Marginal note:International Fund to be party to legal proceedings

73. If a claimant commences an action against the owner of a Convention ship or the owner’s guarantor in respect of a matter referred to in subsection 51(1),

• (a) the document commencing the proceedings shall be served on the International Fund and the International Fund is then a party to the proceedings; and

• (b) the International Fund may appear and take any action that its Director considers appropriate for the proper administration of the International Fund.

Marginal note:Method of service on International Fund

74. In addition to any method of service permitted by the rules of the court in which a proceeding referred to in section 73 is commenced, service of documents on the International Fund under paragraph 73(a) may be effected by registered mail.

Marginal note:Circumstances in which International Fund is liable

75. If there is an occurrence involving a Convention ship, to the extent that a claimant has been unable to obtain full compensation under this Part from the ship’s owner or the owner’s guarantor, the International Fund is, subject to the provisions of the Fund Convention, liable in accordance with Article 4 of that Convention.

Marginal note:Contributions by Canada to International Fund

• 76. (1) The Administrator shall direct payments to be made out of the Ship-source Oil Pollution Fund to the International Fund in accordance with Articles 10 and 12 of the Fund Convention.

• Marginal note:Communication of information

  (2) The Administrator shall communicate to the Director of the International Fund the information referred to in Article 15 of the Fund Convention in accordance with that Article and is liable for any financial loss to the International Fund as a result of the failure to so communicate.

• Marginal note:Powers of Administrator

  (3) The Administrator may, for the purpose of subsection (2),

  • (a) at any reasonable time, enter any premises where the Administrator believes on reasonable grounds that there are any records, books, accounts, vouchers or other documents relating to information referred to in Article 15 of the Fund Convention;

  • (b) examine anything on the premises and copy or take away for further examination or copying any record, book, account, voucher or other document that the Administrator believes, on reasonable grounds, contains any such information; and

  • (c) require the owner, occupier or person in charge of the premises to give all reasonable assistance in connection with the examination and to answer all proper questions relating to the examination and, for that purpose, require the owner, occupier or person in charge to attend at the premises with the Administrator.

• Marginal note:No obstruction or false statements

  (4) No person shall obstruct or hinder the Administrator in the exercise of any powers under subsection (3) or knowingly make a false or misleading statement, either orally or in writing, to the Administrator while the Administrator is exercising those powers.

• Marginal note:Warrant required to enter living quarters

  (5) Living quarters may not be entered under subsection (3) unless they are entered with the consent of the occupant or under the authority of a warrant issued under subsection (6).

• Marginal note:Authority to issue warrant

  (6) On ex parte application, a justice, within the meaning of section 2 of the Criminal Code, may issue a warrant authorizing the Administrator to enter living quarters, subject to any conditions that may be specified in the warrant, if the justice is satisfied by information on oath that entry to the living quarters

  • (a) is necessary for the purposes of subsection (2); and

  • (b) has been refused or there are reasonable grounds to believe that it will be refused.

• Meaning of “associated persons”

  (7) If two bodies are affiliated with each other within the meaning of section 2 of the Canada Business Corporations Act, they are deemed to be “associated persons” for the purpose of the definition “Associated person” in subparagraph 2(b) of Article 10 of the Fund Convention.

Ship-source Oil Pollution Fund

Marginal note:Ship-source Oil Pollution Fund

• 77. (1) There is hereby established in the accounts of Canada an account known as the Ship-source Oil Pollution Fund.

• Marginal note:Credits

  (2) The following shall be credited to the Ship-source Oil Pollution Fund:

  • (a) all payments received under sections 93 and 99;

  • (b) interest computed in accordance with section 78; and

  • (c) any amounts recovered by the Administrator under paragraph 87(3)(c).

• Marginal note:Charges

  (3) The following shall be charged to the Ship-source Oil Pollution Fund:

  • (a) all amounts that are directed by the Administrator to be paid under section 76, paragraph 87(3)(a), paragraph 89(1)(a), subsection 89(6) or under a settlement;

  • (b) all amounts for which the Administrator is liable under subsection 76(2);

  • (c) all interest paid under section 101;

  • (d) all costs and expenses that are directed to be paid under section 82;

  • (e) the remuneration and expenses of assessors that are directed to be paid under subsection 89(2); and

  • (f) the amount of any judgment and any costs awarded against that Fund in litigation.

Marginal note:Interest to be credited to Fund

78. The Minister of Finance shall, at the times that the Governor in Council directs, credit to the Ship-source Oil Pollution Fund interest at a rate fixed by the Governor in Council on the balance from time to time to the credit of that Fund.

