect the
proceedings shall be limited to the interest which manager who is to represent them in the capacity of
the debtor may have in the vessel, without
ship agent.The appointment of director or ship
interfering with the navigation. agent shall be revocable at the will of the
ARTICLE 590.The co-owners of a vessel shall be members.ARTICLE 595.The ship agent, whether he
civilly liable in the proportion of their interests in is at the same time the owner of the vessel, or
the common fund, for the results of the acts of the amanager for an owner or for an association of co-
owners, must have the capacity to trade and must ARTICLE 600.After the account of the managing
be recorded in the merchant's registry of the agent has been approved by a relative majority, the
province. The ship agent shall represent the co-owners shall pay the expenses in proportion to
ownership of the vessel, and may, in his own name their interest, without prejudice to the civil or
and in such capacity, take judicial and extrajudicial criminal actions which the minority may deem fit to
steps in matters relating to commerce. institute afterwards. In order to enforce the
payment, the managing agent shall be entitled to an
ARTICLE 596.The ship agent may discharge the executory action ("accionejecutiva"), which shall be
duties of captain of the vessel, subject in every case instituted by virtue of a resolution of the majority,
to the provision of Article 609.If two or more co- and without further proceedings than the
owners apply for the position of captain, the acknowledgment of the signatures of the persons
disagreement shall be decided by a vote of the
who voted for the resolution.
members; and if the vote should result in a tie, it
shall be decided in favor of the co-owner having the ARTICLE 601.Should there be any profits, the co-
larger interest in the vessel. If the interests of the owners may demand of the managing agent the
applicants should be equal, and there should be a amount corresponding to their interests by means
tie, the matter shall be decided by lot. of an executory action ("accion ejecutiva"), without
any other requisite than the acknowledgment of the
ARTICLE 597.The ship agent shall designate and signatures on the instrument approving the
come to terms with the captain, and shall contract
account.
in the name of the owners, who shall be bound in
all that refer to repairs, details of equipment, ARTICLE 602.The ship agent shall indemnify the
armament, provisions of food and fuel, and freight captain for all the expenses he may have incurred
of the vessel, and, in general, in all that relate to the with funds of his own or of others, for the benefit of
requirements of navigation. the vessel.

ARTICLE 598.The ship agent may not order a new ARTICLE 609.Captains, masters or patrons of vessels
voyage, or make contracts for a new charter, or must be Filipinos, have legal capacity to contract in
insure the vessel, without the authorization of its accordance with this code, and prove the skill,
owner or resolution of the majority of the co- capacity, and qualifications necessary to command
owners, unless these powers were granted him in and direct the vessel, as established by marine or
the certificate of his appointment. If he insures the navigation laws, ordinances, or regulations, and
vessel without authorization therefore, he shall be must not be disqualified according to the same for
subsidiarily liable for the solvency of the insurer. the discharge of the duties of the position. If the
owner of a vessel desires to be the captain thereof,
ARTICLE 599.The ship agent managing for an without having the legal qualifications therefor, he
association shall render to his associates an account shall limit himself to the financial administration of
of the results of each voyage of the vessel, without the vessel, and shall intrust the navigation to a
prejudice to always having the books and person possessing the qualifications required by
correspondence relating to the vessel and to its
said ordinances and regulations.
voyages at their disposal.
ARTICLE 610.The following powers shall be inherent ARTICLE 611.In order to comply with the obligations
in the position of captain, master or patron of a mentioned in the preceding article, the captain,
vessel: when he has no funds and does not expect to
receive any from the ship agent, shall obtain the
1.To appoint or make contracts with the crew in the
same in the successive order stated below:
absence of the ship agent, and to propose said
crew, should said agent be present; but the ship 1.By requesting said funds from the consignee of
agent may not employ any member against the the vessel or correspondents of the ship agent.
captain's express refusal.
