Sterling

Article 13 provides that as soon as a limitation Fund has been constituted, any person with a claim against the Fund shall be barred from exercising any right against any other assets of the person on whose behalf the Fund has been constituted. Further more, it is provided that when the limitation Fund has been constituted, any ship or other property arrested in respect of a claim raised against the Fund, or any security given, may be released by order of the court or in certain circumstances, (listed in Paragraph 2 of Section 2) must be released. Certain provisions have been made to link the 1976 Convention with existing United Kingdom law and some examples of these (which may be found in Part II to Schedule 4 of the Merchant Shipping Act 1979) are: Excluded claims, i.e. in respect of oil pollution and nuclear damage are defined as those incurred under Section 1 of Merchant Shipping (Oil Pollution) Act 1971 and Sections 7 to 11 of the Nuclear Installations Act 1965. For the purpose of converting the amounts mentioned in Articles 6 and 7 from SDR into sterling, one SDR shall be deemed equal to such sum in sterling as the IMF has fixed as being the equivalent of one SDR for a). Since November 1984 (when the Merchant Shipping Act 1981 gave effect to the 1979 Protocol to the 1957 Convention which replaced the Gold Francs for the SDR’s) the calculation is to be by way of direct reference to the SDR/sterling exchange rate as calculated daily by the IMF (to be found published each day in the Financial press and/or ‘Lloyd’s List’). The relevant date is to be, if a limitation action is brought, that on which the limitation fund is constituted and, in any other case, the date of the judgement in question.