BRAZIL Law and Practice Contributed by: Godofredo Mendes Vianna, Camila Mendes Vianna Cardoso and Lucas Leite Marques, Kincaid | Mendes Vianna Advogados
not providing rules for the arrest of ships, estab - lishes additional credits that will be admitted under Brazilian law to give rise to an arrest. Usually, arrests are requested in Brazil follow - ing the rules prescribed by the Brazilian Com - mercial Code, together with the Civil Procedural Code, the latter of which sets out the possibility to request injunctions to seize assets, such as an arrest of a vessel. The Civil Procedural Code determines some requirements to be met, such as to show the probability of the right and that there is an element of urgency – eg, the vessel may attempt to leave Brazilian waters. 4.2 Maritime Liens Maritime liens in Brazil are governed by the Com - mercial Code and the 1926 Brussels Convention on Maritime Liens and Mortgages. Based on a joint interpretation of both of these, the following claims can be considered to give rise to maritime liens: • federal taxes; • legal costs and expenses; • claims resulting from the employment of Mas - ter, crew and ship personnel; • indemnities due for salvage; • general average contributions; • obligations undertaken by the Master outside the port of registry for actual maintenance needs or continuation of the voyage; • indemnities due as a result of collisions or any other maritime accident; • ship mortgages; • port dues, other than taxes; • outstanding payments due for depositar - ies, storage and warehouse rentals and ship equipment; • expenditure for the upkeep of the ship and her appurtenances, and maintenance expens - es at the port of sale;
• short delivery and cargo losses; • debts arising out of the construction of the vessel; • expenses incurred for repairs of the vessel and her appurtenances; and • the outstanding price of the vessel. If the arrest is in rem, the creditor must have the privileged credit properly constituted, according to Article 1 of the 1926 Brussels Convention. If the arrest is filed in personam, the claimant must demonstrate the requirements previously men - tioned that are applicable to injunction requests as determined by the Procedural Code. 4.3 Liability in Personam for Owners or Demise Charterers The personal liability of an owner or demise charterer is not required when attempting a ship arrest based on claims that attach to the vessel (in rem). However, the creditor must have the privileged credit properly constituted. 4.4 Unpaid Bunkers According to the Brazilian Commercial Code and the 1926 Brussels Convention, credits arising out of ship suppliers out of the port of registry, including bunkers, are considered privileged. Therefore, due to their legal nature, those credits have in rem effects and will attach to the vessel, making it possible to arrest the vessel even if the bunker supply contract was entered into with the charterer and not with the owner. 4.5 Arresting a Vessel In order to initiate an arrest claim in court, parties must be represented by lawyers, the appoint - ment of whom requires a power of attorney (POA). The POA must be signed by a representa - tive of the company, duly empowered as per its by-laws or certificates. Such documents must also be duly notarised/legalised or apostilled (if
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