CHILE Law and Practice Contributed by: Ricardo Rozas, Max Morgan and Stefano Perretta, Jorquiera & Rozas Abogados
Under Chilean law, there is no statutory defini - tion for privileged credits. However, they may be defined as those that give rise to a maritime lien and allow for requesting an arrest as per the special rules set forth by Book III, Title VIII, paragraph 5 of the Code of Commerce (Article 1231 et seq). Articles 844, 845 and 846 of the Code of Commerce establish and distinguish the following groups of privileged credits. Credits Under Article 844 of the Code of Commerce These include: • legal costs and other disbursements caused by reason of a suit, in the common interest of the creditors, for the preservation of the ves - sel or for its forced alienation and distribution of the yield; • the remuneration and other benefits aris - ing from the contracts of embarkation of the vessel’s crew, in accordance with labour regulations and civil law that regulate the con - currence of these credits, together with the emoluments paid to the pilots at the service of the vessel – this privilege applies to the indemnities that are due for death or bodily injuries of the surviving employees ashore, on board or in the water, and always provided that they stem from accidents related directly to the trading of the vessel; • the charges and rates of ports, channels and navigable waters, together with fiscal charges in respect of signalling and pilotage; • the expenses and remunerations due in respect of assistance rendered at sea and general average contribution – this privilege applies to the reimbursement of expenses and sacrifices incurred by the relevant author - ity or third parties, in order to prevent or minimise pollution damages or hydrocarbon spills or other contaminating substances to
the environment or third-party property, when the fund of limitation of liability has not been constituted as established in Title IX of the Chilean Law of Navigation; and • the indemnities for damages or losses caused to other vessels, to port works, piers or navigable waters, or to cargo or luggage, as a consequence of a collision or other accidents during navigation, when the respective action is not susceptible to being founded upon a contract, and the damages are in respect of bodily injury to the passengers and crew of these other vessels. Credits Under Article 845 of the Code of Commerce These include mortgage credits on large vessels (ie, vessels over 50 GT) and secured credits on minor vessels (ie, vessels up to 50 GT). Credits Under Article 846 of the Code of Commerce These include: • credits in respect of the sale price, construc - tion, repair and equipping of the vessel; • credits in respect of supply of products or materials that are indispensable for the trad - ing or conservation of the vessel; • credits arising from contracts of passage money, affreightment or carriage of goods, including the indemnities for damages, lack and short deliveries of cargo and luggage, and the credits deriving from damages in respect of contamination or the spilling of hydrocarbons or other contaminating sub - stances; • credits in respect of disbursements incurred by the Master, agents or third parties, for account of the owner, and for the purpose of trading the vessel, including agency service; and
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