Article 1. Definitions
1.1. Vessels chartering rules (rules) constitute official offer (public offer) of a vessel Owner, including all of the current terms and conditions for chartering vessels.
1.2. Acceptance of offer shall constitute full and unquestioning acceptance of offer (Rules) by paying the invoice submitted by Owner, without signing these Rules. Acceptance of offer shall lead to entering into the Agreement. These Rules shall be legally binding and equal in the Agreement, signed by the contracting parties.
1.3. Owner shall mean a person having a vessel, or any other person authorized by vessel Owner and having all of the appropriate documents to certify the same.
1.4. Charterer shall be a legal entity or a natural person using the vessel under these Rules , who accepted the terms and conditions of the offer by giving its consent (paying the invoice).
1.5. In these Rules, the terms Owner and Charterer shall be used irrespective of their gender, status of legal entity and number of persons.
1.6. The Skipper shall be a person on duty, guiding the vessel crew and bearing responsibility for their actions; he/she shall be the Owner's representative when speaking about the debts and claims conditioned by the needs of both the vessel and the navigation and shall also be the Owner's authorized representative in legal relations emanating from the Charter and/or in relation to it. He/she shall also assume responsibility for steering the vessel, his/her duties shall include securing of the safety of navigation, maintaining order, preventing any damage that may incur on the vessel, to the crew, passengers or third parties. His/her orders within his/her authorities shall be binding for all persons on the vessel and he/she shall be entitled to isolate any person whose actions present the threat to the safety of the vessel and the people and to suspend the navigation at any time if it presents the threat to the safety of the vessel and/or the people.
1.7. Force majeure shall mean any reason, appertaining to actions, events, acts, failures and accidents beyond the control of Owner, crew or Charterer (including strikes, lockouts and other working conflicts, civil disturbances, insurrections, electrical or mechanical defects beyond the crew control, which were not caused by negligence of Charterer, Owner of crew). Changes in the composition of the crew and changes of passengers shall not appertain to the above described reasons and shall not be considered as force majeure.
1.8. Insurance deposit shall be the payment calculated into the value of lease and having the status of securing the proper execution of Charterer's duties under the Lease Agreement and/or in accordance with the provisions of these Rules. It shall be reimbursed to the Charterer after the expiry of the lease term, if the Owner does not have any objections.
Article 2. Agreement on handing over and chartering
2.1. The Owner shall let the vessel to the Charterer for utilization and shall not enter into any other similar Agreements in relation to this vessel for the same period.
2.2. Charterer shall accept to hire the vessel and pay for the charter fee, the security deposit, delivery and re-delivery fees for the vessel and other agreed charges, not later than within the stipulated period and to the account specified in the Charter Agreement.
2.3. Following the Owner's consent, the Charterer may effectuate the payment of charter fee, deposit for covering additional costs, delivery and re-delivery fees for the vessel and other agreed charges in cash.
2.4. Charterer's duties related to payment of the charter fee, deposit for covering additional costs, delivery and/or re- delivery fees for the vessel, security deposit and other agreed charges shall be deemed executed from the moment of closing entries on monetary assets on Owner's account or getting cash funds. All banking costs and charges shall be paid at the Charterer's expense.
Article 3. Delivery of vessel
3.1. The Owner shall, by the time of beginning of the charter period, deliver the vessel to the place of delivery, in accordance with the data specified in the Invoice and Charterer shall take over the vessel, ready for sail and in working order. The vessel shall be registered, ready for sail, clean, in good condition, fully equipped, including up-to-date safety and life-saving equipment (among other things, children's life-jackets, if besides the Charterer children will stay on the vessel), and fitted out as appropriate for a vessel of its size and type and enabling the Charterer to use the vessel as set out in Article 14 of these Rules. The Owner shall not warrant a comfortable use of the vessel in case of bad weather conditions.
