Shipping 2026

CANADA Law and Practice Contributed by: Rui Fernandes, Andrea Fernandes and Conal Calvert, Gardiner Roberts LLP

3. Marine Casualties and Owners’ Liability 3.1 International Conventions: Pollution and Wreck Removal Canada is a signatory to and has implemented a num - ber of international conventions that will impact upon the liability of owners and interested parties in events of pollution and wreck removal. A brief summary of these conventions is as follows. • International Convention on Civil Liability for Oil Pollution Damage, 1992 (the “1992 CLC”) – Rati - fied by Canada in 1998 and in force in 1999. Holds ship-owners strictly liable for oil pollution damage from persistent oils (eg, tankers), with compulsory insurance and limits based on tonnage and Special Drawing Rights (SDR). • International Convention on the Establishment of an International Fund for Compensation for Oil Pol - lution Damage, 1992 (the “1992 Fund Convention”) and 2003 Protocol to the International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage, 1992 (the “Supplementary Fund Protocol”) – The 1992 Fund Convention was ratified by Canada in 1998 and in force in 1999. The Supplementary Fund Proto - col was ratified by Canada in 2009 and in force in 2010. They establish mechanisms for compensa - tion beyond the ship-owner’s limit under the CLC. They are financed by contributions from any per - son who has received more than the set amounts of crude oil and/or heavy fuel oil in one calendar year in a member state. • International Convention on Civil Liability for Bunker Oil Pollution Damage, 2001 (the “Bunkers Convention”) – Ratified by Canada in 2009 and in force in 2010. Extends strict liability and com - pulsory insurance to all seagoing vessels carrying bunker fuel (≥1,000 GT), with liability limits based on tonnage of the ship. • International Convention for the Prevention of Pollution from Ships, 1973, as amended by the Protocol of 1978 (“MARPOL 73/78”) – The MAR - POL Convention and the Protocol of 1978 entered into force in October 1983. All six annexes have entered into force. MARPOL 73/78 governs pollu - tion prevention from ships (oil, noxious substances,

A party registering a ship’s mortgage must submit a Mortgage Form supplied by Transport Canada which includes: • the names and addresses of the mortgagors and mortgagees; • the principal amount; and • additional details such as the rate of interest, method of payment or the date on which the col - lateral agreement was executed. Notwithstanding the ship mortgage requirements of the CSA, the provinces maintain concurrent juris - diction over security interests in vessels in accord - ance with their respective personal property security regimes and security interests on vessels may be per - fected in those registries as well. 1.7 Ship Ownership and Mortgages Registry The ship mortgage register is not publicly accessi - ble but non-owners may file a request with Transport Canada and pay a fee in order to access information in the registry. Ship loan financing typically involves a mortgage or line of credit secured against the ship asset or other assets. Some debt and equity financing is also done in exchange for shares. Personal guarantees may be requested. Most common are ship mortgages, which can be registered on the ship registry for registered vessels. 2.2 Ship Leasing There has not been an increase in ship leasing trans - actions in Canada. Lendor/borrower relationships are typically backed by a ship mortgage. Lessor/lessee relationships may be backed by personal guarantees. Courts and arbitral tribunals treat both relationships as contractual relationships. Sale and leaseback transac - tions occur in Canada. 2. Ship Finance and Leasing 2.1 Ship Loan Finance

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