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Environmental Treaties and Resource Indicators (ENTRI) -- Full Text

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INTERNATIONAL CONVENTION ON THE ESTABLISHMENT OF AN 
INTERNATIONAL FUND FOR COMPENSATION FOR OIL POLLUTION 
DAMAGE

(Brussels, 18 December 1971)

The States Parties to the present Convention,

Being Parties to the International Convention on Civil 
Liability for Oil Pollution Damage, adopted at Brussels 
on 29 November 1969, Conscious of the dangers of 
pollution posed by the world-wide maritime carriage of 
oil in bulk,

Convinced of the need to ensure that adequate 
compensation is available to persons who suffer damage 
caused by pollution resulting from the escape or 
discharge of oil from ships, Considering that the 
International Convention of 29 November 1969, on Civil 
Liability for Oil Pollution Damage, by providing a regime 
for compensation for pollution damage in Contracting 
States and for the costs of measures, wherever taken, to 
prevent or minimize such damage, represents a 
considerable progress towards the achievement of this 
aim,

Considering however that this regime does not afford full 
compensation for victims of oil pollution damage in all 
cases while it imposes an additional financial burden on 
ship owners, 

Considering further that the economic consequences of oil 
pollution damage resulting from the escape or discharge 
of oil carried in bulk at sea by ships should not 
exclusively be borne by the shipping industry but should 
in part be borne by the oil cargo interests, Convinced of 
the need to elaborate a compensation and indemnification 
system supplementary to the International Convention on 
Civil Liability for Oil Pollution Damage with a view to 
ensuring that full compensation will be available to 
victims of oil pollution incidents and that the ship-
owners are at the same time given relief in respect of 
the additional financial burdens imposed on them by the 
said Convention,

Taking note of the Resolution on the Establishment of an 
International Compensation Fund for Oil Pollution Damage 
which was adopted on 29 November 1969 by the 
International Legal Conference on Marine Pollution 
Damage,

Have agreed as follows:


GENERAL PROVISIONS


Article 1

For the purposes of this Convention

1. "Liability Convention" means the International 
Convention on Civil Liability for Oil Pollution Damage, 
adopted at Brussels on 29 November 1969.

2. "Ship", "Person", "Owner", "Oil", "Pollution Damage", 
"Preventive Measures", "Incident" and "Organization" , 
have the same meaning as in Article I of the Liability 
Convention, provided however th





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Environmental Treaties and Resource Indicators (ENTRI) -- Full Text




Summary of the "International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage" is available from the UNEP Register of International Treaties and Other Agreements in the Field of the Environment.




See the ENTRI query system for information about the status of this treaty.


See the ENTRI thematic guide for more information about the relationships between environmental treaties, national resource indicators, and remotely sensed data.



INTERNATIONAL CONVENTION ON THE ESTABLISHMENT OF AN 
INTERNATIONAL FUND FOR COMPENSATION FOR OIL POLLUTION 
DAMAGE

(Brussels, 18 December 1971)

The States Parties to the present Convention,

Being Parties to the International Convention on Civil 
Liability for Oil Pollution Damage, adopted at Brussels 
on 29 November 1969, Conscious of the dangers of 
pollution posed by the world-wide maritime carriage of 
oil in bulk,

Convinced of the need to ensure that adequate 
compensation is available to persons who suffer damage 
caused by pollution resulting from the escape or 
discharge of oil from ships, Considering that the 
International Convention of 29 November 1969, on Civil 
Liability for Oil Pollution Damage, by providing a regime 
for compensation for pollution damage in Contracting 
States and for the costs of measures, wherever taken, to 
prevent or minimize such damage, represents a 
considerable progress towards the achievement of this 
aim,

Considering however that this regime does not afford full 
compensation for victims of oil pollution damage in all 
cases while it imposes an additional financial burden on 
ship owners, 

Considering further that the economic consequences of oil 
pollution damage resulting from the escape or discharge 
of oil carried in bulk at sea by ships should not 
exclusively be borne by the shipping industry but should 
in part be borne by the oil cargo interests, Convinced of 
the need to elaborate a compensation and indemnification 
system supplementary to the International Convention on 
Civil Liability for Oil Pollution Damage with a view to 
ensuring that full compensation will be available to 
victims of oil pollution incidents and that the ship-
owners are at the same time given relief in respect of 
the additional financial burdens imposed on them by the 
said Convention,

Taking note of the Resolution on the Establishment of an 
International Compensation Fund for Oil Pollution Damage 
which was adopted on 29 November 1969 by the 
International Legal Conference on Marine Pollution 
Damage,

Have agreed as follows:


GENERAL PROVISIONS


Article 1

For the purposes of this Convention

1. "Liability Convention" means the International 
Convention on Civil Liability for Oil Pollution Damage, 
adopted at Brussels on 29 November 1969.

2. "Ship", "Person", "Owner", "Oil", "Pollution Damage", 
"Preventive Measures", "Incident" and "Organization" , 
have the same meaning as in Article I of the Liability 
Convention, provided however that, for the purposes of 
these terms, "oil" shall be confined to persistent 
hydrocarbon mineral oils.

3. "Contributing Oil" means crude oil and fuel oil as 
defined in sub-paragraphs (a) and (b) below:

(a) "Crude Oil" means any liquid hydrocarbon mixture 
occurring naturally in the earth whether or not treated 
to render it suitable for transportation. It also 
includes crude oils from which certain distillate 
fractions have been removed (sometimes referred to as 
"topped crudes") or to which certain distillate fractions 
have been added (sometimes referred to as "spiked" or 
"reconstituted" crudes).

(b) "Fuel Oil" means heavy distillates or residues from 
crude oil or blends of such materials intended for use as 
a fuel for the production of heat or power of a quality 
equivalent to the "American Society for Testing and 
Materials" Specification for Number Four Fuel Oil 
(Designation D 396-69), or heavier.

4. "Franc" means the unit referred to in Article V, 
paragraph 9, of the Liability Convention.

5. "Ship's tonnage" has the same meaning as in Article V, 
paragraph 10, of the Liability Convention.

6. "Ton", in relation to oil, means a metric ton.

7. "Guarantor" means any person providing insurance or 
other financial security to cover an owner's liability in 
pursuance of Article VII, paragraph 1, of the Liability 
Convention.

8. "Terminal installation" means any site for the storage 
of oil in bulk which is capable of receiving oil from 
waterborne transportation, including any facility 
situated off-shore and linked to such site.

9. Where an incident consists of a series of occurrences, 
it shall be treated as having occurred on the date of the 
first such occurrence.


Article 2

1. An International Fund for compensation for pollution 
damage, to be named "The International Oil Pollution 
Compensation Fund" and hereinafter referred to as "The 
Fund", is hereby established with the following aims:

(a) to provide compensation for pollution damage to the 
extent that the protection afforded by the Liability 
Convention is inadequate; 

(b) to give relief to ship owners in respect of the 
additional financial burden imposed on them by the 
Liability Convention, such relief 
being subject to conditions designed to insure compliance 
with safety at sea and other conventions;

(c) to give effect to the related purposes set out in 
this Convention. 2. The Fund shall in each Contracting 
State be recognized as a legal person capable under the 
laws of that State of assuming rights and obligations and 
of being a party in legal proceedings before the courts 
of that State. Each Contracting State shall recognize the 
Director of the Fund (hereinafter referred to as "The 
Director") as the legal representative of the Fund.