Article 4. Re-delivery of the vessel
4.1. The Charterer shall re-deliver the vessel to its Owner to the place of re-delivery, in as good a condition as when delivery was taken, bearing in mind the fair wear and tear and paying it all the costs related to the exploitation of the boat during the charter period, including fuel. The Charterer shall be entitled to re- deliver the vessel to the place of re-delivery prior to the end of the charter period, notifying the Owner of his/her intention to handover the vessel before the expiry of the deadline, minimum 24 hours in advance. Remuneration for re-delivery of the vessel before the stipulated deadline shall not be paid.
4.2. Charterer shall arrive to the place of re-delivery a day before the expiry of charter term, not later than at 19.00 h on the day preceding the date of the lease expiry.
4.3. Charterer's re-delivery of vessel to the Owner shall be executed starting from 08.00 h on the day of expiry of the charter period.
4.4. The vessel's Owner shall at his/her own expense organize the work of divers for the purposes of inspecting the undersea part of the vessel on the date and at time stipulated by item 4.3 of these Rules.
4.5. Charterer shall, by 10.00 h on the date of expiry of the charter period, release the vessel, namely: to remove all of his/her personal belongings from the vessel; all crew members, including the skipper, charterer and guests should come down to the shore; to dispose of the garbage collected during the vessel exploitation by the Charterer.
4.6. In case the Charterer does not ensure execution referred to in item 4.5 of these Rules, the Owner shall be entitled to suspend the Charterer by one sum in the amount of one day of leasing the vessel.
4.7. In case the Charterer insists on inspecting the underwater part of the vessel within the period which is not compliant with the deadline stipulated in item 4.4 of these Rules, the Charterer shall by his/her own assets additionally pay for the divers' work in the amount of 100 euro.
Article 5. Permitted navigation territory
5.1. The Charterer shall plan the itinerary of his/her navigation so that the vessel is re-delivered to the place of re-delivery by the end of the period for vessel handover, taking into account the weather forecast, currents and wind and following a good maritime practice. The Charterer shall restrict the time underway to a maximum of 6 hours a day, with the exception of cases when the Skipper is ready to exceed this limit at his/her own responsibility.
5.2. When planning the crossing, the Skipper should select the place for safe parking (next to the dock or on the anchor) of the vessel, taking into account a good maritime practice, weather conditions, currents, depth and displacement of the vessel.
5.3. Navigation shall be permitted only during the daylight, with the exception of case when the vessel is equipped by qualified crew that works on the vessel in shifts so that there is at least one crew member in each shift holding the minimum qualification of RYA Coastal Skipper, or similar.
5.4. Navigation in the dark shall be performed in agreement with the vessel Owner, after the Charterer confirms appropriate qualifications of the vessel crew.
Article 6. Maximum number of persons on board – responsibility for children and health of the Charterer and his/her guests
6.1. Charterer shall not accept more than the number of guests staying or cruising on board than the number laid down by Charter Agreement. The indicated number of passengers may be increased whilst the vessel is securely moored to the dock or whilst being anchored, at Skipper's sole discretion or in accordance with the permitted standards, numbers and characteristics of individual and collective safeguarding assets.
6.2. If children are taken on board, the Charterer shall be fully responsible for their conduct and no member of the crew, including the Skipper, shall be held responsible for their conduct.
6.3. The vessel navigation may render it unsuitable and dangerous for people having physical disabilities or undergoing medical treatment and/or those suffering from certain diseases. Charterer shall warrant a good physical status of all the persons on board, passengers and crew members that may be on board, whereat no damage can be caused to their health. Charterer and his/her guests shall have all the necessary visas for the countries to be visited.
Article 7. Crew
7.1. The Owner shall deliver the vessel to Charterer berbaut (lease without the crew), and Charterer shall hire a Skipper who shall be qualified in accordance with the requirements of the country under whose flag the vessel shall navigate, who shall be accepted by the insurance company of the vessel Owner. Charterer shall also provide a qualified and properly trained crew. No member of the crew shall be entitled to transport or use any illegal drugs on board, or keep any firearms (other than those declared on the manifest). Both the Skipper and the Crew members shall comply with the laws of countries into whose territorial waters the vessel shall enter.