2.By applying to the consignees of the cargo or to
2.To command the crew and direct the vessel to the those interested therein.
port of its destination, in accordance with the
instructions he may have received from the ship 3.By drawing on the ship agent.
agent. 4.By borrowing the amount required by means of a
3.To impose, in accordance with the contracts and loan on bottomry.
with the laws and regulations of the merchant 5.By selling a sufficient amount of the cargo to
marine, and when on board the vessel, correctional cover the sum absolutely indispensable for the
punishment upon those who fail to comply with his repair of the vessel and to enable it to continue its
orders or are wanting in discipline, holding a voyage. In these two last cases he must apply to the
preliminary hearing on the crimes committed on judicial authority of the port, if in the Philippines,
board the vessel on the seas, which crimes shall be and to the consul of the Republic of the Philippines
turned over to the authorities having jurisdiction if in a foreign country, and where there is none, to
over the same at the first port touched. the local authority, proceeding in accordance with
the provisions of Article 583, and with the
4.To make contracts for the charter of the vessel in
the absence of the ship agent or of its consignee, provisions of the law of civil procedure.
acting in accordance with the instructions received ARTICLE 612.The following obligations shall be
and protecting the interests of the owner with inherent in the office of captain:
utmost care.
1.To have on board before starting on a voyage a
5.To adopt all proper measures to keep the vessel detailed inventory of the hull, engines, rigging,
well supplied and equipped, purchasing all that may spare-masts, tackle, and other equipment of the
be necessary for the purpose, provided there is no vessel; the royal or the navigation certificate; the
time to request instruction from the ship agent. roll of the persons who make up the crew of the
6.To order, in similar urgent cases while on a vessel, and the contracts entered into with them;
voyage, the repairs on the hull and engines of the the lists of passengers; the bill of health; the
vessel and in its rigging and equipment, which are certificate of the registry proving the ownership of
absolutely necessary to enable it to continue and the vessel and all the obligations which encumber
finish its voyage; but if he should arrive at a point the same up to that date; the charter parties or
where there is a consignee of the vessel, he shall authenticated copies thereof; the invoices or
manifests of the cargo, and the memorandum of
actin concurrence with the latter.
the visit or inspection by experts, should it have the freightage they give. In this same book he shall
been made at the port of departure. record the names and places of sailing of the
passengers, the number of packages in their
2.To have a copy of this code on board. baggage, and the price of passage.
3.To have three folioed and stamped books, placing 4.Before receiving cargo, to make with the officers
at the beginning of each one a memorandum of the of the crew and two experts, if required by the
number of folios it contains, signed by the maritime shippers and passengers, an examination of the
authority, and in his absence by the competent vessel, in order to ascertain whether it is water-
authority. In the first book, which shall be called tight, with the rigging and engines in good
"log book," he shall enter day by day the condition condition, and with the equipment required for
of the atmosphere, the prevailing winds, the good navigation, preserving under his responsibility
courses taken, the rigging carried, the power of the
a certificate of the memorandum of his inspection,
engines used in navigation, the distances covered, signed by all those who may have taken part
the maneuvers executed, and other incidents of therein. The experts shall be appointed, one by the
navigation; he shall also enter the damage suffered captain of the vessel and another by those who
by the vessel in her hull, engines, rigging, and tackle, request its examination, and in case of
no matter what its cause may be, as well as the disagreement a third shall be appointed by the
impairment and damage suffered by cargo, and the marine authority of the port or by the authority,
effect and importance of the jettison, should there
exercising his functions.
be any; and in cases of serious decisions which
require the advice or a meeting of the officers of 5.To remain constantly on board the vessel with the
the vessel, or even of the crew and passengers, he crew while the cargo is being taken on board and to
shall record the decisions adopted. For the carefully watch the stowage thereof; not to consent
information indicated he shall make use of the to the loading of any merchandise or matter of a
binnacle book and of the steam of engine book kept dangerous character, such as inflammable or
by the engineer. In the second book called the explosive substances, without the precautions
"accounting book," he shall record all the amounts which are recommended for their packing, handling
collected and paid for the account of the vessel, and isolation; not to permit the carriage on deck of
entering specifically article by article, the source of any cargo which by reason of its arrangement,
the collection and the amounts spent for provisions, volume, or weight makes the work of the sailors
repairs, acquisitions of equipment or goods, fuel, difficult, and which might endanger the safety of
food, outfits, wages, and other expenses of the vessel; and if, on account of the nature of the
whatever nature they may be. He shall furthermore merchandise, the special character of the shipment,
enter therein a list of all the members of the crew, and principally the favorable season in which it is
stating their domiciles, their wages and salaries, and undertaken, merchandise may be carried on deck,
the amounts they may have received on account, he must hear the opinion of the officers of the
directly or by delivery to their families. In the third vessel and have the consent of the shippers and of
book, called "freight book," he shall record the the ship agent.
