York Antwerp Rules
Page 237
CHAPTER 34
Rule XXII: Treatment of Cash Deposits
Rule XXII: Treatment of Cash Deposits
- (a) Where cash deposits have been collected in respect of general average, salvage or special charges, such sums shall be remitted forthwith to the average adjuster who shall deposit the sums into a special account, earning interest where possible, in the name of the average adjuster.
- (b) The special account shall be constituted in accordance with the law regarding client or third party funds applicable in the domicile of the average adjuster. The account shall be held separately from the average adjuster’s own funds, in trust or in compliance with similar rules of law providing for the administration of the funds of third parties.
- (c) The sums so deposited, together with accrued interest, if any, shall be held as security for payment to the parties entitled thereto, of the general average, salvage or special charges in respect of which the deposits have been collected. Payments on account or refunds of deposits may only be made when such payments are certified in writing by the average adjuster and notified to the depositor requesting their approval. Upon the receipt of the depositor’s approval, or in the absence of such approval within a period of 90 days, the average adjuster may deduct the amount of the payment on account or the final contribution from the deposit.
- (d) All deposits and payments or refunds shall be without prejudice to the ultimate liability of the parties.
Introduction
34.01
The collection of cash deposits is but one of the means whereby security may be provided by the concerned in cargo for their eventual payment of general average contribution. In most jurisdictions a shipowner is invested with a possessory lien over the cargo onboard the ship for unpaid freight and for general average. On delivery of the cargo to the consignee, the shipowner loses his right of lien but may demand alternative security for the general average in return for so doing. The nature of such alternative security that may be demanded is not governed by the York-Antwerp Rules, and varies from case to case. Although there is no uniformity in this respect, such alternative security will normally consist of an average bond or other undertaking signed by the receiver of the cargo, supported by one of the following: