Ship Mortgage Decree
made includes the whole of any vessel of domestic
Section 3. Mortgage of Vessel of Domestic
Ownership; records.
(a) No mortgage, which at the time such
mortgage is made includes a vessel of domestic
ownership as this term is defined in Presidential
Decree No. 761, or any portion thereof, as the
whole or any part of the property mortgaged, shall
be valid, in respect to such vessel, against any
person other than the mortgagor, his heir or assign,
and a person having actual notice thereof, until
such mortgage is recorded in the office of the
Philippine Coast Guard of the port of
documentation of such vessel.
(b) The Coast Guard District or Station
Commander shall record mortgages delivered to
him, in the order of their reception, in books to be
kept for that purpose and indexed to show
1. The name of the vessel;
2. The names of the parties to the mortgage;
3. The time and date of reception of the instrument;
4. The interest in the vessel so mortgaged;
5. The amount and date of maturity of the
mortgage;
6. Name, citizenship, nationality and residence of
owner, and
7. Any material change of condition in respect to
any of the preceding items.
A copy of the instrument or mortgage shall be
furnished the Central Bank of the Philippines.
Section 4. Preferred Mortgages
(a) A valid mortgage which at the time it is
ownership shall have, in respect to such vessel and
as of the date of recordation, the preferred status
given by the provisions of Section 17 hereof, if
1. The mortgage is recorded as provided in Section
3 hereof;
2. An affidavit is filed with the record of such
mortgage to the effect that the mortgage is made in
good faith and without any design to hinder, delay,
or defraud any existing or future creditor of the
mortgagor or any lien or of the mortgaged vessel;
3. The mortgage does not stipulate that the
mortgagee waives the preferred status thereof;
(b) Any mortgage which complies with the
above conditions is hereafter called a "preferred
mortgage". For purposes of this Decree, a vessel
holding a Provisional Certificate of Philippine
Registry is considered a vessel of domestic
ownership such that it can be subject of preferred
mortgage. The Philippine Coast Guard is hereby
authorized to enter a vessel holding a Provisional
Certificate of Philippine Registry in the Registry of
Vessels and to record any mortgage executed
thereon. Such mortgage shall have the preferred
status as of the date of recordation upon
compliance with the above conditions.
(c) There shall be endorsed upon the
documents of a vessel covered by a preferred
mortgage
1. The names of the mortgagor and mortgagee;
2. The time and date the endorsement is made;
3. The amount and date of maturity of the
mortgage; and
4. Any amount required to be endorsed by the
provisions of paragraphs (e) or (f) of this Section.
(d) Such endorsement shall be made (1) by the
Coast Guard District or Station Commander of the
port of documentation of the mortgaged vessel, or
(2) by the Coast Guard District or Station
Commander of any port in which the vessel is
found, if such Coast Guard District or Station
Commander is directed to make the endorsement
by the Coast Guard District or Station Commander
of the port of documentation. The Coast Guard
District or Station Commander of the port of
documentation shall give such direction by wire of
letter at the request of the mortgagee and upon the
tender of the cost of communication of such
direction. Whenever any new document is issued
for the vessel, such endorsement shall be
transferred to and endorsed upon the new
document by the Coast Guard District or Station
Commander.
In the case of a vessel holding a provincial
certificate of Philippine Registry, the endorsement
shall be made by the Philippine consul abroad upon
direction by wire or letter from the Maritime
Industry Authority at the request of the mortgagee
and upon tender of the cost of communication of
such direction. A certificate of such endorsement,
giving the place, time and description of the
endorsement, shall be recorded with the records of
registration to be maintained at the Philippine
Consulate.
(e) A mortgage which includes property other
than a vessel shall not be held a preferred mortgage
unless the mortgage provides for the separate
discharge of such property by the payment of a
specified portion of the mortgage indebtedness. If a
preferred mortgage so provides for the separate
discharge, the amount of the portion of such
payment shall be endorsed upon the documents of
the vessel.
(f) A preferred mortgage includes more than
one vessel and provides for the separate discharge
of each vessel by the payment of a portion of
mortgage indebtedness, the amount of such portion
of such payment shall be endorsed upon the
documents of the vessel. In case such mortgage
does not provide for the separate discharge of a
vessel and the vessel is to be sold upon the order of
a district court of the Philippines in a suit in rem in
admiralty, the court shall determine the portion of
the mortgage indebtedness increased by 20 per
centum (1) which, in the opinion of the court, the
approximate value of all the vessels covered by the
mortgage, and (2) upon the payment of which the
vessel shall be discharged from the mortgage.