7.2. It is understood that the skipper, crew and passengers shall be entitled to a minimum amount of rest in accordance with the vessel's Code of Practice.
7.3. The skipper, crew and passengers shall be bound at all times to keep all information related to this Agreement, the Owner, the Charterer and all Guests as confidential and no information shall be disclosed to any third party without prior permission in writing
7.4. Until the effective date of the Charter Agreement, the Charterer shall submit the list of passengers and the crew to the Owner, more precisely, full name and surname, date of birth, number and serial number of their passports, validity of passports. Failing to submit the information about the passengers and the crew until the effective date of the Charter Agreement, the vessel Owner shall not bear any responsibility for the delay when sailing out of the port of delivery which is related to the necessity of preparing the documents for vessel sailing out in the port and/or in the police.
7.5. Charterer shall, at least a week before the effective date of the Charter Agreement, forward all copies of documents on Skipper's qualifications. Owner shall be entitled to refuse to cede the Skipper's right to navigate the vessel to the Charterer in case the documents on his/her qualifications do not comply with the type and dimensions of the vessel, in case the insurance company does not acknowledge the documents on Skipper's qualifications and in case the documents on Skipper's qualifications are forged.
7.6. If in a period of vessel's delivery to the Charterer the Owner suspects the qualifications of Charterer's Skipper, he/she shall be entitled to request the Charterer to replace the Skipper.
Article 8. Skipper's authorities and responsibilities
8.1. Skipper shall comply with all reasonable orders given to him/her, unless there are any restrictions with regard to the safety of navigation requirements, management, handling and movement of the vessel, wind, weather and other circumstances. Skipper shall not, however, be bound to comply with any order which might result in the vessel moving to any port or place that is safe or proper, or might result in failing to re-deliver the vessel to the port of re-delivery by the expiry of the charter period, or would lead to the violation of Article 14 and other articles of these Rules. Without prejudice to any other statutory interests of Owner, in case that, on Skipper's opinion, the Charterer or his/her guests fail to observe the requirements of Article 14 of these Rules and keep on breaching them even after the Skipper's written notification, the Skipper shall notify the Owner about it and the Owner shall be entitled to forthwith suspend the charter (to terminate the Charter Agreement unilaterally and out of the court) or to instruct the Skipper to re-deliver the vessel to the port of re-delivery and terminate the Charter Agreement after the vessel arrives to the port of re-delivery. Charterer and his/her guests shall have to disembark and settle all outstanding payments with the Skipper. Thereat, the Charterer shall not be entitled to any remuneration.
8.2. Skipper shall be entitled to refuse to give the sports gear for water sports for utilization of Charterer or his guests if either Charterer of his/her guests behave irresponsibly or are intoxicated by alcohol or drugs or do not behave with due care to the people or property in their surroundings when using the above gear.
8.3. Written notifications of the Skipper: If needed, the Skipper shall submit a written notification to the Charterer in English and Russian language indicating the particulars of offence committed by Charterer (and/or people staying, travelling and other people whose conduct shall be the Charterer's liability) in relation to the Charter Agreement and/or these Rules, as well as the deadline for remedying the offences. Thereat, the Charterer shall sign the receipt of the notification. If Charterer refuses to accept (refuses to sign the receipt) the notification, the Skipper shall make a note on the notification saying the Charterer refused to receive the notification, reading its contents aloud, which is also recorded and in such a case it is deemed the Charterer has received the notification.
Article 9. Lease and terms of payment
9.1. The charter fee amount shall be specified in the proforma invoice and shall contain the following:
- Charter with all the equipment in working condition
- Tools; spare parts; cleaning materials and auxiliary materials for engine room, decks, kitchens and cabins;
- Insurance of vessel, crew and passengers, (see Article 17 of these Rules);
- Third party liability insurance of owner, passengers and crew;
- Technical support and elimination of defects within the guarantee period;
- Price of final cleaning of the vessel after the charter completion.
