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E . Levying of Overspill Calls
i. If
(i) the Directors shall at any time determine that funds are or may in future be required to pay part of an Overspill Claim (whether incurred by the Association or by any other party to the Pooling Agreement); and
(ii) the Directors shall have made a declaration under Rules 23 [C] [i] or 23 [C] [iii] that a policy year shall remain open for the purpose of levying an Overspill Call or Calls in respect of that Overspill Claim, the Directors in their discretion, at any time or times after such declaration has been made, may levy one or more Overspill Calls in respect of that Overspill Claim in accordance with sub-paragraph [ii] below.
ii . The Directors shall levy any such Overspill Call
(i) on all Members entered in the Association on the Overspill Claim Date in respect of ships entered by them at that time, notwithstanding the fact that, if the Overspill Claim Date shall be in a policy year in respect of which the Directors have made a declaration under Rule 23 [C] [iii], any such ship may not have been entered in the Association at the time the relevant event occurred, and
(ii) at such percentage of the Convention Limit of each such ship as the Directors in their discretion shall decide.
iii. An Overspill Call shall not be levied in respect of any ship entered on the Overspill Claim Date with an overall limit of cover equal to or less than the Group Reinsurance Limit.
iv. The Directors shall not levy on any Member in respect of the entry of any one ship an Overspill Call or Calls in respect of any one Overspill Claim exceeding in the aggregate two and a half percent (2.5%) of the Convention Limit of that ship.
F. Security for Overspill Calls on termination or cesser
i. If
(i) the Directors make a declaration in accordance with Rule 23 [C] [i] or Rule 23 [C] [iii] that a policy year shall remain open for the purpose of levying an Overspill Call or Calls, and
(ii) a Member who is liable to pay any such Overspill Call or Calls as may be levied by the Directors in accordance with paragraph [E] of this Section ceases or has ceased to be insured by the Association for any reason, or the Association determines that the insurance of any such Member may cease
the Managers may require such Member to provide to the Association a guarantee or other security in respect of the Member’s estimated future liability for such Overspill Call or Calls, such guarantee or other security to be provided in such form and amount (the “guarantee amount”) and by such date (the“due date”) and upon such terms as the Managers in their discretion may deem to be appropriate in the circumstances.
ii. Unless and until such guarantee or other security as is required by the Managers has been provided by the Member, the Member shall not be entitled to recovery from the Association of any claims whatsoever and whensoever arising in respect of any and all ships entered in the Association by him or on his behalf for any policy year.
iii. If such guarantee or other security is not provided by the Member to the Association by the due date, a sum equal to the guarantee amount shall be due and payable by the Member to the Association on the due date, and shall be retained by the Association as a security deposit on such terms as the Managers in their discretion may deem to be appropriate in the circumstances.
iv. The provision of a guarantee or other security as required by the Association (including a payment in accordance with sub-paragraph [iii] above) shall in no way restrict or limit the Member’s liability to pay such Overspill Call or Calls as may be levied by the Directors in accordance with paragraph [E] of this Section.
G. The provisions of Section 4 of Rule 16 and any other provisions of these Rules in respect of Overspill Claims and Overspill Calls shall not apply to the covers under Rules 4 and 5.
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