How to Determine Financial Security to Request for Arrest of Ship?
- huongnguyenant123
- Jul 30, 2021
- 1 min read
According to Article 132 of Vietnam Law on Maritime, to request for arrest of ships, it is required to provide financial security to ensure that there is a way to hold the requester responsible in case the request is wrongful.
The person requesting arrest of ships must provide financial security in either or both of the following forms:
i) Submitting asset-backed security documents issued by banks or other credit institutions, or individuals, agencies or organizations;
ii) Depositing a sum or valuable papers according to the Court’s judgement over execution of financial security in an escrow account opened at the bank within an area where the work office of the Court accorded authority to arrest a ship is located no later than 48 hours of receipt of such judgement.
The value of a financial security shall be decided by the Court and shall be proportionate to any loss or damage incurred due to consequences arising from request for wrongful arrest of a ship.
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