9.2. Charterer may order additional services from the Owner, whose values shall be indicated in the proforma Invoice.
9.3. Charterer shall re-deliver the vessel to the Owner with full fuel tank for stationary engines, generators and suspended engines.
9.4. In case the delivery and/or re-delivery port is different from the main vessel port, Charterer shall pay the fee for delivery/re-delivery of the vessel. Fee value for the delivery/re- delivery of the vessel shall be calculated by Owner and indicated in the Invoice, which shall make an integral part of this Agreement.
9.5. Advance payment of additional costs may be required to be paid, as a kind of meeting the special requirements, provision of equipment, shoreside transport, excursion and other services not customarily considered part of the vessel's operating costs related to the charter, and shall be paid to the Owner's account or by releasing funds with submission of the report.
9.6. Payments by cheque, credit card or any other means shall not be accepted on board. Therefore, the Charterer shall anticipate sufficient cash quantities for paying all of the foreseen costs, or to pay the necessary funds to the Owner's account in advance.
.7. When releasing funds to the Skipper with his/her duty of submitting the report, the Skipper shall issue the payment slip indicating the Charterer (passport data), Skipper (passport data), monetary amount (in letters), delivery date, purpose the funds have been obtained for and shall also indicate the Charter Agreement according to which the funds have been released.
9.8. In case of paying the vessel rental and/or additional services by credit card, the amount indicated in the invoice shall increase by 3,5% for covering the charges of Owner's bank.
9.9. Following the finalization of vessel delivery period the Owner shall submit the final invoice to the Charterer, setting out all of the Charterer's costs.
Article 10. Delay and impossibility of delivering the vessel
10.1. If, by reason of force majeure circumstances, as described in Article 21, the Owner fails to deliver the vessel to the Charterer at the port of delivery by the commencement of the charter period and vessel delivery is made in a shorter of two periods: 48 hours of the scheduled commencement date of the charter or within one-tenth of the charter period, the Owner shall pay to the Charterer a proportionate charter share or shall, by agreement of contracting parties, proportionally extend the charter period.
10.2. Inability to deliver the vessel.
10.2.1. If by reason of force majeure circumstances the Owner fails to deliver the vessel to Charterer to the port of delivery and the delay is longer than a shorter of two periods: 48 hours or a period equal to one tenth of rental period, Charterer shall be entitled to terminate the charter agreement unilaterally and out of the court. In the above case, the Charterer shall immediately be reimbursed all of the amounts made by him/her under this Agreement, without calculating any interests for the utilization of funds. In the second case, by mutual agreement of the contracting parties, the charter period shall be extended by the time equivalent to the delay, or charter period may be postponed by a certain period , as agreed
10.2.2. If Owner fails to deliver the vessel to the Charterer to the port of delivery by the commencement of the charter period other than by reasons of force majeure, the Charterer shall be entitled to terminate the charter agreement unilaterally and out of the court and require the repayment of all of the amounts paid under the charter agreement, without calculating interests for the use of funds.
10.3. Termination of Agreement by Owner.
10.3.1. If following the commencement of charter referred to in the charter agreement the Owner terminates the agreement by reason of force majeure, provisions of item 10.2 of these Rules shall apply.
Article 11. Delays in re-delivery of the vessel
11.1. If 48 hours before the expiry of charter term the vessel is located at the distance of more than 100 nautical miles from the place of re-delivery, the Owner shall be entitled to undertake measures for forceful re-delivery of the vessel to the place of re- delivery and to retain the costs for the forceful re-delivery of the vessel from the insurance deposit.
11.2. If payment of the vessel is delayed by reasons of force majeure events, it shall be effected as soon as possible following the finalization of these circumstances, whereat the requirements of this Agreement shall remain in force and the Charterer shall not be asked to pay any penalty or any additional charges.
11.3. If the Charterer fails to deliver the vessel to the Owner at the port of re-delivery on time, for reasons of intentional delay or changing the itinerary against the Skipper and/or Owner's advice, the Charterer shall pay to the Owner the charter amount for each day of delay at the charter rate increased by 50%. The Charterer shall pay all of the operating costs in accordance with article 9 of these Rules, and indemnify the Owner for any losses or damages the Owner shall suffer by reason of inability to use the vessel, cancelation of, or delay under any subsequent charters.
