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Paragraphs in "International Convention On Liability And Compensation For Damage In Connection With The Carriage Of Hazardous And Noxious Substances By Sea" coded as

Label Provision
Pre.1 THE STATES PARTIES TO THE PRESENT CONVENTION,
Pre.2 CONSCIOUS of the dangers posed by the world-wide carriage by sea of hazardous and noxious substances,
Pre.3 CONVINCED of the need to ensure that adequate, prompt and effective compensation is available to persons who suffer damage caused by incidents in connection with the carriage by sea of such substances,
Pre.4 DESIRING to adopt uniform international rules and procedures for determining questions of liability and compensation in respect of such damage,
Pre.5 CONSIDERING that the economic consequences of damage caused by the carriage by sea of hazardous and noxious substances should be shared by the shipping industry and the cargo interests involved,
Pre.6 HAVE AGREED as follows:
Chap.1 CHAPTER I
Art.1 Article 1
Art.1.0x For the purposes of this Convention:
Art.1.1 1. "Ship" means any seagoing vessel and seaborne craft, of any type whatsoever.
Art.1.2 2. "Person" means any individual or partnership or any public or private body, whether corporate or not, including a State or any of its constituent subdivisions.
Art.1.3 3. "Owner" means the person or persons registered as the owner of the ship or, in the absence of registration, the person or persons owning the ship. However, in the case of a ship owned by a State and operated by a company which in that State is registered as the ship's operator, "owner" shall mean such company.
Art.1.4 4. "Receiver" means either:
Art.1.4.a (a) the person who physically receives contributing cargo discharged in the ports and terminals of a State Party; provided that if at the time of receipt the person who physically receives the cargo acts as an agent for another who is subject to the jurisdiction of any State Party, then the principal shall be deemed to be the receiver, if the agent discloses the principal to the HNS Fund; or
Art.1.4.b (b) the person in the State Party who in accordance with the national law of that State Party is deemed to be the receiver of contributing cargo discharged in the ports and terminals of a State Party, provided that the total contributing cargo received according to such national law is substantially the same as that which would have been received under (a).
Art.1.5 5. "Hazardous and noxious substances" (HNS) means:
Art.1.5.a (a) any substances, materials and articles carried on board a ship as cargo, referred to in (i) to (vii) below:
Art.1.5.a.i (i) oils carried in bulk listed in appendix I of Annex I to the International Convention for the Prevention of Pollution from Ships, 1973, as modified by the Protocol of 1978 relating thereto, as amended;
Art.1.5.a.ii (ii) noxious liquid substances carried in bulk referred to in appendix II of Annex II to the International Convention for the Prevention of Pollution from Ships, 1973, as modified by the Protocol of 1978 relating thereto, as amended, and those substances and mixtures provisionally categorized as falling in pollution category A, B, C or D in accordance with regulation 3(4) of the said Annex II;
Art.1.5.a.iii (iii) dangerous liquid substances carried in bulk listed in Chapter 17 of the International Code for the Construction and Equipment of Ships Carrying Dangerous Chemicals in Bulk, 1983, as amended, and the dangerous products for which the preliminary suitable conditions for the carriage have been prescribed by the Administration and port administrations involved in accordance with paragraph 1.1.3 of the Code;
Art.1.5.a.iv (iv) dangerous, hazardous and harmful substances, materials and articles in packaged form covered by the International Maritime Dangerous Goods Code, as amended;
Art.1.5.a.v (v) liquefied gases as listed in Chapter 19 of the International Code for the Construction and Equipment of Ships carrying Liquefied Gases in Bulk, 1983, as amended, and the products for which preliminary suitable conditions for the carriage have been prescribed by the Administration and port administrations involved in accordance with paragraph 1.1.6 of the Code;
Art.1.5.a.vi (vi) liquid substances carried in bulk with a flashpoint not exceeding 60deg.C (measured by a closed cup test);
Art.1.5.a.vii (vii) solid bulk materials possessing chemical hazards covered by appendix B of the Code of Safe Practice for Solid Bulk Cargoes, as amended, to the extent that these substances are also subject to the provisions of the International Maritime Dangerous Goods Code when carried in packaged form; and
Art.1.5.b (b) residues from the previous carriage in bulk of substances referred to in (a)(i) to (iii) and (v) to (vii) above.
