ARGENTINA Law and Practice Contributed by: María Belén Espiñeira, Espiñeira Maritime Lawyers
5.5 Arresting a Vessel In order to obtain an order of arrest from an Argentine court, the arrestor will need to meet the following pro - cedural requirements: • pay a court fee – 3% of the claimed amount must be paid to court; • pay expenses concerning the National Registry of Ships – 0.1% of the claimed amount; and • provide adequate counter-security for any eventual damages that the arrest might cause if it is made without the arrestor being entitled to do so. Counter-security may be given in cash, by a local bank or by a well-known local insurance company. It may be difficult to obtain locally when the arrestor is a for - eign entity; however, there might be alternative ways to overcome any obstacle in this regard. The arrestor will also need to grant its lawyers a power of attorney (POA) empowering them to bring actions of arrest; nevertheless, actions could be brought with - out a POA if this document is presented in its original form within the following 40 days after the initial pres - The Argentine Navigation Law does not specifically deal with the possibility of arresting bunkers and freight, as it does with the possibility of arresting a vessel; however, it provides that specific maritime claims confer a maritime lien over freight. Regarding the procedural requirements to bring actions of arrest on bunkers and freight, the require - ments set forth by the National Civil and Commercial Procedural Code regarding precautionary measures over any assets, goods or credits shall apply. 5.7 Sister-Ship Arrest Pursuant to the Argentine Navigation Law, it is pos - sible to arrest a foreign sister-ship if the vessel that generated the credit to be secured with the arrest and the one to be arrested belong to the same owner - ship, when requesting the arrest or when the credit accrued. entation requesting a vessel’s arrest. 5.6 Arresting Bunkers and Freight
5.8 Other Ways of Obtaining Attachment Orders The National Civil and Commercial Procedural Code sets forth different precautionary measures to obtain security, such as seizure of assets, credits and rights, prohibition of disposal of movable or immovable prop - erty, judicial intervention, and the possibility to request a more convenient measure aimed at obtaining a more appropriate security in view of the particular case. 5.9 Releasing an Arrested Vessel A vessel that is arrested may be released from arrest if adequate security is given to substitute the secu - rity granted by the arrest. Adequate security may be given in the form of another asset to be arrested, a local bank guarantee, a cash deposit, an insurance policy issued by a local company or an insurance pol - icy obtained locally by the Argentine shipping agents of the foreign vessel, or by giving Argentine National Treasury Bonds. A club’s letter of intent or a foreign bank’s letter of guarantee may be effective to get the vessel released from the arrest; however, if the arrestor objects to its effectiveness or appropriateness, the judge may not admit the substitution. 5.10 Procedure for the Judicial Sale of Arrested Ships After an enforceable title is in place, the court shall – before ordering the judicial sale of a national ship – request from the National Registry of Ships a report of the vessel’s mortgages, liens and encumbrances. If the vessel flies a foreign flag, such request shall be made to the corresponding consular authority. If liens and encumbrances do not exceed the vessel price, the court shall order the judicial sale of the ship, and the funds obtained from the auction shall be distrib - uted among the creditors. If liens and encumbrances exceed the vessel price, creditors may request the ini - tiation of the special proceeding of privileged creditors on the vessel. In principle, the private sale of an asset subject to judicial execution is not permitted under Argentine law, as the judicial auction/sale process is the mechanism established to ensure transparency, equality among creditors, and the maximisation of value for the benefit of the interested parties.
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