Article 12. Termination of Agreement and consequences of non-payment
12.1. Charterer shall be entitled to terminate the Charter Agreement on or at any time before the commencement of the charter period, in which case the Owner shall suspend a certain part of the charter or the entire charter under the following principle:
- within 60 days to the date of starting the tour – 30% of Charter value;
- within 59 to 30 days to the date of starting the tour– 50% of Charter value;
- within 29 to 8 days to the beginning of the tour – 75% of Charter value;
- within 7 days to the date of starting the tour – 95% of Charter value;
If any of the following amounts are due to be paid, but have not been paid, the Owner shall be entitled to claim their payment against the Charterer.
12.2. Non-payment or inability of payment: If following the receipt of Owner's written notice the Charterer fails to pay any amount due under this charter agreement and/or in relation to these Rules, the Owner shall reserve the right to terminate this Charter Agreement unilaterally and out of the court and to suspend the entire amount of disbursements until the debt incurred until the moment of agreement termination is settled to the Charterer.
12.3. Notwithstanding the Owner's right to receive and suspension all payments, in accordance with item 12.4 of the Rules, the same shall reduce the Charterer's disbursement amount in case the Owner is able to re-let the vessel for all or part of the charter period. Out of the debt sum, the Owner shall suspend the entire amount of charters obtained by the charter after deducting the commissions and other related costs arising from such re-letting. The meaning of this requirement shall be that the Owner generates same revenues from this re-letting as would have been received had it not been terminated at all. The Owner shall put all of its efforts in order to charter the vessel again and shall not unreasonably withheld it. However, charters which, according to Owner's opinion, may cause damages to the vessel, its reputation, its crew or charter dynamics, may be rejected.
12.4. Owner shall be entitled to terminate the Charter Agreement unilaterally and out of the court in case the Charterer on or before the commencement of charter period fails to pay the entire charter amount, deposit for covering of additional costs, security deposit and other agreed charges specified in these Rules.
12.5. When terminating the Charter Agreement under the terms of item 12.5 of these Rules, the Owner shall be entitled to demand the Charterer's liability stipulated in item 12.1 of these Rules.
Article 13. Malfunction or deficiencies
13.1. If at any time following the vessel delivery to the Charterer it comes to the breakdown of machinery or any other circumstances, including force majeure events, preventing the Charterer's regular use of the vessel for a period shorter than two following time intervals: from 12 to 48 consecutive hours or during one-fifth of the charter period, after the Charterer has notified the vessel Owner, and if the malfunction was not brought about by any Charterer's act, the Owner shall pay to the Charterer a pro rata refund of the charter fee for the period of vessel disablement, or shall , as agreed by the contracting parties, extend the delivery period by the period of vessel disablement. If Charterer wishes to enforce this law, he/she shall give immediate notice to the Owner about his/her intention and delivery of the vehicle for providing its delivery to the parent and refurbishment port. The Charterer shall not assume any liability whatsoever for extra costs for interruptions in vessel navigation but shall be liable for the customary operational costs during the period of disablement of the vessel.
13.2. Normal use of the vessel should imply a possibility of using the vessel's equipment and vessel itself by the Charterer, in accordance with the instructions and recommendations of manufacturer of the equipment.
13.3. Cessation of equipment's work, which may be replaced by alternative equipment that already exists on board or may be used with the restrictions incurred due to the malfunction, shall not entitle the Charterer to request the replacement of the vessel and/or return of all and/or a part of the vessel's charter paid by the Charterer.
13.4. Equipment such as the chart plotter, automatic pilot, power engine of anchor pulley, electronic weather vane, naitex, tender, rudder, electronic device for mobile platform for stern, heater and generator are auxiliary equipment and cessation of work of such equipment shall not entitle the Charterer to request the replacement of the ship and/or returning of all and/or a part of the value of vessel charter he/she had paid. Thereat the Owner shall undertake all of the possible measures for fast repair or replacement of auxiliary equipment that stopped working.
