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California Laws | Harbors and Navigation Code
DIVISION 3. VESSELS
CHAPTER 1. VESSELS GENERALLY

(b) If, pursuant to subdivision (a), the administrator determines that the vessel traffic service is inconsistent with the harbor safety plan for the Los Angeles and Long Beach harbors developed pursuant to Section 8670.23.1 of the Government Code and the standards of a statewide vessel traffic service plan or vessel traffic monitoring and communications system developed pursuant to Section 8670.21 of the Government Code, the administrator shall issue an order to the marine exchange which specifies modifications to the vessel traffic service to eliminate the inconsistencies. (578)

(c) If the marine exchange has not complied with an order within six months of issuance, then the administrator, after a public hearing, may take any or all of the following actions: (579)

(1) Impose on the marine exchange an administrative fine of not more than five thousand dollars ($5,000) for each day the marine exchange does not comply with the administrator's order. (580)

(2) Administratively revoke the authorization provided to the marine exchange by Section 445 to operate the vessel traffic service. (581)

(d) If authorization for the marine exchange to operate the vessel traffic service is revoked pursuant to this section, the administrator shall take any action that is necessary to expeditiously establish a vessel traffic service for the Los Angeles and Long Beach harbors. The action may include the assessment of fees on vessels, port users, and ports, and the making of needed expenditures, as provided in subdivision (d) of Section 8670.21. (582)

CHAPTER 2. CIVIL ACTIONS AND LIENS (583)(Text)

Article 1. Bottomry (450-462) (584)(Text)

450. Bottomry is a contract by which a vessel or its freightage is hypothecated as security for a loan, which is to be repaid only if the vessel survives a particular risk, voyage, or period. (585)

451. The owner of a vessel may hypothecate it or its freightage, upon bottomry, for any lawful purpose, and at any time and place. (586)

452. The master of a vessel may hypothecate it upon bottomry only for the purpose of procuring repairs or supplies which are necessary for accomplishing the objects of the voyage, or for securing the safety of the vessel. (587)

453. The master of a vessel can hypothecate it upon bottomry only when he can not otherwise relieve the necessities of the vessel, and is unable to reach adequate funds of the owner, or to obtain any funds upon the personal credit of the owner, and when previous communication with the owner is precluded by the urgent necessity of the case. (588)

454. The master of a vessel may hypothecate freightage upon bottomry, under the same circumstances as those which authorize an hypothecation of the vessel by him. (589)

455. Upon a contract of bottomry, the parties may lawfully stipulate for a rate of interest higher than that allowed by the law upon other contracts. But a competent court may reduce the rate stipulated when it appears unjustifiable and exorbitant. (590)

456. A lender upon a contract of bottomry, made by the master of a vessel, as such, may enforce the contract, though the circumstances necessary to authorize the master to hypothecate the vessel did not in fact exist, if, after due diligence and inquiry, the lender had reasonable grounds to believe, and did in good faith believe, in the existence of such circumstances. (591)

457. A stipulation in a contract of bottomry, imposing any liability for the loan independent of the maritime risks, is void. (592)

458. If there is a total loss of the thing hypothecated, from a risk to which the loan was subject, the lender upon bottomry can recover nothing; if a partial loss, he can recover only to the extent of the net value to the owner of the part saved. (593)

459. Unless it is otherwise expressly agreed, a bottomry loan becomes due immediately upon the termination of the risk, although a term of credit is specified in the contract. (594)

460. A bottomry lien is independent of possession, and is lost by omission to enforce it within a reasonable time. (595)

461. A bottomry lien, if created out of a real or apparent necessity, in good faith, is preferred to every other lien or claim upon the same thing, excepting only a lien for seamen's wages, a subsequent lien of material-men for supplies or repairs indispensable to the safety of the vessel, and a subsequent lien for salvage. (596)

462. Of two or more bottomry liens on the same subject, the latter in date has preference, if created out of necessity. (597)

Article 2. Respondentia (470-474) (598)(Text)

470. Respondentia is a contract by which all or part of a cargo is hypothecated as security for a loan, the repayment of which is dependent on maritime risks. (599)

471. The owner of cargo may hypothecate it upon respondentia, at any time and place, and for any purpose. (600)

472. The master of a vessel may hypothecate its cargo upon respondentia only if all of the following conditions exist: (601)

(a) He would be authorized to hypothecate the vessel and freightage. (602)

(b) He is unable to borrow sufficient money on the vessel and freightage for repairs or supplies which are necessary for the successful accomplishment of the voyage. (603)

(c) There is a reasonable prospect of benefiting the cargo. (604)

473. The owner of a vessel is bound to repay to the owner of its cargo all which the latter is compelled to pay in order to discharge a lien under a contract of respondentia made by the master. (605)

474. The provisions of sections 455 to 462 of this code apply equally to loans on respondentia. (606)

Article 3. Actions Against Vessels (490-497) (607)(Text)

490. Debts amounting to at least fifty dollars ($50), contracted for the benefit of vessels, are liens in the cases provided in Section 491. (608)

Actions for any of the causes specified in Section 491 shall be brought against the owners by name, if known, but if not known, that fact shall be stated in the complaint, and the defendants shall be designated as unknown owners. Other persons having a lien upon the vessel may be made defendants to the action, the nature and amount of such lien being stated in the complaint. (609)

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