Art.1.6 6. "Damage" means:
Art.1.6.a (a) loss of life or personal injury on board or outside the ship carrying the hazardous and noxious substances caused by those substances;
Art.1.6.b (b) loss of or damage to property outside the ship carrying the hazardous and noxious substances caused by those substances;
Art.1.6.c (c) loss or damage by contamination of the environment caused by the hazardous and noxious substances, provided that compensation for impairment of the environment other than loss of profit from such impairment shall be limited to costs of reasonable measures of reinstatement actually undertaken or to be undertaken; and
Art.1.6.d (d) the costs of preventive measures and further loss or damage caused by preventive measures.
Art.1.6.ex Where it is not reasonably possible to separate damage caused by the hazardous and noxious substances from that caused by other factors, all such damage shall be deemed to be caused by the hazardous and noxious substances except if, and to the extent that, the damage caused by other factors is damage of a type referred to in Article 4, paragraph 3.
Art.1.6.fx In this paragraph, "caused by those substances" means caused by the hazardous or noxious nature of the substances.
Art.1.7 7. "Preventive measures" means any reasonable measures taken by any person after an incident has occurred to prevent or minimize damage.
Art.1.8 8. "Incident" means any occurrence or series of occurrences having the same origin, which causes damage or creates a grave and imminent threat of causing damage.
Art.1.9 9. "Carriage by sea" means the period from the time when the hazardous and noxious substances enter any part of the ship's equipment, on loading, to the time they cease to be present in any part of the ship's equipment, on discharge. If no ship's equipment is used, the period begins and ends respectively when the hazardous and noxious substances cross the ship's rail.
Art.1.10 10. "Contributing cargo" means any hazardous and noxious substances which are carried by sea as cargo to a port or terminal in the territory of a State Party and discharged in that State. Cargo in transit which is transferred directly, or through a port or terminal, from one ship to another, either wholly or in part, in the course of carriage from the port or terminal of original loading to the port or terminal of final destination shall be considered as contributing cargo only in respect of receipt at the final destination.
Art.1.11 11. The "HNS Fund" means the International Hazardous and Noxious Substances Fund established under Article 13.
Art.1.12 12. "Unit of account" means the Special Drawing Right as defined by the International Monetary Fund.
Art.1.13 13. "State of the ship's registry" means in relation to a registered ship the State of registration of the ship, and in relation to an unregistered ship the State whose flag the ship is entitled to fly.
Art.1.14 14. "Terminal" means any site for the storage of hazardous and noxious substances received from waterborne transportation, including any facility situated off-shore and linked by pipeline or otherwise to such site.
Art.1.15 15. "Director" means the Director of the HNS Fund.
Art.1.16 16. "Organization" means the International Maritime Organization.
Art.1.17 17. "Secretary-General" means the Secretary-General of the Organization.
Art.2 Article 2
Art.2.1x The Annexes to this Convention shall constitute an integral part of this Convention.
Art.3 Article 3
Art.3.1x This Convention shall apply exclusively:
Art.3.1x.a (a) to any damage caused in the territory, including the territorial sea, of a State Party;
Art.3.1x.b (b) to damage by contamination of the environment caused in the exclusive economic zone of a State Party, established in accordance with international law, or, if a State Party has not established such a zone, in an area beyond and adjacent to the territorial sea of that State determined by that State in accordance with international law and extending not more than 200 nautical miles from the baselines from which the breadth of its territorial sea is measured;
Art.3.1x.c (c) to damage, other than damage by contamination of the environment, caused outside the territory, including the territorial sea, of any State, if this damage has been caused by a substance carried on board a ship registered in a State Party or, in the case of an unregistered ship, on board a ship entitled to fly the flag of a State Party; and
Art.3.1x.d (d) to preventive measures, wherever taken.
Art.4 Article 4
Art.4.1 1. This Convention shall apply to claims, other than claims arising out of any contract for the carriage of goods and passengers, for damage arising from the carriage of hazardous and noxious substances by sea.
Art.4.2 2. This Convention shall not apply to the extent that its provisions are incompatible with those of the applicable law relating to workers' compensation or social security schemes.
Art.4.3 3. This Convention shall not apply:
Art.4.3.a (a) to pollution damage as defined in the International Convention on Civil Liability for Oil Pollution Damage, 1969, as amended, whether or not compensation is payable in respect of it under that Convention; and
Art.4.3.b (b) to damage caused by a radioactive material of class 7 either in the International Maritime Dangerous Goods Code, as amended, or in appendix B of the Code of Safe Practice for Solid Bulk Cargoes, as amended.
