Section 4 Summary Procedure, Procedure for Hastening Debt Recovery and Procedure for Public Exigence

Article 98 In hearing simple maritime cases in which the facts are evident, the rights and obligations are clear and the dispute is a minor one, the maritime court may apply the provisions governing summary procedure in the Civil Procedure Law of the People's Republic of China.

Article 99 Where a creditor, on the basis of a maritime-related matter, requests a debtor to pay a debt in cash or in securities, if it is found to be in conformity with the relevant provisions in the Civil Procedure Law of the People's Republic of China, the creditor may apply to the maritime court that has jurisdiction for an order of payment.

Where the debtor is an alien, a stateless person or a foreign enterprise or organization that has a domicile or representative office or branch within the territory of the People's Republic of China on which the order of payment can be served, the creditor may apply to the maritime court that has jurisdiction for an order of payment.

Article 100 A holder of a bill of lading or similar documents for taking delivery of cargo may apply for public exigence to the maritime court of the place where the cargo is located in case such documents are out of control or lost.

Chapter IX Procedure for Constitution of Limitation Fund for Maritime Claims

Article 101 After the occurrence of a marine accident, the ship-owner, charterer, operator, salvor or insurer, who wishes to apply for liability limitation in accordance with law, may apply to a maritime court for constitution of the limitation fund for maritime claims.

In the event of oil pollution damage caused by a ship, the ship-owner and the insurer or the person who provides financial security therefor shall, for the purpose of obtaining the right of liability limitation provided for by law, constitute with the maritime court a limitation fund for maritime claims in respect of oil pollution damage.

Constitution of limitation fund may be applied for either before an action is brought or during the process of legal proceedings, or, at the latest, before the judgement of first instance is given.

Article 102 A party who wishes to apply for constitution of a limitation fund for maritime claims before an action is brought shall file an application therefor with the maritime court of the place where the accident occurred, the contract is performed or the ship is under arrest.

Article 103 Constitution of a limitation fund for maritime claims shall not be bound by the jurisdiction agreement or arbitration agreement reached between the parties.

Article 104 A person who wishes to apply for constitution of a limitation fund for maritime claims shall file an application in writing with a maritime court. In the application shall be stated the amount of the limitation fund to be constituted for maritime claims, the reasons therefor as well as the names, addresses and means of correspondence of the interested persons already known, with relevant evidence attached.

Article 105 The maritime court shall, within seven days of the acceptance of an application for constitution of a limitation fund for maritime claims, notify all the interested persons already known and issue an announcement of the same in the newspapers or other news media.

Such notice and announcement shall contain:

(1) name of the applicant;

(2) facts and reasons for application;

(3) particulars for constitution of the limitation fund for maritime claims;

(4) particulars necessary in registration of claims; and

(5) other matters which need to be announced.

Article 106 Any interested person who objects to the application filed by the applicant for constitution of a limitation fund for maritime claims shall file in writing with the maritime court within seven days from the date of receipt of the notice, or within 30 days from the date of the announcement if no notice is received.

The maritime court, having received the written objection filed by an interested person, shall examine the objection and make an order within 15 days. If the objection is well founded, it shall make an order to reject the application of the applicant. Otherwise, it shall make an order to allow the applicant to constitute a limitation fund for maritime claims.

The party who is dissatisfied with such an order may appeal within seven days from the date of receipt thereof. The people's court of second instance shall make an order within 15 days from the date of receipt of the appeal.

Article 107 Where no objection is raised by an interested person within the prescribed time limit, the maritime court shall make an order to allow the applicant to constitute a limitation fund for maritime claims.

Article 108 After the order to allow the applicant to constitute a limitation fund for maritime claims becomes effective, the applicant shall constitute the fund with the maritime court.

A limitation fund for maritime claims may be constituted either by depositing cash or by providing security acceptable to the maritime court.

The sum of the limitation fund for maritime claims shall cover the amount of liability to be limited and any interest accruing from the date of the accident up to the date of constitution. Where the fund is constituted by way of security, the amount of the security shall cover the amount of the fund and any interest accruing thereon during the period of such constitution.

Where the fund is constituted with cash deposited, the date on which the fund is transferred into the bank account designated by the maritime court shall be deemed to be the date of constitution of the fund. Where the fund is constituted with security provided, the date on which the maritime court accepts the security shall be deemed to be the date of constitution of the fund.

Article 109 After a limitation fund for maritime claims has been constituted, the parties shall bring an action in respect of the maritime dispute with the maritime court with which the limitation fund for maritime claims has been constituted, unless a jurisdiction agreement or arbitration agreement has been reached between the parties.

Article 110 A person, having wrongly applied for constitution of a limitation fund for maritime claims, shall indemnify the interested person for the losses thus incurred.