Section 10. Lien of preferred Mortgage;
foreclosure; jurisdiction; procedure
A preferred mortgage shall constitute a lien upon
the mortgaged vessel in the amount of the
outstanding mortgage indebtedness secured by
such vessel. Upon the default of any term or
condition of the mortgage such lien may be
enforced by the mortgagee by suit in remaining
admiralty, wherein the vessel itself may be made a
partly defendant and be arrested in the manner as
provided in Section 11 hereof. Original jurisdiction
of all such suits is granted to the Court of First
Instance of the Philippines exclusively. In addition to
any notice by publication, actual notice of
commencement of any such suit shall direct, to (1)
the master, other ranking officer, or caretaker of
the vessel, and (2) any person who has recorded a
notice of claim of an undischarged lien upon the
vessel, as provided in Section 7 hereof, unless after
search by the mortgage satisfactory to the court,
such mortgagor, master, other ranking officer,
caretaker, or claimant is not found within the
Philippines. Failure to give notice to any such
person, as required by this Section, shall be liable to
such person for damages in the amount of his
interest in the vessel terminated by the suit.
In case of judicial foreclosure as provided herein,
the provisions of Rule 68 of the New Rules of Court,
if not inconsistent herewith, shall apply.
The lien of a preferred ship mortgage may also be
enforced by a suit in rem in admiralty or otherwise
in any foreign country in which the vessel may be
found pursuant to the procedure of said country for
the enforcement of ship mortgages constituting
maritime liens on vessels documented under the
laws of said country.
Section 11. Arrest of Vessels Upon the filing of the
petition for the judicial foreclosure of a Preferred
Ship Mortgage, or immediately thereafter, the
applicant may apply ex-parte for an order for the
arrest of the mortgaged vessel or vessels and the
judge shall immediately issue the same, provided
that it is made to appear by affidavit of the
applicant, or of some other person who personally
knows the facts that a default in the mortgage has
occurred and that applicant files a bond executed to
the adverse party in an amount to be fixed by the
judge, not exceeding the applicant's claim,
conditioned that the latter will pay all the costs
which may be adjudged to the adverse party and all
damages which he may sustain by reason of such
arrest, if the court shall finally adjudge that the
applicant was not entitled thereto.
Section 14. Extrajudicial Foreclosure The provisions
of the Chattel Mortgage Law on the remedy of
extra-judicial foreclosure of mortgages in so far as
they are not inconsistent herewith shall still apply.
For the purpose of taking possession of the vessel
or vessels, the foreclosing creditor may secure from
a judge of the Court of First Instance of the province
where the vessel may be found or where the
creditor or debtor resides an order for the arrest or
seizure of the vessel. Upon such order of seizure or
arrest being issued, the sheriff shall immediately
take possession of the vessel or vessels for the
purpose of foreclosure and sale. The vessel may
only be released in accordance with the provisions
of Section 13 of this Act, or when the debtor pays
the outstanding obligation.
Section 18. Suit in Personam in Admiralty on
Default
(a) Upon the default of any term or condition
of a preferred mortgage upon a vessel, the
mortgagee may, in addition to all other remedies
granted by this Decree, bring suit in personal in
admiralty in a district court of the Philippines,
against the mortgagor for the amount of the
outstanding mortgage indebtedness secured by
such vessel or any deficiency in the full payment
thereof.
(b) This Decree shall not be construed, in the
case of a mortgage covering, in addition to vessels,
realty or personality other than vessels, or both, to
authorize the enforcement by suit in rem in
admiralty of the rights of the mortgage in respect to
such realty or personality other than vessels.
Section 20. Who May Bid in the Foreclosure Sale
The following persons are qualified to bid in the
foreclosure sale of the mortgaged vessel:
(a) Citizens of the Philippines or corporations
60% of the capital of which is owned by Filipino
citizens.
(b) A foreign mortgagee or foreign national
whose country has diplomatic relations with the
Philippines or whose country grants reciprocal
rights to Filipino citizens.
In case the purchaser is a foreign individual or
entity, the Philippine Coast Guard shall, upon
presentation of the certificate of sale, cancel the
registration of the vessel and issue a certificate to
that effect upon request.
Code of Commerce
ARTICLE 573.Merchant vessels constitute property
which may be acquired and transferred by any of
the means recognized by law. The acquisition of a
vessel must appear in a written instrument, which
shall not produce any effect with respect to third
persons if not inscribed in the registry of vessels.
