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.
Civil Actions and LiensRespondentia
Section § 470
The law explains that a respondentia is a type of contract where a cargo is used as collateral for a loan. This loan must be repaid, but repayment depends on risks related to sea travel.
respondentia contract cargo hypothecation maritime loan
Section § 471
This law allows a cargo owner to use their cargo as collateral for a loan, referred to as 'hypothecate it upon respondentia,' at any time or place and for any purpose.
The owner of cargo may hypothecate it upon respondentia, at any time and place, and for any purpose.
cargo hypothecation respondentia
Section § 472
The law allows the captain of a ship to use its cargo as collateral for a loan, under a condition called 'respondentia,' but only if three conditions are met. First, the captain must already be allowed to use the ship and its earnings as collateral. Second, there isn’t enough money available using the ship and earnings alone to cover necessary repairs or supplies for the journey. Lastly, using the cargo as collateral should reasonably benefit the cargo itself.
The master of a vessel may hypothecate its cargo upon respondentia only if all of the following conditions exist:
(a)CA Harbors And Navigation Code § 472(a) He would be authorized to hypothecate the vessel and freightage.
(b)CA Harbors And Navigation Code § 472(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.
(c)CA Harbors And Navigation Code § 472(c) There is a reasonable prospect of benefiting the cargo.
ship master collateral hypothecate cargo
Section § 473
If the master of a vessel makes a special type of secured loan called a 'respondentia' using the cargo as collateral, and the owner of the cargo has to pay off that loan, the vessel's owner must reimburse the cargo owner for those payments.
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.
vessel owner cargo owner discharge lien
Section § 474
This section says that the rules in sections 455 to 462 also apply to loans given through respondentia, which is a type of maritime loan dependent on a ship's safe arrival.
The provisions of sections 455 to 462 of this code apply equally to loans on respondentia.
respondentia maritime loan sections 455 to 462