Art.4.4 4. Except as provided in paragraph 5, the provisions of this Convention shall not apply to warships, naval auxiliary or other ships owned or operated by a State and used, for the time being, only on Government non-commercial service.
Art.4.5 5. A State Party may decide to apply this Convention to its warships or other vessels described in paragraph 4, in which case it shall notify the Secretary-General thereof specifying the terms and conditions of such application.
Art.4.6 6. With respect to ships owned by a State Party and used for commercial purposes, each State shall be subject to suit in the jurisdictions set forth in Article 38 and shall waive all defences based on its status as a sovereign State.
Art.5 Article 5
Art.5.1 1. A State may, at the time of ratification, acceptance, approval of, or accession to, this Convention, or any time thereafter, declare that this Convention does not apply to ships:
Art.5.1.a (a) which do not exceed 200 gross tonnage; and
Art.5.1.b (b) which carry hazardous and noxious substances only in packaged form; and
Art.5.1.c (c) while they are engaged on voyages between ports or facilities of that State.
Art.5.2 2. Where two neighbouring States agree that this Convention does not apply also to ships which are covered by paragraph 1(a) and (b) while engaged on voyages between ports or facilities of those States, the States concerned may declare that the exclusion from the application of this Convention declared under paragraph 1 covers also ships referred to in this paragraph.
Art.5.3 3. Any State which has made the declaration under paragraph 1 or 2 may withdraw such declaration at any time.
Art.5.4 4. A declaration made under paragraph 1 or 2, and the withdrawal of the declaration made under paragraph 3, shall be deposited with the Secretary-General who shall, after the entry into force of this Convention, communicate it to the Director.
Art.5.5 5. Where a State has made a declaration under paragraph 1 or 2 and has not withdrawn it, hazardous and noxious substances carried on board ships covered by that paragraph shall not be considered to be contributing cargo for the purpose of application of Articles 18, 20, Article 21, paragraph 5 and Article 43.
Art.5.6 6. The HNS Fund is not liable to pay compensation for damage caused by substances carried by a ship to which the Convention does not apply pursuant to a declaration made under paragraph 1 or 2, to the extent that:
Art.5.6.a (a) the damage as defined in Article 1, paragraph 6(a), (b) or (c) was caused in:
Art.5.6.a.i (i) the territory, including the territorial sea, of the State which has made the declaration, or in the case of neighbouring States which have made a declaration under paragraph 2, of either of them; or
Art.5.6.a.ii (ii) the exclusive economic zone, or area mentioned in Article 3(b), of the State or States referred to in (i);
Art.5.6.b (b) the damage includes measures taken to prevent or minimize such damage.
Art.6 Article 6
Art.6.1x Each State Party shall ensure that any obligation arising under this Convention is fulfilled and shall take appropriate measures under its law including the imposing of sanctions as it may deem necessary, with a view to the effective execution of any such obligation.
Chap.2 CHAPTER II
Art.7 Article 7
Art.7.1 1. Except as provided in paragraphs 2 and 3, the owner at the time of an incident shall be liable for damage caused by any hazardous and noxious substances in connection with their carriage by sea on board the ship, provided that if an incident consists of a series of occurrences having the same origin the liability shall attach to the owner at the time of the first of such occurrences.
Art.7.2 2. No liability shall attach to the owner if the owner proves that:
Art.7.2.a (a) the damage resulted from an act of war, hostilities, civil war, insurrection or a natural phenomenon of an exceptional, inevitable and irresistible character; or
Art.7.2.b (b) the damage was wholly caused by an act or omission done with the intent to cause damage by a third party; or
Art.7.2.c (c) the damage was wholly caused by the negligence or other wrongful act of any Government or other authority responsible for the maintenance of lights or other navigational aids in the exercise of that function; or
Art.7.2.d (d) the failure of the shipper or any other person to furnish information concerning the hazardous and noxious nature of the substances shipped either
Art.7.2.d.i (i) has caused the damage, wholly or partly; or
Art.7.2.d.ii (ii) has led the owner not to obtain insurance in accordance with Article 12;
Art.7.2.ex? provided that neither the owner nor its servants or agents knew or ought reasonably to have known of the hazardous and noxious nature of the substances shipped.
Art.7.3 3. If the owner proves that the damage resulted wholly or partly either from an act or omission done with intent to cause damage by the person who suffered the damage or from the negligence of that person, the owner may be exonerated wholly or partially from liability to such person.
Art.7.4 4. No claim for compensation for damage shall be made against the owner otherwise than in accordance with this Convention.
Art.7.5 5. Subject to paragraph 6, no claim for compensation for damage under this Convention or otherwise may be made against:
Art.7.5.a (a) the servants or agents of the owner or the members of the crew;
Art.7.5.b (b) the pilot or any other person who, without being a member of the crew, performs services for the ship;
Art.7.5.c (c) any charterer (howsoever described, including a bareboat charterer), manager or operator of the ship;
Art.7.5.d (d) any person performing salvage operations with the consent of the owner or on the instructions of a competent public authority;
Art.7.5.e (e) any person taking preventive measures; and
Art.7.5.f (f) the servants or agents of persons mentioned in (c), (d) and (e);
Art.7.5.gx unless the damage resulted from their personal act or omission, committed with the intent to cause such damage, or recklessly and with knowledge that such damage would probably result.
Art.7.6 6. Nothing in this Convention shall prejudice any existing right of recourse of the owner against any third party, including, but not limited to, the shipper or the receiver of the substance causing the damage, or the persons indicated in paragraph 5.
Art.8 Article 8
Art.8.1 1. Whenever damage has resulted from an incident involving two or more ships each of which is carrying hazardous and noxious substances, each owner, unless exonerated under Article 7, shall be liable for the damage. The owners shall be jointly and severally liable for all such damage which is not reasonably separable.
Art.8.2 2. However, owners shall be entitled to the limits of liability applicable to each of them under Article 9.
Art.8.3 3. Nothing in this Article shall prejudice any right of recourse of an owner against any other owner.
Art.9 Article 9
Art.9.1 1. The owner of a ship shall be entitled to limit liability under this Convention in respect of any one incident to an aggregate amount calculated as follows:
Art.9.1.a (a) 10 million units of account for a ship not exceeding 2,000 units of tonnage; and
Art.9.1.b (b) for a ship with a tonnage in excess thereof, the following amount in addition to that mentioned in (a):
Art.9.1.b.ix for each unit of tonnage from 2,001 to 50,000 units of tonnage, 1,500 units of account;
Art.9.1.b.iix for each unit of tonnage in excess of 50,000 units of tonnage, 360 units of account;
Art.9.1.cx provided, however, that this aggregate amount shall not in any event exceed 100 million units of account.
Art.9.2 2. The owner shall not be entitled to limit liability under this Convention if it is proved that the damage resulted from the personal act or omission of the owner, committed with the intent to cause such damage, or recklessly and with knowledge that such damage would probably result.
Art.9.3 3. The owner shall, for the purpose of benefitting from the limitation provided for in paragraph 1, constitute a fund for the total sum representing the limit of liability established in accordance with paragraph 1 with the court or other competent authority of any one of the States Parties in which action is brought under Article 38 or, if no action is brought, with any court or other competent authority in any one of the States Parties in which an action can be brought under Article 38. The fund can be constituted either by depositing the sum or by producing a bank guarantee or other guarantee, acceptable under the law of the State Party where the fund is constituted, and considered to be adequate by the court or other competent authority.
Art.9.4 4. Subject to the provisions of Article 11, the fund shall be distributed among the claimants in proportion to the amounts of their established claims.
Art.9.5 5. If before the fund is distributed the owner or any of the servants or agents of the owner or any person providing to the owner insurance or other financial security has as a result of the incident in question, paid compensation for damage, such person shall, up to the amount that person has paid, acquire by subrogation the rights which the person so compensated would have enjoyed under this Convention.
Art.9.6 6. The right of subrogation provided for in paragraph 5 may also be exercised by a person other than those mentioned therein in respect of any amount of compensation for damage which such person may have paid but only to the extent that such subrogation is permitted under the applicable national law.
Art.9.7 7. Where owners or other persons establish that they may be compelled to pay at a later date in whole or in part any such amount of compensation, with regard to which the right of subrogation would have been enjoyed under paragraphs 5 or 6 had the compensation been paid before the fund was distributed, the court or other competent authority of the State where the fund has been constituted may order that a sufficient sum shall be provisionally set aside to enable such person at such later date to enforce the claim against the fund.
