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Section 3
Supplementary Call
A . At any time or times during or after the end of each policy year (but not after such policy year has been closed) the Directors may decide to levy from the Members of ships entered in respect of that year (other than Fixed Premium Entries) one or more Supplementary Calls. The Directors may levy such a Supplementary Call by deciding upon a percentage of the Advance Call for that year.
B. A Member of a ship (other than a Fixed Premium Entry) entered for any policy year shall be bound to pay by way of Supplementary Call, a sum ascertained by multiplying the percentage decided by the Directors by the Advance Call paid or payable by him in respect of such policy year.
C . The Directors, the Managers or their servants or agents may at any time seek to enable Members to become aware of their financial commitment for the relevant policy year by indicating an estimate of the percentage at which it is hoped that any Supplementary Call or Calls will be levied. If any such estimate shall be given to any Member it shall be without prejudice to the right of the Directors to levy Supplementary Calls and Overspill Calls for the relevant policy year in accordance with these Rules at a greater or lesser percentage than so indicated and neither the Association, the Directors, the Managers nor any of their servants or agents shall under any circumstances be under any liability in respectof any estimate so given or in respect of any error, omission or inaccuracy contained therein.
Section 4
Overspill claims, Overspill Calls and guarantees
A . Introductory
i. All claims (other than claims arising in respect of oil pollution) incurred by the Association or by any other party to the Pooling Agreement, by virtue of the agreement of co-insurance or reinsurance between the Association and certain parties to the Pooling Agreement, under the entry of any one ship arising from any one event including any claim in respect of liability for the removal or non-removal of any wreck shall, for the purpose of the definitions in these Rules of “Overspill Claim” and “Group Reinsurance Limit”, be treated as if they were one claim.
ii. That part (if any) of a claim (other than a claim in respect of oil pollution) incurred by the Association or by any other party to the Pooling Agreement under the terms of entry of a ship which exceeds or may exceed the Group Reinsurance Limit is referred to herein as an “Overspill Claim”.
iii. Any reference to a claim incurred by the Association or by any other party to the Pooling Agreement shall be deemed to include the costs and expenses associated therewith.
B. Recoverability of Overspill Claims
i. Without prejudice to any other applicable limit, any Overspill Claim incurred by the Association shall not be recoverable from the Association in excess of the aggregate of:
(i) that part of the Overspill Claim which is eligible for pooling under the Pooling Agreement but which, under the terms of the Pooling Agreement, is to be borne by the Association; and
(ii) the maximum amount that the Association is able to recover from the other parties to the Pooling Agreement as their contributions to the Overspill Claim.
ii. The aggregate amount referred to in paragraph [B] [i] of this Section shall be reduced to the extent that the Association can evidence:
(i) that costs have been properly incurred by it in collecting or seeking to collect:
a. Overspill Calls levied to provide funds to pay that part of the Overspill Claim referred to in paragraph [B] [i] [(i)] of this Section , or
b. the amount referred to in paragraph [B] [i] [(ii)] of this Section ; or
(ii) that it is unable to collect an amount equal to that part of the Overspill Claim referred to in paragraph [B] [i] [(i)] of this Section which it had intended to pay out of the levy of Overspill Calls because any Overspill Calls so levied, or parts thereof, are not economically recoverable, provided that if, due to a change in circumstances, such amounts subsequently become economically recoverable, the aggregate amountreferred to in paragraph [B] [i] of this Section shall be reinstated to that extent.
iii. In evidencing the matters referred to in paragraph [B] [ii] [(ii)] above the Association shall be required to show that:
(i) it has levied Overspill Calls in respect of the Overspill Claim referred to in paragraph [B] [i] of this Section on all Members entered in the Association on the Overspill Claim Date in accordance with and in the maximum amounts permitted under paragraph [E] of this Rule 16; and
(ii) it has levied those Overspill Calls in a timely manner, has not released or otherwise waived a Member’s obligation to pay those Calls and has taken all reasonable steps to recover those Calls.
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