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Canada Marine Act

Version of section 120 from 2007-07-01 to 2022-11-16:


Marginal note:Payment of proceeds

  •  (1) If a ship is sold under an order, the proceeds of the sale shall be applied first to satisfy claims for wages of crew members under the Canada Shipping Act, 2001 and then to satisfy the following claims in order of priority:

    • (a) the following amount:

      • (i) the maximum fine that could have been imposed for the offence in a case where subsection 117(1) applies,

      • (ii) the fees and interest due and payable in a case where subsection 117(2) applies,

      • (iii) the amount of the damages in a case where subsection 117(3) applies, or

      • (iv) the fine actually imposed or the amount for which the ship is found liable in a case where subsection 117(4) applies;

    • (b) the costs of the detention and sale; and

    • (c) the interests of persons who have obtained an order referred to in subsection 119(2), according to the ranking directed by the court under paragraph 119(5)(b).

  • Marginal note:Surplus

    (2) Any surplus of the proceeds of sale remaining after all claims have been satisfied shall be paid to the person registered as the owner of the ship or, in the absence of any registration, to the person who owns the ship.

  • Marginal note:Proceedings against owner

    (3) Where the proceeds of sale of a ship are insufficient to satisfy the claims described in paragraph (1)(a) or (b), the port authority, the Minister or the person who has entered into an agreement under subsection 80(5), as the case may be, may proceed against the owner of the ship for the balance owing.

  • Marginal note:Clear title

    (4) On selling a ship pursuant to an order, the port authority, the Minister or the person who has entered into an agreement under subsection 80(5), as the case may be, may, by bill of sale, give the purchaser a valid title to the ship free from any mortgage or other claim that is in existence at the time of the sale.

  • Marginal note:Registrability not implied

    (5) Nothing in subsection (4) is to be interpreted as meaning that the ship may be registered in the name of the purchaser.

  • Marginal note:Not duty paid

    (6) No ship sold pursuant to this section is deemed to have been duty paid under the Customs Tariff by reason only of that sale.

  • Marginal note:At risk, cost and charges of owner

    (7) Every seizure and detention made under this Act shall be at the risk, cost and charges of the owner of the ship or goods until all amounts due or fines imposed, together with all costs and charges incurred in the seizure and detention and the costs of any conviction obtained, have been paid in full.

  • 1998, c. 10, s. 120
  • 2001, c. 26, s. 278
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