The ownership of a vessel shall likewise be acquired
by possession in good faith, continued for three
years, with a just title duly recorded. In the absence
of any of these requisites, continuous possession for
ten years shall be necessary in order to acquire
ownership.
ARTICLE 575.Co-owners of vessels shall have the
right of repurchase and redemption in sales made
to strangers, but they may exercise the same only
within the nine days following the inscription of the
sale in the registry, and by depositing the price at
the same time.
ARTICLE 576.In the sale of a vessel it shall always be
understood as included the rigging, masts, stores
and engine of a streamer appurtenant thereto,
which at the time belongs to the vendor. The arms,
munitions of war, provisions and fuel shall not be
considered as included in the sale. The vendor shall
be under the obligation to deliver to the purchaser
a certified copy of the record sheet of the vessel in
the registry up to the date of the sale.
ARTICLE 577.If the alienation of the vessel should
be made while it is on a voyage, the freightage
which it earns from the time it receives its last cargo
shall pertain entirely to the purchaser, and the
payment of the crew and other persons who make
up its complement for the same voyage shall be for
his account. If the sale is made after the vessel has
arrived at the port of its destination, the freightage
shall pertain to the vendor, and the payment of the
crew and other individuals who make up its
complement shall before his account, unless the
contrary is stipulated in either case.
ARTICLE 578.If the vessel being on a voyage or in a
foreign port, its owner or owners should voluntarily
alienate it, either to Filipinos or to foreigners
domiciled in the capital or in a port of another
country, the bill of sale shall be executed before the
consul of the Republic of the Philippines at the port
where it terminates its voyage and said instrument
shall produce no effect with respect to third
persons if it is not inscribed in the registry of the
consulate. The consul shall immediately forward a
true copy of the instrument of purchase and sale of
the vessel to the registry of vessels of the port
where said vessel is inscribed and registered. In
every case the alienation of the vessel must be
made to appear with a statement of whether the
vendor receives its price in whole or in part, or
whether he preserves in whole or in part any claim
on said vessel. In case the sale is made to a Filipino,
this fact shall be stated in the certificate of
navigation. When a vessel, being on a voyage, shall
be rendered useless for navigation, the captain shall
apply to the competent judge on court of the port
of arrival, should it be in the Philippines; and should
it be in a foreign country, to the consul of the
Republic of the Philippines, should there be one, or,
where there is none, to the judge or court or to the
local authority; and the consul, or the judge or
court, shall order an examination of the vessel to be
made.
ARTICLE 586.The shipowner and the ship agent shall
be civilly liable for the acts of the captain and for
the obligations contracted by the latter to repair,
equip, and provision the vessel, provided the
creditor proves that the amount claimed was
invested for the benefit of the same. By ship agent
is understood the person entrusted with
provisioning or representing the vessel in the port in
which it may be found.
ARTICLE 587.The ship agent shall also be civilly
liable for the indemnities in favor of third persons
which may arise from the conduct of the captain in
the care of the goods which he loaded on the
vessel; but he may exempt himself therefrom by
abandoning the vessel with all her equipments and
the freight it may have earned during the voyage.
ARTICLE 588.Neither the shipowner nor the ship
agent shall be liable for the obligations contracted
by the captain, if the latter exceeds the powers and
privileges pertaining to him by reason of his position
or conferred upon him by the former. Nevertheless,
if the amounts claimed were invested for the
benefit of the vessel, the responsibility therefor
shall devolve upon its owner or agent.
ARTICLE 589.If two or more persons should be part
owners of a merchant vessel, a partnership shall be
presumed as established by the co-owners. This
partnership shall be governed by the resolutions of
the majority of the members. If the part owners
should not be more than two, the disagreement of
views, if any, shall be decided by the vote of the
member having the largest interest. If the interests
are equal, it should be decided by lot. The person
having the smallest share in the ownership shall
have one vote; and proportionately the other part
owners as many votes as they have parts equal to
the smallest one. A vessel may not be detained,
attached or levied upon in execution in its entirety,
for the private debts of a part owner, but the
proceedings shall be limited to the interest which
the debtor may have in the vessel, without
interfering with the navigation.