Art.9.8 8. Claims in respect of expenses reasonably incurred or sacrifices reasonably made by the owner voluntarily to prevent or minimize damage shall rank equally with other claims against the fund.
Art.9.9.a 9. (a) The amounts mentioned in paragraph 1 shall be converted into national currency on the basis of the value of that currency by reference to the Special Drawing Right on the date of the constitution of the fund referred to in paragraph 3. The value of the national currency, in terms of the Special Drawing Right, of a State Party which is a member of the International Monetary Fund, shall be calculated in accordance with the method of valuation applied by the International Monetary Fund in effect on the date in question for its operations and transactions. The value of the national currency, in terms of the Special Drawing Right, of a State Party which is not a member of the International Monetary Fund, shall be calculated in a manner determined by that State.
Art.9.9.b (b) Nevertheless, a State Party which is not a member of the International Monetary Fund and whose law does not permit the application of the provisions of paragraph 9(a) may, at the time of ratification, acceptance, approval of or accession to this Convention or at any time thereafter, declare that the unit of account referred to in paragraph 9(a) shall be equal to 15 gold francs. The gold franc referred to in this paragraph corresponds to sixty-five-and-a-half milligrammes of gold of millesimal fineness nine hundred. The conversion of the gold franc into the national currency shall be made according to the law of the State concerned.
Art.9.9.c (c) The calculation mentioned in the last sentence of paragraph 9(a) and the conversion mentioned in paragraph 9(b) shall be made in such manner as to express in the national currency of the State Party as far as possible the same real value for the amounts in paragraph 1 as would result from the application of the first two sentences of paragraph 9(a). States Parties shall communicate to the Secretary-General the manner of calculation pursuant to paragraph 9(a), or the result of the conversion in paragraph 9(b) as the case may be, when depositing an instrument of ratification, acceptance, approval of or accession to this Convention and whenever there is a change in either.
Art.9.10 10. For the purpose of this Article the ship's tonnage shall be the gross tonnage calculated in accordance with the tonnage measurement regulations contained in Annex I of the International Convention on Tonnage Measurement of Ships, 1969.
Art.9.11 11. The insurer or other person providing financial security shall be entitled to constitute a fund in accordance with this Article on the same conditions and having the same effect as if it were constituted by the owner. Such a fund may be constituted even if, under the provisions of paragraph 2, the owner is not entitled to limitation of liability, but its constitution shall in that case not prejudice the rights of any claimant against the owner.
Art.10 Article 10
Art.10.1 1. Where the owner, after an incident, has constituted a fund in accordance with Article 9 and is entitled to limit liability:
Art.10.1.a (a) no person having a claim for damage arising out of that incident shall be entitled to exercise any right against any other assets of the owner in respect of such claim; and
Art.10.1.b (b) the court or other competent authority of any State Party shall order the release of any ship or other property belonging to the owner which has been arrested in respect of a claim for damage arising out of that incident, and shall similarly release any bail or other security furnished to avoid such arrest.
Art.10.2 2. The foregoing shall, however, only apply if the claimant has access to the court administering the fund and the fund is actually available in respect of the claim.
Art.11 Article 11
Art.11.1x Claims in respect of death or personal injury have priority over other claims save to the extent that the aggregate of such claims exceeds two-thirds of the total amount established in accordance with Article 9, paragraph 1.
Art.12 Article 12
Art.12.1 1. The owner of a ship registered in a State Party and actually carrying hazardous and noxious substances shall be required to maintain insurance or other financial security, such as the guarantee of a bank or similar financial institution, in the sums fixed by applying the limits of liability prescribed in Article 9, paragraph 1, to cover liability for damage under this Convention.
Art.12.2 2. A compulsory insurance certificate attesting that insurance or other financial security is in force in accordance with the provisions of this Convention shall be issued to each ship after the appropriate authority of a State Party has determined that the requirements of paragraph 1 have been complied with. With respect to a ship registered in a State Party such compulsory insurance certificate shall be issued or certified by the appropriate authority of the State of the ship's registry; with respect to a ship not registered in a State Party it may be issued or certified by the appropriate authority of any State Party. This compulsory insurance certificate shall be in the form of the model set out in Annex I and shall contain the following particulars:
Art.12.2.a (a) name of the ship, distinctive number or letters and port of registry;
Art.12.2.b (b) name and principal place of business of the owner;
Art.12.2.c (c) IMO ship identification number;
Art.12.2.d (d) type and duration of security;
Art.12.2.e (e) name and principal place of business of insurer or other person giving security and, where appropriate, place of business where the insurance or security is established; and
Art.12.2.f (f) period of validity of certificate, which shall not be longer than the period of validity of the insurance or other security.
Art.12.3 3. The compulsory insurance certificate shall be in the official language or languages of the issuing State. If the language used is neither English, nor French nor Spanish, the text shall include a translation into one of these languages.
Art.12.4 4. The compulsory insurance certificate shall be carried on board the ship and a copy shall be deposited with the authorities who keep the record of the ship's registry or, if the ship is not registered in a State Party, with the authority of the State issuing or certifying the certificate.
Art.12.5 5. An insurance or other financial security shall not satisfy the requirements of this Article if it can cease, for reasons other than the expiry of the period of validity of the insurance or security specified in the certificate under paragraph 2, before three months have elapsed from the date on which notice of its termination is given to the authorities referred to in paragraph 4, unless the compulsory insurance certificate has been issued within the said period. The foregoing provisions shall similarly apply to any modification which results in the insurance or security no longer satisfying the requirements of this Article.
Art.12.6 6. The State of the ship's registry shall, subject to the provisions of this Article, determine the conditions of issue and validity of the compulsory insurance certificate.
Art.12.7 7. Compulsory insurance certificates issued or certified under the authority of a State Party in accordance with paragraph 2 shall be accepted by other States Parties for the purposes of this Convention and shall be regarded by other States Parties as having the same force as compulsory insurance certificates issued or certified by them even if issued or certified in respect of a ship not registered in a State Party. A State Party may at any time request consultation with the issuing or certifying State should it believe that the insurer or guarantor named in the compulsory insurance certificate is not financially capable of meeting the obligations imposed by this Convention.
Art.12.8 8. Any claim for compensation for damage may be brought directly against the insurer or other person providing financial security for the owner's liability for damage. In such case the defendant may, even if the owner is not entitled to limitation of liability, benefit from the limit of liability prescribed in accordance with paragraph 1. The defendant may further invoke the defences (other than the bankruptcy or winding up of the owner) which the owner would have been entitled to invoke. Furthermore, the defendant may invoke the defence that the damage resulted from the wilful misconduct of the owner, but the defendant shall not invoke any other defence which the defendant might have been entitled to invoke in proceedings brought by the owner against the defendant. The defendant shall in any event have the right to require the owner to be joined in the proceedings.
Art.12.9 9. Any sums provided by insurance or by other financial security maintained in accordance with paragraph 1 shall be available exclusively for the satisfaction of claims under this Convention.
Art.12.10 10. A State Party shall not permit a ship under its flag to which this Article applies to trade unless a certificate has been issued under paragraph 2 or 12.
Art.12.11 11. Subject to the provisions of this Article, each State Party shall ensure, under its national law, that insurance or other security in the sums specified in paragraph 1 is in force in respect of any ship, wherever registered, entering or leaving a port in its territory, or arriving at or leaving an offshore facility in its territorial sea.
Art.12.12 12. If insurance or other financial security is not maintained in respect of a ship owned by a State Party, the provisions of this Article relating thereto shall not be applicable to such ship, but the ship shall carry a compulsory insurance certificate issued by the appropriate authorities of the State of the ship's registry stating that the ship is owned by that State and that the ship's liability is covered within the limit prescribed in accordance with paragraph 1. Such a compulsory insurance certificate shall follow as closely as possible the model prescribed by paragraph 2.
Chap.3 CHAPTER III
Art.13 Article 13
Art.13.1 1. The International Hazardous and Noxious Substances Fund (HNS Fund) is hereby established with the following aims:
Art.13.1.a (a) to provide compensation for damage in connection with the carriage of hazardous and noxious substances by sea, to the extent that the protection afforded by Chapter II is inadequate or not available; and
Art.13.1.b (b) to give effect to the related tasks set out in Article 15.
Art.13.2 2. The HNS Fund shall in each State Party be recognized as a legal person capable under the laws of that State of assuming rights and obligations and of being a party in legal proceedings before the courts of that State. Each State Party shall recognize the Director as the legal representative of the HNS Fund.