Administrator and Deputy Administrator

Marginal note:Appointment of Administrator

• 79. (1) The Governor in Council shall appoint an Administrator of the Ship-source Oil Pollution Fund to hold office during good behaviour for a term, not exceeding five years, that is fixed by the Governor in Council, subject to removal by the Governor in Council for cause.

• Marginal note:Administrator eligible for reappointment

  (2) The Administrator is eligible for reappointment on the expiry of the Administrator’s term of office.

Marginal note:Administrator to be independent of Crown

• 80. (1) The Administrator shall not, while holding office, accept or hold any office or employment inconsistent with the Administrator’s duties under this Part.

• Marginal note:Effect of contravention of subsection (1)

  (2) If the Administrator contravenes subsection (1), the Administrator’s appointment as Administrator is terminated on a date fixed by the Governor in Council that is not later than 30 days after notice of the contravention is received by the Minister, but the contravention does not affect the validity of any act performed by the Administrator on behalf of the Ship-source Oil Pollution Fund between the date of the contravention and the date that the appointment is terminated under this subsection.

Marginal note:Professional and technical aid

81. The Administrator may, for the purpose of performing duties under this Part, obtain the professional, technical and other advice and assistance that the Administrator considers necessary.

Marginal note:Costs, expenses and fees

• 82. (1) On the direction of the Minister of Finance, all costs and expenses incurred by the Administrator in performing duties and functions under this Part, and fees for services rendered by the Administrator calculated in accordance with a tariff prescribed by the regulations, shall be paid out of the Consolidated Revenue Fund and charged to the Ship-source Oil Pollution Fund.

• Marginal note:Taxation

  (2) Assessment officers of the Admiralty Court may, at the request of the Minister of Justice, tax any account for costs, expenses or fees submitted by the Administrator to the Minister of Finance as if the Administrator were acting for the Crown in proceedings in that Court, but, on any such taxation, no fee may be allowed in excess of that set out in the tariff referred to in subsection (1).

Marginal note:Deputy Administrator

• 83. (1) The Governor in Council may appoint a Deputy Administrator of the Ship-source Oil Pollution Fund to hold office during good behaviour for a term, not exceeding five years, that is fixed by the Governor in Council, subject to removal by the Governor in Council for cause.

• Marginal note:Eligibility for re-appointment

  (2) The Deputy Administrator is eligible for reappointment on the expiry of the Deputy Administrator’s term of office.

• Marginal note:Absence, etc., of Administrator

  (3) If the Administrator is absent or incapacitated or the office of Administrator is vacant, the Deputy Administrator has all the powers and duties of the Administrator.

• Marginal note:Application of sections 80 and 82

  (4) Sections 80 and 82 apply to the Deputy Administrator, with any modifications that the circumstances require.

Liability of Ship-source Oil Pollution Fund

Marginal note:Liability of Ship-source Oil Pollution Fund

84. Subject to the other provisions of this Part, the Ship-source Oil Pollution Fund is liable for the matters referred to in subsection 51(1) in relation to oil, if

• (a) all reasonable steps have been taken to recover payment of compensation from the owner of the ship and, in the case of a Convention ship, from the International Fund and have been unsuccessful;

• (b) the owner is not liable by reason of any of the defences described in subsection 51(3) and the International Fund is not liable either;

• (c) the claim exceeds

  • (i) in the case of a Convention ship, the owner’s maximum liability under this Part to the extent that the excess is not recoverable from the International Fund, and

  • (ii) in the case of a ship other than a Convention ship, the owner’s maximum liability under Part 3;

• (d) the owner is financially incapable of meeting the owner’s legal obligations under subsection 51(1), to the extent that the obligation is not recoverable from the International Fund;

• (e) the cause of the oil pollution damage is unknown and the Administrator has been unable to establish that the occurrence that gave rise to the damage was not caused by a ship; or

• (f) the Administrator is a party to a settlement under section 90.

Claims Arising under Section 51

Marginal note:Claims filed with Administrator

• 85. (1) In addition to any right against the Ship-source Oil Pollution Fund under section 84, a person who has suffered loss or damage or incurred costs or expenses referred to in subsection 51(1) in respect of actual or anticipated oil pollution damage may file a claim with the Administrator for the loss, damage, costs or expenses.

• Marginal note:Time limits

  (2) Unless the Admiralty Court fixes a shorter period under paragraph 92(a), a claim under subsection (1) must be made

  • (a) within two years after the day on which oil pollution damage occurred and five years after the occurrence that caused that damage, or

  • (b) if no oil pollution damage occurred, within five years after the occurrence in respect of which oil pollution damage was anticipated.

• Marginal note:Exception

  (3) Subsection (1) does not apply to a response organization referred to in subsection 51(1)(b) or a person in a state other than Canada.