ARTICLE 590.The co-owners of a vessel shall be
civilly liable in the proportion of their interests in
the common fund, for the results of the acts of the
captain, referred to in Article 587.Each co-owner
may exempt himself from this liability by the
abandonment, before a notary, of the partof the
vessel belonging to him.ARTICLE 591.All the part
owners shall be liable, in proportion to their
respective ownership,for the expenses for repairing
the vessel, and for other expenses which are
incurred by virtue of aresolution of the
majority.They shall likewise be liable in the same
proportion for the expenses for the maintenance,
equipment,and provisioning of the vessel, necessary
for navigation.ARTICLE 592.The resolution of the
majority with regard to the repair, equipment, and
provisioning of the vessel in the port of departure
shall bind the minority, unless the minority
membersrenounce their interests, which must be
acquired by the other co-owners, after a judicial
appraisementof the value of the portion or portions
assigned.The resolutions of the majority relating to
the dissolution of the partnership and sale of the
vessel shallalso be binding on the minority.The sale
of the vessel must be made at public auction,
subject to the provisions of the law of civil
procedure, unless the co-owners unanimously agree
otherwise, saying always the right of repurchaseand
redemption provided for in Article 575.ARTICLE
593.The owners of a vessel shall have preference in
her charter over other persons,under the same
conditions and price. If two or more of them should
claim this right, the one having the
greater interest shall be preferred; and should they
have equal interests, the matter shall be decided
bylot.ARTICLE 594.The co-owners shall elect the
manager who is to represent them in the capacity of
ship agent.The appointment of director or ship
agent shall be revocable at the will of the
members.ARTICLE 595.The ship agent, whether he
is at the same time the owner of the vessel, or
amanager for an owner or for an association of co-
owners, must have the capacity to trade and must
be recorded in the merchant's registry of the
province. The ship agent shall represent the
ownership of the vessel, and may, in his own name
and in such capacity, take judicial and extrajudicial
steps in matters relating to commerce.
ARTICLE 596.The ship agent may discharge the
duties of captain of the vessel, subject in every case
to the provision of Article 609.If two or more co-
owners apply for the position of captain, the
disagreement shall be decided by a vote of the
members; and if the vote should result in a tie, it
shall be decided in favor of the co-owner having the
larger interest in the vessel. If the interests of the
applicants should be equal, and there should be a
tie, the matter shall be decided by lot.
ARTICLE 597.The ship agent shall designate and
come to terms with the captain, and shall contract
in the name of the owners, who shall be bound in
all that refer to repairs, details of equipment,
armament, provisions of food and fuel, and freight
of the vessel, and, in general, in all that relate to the
requirements of navigation.
ARTICLE 598.The ship agent may not order a new
voyage, or make contracts for a new charter, or
insure the vessel, without the authorization of its
owner or resolution of the majority of the co-
owners, unless these powers were granted him in
the certificate of his appointment. If he insures the
vessel without authorization therefore, he shall be
subsidiarily liable for the solvency of the insurer.
ARTICLE 599.The ship agent managing for an
association shall render to his associates an account
of the results of each voyage of the vessel, without
prejudice to always having the books and
correspondence relating to the vessel and to its
voyages at their disposal.
ARTICLE 600.After the account of the managing
agent has been approved by a relative majority, the
co-owners shall pay the expenses in proportion to
their interest, without prejudice to the civil or
criminal actions which the minority may deem fit to
institute afterwards. In order to enforce the
payment, the managing agent shall be entitled to an
executory action ("accionejecutiva"), which shall be
instituted by virtue of a resolution of the majority,
and without further proceedings than the
acknowledgment of the signatures of the persons
who voted for the resolution.
ARTICLE 601.Should there be any profits, the co-
owners may demand of the managing agent the
amount corresponding to their interests by means
of an executory action ("accion ejecutiva"), without
any other requisite than the acknowledgment of the
signatures on the instrument approving the
account.
ARTICLE 602.The ship agent shall indemnify the
captain for all the expenses he may have incurred
with funds of his own or of others, for the benefit of
the vessel.
ARTICLE 609.Captains, masters or patrons of vessels
must be Filipinos, have legal capacity to contract in
accordance with this code, and prove the skill,
capacity, and qualifications necessary to command
and direct the vessel, as established by marine or
navigation laws, ordinances, or regulations, and
must not be disqualified according to the same for
the discharge of the duties of the position. If the
owner of a vessel desires to be the captain thereof,
without having the legal qualifications therefor, he
shall limit himself to the financial administration of
the vessel, and shall intrust the navigation to a
person possessing the qualifications required by
said ordinances and regulations.
ARTICLE 610.The following powers shall be inherent
in the position of captain, master or patron of a
vessel:
1.To appoint or make contracts with the crew in the
absence of the ship agent, and to propose said
crew, should said agent be present; but the ship
agent may not employ any member against the
captain's express refusal.