Article 3

This Convention shall apply:

1. with regard to compensation according to Article 4, 
exclusively to pollution damage caused on the territory 
including the territorial sea of a Contracting State, and 
to preventive measures taken to prevent or minimize such 
damage;

2. with regard to indemnification of ship owners and 
their 
guarantors according to Article 5, exclusively in respect 
of pollution damage caused on the territory including the 
territorial sea of a State party to the Liability 
Convention, by a ship registered in or flying the flag of 
a Contracting State and in respect of preventive measures 
taken to prevent or minimize such damage. Compensation 
and Indemnification


Article 4

1. For the purpose of fulfilling its function under 
Article 2, paragraph 1 (a), the Fund shall pay 
compensation to any person suffering pollution damage if 
such person has been unable to obtain full and adequate 
compensation for the damage under the terms of the 
Liability Convention,

(a) because no liability for the damage arises under the 
Liability Convention;

(b) because the owner liable for the damage under the 
Liability Convention is financially incapable of meeting 
his obligations in full and any financial security that 
may be provided under Article VII of that Convention doe





This data access service is provided by the Center for International Earth Science Information Network (CIESIN), which operates the Socioeconomic Data and Applications Center (SEDAC) for the U.S. National Aeronautics and Space Administration (NASA).


Environmental Treaties and Resource Indicators (ENTRI) -- Full Text




Summary of the "International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage" is available from the UNEP Register of International Treaties and Other Agreements in the Field of the Environment.




See the ENTRI query system for information about the status of this treaty.


See the ENTRI thematic guide for more information about the relationships between environmental treaties, national resource indicators, and remotely sensed data.



INTERNATIONAL CONVENTION ON THE ESTABLISHMENT OF AN 
INTERNATIONAL FUND FOR COMPENSATION FOR OIL POLLUTION 
DAMAGE

(Brussels, 18 December 1971)

The States Parties to the present Convention,

Being Parties to the International Convention on Civil 
Liability for Oil Pollution Damage, adopted at Brussels 
on 29 November 1969, Conscious of the dangers of 
pollution posed by the world-wide maritime carriage of 
oil in bulk,

Convinced of the need to ensure that adequate 
compensation is available to persons who suffer damage 
caused by pollution resulting from the escape or 
discharge of oil from ships, Considering that the 
International Convention of 29 November 1969, on Civil 
Liability for Oil Pollution Damage, by providing a regime 
for compensation for pollution damage in Contracting 
States and for the costs of measures, wherever taken, to 
prevent or minimize such damage, represents a 
considerable progress towards the achievement of this 
aim,

Considering however that this regime does not afford full 
compensation for victims of oil pollution damage in all 
cases while it imposes an additional financial burden on 
ship owners, 

Considering further that the economic consequences of oil 
pollution damage resulting from the escape or discharge 
of oil carried in bulk at sea by ships should not 
exclusively be borne by the shipping industry but should 
in part be borne by the oil cargo interests, Convinced of 
the need to elaborate a compensation and indemnification 
system supplementary to the International Convention on 
Civil Liability for Oil Pollution Damage with a view to 
ensuring that full compensation will be available to 
victims of oil pollution incidents and that the ship-
owners are at the same time given relief in respect of 
the additional financial burdens imposed on them by the 
said Convention,

Taking note of the Resolution on the Establishment of an 
International Compensation Fund for Oil Pollution Damage 
which was adopted on 29 November 1969 by the 
International Legal Conference on Marine Pollution 
Damage,

Have agreed as follows:


GENERAL PROVISIONS


Article 1

For the purposes of this Convention

1. "Liability Convention" means the International 
Convention on Civil Liability for Oil Pollution Damage, 
adopted at Brussels on 29 November 1969.

2. "Ship", "Person", "Owner", "Oil", "Pollution Damage", 
"Preventive Measures", "Incident" and "Organization" , 
have the same meaning as in Article I of the Liability 
Convention, provided however that, for the purposes of 
these terms, "oil" shall be confined to persistent 
hydrocarbon mineral oils.

3. "Contributing Oil" means crude oil and fuel oil as 
defined in sub-paragraphs (a) and (b) below:

(a) "Crude Oil" means any liquid hydrocarbon mixture 
occurring naturally in the earth whether or not treated 
to render it suitable for transportation. It also 
includes crude oils from which certain distillate 
fractions have been removed (sometimes referred to as 
"topped crudes") or to which certain distillate fractions 
have been added (sometimes referred to as "spiked" or 
"reconstituted" crudes).

(b) "Fuel Oil" means heavy distillates or residues from 
crude oil or blends of such materials intended for use as 
a fuel for the production of heat or power of a quality 
equivalent to the "American Society for Testing and 
Materials" Specification for Number Four Fuel Oil 
(Designation D 396-69), or heavier.

4. "Franc" means the unit referred to in Article V, 
paragraph 9, of the Liability Convention.

5. "Ship's tonnage" has the same meaning as in Article V, 
paragraph 10, of the Liability Convention.

6. "Ton", in relation to oil, means a metric ton.

7. "Guarantor" means any person providing insurance or 
other financial security to cover an owner's liability in 
pursuance of Article VII, paragraph 1, of the Liability 
Convention.

8. "Terminal installation" means any site for the storage 
of oil in bulk which is capable of receiving oil from 
waterborne transportation, including any facility 
situated off-shore and linked to such site.

9. Where an incident consists of a series of occurrences, 
it shall be treated as having occurred on the date of the 
first such occurrence.


Article 2

1. An International Fund for compensation for pollution 
damage, to be named "The International Oil Pollution 
Compensation Fund" and hereinafter referred to as "The 
Fund", is hereby established with the following aims:

(a) to provide compensation for pollution damage to the 
extent that the protection afforded by the Liability 
Convention is inadequate; 

(b) to give relief to ship owners in respect of the 
additional financial burden imposed on them by the 
Liability Convention, such relief 
being subject to conditions designed to insure compliance 
with safety at sea and other conventions;

(c) to give effect to the related purposes set out in 
this Convention. 2. The Fund shall in each Contracting 
State be recognized as a legal person capable under the 
laws of that State of assuming rights and obligations and 
of being a party in legal proceedings before the courts 
of that State. Each Contracting State shall recognize the 
Director of the Fund (hereinafter referred to as "The 
Director") as the legal representative of the Fund.


