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Standard Format for Letter of Undertaking for Financial Security
TO: AUSTRALIAN MARITIME SAFETY AUTHORITY
Dear Sir/Madam
VESSEL: ..........................................................
INCIDENT: (Suspected) oil spill at ........................................ (port or location) on ............................................... (date)
CLAIM: Recovery of amount of loss, damage, costs and expenses under Part IVA of the Protection of the Sea (Civil Liability) Act 1981
Recovery of penalties under the Protection of the Sea (Prevention of Pollution from Ships) Act 1983
In consideration of your refraining from taking any action resulting in detention or arrest of the abovementioned vessel or any other vessel or property in the same ownership, associated ownership or management for the purpose of obtaining security in respect of the abovementioned claim against the Master and/or Owners or another Crew Person of the abovementioned vessel concerning the incident referred to above, we the .......................................................... (Club's name) undertake to pay to you on demand such sums as may be mutually agreed or finally adjudged by a court of competent jurisdiction to be recoverable from the Master and/or Owners or any other Crew Person of the abovementioned vessel in respect of the said claim, interest and costs provided that the total of the Master's and/or Owners' or other Crew Person aggregate liability hereunder shall not exceed the sum of $A...................................... (amount in figures), ............................................................. (amount in words) inclusive of interest and costs.
This undertaking is subject to the Master's and Owners' right to limit liability in accordance with any applicable international convention.
We undertake that we will within fourteen (14) days of receipt from you or your solicitor's request so to do, instruct solicitors to accept on behalf of the Master and Owners of the ...................................... (vessel) service of proceedings brought by you in a court of competent jurisdiction in Australia. We warrant that we have received irrevocable authority from the Owners of the ......................................(vessel) and other Crew Person/s to instruct solicitors accordingly.
This undertaking shall be governed in accordance with the laws of the Commonwealth of Australia.
Yours faithfully
(P&I Club name)
(Date)
last updated: November 2004