How to provide salvage security; guarantees and cash deposits.
The Contractors shall immediately after the termination of the services or sooner notify the Council of Lloyd's and where practicable the owners of the amount for which they demand salvage security (inclusive of costs expenses and interest) from each of the respective owners. Until security has been provided, the contractor has a maritime lien on the property salved for his remuneration.
Lodging security at Lloyd's
Before releasing their maritime lien on the salved property, the salvors require security to be lodged with, and to the satisfaction of, the Council of Lloyd's. The amount of any such security shall be reasonable in the light of the knowledge available to the Contractor at the time when the demand is made and any further facts which come to the Contractors attention before security is provided. Unless otherwise agreed such security shall be provided (i) to the Council (ii) in a form approved by the Council and (iii) by persons firms or corporations either acceptable to the Council or acceptable to the Contractors. The Council shall not be responsible for the sufficiency (whether in amount or otherwise) of any security which shall be provided nor the default or insolvency of any person firm or corporation providing the same. In practice such guarantees are generally provided by or arranged through the United Kingdom representative of the underwriters concerned.
Cash as security
If the owners or insurers of the salved property do not have, or do not wish to instruct UK representatives to arrange security on their behalf or if the salved interest is not insured, then cash security can be remitted direct to our bankers. For the appropriate bank account details, please contact the Salvage Arbitration Branch by email at email@example.com.
There are a number of possible guarantee forms in use, depending on the status of the guarantor and the requirements of the salvors. To view the documents you will require Adobe Acrobat. If you require a copy of Adobe Acrobat to view the above documents, please visit the Adobe website.