Article 3

This Convention shall apply:

1. with regard to compensation according to Article 4, 
exclusively to pollution damage caused on the territory 
including the territorial sea of a Contracting State, and 
to preventive measures taken to prevent or minimize such 
damage;

2. with regard to indemnification of ship owners and 
their 
guarantors according to Article 5, exclusively in respect 
of pollution damage caused on the territory including the 
territorial sea of a State party to the Liability 
Convention, by a ship registered in or flying the flag of 
a Contracting State and in respect of preventive measures 
taken to prevent or minimize such damage. Compensation 
and Indemnification


Article 4

1. For the purpose of fulfilling its function under 
Article 2, paragraph 1 (a), the Fund shall pay 
compensation to any person suffering pollution damage if 
such person has been unable to obtain full and adequate 
compensation for the damage under the terms of the 
Liability Convention,

(a) because no liability for the damage arises under the 
Liability Convention;

(b) because the owner liable for the damage under the 
Liability Convention is financially incapable of meeting 
his obligations in full and any financial security that 
may be provided under Article VII of that Convention does 
not cover or is insufficient to satisfy the claims for 
compensation for the damage; an owner being treated as 
financially incapable of meeting his obligations and a 
financial security being treated as insufficient if the 
person suffering the damage has been unable to obtain 
full satisfaction of the amount of compensation due under 
the Liability Convention after having taken 
all reasonable steps to pursue the legal remedies 
available to him;                                      

(c) because the damage exceeds the owner's liability 
under the Liability Convention as limited pursuant to 
Article V, paragraph 1, of that Convention or under the 
terms of any other international Convention in force or 
open for signature, ratification or accession at the date 
of this Convention. Expenses reasonably incurred or 
sacrifices reasonably made by the owner voluntarily to 
prevent or minimize pollution damage shall be treated as 
pollution damage for the purposes of this Article. 

2. The Fund shall incur no obligation under the preceding 
paragraph if:

(a) it proves that the pollution damage resulted from an 
act of war, hostilities, civil war or insurrection or was 
caused by oil which has escaped or been discharged from a 
warship or other ship owned or operated by a State and 
used, at the time of the incident, only on Government 
non-commercial service; or

(b) the claimant cannot prove that the damage resulted 
from an incident involving one or more ships.

3. If the Fund proves that the pollution damage resulted 
wholly or partially either from an act or omission done 
with intent to cause damage by the person who suffered 
the damage or from the negligence of that person, the 
Fund may be exonerated wholly or partially from its 
obligation to pay compensation to such person provided, 
however, that there shall be no such exoneration with 
regard to such preventive measures which are compensated 
under paragraph 1. The Fund shall in any event be 
exonerated to the extent that the ship owner may have 
been 
exonerated under Article III, paragraph 3, of the 
Liability Convention.

4. (a) Except as otherwise provided in sub-paragraph (b) 
of this paragraph, the aggregate amount of compensation 
payable by the Fund under this Article shall in respect 
of any one incident be limited, so that the total sum of 
that amount and the amount of compensation actually paid 
under the Liability Convention for pollution damage 
caused in the territory of the Contracting States, 
including any sums in respect of which the Fund is under 
an obligation to indemnify the owner pursuant to Article 
5, paragraph 1, of this Convention, shall not exceed 450 
million francs.

(b) The aggregate amount of compensation payable by the 
Fund under this Article for pollution damage resulting 
from a natural phenomenon of an exceptional, inevitable 
and irresistible character shall not exceed 450 million 
francs. 

5. Where the amount of established claims against the 
Fund exceeds the aggregate amount of compensation payable 
under paragraph 4, the amount available shall be 
distributed in such a manner that the proportion between 
any established claim and the amount of compensation 
actually recovered by the claimant under the Liability 
Convention and this Convention shall be the same for all 
claimants.

6. The Assembly of the Fund (hereinafter referred to as 
"the Assembly") may, having regard to the experience of 
incidents which have occurred and in particular the 
amount of damage resulting therefrom and to changes in 
the monetary values, decide that the amount of 450 
million francs referred to in paragraph 4, sub-paragraphs 
(a) and (b), shall be changed; provided, however, that 
this amount shall in no case exceed 900 million francs or 
be lower than 450 million francs. The changed amount 
shall apply to incidents which occur after the date of 
the decision effecting the change.

7. The Fund shall, at the request of a Contracting State, 
use its good offices as necessary to assist that State to 
secure promptly such personnel, mate





This data access service is provided by the Center for International Earth Science Information Network (CIESIN), which operates the Socioeconomic Data and Applications Center (SEDAC) for the U.S. National Aeronautics and Space Administration (NASA).


Environmental Treaties and Resource Indicators (ENTRI) -- Full Text




Summary of the "International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage" is available from the UNEP Register of International Treaties and Other Agreements in the Field of the Environment.




See the ENTRI query system for information about the status of this treaty.


See the ENTRI thematic guide for more information about the relationships between environmental treaties, national resource indicators, and remotely sensed data.



INTERNATIONAL CONVENTION ON THE ESTABLISHMENT OF AN 
INTERNATIONAL FUND FOR COMPENSATION FOR OIL POLLUTION 
DAMAGE

(Brussels, 18 December 1971)

The States Parties to the present Convention,

Being Parties to the International Convention on Civil 
Liability for Oil Pollution Damage, adopted at Brussels 
on 29 November 1969, Conscious of the dangers of 
pollution posed by the world-wide maritime carriage of 
oil in bulk,

Convinced of the need to ensure that adequate 
compensation is available to persons who suffer damage 
caused by pollution resulting from the escape or 
discharge of oil from ships, Considering that the 
International Convention of 29 November 1969, on Civil 
Liability for Oil Pollution Damage, by providing a regime 
for compensation for pollution damage in Contracting 
States and for the costs of measures, wherever taken, to 
prevent or minimize such damage, represents a 
considerable progress towards the achievement of this 
aim,

Considering however that this regime does not afford full 
compensation for victims of oil pollution damage in all 
cases while it imposes an additional financial burden on 
ship owners, 

Considering further that the economic consequences of oil 
pollution damage resulting from the escape or discharge 
of oil carried in bulk at sea by ships should not 
exclusively be borne by the shipping industry but should 
in part be borne by the oil cargo interests, Convinced of 
the need to elaborate a compensation and indemnification 
system supplementary to the International Convention on 
Civil Liability for Oil Pollution Damage with a view to 
ensuring that full compensation will be available to 
victims of oil pollution incidents and that the ship-
owners are at the same time given relief in respect of 
the additional financial burdens imposed on them by the 
said Convention,

Taking note of the Resolution on the Establishment of an 
International Compensation Fund for Oil Pollution Damage 
which was adopted on 29 November 1969 by the 
International Legal Conference on Marine Pollution 
Damage,

Have agreed as follows:


GENERAL PROVISIONS


Article 1

For the purposes of this Convention

1. "Liability Convention" means the International 
Convention on Civil Liability for Oil Pollution Damage, 
adopted at Brussels on 29 November 1969.

2. "Ship", "Person", "Owner", "Oil", "Pollution Damage", 
"Preventive Measures", "Incident" and "Organization" , 
have the same meaning as in Article I of the Liability 
Convention, provided however that, for the purposes of 
these terms, "oil" shall be confined to persistent 
hydrocarbon mineral oils.

3. "Contributing Oil" means crude oil and fuel oil as 
defined in sub-paragraphs (a) and (b) below:

(a) "Crude Oil" means any liquid hydrocarbon mixture 
occurring naturally in the earth whether or not treated 
to render it suitable for transportation. It also 
includes crude oils from which certain distillate 
fractions have been removed (sometimes referred to as 
"topped crudes") or to which certain distillate fractions 
have been added (sometimes referred to as "spiked" or 
"reconstituted" crudes).

(b) "Fuel Oil" means heavy distillates or residues from 
crude oil or blends of such materials intended for use as 
a fuel for the production of heat or power of a quality 
equivalent to the "American Society for Testing and 
Materials" Specification for Number Four Fuel Oil 
(Designation D 396-69), or heavier.

4. "Franc" means the unit referred to in Article V, 
paragraph 9, of the Liability Convention.

5. "Ship's tonnage" has the same meaning as in Article V, 
paragraph 10, of the Liability Convention.

6. "Ton", in relation to oil, means a metric ton.

7. "Guarantor" means any person providing insurance or 
other financial security to cover an owner's liability in 
pursuance of Article VII, paragraph 1, of the Liability 
Convention.

8. "Terminal installation" means any site for the storage 
of oil in bulk which is capable of receiving oil from 
waterborne transportation, including any facility 
situated off-shore and linked to such site.

9. Where an incident consists of a series of occurrences, 
it shall be treated as having occurred on the date of the 
first such occurrence.


Article 2

1. An International Fund for compensation for pollution 
damage, to be named "The International Oil Pollution 
Compensation Fund" and hereinafter referred to as "The 
Fund", is hereby established with the following aims:

(a) to provide compensation for pollution damage to the 
extent that the protection afforded by the Liability 
Convention is inadequate; 

(b) to give relief to ship owners in respect of the 
additional financial burden imposed on them by the 
Liability Convention, such relief 
being subject to conditions designed to insure compliance 
with safety at sea and other conventions;

(c) to give effect to the related purposes set out in 
this Convention. 2. The Fund shall in each Contracting 
State be recognized as a legal person capable under the 
laws of that State of assuming rights and obligations and 
of being a party in legal proceedings before the courts 
of that State. Each Contracting State shall recognize the 
Director of the Fund (hereinafter referred to as "The 
Director") as the legal representative of the Fund.


Article 3

This Convention shall apply:

1. with regard to compensation according to Article 4, 
exclusively to pollution damage caused on the territory 
including the territorial sea of a Contracting State, and 
to preventive measures taken to prevent or minimize such 
damage;

2. with regard to indemnification of ship owners and 
their 
guarantors according to Article 5, exclusively in respect 
of pollution damage caused on the territory including the 
territorial sea of a State party to the Liability 
Convention, by a ship registered in or flying the flag of 
a Contracting State and in respect of preventive measures 
taken to prevent or minimize such damage. Compensation 
and Indemnification


Article 4

1. For the purpose of fulfilling its function under 
Article 2, paragraph 1 (a), the Fund shall pay 
compensation to any person suffering pollution damage if 
such person has been unable to obtain full and adequate 
compensation for the damage under the terms of the 
Liability Convention,

(a) because no liability for the damage arises under the 
Liability Convention;

(b) because the owner liable for the damage under the 
Liability Convention is financially incapable of meeting 
his obligations in full and any financial security that 
may be provided under Article VII of that Convention does 
not cover or is insufficient to satisfy the claims for 
compensation for the damage; an owner being treated as 
financially incapable of meeting his obligations and a 
financial security being treated as insufficient if the 
person suffering the damage has been unable to obtain 
full satisfaction of the amount of compensation due under 
the Liability Convention after having taken 
all reasonable steps to pursue the legal remedies 
available to him;                                      

(c) because the damage exceeds the owner's liability 
under the Liability Convention as limited pursuant to 
Article V, paragraph 1, of that Convention or under the 
terms of any other international Convention in force or 
open for signature, ratification or accession at the date 
of this Convention. Expenses reasonably incurred or 
sacrifices reasonably made by the owner voluntarily to 
prevent or minimize pollution damage shall be treated as 
pollution damage for the purposes of this Article. 

2. The Fund shall incur no obligation under the preceding 
paragraph if:

(a) it proves that the pollution damage resulted from an 
act of war, hostilities, civil war or insurrection or was 
caused by oil which has escaped or been discharged from a 
warship or other ship owned or operated by a State and 
used, at the time of the incident, only on Government 
non-commercial service; or

(b) the claimant cannot prove that the damage resulted 
from an incident involving one or more ships.

3. If the Fund proves that the pollution damage resulted 
wholly or partially either from an act or omission done 
with intent to cause damage by the person who suffered 
the damage or from the negligence of that person, the 
Fund may be exonerated wholly or partially from its 
obligation to pay compensation to such person provided, 
however, that there shall be no such exoneration with 
regard to such preventive measures which are compensated 
under paragraph 1. The Fund shall in any event be 
exonerated to the extent that the ship owner may have 
been 
exonerated under Article III, paragraph 3, of the 
Liability Convention.

4. (a) Except as otherwise provided in sub-paragraph (b) 
of this paragraph, the aggregate amount of compensation 
payable by the Fund under this Article shall in respect 
of any one incident be limited, so that the total sum of 
that amount and the amount of compensation actually paid 
under the Liability Convention for pollution damage 
caused in the territory of the Contracting States, 
including any sums in respect of which the Fund is under 
an obligation to indemnify the owner pursuant to Article 
5, paragraph 1, of this Convention, shall not exceed 450 
million francs.

(b) The aggregate amount of compensation payable by the 
Fund under this Article for pollution damage resulting 
from a natural phenomenon of an exceptional, inevitable 
and irresistible character shall not exceed 450 million 
francs. 

5. Where the amount of established claims against the 
Fund exceeds the aggregate amount of compensation payable 
under paragraph 4, the amount available shall be 
distributed in such a manner that the proportion between 
any established claim and the amount of compensation 
actually recovered by the claimant under the Liability 
Convention and this Convention shall be the same for all 
claimants.

6. The Assembly of the Fund (hereinafter referred to as 
"the Assembly") may, having regard to the experience of 
incidents which have occurred and in particular the 
amount of damage resulting therefrom and to changes in 
the monetary values, decide that the amount of 450 
million francs referred to in paragraph 4, sub-paragraphs 
(a) and (b), shall be changed; provided, however, that 
this amount shall in no case exceed 900 million francs or 
be lower than 450 million francs. The changed amount 
shall apply to incidents which occur after the date of 
the decision effecting the change.

7. The Fund shall, at the request of a Contracting State, 
use its good offices as necessary to assist that State to 
secure promptly such personnel, material and services as 
are necessary to enable the State to take measures to 
prevent or mitigate pollution damage arising from an 
incident in respect of which the Fund may be called upon 
to pay compensation under this Convention.

8. The Fund may on conditions to be laid down in the 
Internal Regulations provide credit facilities with a 
view to the taking of preventive measures against 
pollution damage arising from a particular incident in 
respect of which the Fund may be called upon to pay 
compensation under this Convention.


Article 5

1. For the purpose of fulfilling its function under 
Article 2, paragraph 1 (b), the Fund shall indemnify the 
owner and his guarantor for that portion of the aggregate 
amount of liability under the Liability Convention which:
(a) is in excess of an amount equivalent to 1,500 francs 
for each ton of the ship's tonnage or of an amount of 125 
million francs, whichever is the less, and (b) is not in 
excess of an amount equivalent to 2,000 francs for each 
ton of the said tonnage or an amount of 210 million 
francs, whichever is the less, provided, however, that 
the Fund shall incur no obligation under this paragraph 
where the pollution damage resulted from the willful 
misconduct of the owner himself. 

2. The Assembly may decide that the Fund shall, on 
conditions to be laid down in the Internal Regulations, 
assume the obligations of a guarantor in respect of ships 
referred to in Article 3, paragraph 2, with regard to the 
portion of liability referred to in paragraph 1 of this 
Article. However, the Fund shall assume such obligations 
only if the owner so requests and if he maintains 
adequate insurance or other financial security covering 
the owner's liability under the Liability Convention up 
to an amount equivalent to 1,500 francs for each ton of 
the ship's tonnage or an amount of 125 million francs, 
whichever is the less. If the Fund assumes such 
obligations, the owner shall in each Contracting State be 
considered to have complied with Article VII of the 
Liability Convention in respect of the portion of his 
liability mentioned above.

3. The Fund may be exonerated wholly or partially from 
its obligations under paragraph 1 towards the owner and 
his guarantor if the Fund proves that as a result of the 
actual fault or privity of the owner:

(a) the ship from which the oil causing the pollution 
damage escaped did not comply with the requirements laid 
down in:
(i) the International Convention for the Prevention of 
Pollution of the Sea by Oil, 1954, as amended in 1962; or
(ii) the International Convention for the Safety of Life 
at Sea, 1960; or
(iii) the International Convention on Load Lines, 1966; 
or
(iv) the International Regulations for Preventing 
Collisions at Sea, 1960; or
(v) any amendments to the above mentioned Conventions 
which have been determined as being of an important 
nature in accordance with Article XVI (5) of the 
Convention mentioned under (i), Article IX (e) of the 
Convention mentioned under (ii) or Article 29 (3) (d) or 
(4) (d) of the Convention mentioned under (iii), 
provided, however, that such amendments had been in force 
for at least twelve months at the time of the incident;
and 

(b) the incident or damage was caused wholly of 
partially by such non-compliance. The provisions of this 
paragraph shall apply irrespective of whether the 
Contracting State in which the ship was registered or 
whose flag it was flying is a Party to the relevant 
Instrument.

4. Upon the entry into force of a new Convention designed 
to replace, in whole or in part, any of the Instruments 
specified in paragraph 3, the Assembly may decide at 
least six months in advance a date on which the new 
Convention will replace such Instrument or part thereof 
for the purpose of paragraph 3. However, any State Party 
to this Convention may declare to the Director before 
that date that it does not accept such replacement; in 
which case the decision of the Assembly shall have no 
effect in respect of a ship registered in, or flying the 
flag of, that State at 





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Environmental Treaties and Resource Indicators (ENTRI) -- Full Text




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INTERNATIONAL CONVENTION ON THE ESTABLISHMENT OF AN 
INTERNATIONAL FUND FOR COMPENSATION FOR OIL POLLUTION 
DAMAGE

(Brussels, 18 December 1971)

The States Parties to the present Convention,

Being Parties to the International Convention on Civil 
Liability for Oil Pollution Damage, adopted at Brussels 
on 29 November 1969, Conscious of the dangers of 
pollution posed by the world-wide maritime carriage of 
oil in bulk,

Convinced of the need to ensure that adequate 
compensation is available to persons who suffer damage 
caused by pollution resulting from the escape or 
discharge of oil from ships, Considering that the 
International Convention of 29 November 1969, on Civil 
Liability for Oil Pollution Damage, by providing a regime 
for compensation for pollution damage in Contracting 
States and for the costs of measures, wherever taken, to 
prevent or minimize such damage, represents a 
considerable progress towards the achievement of this 
aim,

Considering however that this regime does not afford full 
compensation for victims of oil pollution damage in all 
cases while it imposes an additional financial burden on 
ship owners, 

Considering further that the economic consequences of oil 
pollution damage resulting from the escape or discharge 
of oil carried in bulk at sea by ships should not 
exclusively be borne by the shipping industry but should 
in part be borne by the oil cargo interests, Convinced of 
the need to elaborate a compensation and indemnification 
system supplementary to the International Convention on 
Civil Liability for Oil Pollution Damage with a view to 
ensuring that full compensation will be available to 
victims of oil pollution incidents and that the ship-
owners are at the same time given relief in respect of 
the additional financial burdens imposed on them by the 
said Convention,

Taking note of the Resolution on the Establishment of an 
International Compensation Fund for Oil Pollution Damage 
which was adopted on 29 November 1969 by the 
International Legal Conference on Marine Pollution 
Damage,

Have agreed as follows:


GENERAL PROVISIONS


Article 1

For the purposes of this Convention

1. "Liability Convention" means the International 
Convention on Civil Liability for Oil Pollution Damage, 
adopted at Brussels on 29 November 1969.

2. "Ship", "Person", "Owner", "Oil", "Pollution Damage", 
"Preventive Measures", "Incident" and "Organization" , 
have the same meaning as in Article I of the Liability 
Convention, provided however that, for the purposes of 
these terms, "oil" shall be confined to persistent 
hydrocarbon mineral oils.

3. "Contributing Oil" means crude oil and fuel oil as 
defined in sub-paragraphs (a) and (b) below:

(a) "Crude Oil" means any liquid hydrocarbon mixture 
occurring naturally in the earth whether or not treated 
to render it suitable for transportation. It also 
includes crude oils from which certain distillate 
fractions have been removed (sometimes referred to as 
"topped crudes") or to which certain distillate fractions 
have been added (sometimes referred to as "spiked" or 
"reconstituted" crudes).

(b) "Fuel Oil" means heavy distillates or residues from 
crude oil or blends of such materials intended for use as 
a fuel for the production of heat or power of a quality 
equivalent to the "American Society for Testing and 
Materials" Specification for Number Four Fuel Oil 
(Designation D 396-69), or heavier.

4. "Franc" means the unit referred to in Article V, 
paragraph 9, of the Liability Convention.

5. "Ship's tonnage" has the same meaning as in Article V, 
paragraph 10, of the Liability Convention.

6. "Ton", in relation to oil, means a metric ton.

7. "Guarantor" means any person providing insurance or 
other financial security to cover an owner's liability in 
pursuance of Article VII, paragraph 1, of the Liability 
Convention.

8. "Terminal installation" means any site for the storage 
of oil in bulk which is capable of receiving oil from 
waterborne transportation, including any facility 
situated off-shore and linked to such site.

9. Where an incident consists of a series of occurrences, 
it shall be treated as having occurred on the date of the 
first such occurrence.


Article 2

1. An International Fund for compensation for pollution 
damage, to be named "The International Oil Pollution 
Compensation Fund" and hereinafter referred to as "The 
Fund", is hereby established with the following aims:

(a) to provide compensation for pollution damage to the 
extent that the protection afforded by the Liability 
Convention is inadequate; 

(b) to give relief to ship owners in respect of the 
additional financial burden imposed on them by the 
Liability Convention, such relief 
being subject to conditions designed to insure compliance 
with safety at sea and other conventions;

(c) to give effect to the related purposes set out in 
this Convention. 2. The Fund shall in each Contracting 
State be recognized as a legal person capable under the 
laws of that State of assuming rights and obligations and 
of being a party in legal proceedings before the courts 
of that State. Each Contracting State shall recognize the 
Director of the Fund (hereinafter referred to as "The 
Director") as the legal representative of the Fund.


Article 3

This Convention shall apply:

1. with regard to compensation according to Article 4, 
exclusively to pollution damage caused on the territory 
including the territorial sea of a Contracting State, and 
to preventive measures taken to prevent or minimize such 
damage;

2. with regard to indemnification of ship owners and 
their 
guarantors according to Article 5, exclusively in respect 
of pollution damage caused on the territory including the 
territorial sea of a State party to the Liability 
Convention, by a ship registered in or flying the flag of 
a Contracting State and in respect of preventive measures 
taken to prevent or minimize such damage. Compensation 
and Indemnification


Article 4

1. For the purpose of fulfilling its function under 
Article 2, paragraph 1 (a), the Fund shall pay 
compensation to any person suffering pollution damage if 
such person has been unable to obtain full and adequate 
compensation for the damage under the terms of the 
Liability Convention,

(a) because no liability for the damage arises under the 
Liability Convention;

(b) because the owner liable for the damage under the 
Liability Convention is financially incapable of meeting 
his obligations in full and any financial security that 
may be provided under Article VII of that Convention does 
not cover or is insufficient to satisfy the claims for 
compensation for the damage; an owner being treated as 
financially incapable of meeting his obligations and a 
financial security being treated as insufficient if the 
person suffering the damage has been unable to obtain 
full satisfaction of the amount of compensation due under 
the Liability Convention after having taken 
all reasonable steps to pursue the legal remedies 
available to him;                                      

(c) because the damage exceeds the owner's liability 
under the Liability Convention as limited pursuant to 
Article V, paragraph 1, of that Convention or under the 
terms of any other international Convention in force or 
open for signature, ratification or accession at the date 
of this Convention. Expenses reasonably incurred or 
sacrifices reasonably made by the owner voluntarily to 
prevent or minimize pollution damage shall be treated as 
pollution damage for the purposes of this Article. 

2. The Fund shall incur no obligation under the preceding 
paragraph if:

(a) it proves that the pollution damage resulted from an 
act of war, hostilities, civil war or insurrection or was 
caused by oil which has escaped or been discharged from a 
warship or other ship owned or operated by a State and 
used, at the time of the incident, only on Government 
non-commercial service; or

(b) the claimant cannot prove that the damage resulted 
from an incident involving one or more ships.

3. If the Fund proves that the pollution damage resulted 
wholly or partially either from an act or omission done 
with intent to cause damage by the person who suffered 
the damage or from the negligence of that person, the 
Fund may be exonerated wholly or partially from its 
obligation to pay compensation to such person provided, 
however, that there shall be no such exoneration with 
regard to such preventive measures which are compensated 
under paragraph 1. The Fund shall in any event be 
exonerated to the extent that the ship owner may have 
been 
exonerated under Article III, paragraph 3, of the 
Liability Convention.

4. (a) Except as otherwise provided in sub-paragraph (b) 
of this paragraph, the aggregate amount of compensation 
payable by the Fund under this Article shall in respect 
of any one incident be limited, so that the total sum of 
that amount and the amount of compensation actually paid 
under the Liability Convention for pollution damage 
caused in the territory of the Contracting States, 
including any sums in respect of which the Fund is under 
an obligation to indemnify the owner pursuant to Article 
5, paragraph 1, of this Convention, shall not exceed 450 
million francs.

(b) The aggregate amount of compensation payable by the 
Fund under this Article for pollution damage resulting 
from a natural phenomenon of an exceptional, inevitable 
and irresistible character shall not exceed 450 million 
francs. 

5. Where the amount of established claims against the 
Fund exceeds the aggregate amount of compensation payable 
under paragraph 4, the amount available shall be 
distributed in such a manner that the proportion between 
any established claim and the amount of compensation 
actually recovered by the claimant under the Liability 
Convention and this Convention shall be the same for all 
claimants.

6. The Assembly of the Fund (hereinafter referred to as 
"the Assembly") may, having regard to the experience of 
incidents which have occurred and in particular the 
amount of damage resulting therefrom and to changes in 
the monetary values, decide that the amount of 450 
million francs referred to in paragraph 4, sub-paragraphs 
(a) and (b), shall be changed; provided, however, that 
this amount shall in no case exceed 900 million francs or 
be lower than 450 million francs. The changed amount 
shall apply to incidents which occur after the date of 
the decision effecting the change.

7. The Fund shall, at the request of a Contracting State, 
use its good offices as necessary to assist that State to 
secure promptly such personnel, material and services as 
are necessary to enable the State to take measures to 
prevent or mitigate pollution damage arising from an 
incident in respect of which the Fund may be called upon 
to pay compensation under this Convention.

8. The Fund may on conditions to be laid down in the 
Internal Regulations provide credit facilities with a 
view to the taking of preventive measures against 
pollution damage arising from a particular incident in 
respect of which the Fund may be called upon to pay 
compensation under this Convention.


Article 5

1. For the purpose of fulfilling its function under 
Article 2, paragraph 1 (b), the Fund shall indemnify the 
owner and his guarantor for that portion of the aggregate 
amount of liability under the Liability Convention which:
(a) is in excess of an amount equivalent to 1,500 francs 
for each ton of the ship's tonnage or of an amount of 125 
million francs, whichever is the less, and (b) is not in 
excess of an amount equivalent to 2,000 francs for each 
ton of the said tonnage or an amount of 210 million 
francs, whichever is the less, provided, however, that 
the Fund shall incur no obligation under this paragraph 
where the pollution damage resulted from the willful 
misconduct of the owner himself. 

2. The Assembly may decide that the Fund shall, on 
conditions to be laid down in the Internal Regulations, 
assume the obligations of a guarantor in respect of ships 
referred to in Article 3, paragraph 2, with regard to the 
portion of liability referred to in paragraph 1 of this 
Article. However, the Fund shall assume such obligations 
only if the owner so requests and if he maintains 
adequate insurance or other financial security covering 
the owner's liability under the Liability Convention up 
to an amount equivalent to 1,500 francs for each ton of 
the ship's tonnage or an amount of 125 million francs, 
whichever is the less. If the Fund assumes such 
obligations, the owner shall in each Contracting State be 
considered to have complied with Article VII of the 
Liability Convention in respect of the portion of his 
liability mentioned above.

