Rule 40 Liability for obstruction and wreck removal

The Association shall cover:

1. costs and expenses incurred, relating to the raising, removal, destruction, lighting and marking of the Ship or of the wreck of the Ship or parts thereof or of its cargo lost as a result of a casualty, when such raising, removal, destruction, lighting and marking is compulsory by law or the costs or expenses thereof are legally recoverable from the Member;

2. liability incurred by reason of the Ship or the wreck of the Ship or parts thereof, as a result of a casualty, causing an obstruction, provided that:

   1. for the purpose of this rule, ‘casualty’ means collision, stranding, explosion, fire or similar fortuitous event;

   2. recovery from the Association under this Rule shall be conditional upon the Member not having transferred its interest in the wreck otherwise than by abandonment; and

   3. the realised value of the wreck and other property saved shall be credited to the Association.