Canada Shipping Act, 2001

Marginal note:Abandoned vessels

• 226 (1) The Minister may sell a vessel that is deemed abandoned under the regulations and may, by bill of sale, give the purchaser a valid title to it free from any mortgage or other claim on the vessel that exists at the time of the sale.

• Marginal note:Vessel may be seized and sold if fine or penalty not paid

  (2) At any time after a fine is imposed under a relevant provision against, or a certificate registered under subsection 235(2) (registration in Federal Court) in respect of, a vessel or its authorized representative, the Minister may, while the fine or debt remains unpaid, seize the vessel and, after giving notice to the authorized representative, sell it and, by bill of sale, give the purchaser a valid title to the vessel free from any mortgage or other claim on the vessel that exists at the time of the sale.

• Marginal note:Proceeds of sale

  (3) Any surplus remaining from the proceeds of a sale is to be distributed in accordance with the regulations after satisfying the following claims in the following order:

  • (a) the cost of the seizure and sale;

  • (b) any claim for salvage in respect of the vessel;

  • (c) the claims of masters and crew members for wages;

  • (c.1) the claims of masters for disbursements made or liabilities incurred for necessaries on account of the vessel;

  • (d) the amount of any fine imposed or debt due under a relevant provision; and

  • (e) the cost of returning masters and crew members to the place where they first came on board or to another place to which they and the Minister have agreed.

• Marginal note:If proceeds insufficient

  (4) If the proceeds of sale of a vessel are insufficient to satisfy the claims described in subsection (3), the Minister may proceed for the balance owing against

  • (a) the authorized representative, in the case of a Canadian vessel; and

  • (b) the owner, in the case of a foreign vessel.