3. The Fund may be exonerated wholly or partially from 
its obligations under paragraph 1 towards the owner and 
his guarantor if the Fund proves that as a result of the 
actual fault or privity of the owner:

(a) the ship from which the oil causing the pollution 
damage escaped did not comply with the requirements laid 
down in:
(i) the International Convention for the Prevention of 
Pollution of the Sea by Oil, 1954, as amended in 1962; or
(ii) the International Convention for the Safety of Life 
at Sea, 1960; or
(iii) the International Convention on Load Lines, 1966; 
or
(iv) the International Regulations for Preventing 
Collisions at Sea, 1960; or
(v) any amendments to the above mentioned Conventions 
which have been determined as being of an important 
nature in accordance with Article XVI (5) of the 
Convention mentioned under (i), Article IX (e) of the 
Convention mentioned under (ii) or Article 29 (3) (d) or 
(4) (d) of the Convention mentioned under (iii), 
provided, however, that such amendments had been in force 
for at least twelve months at the time of the incident;
and 

(b) the incident or damage was caused wholly of 
partially by such non-compliance. The provisions of this 
paragraph shall apply irrespective of whether the 
Contracting State in which the ship was registered or 
whose flag it was flying is a Party to the relevant 
Instrument.

4. Upon the entry into force of a new Convention designed 
to replace, in whole or in part, any of the Instruments 
specified in paragraph 3, the Assembly may decide at 
least six months in advance a date on which the new 
Convention will replace such Instrument or part thereof 
for the purpose of paragraph 3. However, any State Party 
to this Convention may declare to the Director before 
that date that it does not accept such replacement; in 
which case the decision of the Assembly shall have no 
effect in respect of a ship registered in, or flying the 
flag of, that State at the time of the incident. Such a 
declaration may be withdrawn at any later date and shall 
in any event cease to have effect when the State in 
question becomes a party to such new Convention.

5. A ship complying with the requirements in an amendment 
to an Instrument specified in paragraph 3 or with 
requirements in a new Convention, where the amendment or 
Convention is designed to replace in whole or in part 
such Instrument, shall be considered as complying with 
the requirements in the said Instrument for the purposes 
of paragraph 3.

6. Where the Fund, acting as a guarantor by virtue of 
paragraph 2 has paid compensation for pollution damage in 
accordance with the Liability Convention, it shall have a 
right of recovery from the owner if and to the extent 
that the Fund would have been exonerated pursuant to 
paragraph 3 from its obligations under paragraph 1 to 
indemnify the owner.

7. Expenses reasonably incurred and sacrifices reasonably 
made by the owner voluntarily to prevent or minimize 
pollution damage shall be treated as included in the 
owner's liability for the purposes of this Article.


Article 6

1. Rights to compensation under Article 4 or 
indemnification under Article 5 shall be extinguished 
unless an action is brought thereunder or a notification 
has been made pursuant to Article 7, paragraph 6, within 
three years from the date when the damage occurred. 
However, in no case shall an action be brought after six 
years from the date of the incident which caused the 
damage.

2. Notwithstanding paragraph 1, the right of the owner or 
his guarantor to seek indemnification from the Fund 
pursuant to Article 5, paragraph 1, shall in no case be 
extinguished before the expiry of a period of six months 
as from the date on which the owner or his guarantor 
acquired knowledge of the bringing of an action against 
him under the Liability Convention.


Article 7

1. Subject to the subsequent provisions of this Article, 
any action against the Fund for compensation under 
Article 4 or indemnification under Article 5 of this 
Convention shall be brought only before a court competent 
under Article IX of the Liability Convention in respect 
of actions against the owner who is or who would, but for 
the provisions of Article III, paragraph 2, of that 
Convention, have been liable for pollution damage caused 
by the relevant incident.

2. Each Contracting State shall ensure that its courts 
possess the necessary jurisdiction to entertain such ac-
tions against the Fund as are referred to in paragraph 1.

3. Where an action for compensation for pollution damage 
has been brought before a court competent under Article 
IX of the Liability Convention against the owner of a 
ship or his guarantor, such court shall have exclusive 
jurisdictional competence over any action against the 
Fund for compensation or indemnification under the 
provisions of Article 4 or 5 of this Convention in 
respect of the same damage. However, where an action for 
compensation for pollution damage under the Liability 
Convention has been brought before a court in a State 
Party to the Liability Convention but not to this 
Convention, any action against the Fund under Article 4 
or under Article 5, paragraph 1, of this Convention shall 
at the option of the claimant be brought either before a 
court the State where the Fund has its headquarters or 
before any court of a State Party to this 
Convention competent under Article IX of the Liability 
Convention. 

4. Each Contracting State shall ensure that the Fund 
shall have the right to intervene as a party to any legal 
proceedings instituted in accordance with Article IX of 
the Liability Convention before a competent court of that 
State against the owner of a ship or his guarantor.

5. Except as otherwise provided in paragraph 6, the Fund 
shall not be bound by any judgment or decision in 
proceedings to which it has not been a party or by any 
settlement to which it is not a party. 

6. Without prejudice to the provisions of paragraph 4, 
where an action under the Liability Co





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Environmental Treaties and Resource Indicators (ENTRI) -- Full Text




Summary of the "International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage" is available from the UNEP Register of International Treaties and Other Agreements in the Field of the Environment.




See the ENTRI query system for information about the status of this treaty.


See the ENTRI thematic guide for more information about the relationships between environmental treaties, national resource indicators, and remotely sensed data.



INTERNATIONAL CONVENTION ON THE ESTABLISHMENT OF AN 
INTERNATIONAL FUND FOR COMPENSATION FOR OIL POLLUTION 
DAMAGE

(Brussels, 18 December 1971)

The States Parties to the present Convention,

Being Parties to the International Convention on Civil 
Liability for Oil Pollution Damage, adopted at Brussels 
on 29 November 1969, Conscious of the dangers of 
pollution posed by the world-wide maritime carriage of 
oil in bulk,

Convinced of the need to ensure that adequate 
compensation is available to persons who suffer damage 
caused by pollution resulting from the escape or 
discharge of oil from ships, Considering that the 
International Convention of 29 November 1969, on Civil 
Liability for Oil Pollution Damage, by providing a regime 
for compensation for pollution damage in Contracting 
States and for the costs of measures, wherever taken, to 
prevent or minimize such damage, represents a 
considerable progress towards the achievement of this 
aim,

Considering however that this regime does not afford full 
compensation for victims of oil pollution damage in all 
cases while it imposes an additional financial burden on 
ship owners, 

Considering further that the economic consequences of oil 
pollution damage resulting from the escape or discharge 
of oil carried in bulk at sea by ships should not 
exclusively be borne by the shipping industry but should 
in part be borne by the oil cargo interests, Convinced of 
the need to elaborate a compensation and indemnification 
system supplementary to the International Convention on 
Civil Liability for Oil Pollution Damage with a view to 
ensuring that full compensation will be available to 
victims of oil pollution incidents and that the ship-
owners are at the same time given relief in respect of 
the additional financial burdens imposed on them by the 
said Convention,

Taking note of the Resolution on the Establishment of an 
International Compensation Fund for Oil Pollution Damage 
which was adopted on 29 November 1969 by the 
International Legal Conference on Marine Pollution 
Damage,

Have agreed as follows:


GENERAL PROVISIONS


Article 1

For the purposes of this Convention

1. "Liability Convention" means the International 
Convention on Civil Liability for Oil Pollution Damage, 
adopted at Brussels on 29 November 1969.

