According to the provisions of China's maritime law, the order of compensation for the three is: maritime lien, maritime lien and maritime mortgage. And what is the order of compensation for maritime liens? The principle of repayment order of maritime lien items is the principle of public policy and the principle of reverse order. Next, I will give you a detailed introduction:
The order of compensation for maritime lien in China
First, the order of repayment of mortgage, lien and ship lien.
Of these three rights about the ship, only the lien on the ship needs to possess the ship. This makes it possible that there are two or three kinds of security interests on the same ship, and it is necessary to determine the order of compensation when they compete. According to the provisions of China's maritime law, the order of compensation for the three is: maritime lien, maritime lien and maritime mortgage.
This order is set because the maritime lien system is set up to protect the interests of the public, so it should be given the highest priority. The creditor's rights secured by the ship lien directly occupy the ship and occupy a favorable position, and the ship lien is of great significance to the development of the shipping industry, so the ship lien is also given priority. Ship mortgage guarantees ordinary creditor's rights, usually loans. Although ship mortgage is also very important to the development of shipping industry, its urgency of compensation is obviously weaker than the first two rights, so ship mortgage is placed behind the other two rights.
Second, the order of compensation for maritime lien items
The particularity of this right determines that the principle of repayment order is also different from that of general creditor's rights. These principles are mainly:
(1) Principles of public policy. The principle of public policy means that the legislatures of various countries stipulate that maritime claimants enjoy different compensation orders in order to safeguard public interests. This principle is mainly manifested in the special protection of the interests of vulnerable people such as seafarers, the protection of innocent victims caused by tort, and the encouragement of rescue at sea. Under the guidance of social interests, the items of maritime lien are divided into grades and paid in turn.
(2) the principle of reverse order. That is, the creditor's rights that occur later in time have priority over the creditor's rights that occur earlier. Generally speaking, the compensation for similar maritime claims within the scope of priority follows the principle of proportionality. However, the principle of proportionality is no longer applicable to other maritime claims that retain the existing maritime lien, which is the reverse principle we should follow. For example, when multiple claims for compensation for salvage at sea exist at the same time, the latter claim should be given priority, because the latter claim not only preserves the collateral for priority compensation of other maritime claims, but also enables other maritime liens to survive, and also enables the earlier claim for compensation for salvage at sea to survive. Therefore, higher compensation priority should be given.
China's Maritime Law clearly stipulates the compensation order of maritime claims in order to safeguard the interests of the public. Among them, the principle of reverse order applies to the claim for compensation for salvage at sea. If there are two claims for salvage remuneration, the latter shall be compensated first. According to the provisions of China's Maritime Law, if there are two or more maritime claims in the same order at the same time, they should have equal status and can be compensated with the proceeds from the auction of ships at the same time. However, if the proceeds from the auction of a ship are not enough to pay off all similar maritime claims, compensation shall be paid separately according to the proportion of the creditor's rights of such maritime claims.
What is the compensation order of maritime lien for you? I hope it will help you. Litigation expenses arising from the exercise of maritime liens, expenses arising from the preservation, auction and distribution of the ship's price, and other expenses paid for the interests of maritime claimants shall be paid in advance from the proceeds from the auction of the ship.