2.To command the crew and direct the vessel to the
port of its destination, in accordance with the
instructions he may have received from the ship
agent.
3.To impose, in accordance with the contracts and
with the laws and regulations of the merchant
marine, and when on board the vessel, correctional
punishment upon those who fail to comply with his
orders or are wanting in discipline, holding a
preliminary hearing on the crimes committed on
board the vessel on the seas, which crimes shall be
turned over to the authorities having jurisdiction
over the same at the first port touched.
4.To make contracts for the charter of the vessel in
the absence of the ship agent or of its consignee,
acting in accordance with the instructions received
and protecting the interests of the owner with
utmost care.
5.To adopt all proper measures to keep the vessel
well supplied and equipped, purchasing all that may
be necessary for the purpose, provided there is no
time to request instruction from the ship agent.
6.To order, in similar urgent cases while on a
voyage, the repairs on the hull and engines of the
vessel and in its rigging and equipment, which are
absolutely necessary to enable it to continue and
finish its voyage; but if he should arrive at a point
where there is a consignee of the vessel, he shall
actin concurrence with the latter.
ARTICLE 611.In order to comply with the obligations
mentioned in the preceding article, the captain,
when he has no funds and does not expect to
receive any from the ship agent, shall obtain the
same in the successive order stated below:
1.By requesting said funds from the consignee of
the vessel or correspondents of the ship agent.
2.By applying to the consignees of the cargo or to
those interested therein.
3.By drawing on the ship agent.
4.By borrowing the amount required by means of a
loan on bottomry.
5.By selling a sufficient amount of the cargo to
cover the sum absolutely indispensable for the
repair of the vessel and to enable it to continue its
voyage. In these two last cases he must apply to the
judicial authority of the port, if in the Philippines,
and to the consul of the Republic of the Philippines
if in a foreign country, and where there is none, to
the local authority, proceeding in accordance with
the provisions of Article 583, and with the
provisions of the law of civil procedure.
ARTICLE 612.The following obligations shall be
inherent in the office of captain:
1.To have on board before starting on a voyage a
detailed inventory of the hull, engines, rigging,
spare-masts, tackle, and other equipment of the
vessel; the royal or the navigation certificate; the
roll of the persons who make up the crew of the
vessel, and the contracts entered into with them;
the lists of passengers; the bill of health; the
certificate of the registry proving the ownership of
the vessel and all the obligations which encumber
the same up to that date; the charter parties or
authenticated copies thereof; the invoices or
manifests of the cargo, and the memorandum of
the visit or inspection by experts, should it have
been made at the port of departure.
2.To have a copy of this code on board.
3.To have three folioed and stamped books, placing
at the beginning of each one a memorandum of the
number of folios it contains, signed by the maritime
authority, and in his absence by the competent
authority. In the first book, which shall be called
"log book," he shall enter day by day the condition
of the atmosphere, the prevailing winds, the
courses taken, the rigging carried, the power of the
engines used in navigation, the distances covered,
the maneuvers executed, and other incidents of
navigation; he shall also enter the damage suffered
by the vessel in her hull, engines, rigging, and tackle,
no matter what its cause may be, as well as the
impairment and damage suffered by cargo, and the
effect and importance of the jettison, should there
be any; and in cases of serious decisions which
require the advice or a meeting of the officers of
the vessel, or even of the crew and passengers, he
shall record the decisions adopted. For the
information indicated he shall make use of the
binnacle book and of the steam of engine book kept
by the engineer. In the second book called the
"accounting book," he shall record all the amounts
collected and paid for the account of the vessel,
entering specifically article by article, the source of
the collection and the amounts spent for provisions,
repairs, acquisitions of equipment or goods, fuel,
food, outfits, wages, and other expenses of
whatever nature they may be. He shall furthermore
enter therein a list of all the members of the crew,
stating their domiciles, their wages and salaries, and
the amounts they may have received on account,
directly or by delivery to their families. In the third
book, called "freight book," he shall record the
loading and discharge of all the goods, stating their
marks and packages, names of the shippers and of
the consignees, ports of loading and unloading, and
the freightage they give. In this same book he shall
record the names and places of sailing of the
passengers, the number of packages in their
baggage, and the price of passage.
4.Before receiving cargo, to make with the officers
of the crew and two experts, if required by the
shippers and passengers, an examination of the
vessel, in order to ascertain whether it is water-
tight, with the rigging and engines in good
condition, and with the equipment required for
good navigation, preserving under his responsibility
a certificate of the memorandum of his inspection,
signed by all those who may have taken part
therein. The experts shall be appointed, one by the
captain of the vessel and another by those who
request its examination, and in case of
disagreement a third shall be appointed by the
marine authority of the port or by the authority,
exercising his functions.