Art.14 Article 14
Art.14.1 1. For the purpose of fulfilling its function under Article 13, paragraph 1(a), the HNS Fund shall pay compensation to any person suffering damage if such person has been unable to obtain full and adequate compensation for the damage under the terms of Chapter II:
Art.14.1.a (a) because no liability for the damage arises under Chapter II;
Art.14.1.b (b) because the owner liable for the damage under Chapter II is financially incapable of meeting the obligations under this Convention in full and any financial security that may be provided under Chapter II does not cover or is insufficient to satisfy the claims for compensation for damage; an owner being treated as financially incapable of meeting these obligations and a financial security being treated as insufficient if the person suffering the damage has been unable to obtain full satisfaction of the amount of compensation due under Chapter II after having taken all reasonable steps to pursue the available legal remedies;
Art.14.1.c (c) because the damage exceeds the owner's liability under the terms of Chapter II.
Art.14.2 2. Expenses reasonably incurred or sacrifices reasonably made by the owner voluntarily to prevent or minimize damage shall be treated as damage for the purposes of this Article.
Art.14.3 3. The HNS Fund shall incur no obligation under the preceding paragraphs if:
Art.14.3.a (a) it proves that the damage resulted from an act of war, hostilities, civil war or insurrection or was caused by hazardous and noxious substances which had escaped or been discharged from a warship or other ship owned or operated by a State and used, at the time of the incident, only on Government non-commercial service; or
Art.14.3.b (b) the claimant cannot prove that there is a reasonable probability that the damage resulted from an incident involving one or more ships.
Art.14.4 4. If the HNS Fund proves that the damage resulted wholly or partly either from an act or omission done with intent to cause damage by the person who suffered the damage or from the negligence of that person, the HNS Fund may be exonerated wholly or partially from its obligation to pay compensation to such person. The HNS Fund shall in any event be exonerated to the extent that the owner may have been exonerated under Article 7, paragraph 3. However, there shall be no such exoneration of the HNS Fund with regard to preventive measures.
Art.14.5.a 5. (a) Except as otherwise provided in subparagraph (b), the aggregate amount of compensation payable by the HNS Fund under this Article shall in respect of any one incident be limited, so that the total sum of that amount and any amount of compensation actually paid under Chapter II for damage within the scope of application of this Convention as defined in Article 3 shall not exceed 250 million units of account.
Art.14.5.b (b) The aggregate amount of compensation payable by the HNS Fund under this Article for damage resulting from a natural phenomenon of an exceptional, inevitable and irresistible character shall not exceed 250 million units of account.
Art.14.5.c (c) Interest accrued on a fund constituted in accordance with Article 9, paragraph 3, if any, shall not be taken into account for the computation of the maximum compensation payable by the HNS Fund under this Article.
Art.14.5.d (d) The amounts mentioned in this Article shall be converted into national currency on the basis of the value of that currency with reference to the Special Drawing Right on the date of the decision of the Assembly of the HNS Fund as to the first date of payment of compensation.
Art.14.6 6. Where the amount of established claims against the HNS Fund exceeds the aggregate amount of compensation payable under paragraph 5, the amount available shall be distributed in such a manner that the proportion between any established claim and the amount of compensation actually recovered by the claimant under this Convention shall be the same for all claimants. Claims in respect of death or personal injury shall have priority over other claims, however, save to the extent that the aggregate of such claims exceeds two-thirds of the total amount established in accordance with paragraph 5.
Art.14.7 7. The Assembly of the HNS Fund may decide that, in exceptional cases, compensation in accordance with this Convention can be paid even if the owner has not constituted a fund in accordance with Chapter II. In such cases paragraph 5(d) applies accordingly.
