Regimen juridico y situacion en chile de las cartas de garantia emitidas por los clubes de proteccion e indemnizacion

Abstract

Letters of Undertaking (lou.) issued by Protection and Indemnity Clubs have a major role in the present dynamics of the international shipping business. the present study discovers its origin and direct relationship with the P & I Clubs. It details the various objectives sought by their issuance, among which is highlighted the avoidance of the arrest of a vessel or her release. after detailing the possible issuers of these guarantees, it explains the particulars of their granting and the requirements by those who grant them. It explores their legal nature and their recognition within our legislation. the author goes on to mention the benefits offered by the lou. such as low cost, celerity, existence of a variety of patrimonies, ease of modification, avoidance of wrongful arrest, etc. and also mentions the opportunities of their granting. Regarding the standard forms of these guarantees that has been accepted in Chile, the study analyses the property and subjects over which it extends, amounts, interests, commitments between issuer and beneficiary, and the matter of jurisdiction and competence. Finally, the present study concludes with a number of references to the acceptance of the lou. in Chile, their devolution and cancellation, together with some comments regarding the use, trust and prestige held by these guarantees on an international level.