5.To remain constantly on board the vessel with the
crew while the cargo is being taken on board and to
carefully watch the stowage thereof; not to consent
to the loading of any merchandise or matter of a
dangerous character, such as inflammable or
explosive substances, without the precautions
which are recommended for their packing, handling
and isolation; not to permit the carriage on deck of
any cargo which by reason of its arrangement,
volume, or weight makes the work of the sailors
difficult, and which might endanger the safety of
the vessel; and if, on account of the nature of the
merchandise, the special character of the shipment,
and principally the favorable season in which it is
undertaken, merchandise may be carried on deck,
he must hear the opinion of the officers of the
vessel and have the consent of the shippers and of
the ship agent.
6.To demand a pilot at the expense of the vessel
whenever required by the navigation, and
principally when he has to enter a port, canal, or
river, or has to take a roadstead or anchoring place
with which neither he nor the officers and crew are
acquainted.
7.To be on deck on reaching land and to take
command on entering and leaving ports, canals,
roadsteads, and rivers, unless there is a pilot on
board discharging his duties. He shall not spend the
night away from the vessel except for serious
causes or by reason of official business.
8.To present himself, when making a port in
distress, to the maritime authority if in the
Philippines and to the consul of the Republic of the
Philippines if in a foreign country, before twenty-
four hours have elapsed, and to make a statement
of the name registry, and port of departure of the
vessel, of its cargo, and the cause of arrival which
declaration shall be visaed by the authority or the
consul, if after examining the same it is found to be
acceptable, giving the captain the proper certificate
proving his arrival in distress and the reasons
therefor. In the absence of the maritime authority
or of the consul, the declaration must be made
before the local authority.
9.To take the necessary steps before the competent
authority in order to record in the certificate of the
vessel in the registry of vessels the obligations
which he may contract in accordance with
Article583.
10.To place under good care and custody all the
papers and belongings of any members of the crew
who might die on the vessel, drawing up a detailed
inventory, in the presence of passengers, or, in their
absence, of members of the crew as witnesses.
11.To conduct himself according to the rules and
precepts contained in the instructions of the
shipagent, being liable for all that which he may do
in violation thereof.
12.To inform the ship agent from the port at which
the vessel arrives, of the reason of his arrival, taking
advantage of the semaphore, telegraph, mail, etc.,
as the case may be; to notify him of the cargo he
may have received, stating the names and domiciles
of the shippers, freightage earned, and amounts
borrowed on bottomry loan; to advise him of his
departure, and of any operation and date which
may be of interest to him.
13.To observe the rules with respect to situation,
lights and maneuvers in order to avoid collisions.
14.To remain on board, in case the vessel is in
danger, until all hope to save it is lost, and before
abandoning it, to hear the officers of the crew,
abiding by the decision of the majority; and if the
boats are to be taken to, he shall take with him,
before anything else, the books and papers, and
then the articles of most value, being obliged to
prove, in case of the loss of the books and papers,
that he did all he could to save them.
15.In case of wreck, to make the proper protest in
due form at the first port of arrival, before the
competent authority or the Philippine consul, within
twenty-four hours, specifying therein all the
incidents of the wreck, in accordance with
subdivision 8 of this article.16.To comply with the
obligations imposed by the laws and regulations on
navigation, customs, health, and others.
ARTICLE 643.If the vessel and her cargo should be
totally lost, by reason of capture or wreck, all rights
shall be extinguished, both as regards the crew to
demand any wages whatsoever, and as regards the
ship agent to recover the advances made. If a
portion of the vessel or of the cargo, or of both,
should be saved, the crew engaged on wages,
including the captain, shall retain their rights on the
salvage, so far as they go, on the remainder of the
vessel as well as on the amount of the freightage of
the cargo saved; but sailors who are engaged on
shares shall not have any right whatsoever on the
salvage of the hull, but only on the portion of the
freightage saved. If they should have worked to
recover the remainder of the shipwrecked vessel
they shall be given from the amount of the salvage
an award in proportion of the efforts made and to
the risks, encountered in order to accomplish the
salvage.

ARTICLE 837.The civil liability incurred by the

shipowners in the case prescribed in this section,
shall be understood as limited to the value of the
vessel with all its appurtenances and freightage
earned during the voyage.