Art.15 Article 15
Art.15.1x For the purpose of fulfilling its function under Article 13, paragraph 1(a), the HNS Fund shall have the following tasks:
Art.15.1x.a (a) to consider claims made against the HNS Fund;
Art.15.1x.b (b) to prepare an estimate in the form of a budget for each calendar year of:
Art.15.1x.b.1x Expenditure:
Art.15.1x.b.1x.i (i) costs and expenses of the administration of the HNS Fund in the relevant year and any deficit from operations in the preceding years; and
Art.15.1x.b.1x.ii (ii) payments to be made by the HNS Fund in the relevant year;
Art.15.1x.b.2x Income:
Art.15.1x.b.2x.iii (iii) surplus funds from operations in preceding years, including any interest;
Art.15.1x.b.2x.iv (iv) initial contributions to be paid in the course of the year;
Art.15.1x.b.2x.v (v) annual contributions if required to balance the budget; and
Art.15.1x.b.2x.vi (vi) any other income;
Art.15.1x.b.c (c) to use at the request of a State Party its good offices as necessary to assist that State to secure promptly such personnel, material and services as are necessary to enable the State to take measures to prevent or mitigate damage arising from an incident in respect of which the HNS Fund may be called upon to pay compensation under this Convention; and
Art.15.1x.b.d (d) to provide, on conditions laid down in the internal regulations, credit facilities with a view to the taking of preventive measures against damage arising from a particular incident in respect of which the HNS Fund may be called upon to pay compensation under this Convention.
Art.16 Article 16
Art.16.1 1. The HNS Fund shall have a general account, which shall be divided into sectors.
Art.16.2 2. The HNS Fund shall, subject to Article 19, paragraphs 3 and 4, also have separate accounts in respect of:
Art.16.2.a (a) oil as defined in Article 1, paragraph 5(a)(i) (oil account);
Art.16.2.b (b) liquefied natural gases of light hydrocarbons with methane as the main constituent (LNG) (LNG account); and
Art.16.2.c (c) liquefied petroleum gases of light hydrocarbons with propane and butane as the main constituents (LPG) (LPG account).
Art.16.3 3. There shall be initial contributions and, as required, annual contributions to the HNS Fund.
Art.16.4 4. Contributions to the HNS Fund shall be made into the general account in accordance with Article 18, to separate accounts in accordance with Article 19 and to either the general account or separate accounts in accordance with Article 20 or Article 21, paragraph 5. Subject to Article 19, paragraph 6, the general account shall be available to compensate damage caused by hazardous and noxious substances covered by that account, and a separate account shall be available to compensate damage caused by a hazardous and noxious substance covered by that account.
Art.16.5 5. For the purposes of Article 18, Article 19, paragraph 1(a)(i), paragraph 1(a)(ii) and paragraph 1(c), Article 20 and Article 21, paragraph 5, where the quantity of a given type of contributing cargo received in the territory of a State Party by any person in a calendar year when aggregated with the quantities of the same type of cargo received in the same State Party in that year by any associated person or persons exceeds the limit specified in the respective subparagraphs, such a person shall pay contributions in respect of the actual quantity received by that person notwithstanding that that quantity did not exceed the respective limit.
Art.16.6 6. "Associated person" means any subsidiary or commonly controlled entity. The question whether a person comes within this definition shall be determined by the national law of the State concerned.
Art.17 Article 17
Art.17.1 1. Annual contributions to the general account and to each separate account shall be levied only as required to make payments by the account in question.
Art.17.2 2. Annual contributions payable pursuant to Articles 18, 19 and Article 21, paragraph 5 shall be determined by the Assembly and shall be calculated in accordance with those Articles on the basis of the units of contributing cargo received or, in respect of cargoes referred to in Article 19, paragraph 1(b), discharged during the preceding calendar year or such other year as the Assembly may decide.
Art.17.3 3. The Assembly shall decide the total amount of annual contributions to be levied to the general account and to each separate account. Following that decision the Director shall, in respect of each State Party, calculate for each person liable to pay contributions in accordance with article 18, article 19, paragraph 1 and article 21, paragraph 5, the amount of that person's annual contribution to each account, on the basis of a fixed sum for each unit of contributing cargo reported in respect of the person during the preceding calendar year or such other year as the Assembly may decide. For the general account, the above­mentioned fixed sum per unit of contributing cargo for each sector shall be calculated pursuant to the regulations contained in Annex II to this Convention. For each separate account, the fixed sum per unit of contributing cargo referred to above shall be calculated by dividing the total annual contribution to be levied to that account by the total quantity of cargo contributing to that account.
Art.17.4 4. The Assembly may also levy annual contributions for administrative costs and decide on the distribution of such costs between the sectors of the general account and the separate accounts.
Art.17.5 5. The Assembly shall also decide on the distribution between the relevant accounts and sectors of amounts paid in compensation for damage caused by two or more substances which fall within different accounts or sectors, on the basis of an estimate of the extent to which each of the substances involved contributed to the damage.
Art.18 Article 18

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