loading and discharge of all the goods, stating their
marks and packages, names of the shippers and of 6.To demand a pilot at the expense of the vessel
the consignees, ports of loading and unloading, and whenever required by the navigation, and
principally when he has to enter a port, canal, or
river, or has to take a roadstead or anchoring place 12.To inform the ship agent from the port at which
with which neither he nor the officers and crew are the vessel arrives, of the reason of his arrival, taking
acquainted. advantage of the semaphore, telegraph, mail, etc.,
as the case may be; to notify him of the cargo he
7.To be on deck on reaching land and to take
may have received, stating the names and domiciles
command on entering and leaving ports, canals, of the shippers, freightage earned, and amounts
roadsteads, and rivers, unless there is a pilot on borrowed on bottomry loan; to advise him of his
board discharging his duties. He shall not spend the departure, and of any operation and date which
night away from the vessel except for serious
may be of interest to him.
causes or by reason of official business.
13.To observe the rules with respect to situation,
8.To present himself, when making a port in
lights and maneuvers in order to avoid collisions.
distress, to the maritime authority if in the
Philippines and to the consul of the Republic of the 14.To remain on board, in case the vessel is in
Philippines if in a foreign country, before twenty- danger, until all hope to save it is lost, and before
four hours have elapsed, and to make a statement abandoning it, to hear the officers of the crew,
of the name registry, and port of departure of the abiding by the decision of the majority; and if the
vessel, of its cargo, and the cause of arrival which boats are to be taken to, he shall take with him,
declaration shall be visaed by the authority or the before anything else, the books and papers, and
consul, if after examining the same it is found to be then the articles of most value, being obliged to
acceptable, giving the captain the proper certificate prove, in case of the loss of the books and papers,
proving his arrival in distress and the reasons that he did all he could to save them.
therefor. In the absence of the maritime authority
or of the consul, the declaration must be made 15.In case of wreck, to make the proper protest in
due form at the first port of arrival, before the
before the local authority.
competent authority or the Philippine consul, within
9.To take the necessary steps before the competent twenty-four hours, specifying therein all the
authority in order to record in the certificate of the incidents of the wreck, in accordance with
vessel in the registry of vessels the obligations subdivision 8 of this article.16.To comply with the
which he may contract in accordance with obligations imposed by the laws and regulations on
Article583. navigation, customs, health, and others.

10.To place under good care and custody all the ARTICLE 643.If the vessel and her cargo should be
papers and belongings of any members of the crew totally lost, by reason of capture or wreck, all rights
who might die on the vessel, drawing up a detailed shall be extinguished, both as regards the crew to
inventory, in the presence of passengers, or, in their demand any wages whatsoever, and as regards the
absence, of members of the crew as witnesses. ship agent to recover the advances made. If a
portion of the vessel or of the cargo, or of both,
11.To conduct himself according to the rules and should be saved, the crew engaged on wages,
precepts contained in the instructions of the including the captain, shall retain their rights on the
shipagent, being liable for all that which he may do salvage, so far as they go, on the remainder of the
in violation thereof. vessel as well as on the amount of the freightage of
the cargo saved; but sailors who are engaged on
shares shall not have any right whatsoever on the
salvage of the hull, but only on the portion of the
freightage saved. If they should have worked to
recover the remainder of the shipwrecked vessel
they shall be given from the amount of the salvage
an award in proportion of the efforts made and to
the risks, encountered in order to accomplish the
salvage.

ARTICLE 837.The civil liability incurred by the

shipowners in the case prescribed in this section,
shall be understood as limited to the value of the
vessel with all its appurtenances and freightage
earned during the voyage.