RIGHT OF RECOVERY
If the Member shall become liable for costs as set out in Rules 4 and 5 in respect of a ship which was entered in the Association at the time when the claim giving rise to such costs arose, the Member shall be entitled to recover out of the funds of the Association the amount of such costs to the extent and upon the terms, and subject to the conditions, limits, deductibles and exceptions provided for by the Rules and by the Certificate of Entry;
PROVIDED ALWAYS that:
- unless the Managers in their discretion otherwise determine, it shall be a condition precedent of a Member’s right to recover from the funds of the Association in respect of any cost that the Member shall have first unconditionally discharged the same in full by payment out of monies belonging to him absolutely and not by way of loan or otherwise;
- as to claims and disputes arising under contract (other than those specified in proviso (ii) to this Rule) in tort or under statute, such claims and disputes will be deemed to have arisen at the date when the cause of action accrued;
- as to claims and disputes concerning salvage, or in respect of towage services, such claims and disputes will be deemed to have arisen at the date when relevant services commenced;
- in no circumstances whatsoever shall the Association be under any obligation to provide bail or security for costs.