13.5. Alternatively, if a disablement lasts longer than a period of two following time intervals: longer than 48 hours or one- fifth of the delivery period, and dependent on the nature and seriousness of the disablement, by mutual agreement of the contracting parties, the Charterer may stay on board for the duration of charter period, in which case the Charterer shall not have any further claims against the Owner.
13.6. In case any failure or irregularity is discovered on the vessel during the period of charter validity, the Charterer shall, at the shortest notice and in any appropriate manner notify the Owner about the failure existence and describe it.
13.7. The Charterer shall be liable to the vessel Owner for untimely notifying and/or intentional hiding of information on failures or irregularities of the vessel incurred in case of the force majeure or by Charterer's fault. Degree of responsibility and amount of the fine shall be set by the vessel Owner in accordance with the necessary costs for bringing the vessel into the appropriate status for the purposes of meeting the obligations under all of the next Charter Agreements.
Article 14. Use of the vessel
14.1. The Charterer shall comply and shall guarantee that the guests comply with the laws and regulations of any country into whose territorial waters the vessel shall enter during the course of this Agreement.
14.2. The Charterer shall guarantee that no pets or other animals are brought on board of the vessel without the Owner's written consent.
14.3. The Charterer shall guarantee that his/her behaviour or behaviour of his/her guests shall not cause any nuisance and will not have any negative impact on reputation of the vessel.
14.4. The Charterer and his/her guests shall at all times treat the crew members with due respect. No crew member shall be subjected to any type of harassment, sexual or other insults, by the Charterer or his/her guests during the charter period.
14.5. Unless otherwise agreed, smoking shall be permitted on exterior vessel areas, in places designated by the Skipper.
14.6. The Skipper shall promptly notify the Charterer if the Charterer itself or any of his/her guests are breaking these rules and , if such behaviour continues even after the warning, the Skipper shall notify the Owner. In that case, Owner shall be entitled to terminate the Charter Agreement unilaterally and out of the court, in accordance with Article 8 of these Rules.
14.7. In case the Charterer or any of the guests shall commit a crime contrary to the laws or regulations of any country, which results in any crew member being detained, fined or arrested, or the vessel being detained, arrested, seized or fined, the Charterer shall indemnify the Owner against all losses, damages or expenses. Thereat, the Owner shall be entitled to terminate the Charter Agreement unilaterally and out of the court.
14.8. Possession or use of illegal drugs or any weapons on board shall be strictly prohibited. Violation of this rule shall constitute a cause for unilateral out of the court termination of the Charter Agreement on Owner's initiative, without the refund of any remuneration.
14.9. Blinding of the toilet by any crew member, including the Skipper and guests of the Charterer, shall be fined by the amount of 150 euro for each blinded toilet. The fine shall be collected from the Charterer from the security deposit.
14.10. In order to avoid payment of final cleaning in twice the regular amount, the fridge and the freezer should be cleaned from the foodstuffs remains, garbage should be taken out and dishes washed.
14.11. Use of the vessel done by the Charterer, Skipper and other crew members and guests should be executed strictly in accordance with the recommendations of manufacturer of the equipment that is installed on the vessel, and the manufacturer of vessel itself.
14.12. The Owner of the vessel shall, on Charterer's request, submit the instructions for using the vessel and its equipment.
14.13. The Charterer shall be forbidden to use the vessel under the permanent wind speed of more than 27 nodes and sea waves of more than 6 degrees.
Article 15. Assignment of rights under the Agreement
15.1. Charterer shall not be entitled to assign his/her rights under the Charter Agreement to any other party and shall not be entitled to deliver the vessel or its part without a written consent of the Owner and under his/her terms.
Article 16. Sale of the vessel
16.1. The Owner shall not sell the vessel during the Charter Agreement period.
Article 17. Insurance
17.1. Throughout the period of Charter Agreement, the Owner shall insure the vessel against the customary risks related to a vessel of such size, of such value and type, on insurance cover which will be no less than the insurance provided by the standard of Institute Yacht Clauses 1.11.85 or other generally recognized terms and conditions adopted for the purposes of issuing the permission to charter or to cover third party liabilities, water skiers liabilities and liabilities arising from the use by Charterer or persons he/she authorizes of equipment for water sports, including scooters and similar inventory supplied by engines, as well as windsurfers, kayaks, dinghies, and catamarans and other water-sports equipment carried by the vessel.
17.2. Insurance shall also cover the risks during the wars, strikes, environmental protection and shall include the equipment disability insurance and/or third party liability because of the actions of crew members in executing their working assignments. The Charterer shall be liable for any losses, damages and liabilities arising from any act or negligence of the Charterer or his/her guests, which are not covered by Owner's insurance.
17.3. Insurance terms and conditions, including the Charterer's liability amount which is not covered by Owner's insurance, shall be generally accepted for the vessel of such size, value and type. The Owner shall, on Charterer's request, submit the copies of all the relevant insurance agreements to the vessel within a reasonable period of time and before starting of the charter.
17.4. The Charterer shall have a special Personal property insurance whilst on board or ashore, health insurance and accident insurance, including the emergency services and evacuation.
17.5. The Charterer shall bear in mind that the costs related to Charterer's liability insurance and insurance against the failure to enter into the Charter Agreement or termination of the Agreement before the expiry of its period shall not be included in the Charter Agreement.
Article 18. Security deposit
18.1. Unless stipulated otherwise by Charter Agreement, the Charterer shall pay the security deposit on or before the commencement of the charter. Security deposit shall have the status of securing Charterer's appropriate execution of duties under the Charter Agreement and/or in accordance with the provision of these Rules. If security deposit is not used, which is confirmed by Owner in writing when taking over the vessel following the expiry of the Charter Agreement, deposit shall be refunded to the Charterer without charging any interest, on the first day after the expiry of the charter period or after settlement of all the necessary matters.
18.2. If the security deposit has been withdrawn from the Charterer's credit card, deadline for refunding the deposit to the Charterer shall be set by the banks of both Owner and Charterer provided that the Owner executed all of the necessary actions for fast refunding of the deposit.
18.3. If the security deposit has been withdrawn from the Charterer's credit card, Owner shall within two days following the expiry of the vessel charter period issue the order for reimbursement of funds to the bank.
18.4. When submitting the security deposit to the Owner by means of credit card or payment card, the Charterer shall accept the security deposit indicated in the Invoice may fully or partially be paid in favour of the Owner for the purposes of covering costs, malfunctions and losses incurred by Charterer's fault.
18.5. When submitting the security deposit to the Owner by means of credit card or payment card, the Charterer shall automatically accept that the amount of security deposit on the bank account is increased by 3,5% for the purposes of covering the bank charges incurred in case of suspension of the security deposit.
18.6. Charterer shall, by the effective date of the Charter Agreement, submit to the Owner a copy of the front page of the bank card from which it will suspend the security deposit.
18.7. The vessel Owner shall keep the banking data obtained from the Charterer for the purposes of suspending the security deposit fully confidential and shall not assign them to any third parties, other than the official requirements of the Charterer's and/or Owner's bank.
18.8. When suspending a part or a whole of the security deposit from the Charterer, the Owner shall submit the invoice and/or fiscal account to the Charterer.
18.9. Official tariffs of service stations, vessel equipment and mechanism dealers and the value of standardized hour of Owner's service department shall be taken as the basis for calculating the security deposit which shall be suspended. The amount suspended from the Charterer shall increase by 10% of the basis, which is caused by operational costs related to the purchase of material and organization of repair works.
18.10. If during the validity period of Charter Agreement the vessel Owner suffers the damage in the amount ranging from 85% to 100% value of the security deposit by Charterer's fault, the Charterer shall pay in the new security deposit, or a part missing to 100% and the Owner shall be entitled to immediately terminate the Agreement unilaterally and out of the court. This item shall apply in case that during the period of Charter Agreement, by Charterer's fault, the damage incurs, making further exploitation of vessel impossible without the refurbishment which requires the compensation from the security deposit and, if necessary for the charter continuation, payment of the suspended amount.
18.11. Charterer may secure the security deposit with the Owner. The amount of security deposit shall be set by the Owner and shall indicate it in the invoice.
18.12. Securing deposit shall consist of two equal parts, recurring and non-recurring. Non-recurring part shall constitute the Owner's insurance company premium. Recurring part shall have the status of securing the Charterer re-delivers the vessel with a fully loaded fuel tank.
Article 19. Incomes during the charter
19.1. All incomes generated during the charter period due to the discovery of abandoned ships, salvages and towages of ships, shall be shared equally between the Owner and the Charterer.
Article 20. Complaints
20.1. In case of any complaints, the Charterer shall in the first instance notify the Owner about his/her dissatisfaction and his/her complaint shall be noted into the vessel diary, indicating the time, date and nature of the complaint.
20.2. If, however, the problem cannot be resolved on board of the vessel, the Charterer shall notify the Owner about it within 24 hours of the event, if there is any connection. In the first phase, the complaint may be made verbally, but shall be confirmed as soon as possible in writing specifying the nature of the complaint.
Article 21. Force majeure
21.1. If the force majeure circumstances invoked the breakdown or disablement of any of the mechanisms, the Charterer or his/her representative shall submit a detailed technical report and a copy of the vessel maintenance log if needed, as well as all other documents in support of these facts, photo and video materials.
Article 22. Court and applicable laws
22.1. The Russian federation laws shall apply to all legal relations between the Owner and Charterer established on the basis of the Charter Agreement and/or under the provisions of these Rules, including but not restricted by any legal relations established in relation to invalidity and/or not entering into the Charter Agreement. Disputes incurred from failing to reach a peaceful solution shall be resolved before the proper court of the Montenegro, in accordance with the litigation laws of the Montenegro.
Article 23. Method of terminating the Charter Agreement. Notices.
23.1. Unilateral and out of the court termination of the Charter Agreement shall be executed by sending notice to the other party (in English or Russian language) on terminating the Charter Agreement. The Agreement shall thereat be deemed terminated from the moment of other party's receipt of the notification. Charterer shall be entitled to handover the notice on Charter Agreement termination to the Owner's representative, or send the above notice to the Owner by mail.
23.2. Owner shall terminate the Charter Agreement by handing over the notice of termination to the Charterer and/or sends it by mail.
23.2.1. When sending the appropriate notice by mail, this notice shall be sent by registered mail, with notification of handover and describing the contents and it shall be deemed received from the moment of delivery or following the expiry of 20 working days after sending it, whichever of these two events comes first.
23.2.2. When sending a proper notice by telegram, it shall be deemed received from the moment of handover or after the expiry of 10 working days from sending it, whichever of these two events comes first. 23.3. From the moment the Charterer and/or the Owner sends notice on terminating the Charter Agreement, the Charterer shall not be entitled to stay on board or use any mechanisms and/or equipment on the vessel. This restriction may only be violated with written approval of the Owner. Thereat, the owner shall be entitled to dispose of the vessel at its sole discretion. 23.4. Any notice given or required to be given by either contracting party shall be made in writing and shall be deemed to have been properly made if proved to have been dispatched pre-paid and properly addressed to the Owner, to the address the same indicated in the Agreement, or if properly addressed to the Charterer to the address as per the Agreement.
Article 24. Acceptance of provided services.
24.1. Following the vessel's re-delivery to the port of re-delivery the contracting parties shall make the Act on Provided Services in which the contracting parties from the Charter Agreement shall indicate whether they have any mutual complaints or not. When signing this Act and in the absence of any complaints, appropriate contracting party from the Charter Agreement shall no more be entitled to any complaints under or in relation to the same. In case there are any complaints, the contracting parties shall indicate the deadline for their remedy.