2. "Ship", "Person", "Owner", "Oil", "Pollution Damage", 
"Preventive Measures", "Incident" and "Organization" , 
have the same meaning as in Article I of the Liability 
Convention, provided however that, for the purposes of 
these terms, "oil" shall be confined to persistent 
hydrocarbon mineral oils.

3. "Contributing Oil" means crude oil and fuel oil as 
defined in sub-paragraphs (a) and (b) below:

(a) "Crude Oil" means any liquid hydrocarbon mixture 
occurring naturally in the earth whether or not treated 
to render it suitable for transportation. It also 
includes crude oils from which certain distillate 
fractions have been removed (sometimes referred to as 
"topped crudes") or to which certain distillate fractions 
have been added (sometimes referred to as "spiked" or 
"reconstituted" crudes).

(b) "Fuel Oil" means heavy distillates or residues from 
crude oil or blends of such materials intended for use as 
a fuel for the production of heat or power of a quality 
equivalent to the "American Society for Testing and 
Materials" Specification for Number Four Fuel Oil 
(Designation D 396-69), or heavier.

4. "Franc" means the unit referred to in Article V, 
paragraph 9, of the Liability Convention.

5. "Ship's tonnage" has the same meaning as in Article V, 
paragraph 10, of the Liability Convention.

6. "Ton", in relation to oil, means a metric ton.

7. "Guarantor" means any person providing insurance or 
other financial security to cover an owner's liability in 
pursuance of Article VII, paragraph 1, of the Liability 
Convention.

8. "Terminal installation" means any site for the storage 
of oil in bulk which is capable of receiving oil from 
waterborne transportation, including any facility 
situated off-shore and linked to such site.

9. Where an incident consists of a series of occurrences, 
it shall be treated as having occurred on the date of the 
first such occurrence.


Article 2

1. An International Fund for compensation for pollution 
damage, to be named "The International Oil Pollution 
Compensation Fund" and hereinafter referred to as "The 
Fund", is hereby established with the following aims:

(a) to provide compensation for pollution damage to the 
extent that the protection afforded by the Liability 
Convention is inadequate; 

(b) to give relief to ship owners in respect of the 
additional financial burden imposed on them by the 
Liability Convention, such relief 
being subject to conditions designed to insure compliance 
with safety at sea and other conventions;

(c) to give effect to the related purposes set out in 
this Convention. 2. The Fund shall in each Contracting 
State be recognized as a legal person capable under the 
laws of that State of assuming rights and obligations and 
of being a party in legal proceedings before the courts 
of that State. Each Contracting State shall recognize the 
Director of the Fund (hereinafter referred to as "The 
Director") as the legal representative of the Fund.


Article 3

This Convention shall apply:

1. with regard to compensation according to Article 4, 
exclusively to pollution damage caused on the territory 
including the territorial sea of a Contracting State, and 
to preventive measures taken to prevent or minimize such 
damage;

2. with regard to indemnification of ship owners and 
their 
guarantors according to Article 5, exclusively in respect 
of pollution damage caused on the territory including the 
territorial sea of a State party to the Liability 
Convention, by a ship registered in or flying the flag of 
a Contracting State and in respect of preventive measures 
taken to prevent or minimize such damage. Compensation 
and Indemnification


Article 4

1. For the purpose of fulfilling its function under 
Article 2, paragraph 1 (a), the Fund shall pay 
compensation to any person suffering pollution damage if 
such person has been unable to obtain full and adequate 
compensation for the damage under the terms of the 
Liability Convention,

(a) because no liability for the damage arises under the 
Liability Convention;

(b) because the owner liable for the damage under the 
Liability Convention is financially incapable of meeting 
his obligations in full and any financial security that 
may be provided under Article VII of that Convention does 
not cover or is insufficient to satisfy the claims for 
compensation for the damage; an owner being treated as 
financially incapable of meeting his obligations and a 
financial security being treated as insufficient if the 
person suffering the damage has been unable to obtain 
full satisfaction of the amount of compensation due under 
the Liability Convention after having taken 
all reasonable steps to pursue the legal remedies 
available to him;                                      

(c) because the damage exceeds the owner's liability 
under the Liability Convention as limited pursuant to 
Article V, paragraph 1, of that Convention or under the 
terms of any other international Convention in force or 
open for signature, ratification or accession at the date 
of this Convention. Expenses reasonably incurred or 
sacrifices reasonably made by the owner voluntarily to 
prevent or minimize pollution damage shall be treated as 
pollution damage for the purposes of this Article. 

2. The Fund shall incur no obligation under the preceding 
paragraph if:

(a) it proves that the pollution damage resulted from an 
act of war, hostilities, civil war or insurrection or was 
caused by oil which has escaped or been discharged from a 
warship or other ship owned or operated by a State and 
used, at the time of the incident, only on Government 
non-commercial service; or

(b) the claimant cannot prove that the damage resulted 
from an incident involving one or more ships.

3. If the Fund proves that the pollution damage resulted 
wholly or partially either from an act or omission done 
with intent to cause damage by the person who suffered 
the damage or from the negligence of that person, the 
Fund may be exonerated wholly or partially from its 
obligation to pay compensation to such person provided, 
however, that there shall be no such exoneration with 
regard to such preventive measures which are compensated 
under paragraph 1. The Fund shall in any event be 
exonerated to the extent that the ship owner may have 
been 
exonerated under Article III, paragraph 3, of the 
Liability Convention.

4. (a) Except as otherwise provided in sub-paragraph (b) 
of this paragraph, the aggregate amount of compensation 
payable by the Fund under this Article shall in respect 
of any one incident be limited, so that the total sum of 
that amount and the amount of compensation actually paid 
under the Liability Convention for pollution damage 
caused in the territory of the Contracting States, 
including any sums in respect of which the Fund is under 
an obligation to indemnify the owner pursuant to Article 
5, paragraph 1, of this Convention, shall not exceed 450 
million francs.

(b) The aggregate amount of compensation payable by the 
Fund under this Article for pollution damage resulting 
from a natural phenomenon of an exceptional, inevitable 
and irresistible character shall not exceed 450 million 
francs. 

5. Where the amount of established claims against the 
Fund exceeds the aggregate amount of compensation payable 
under paragraph 4, the amount available shall be 
distributed in such a manner that the proportion between 
any established claim and the amount of compensation 
actually recovered by the claimant under the Liability 
Convention and this Convention shall be the same for all 
claimants.

6. The Assembly of the Fund (hereinafter referred to as 
"the Assembly") may, having regard to the experience of 
incidents which have occurred and in particular the 
amount of damage resulting therefrom and to changes in 
the monetary values, decide that the amount of 450 
million francs referred to in paragraph 4, sub-paragraphs 
(a) and (b), shall be changed; provided, however, that 
this amount shall in no case exceed 900 million francs or 
be lower than 450 million francs. The changed amount 
shall apply to incidents which occur after the date of 
the decision effecting the change.

7. The Fund shall, at the request of a Contracting State, 
use its good offices as necessary to assist that State to 
secure promptly such personnel, material and services as 
are necessary to enable the State to take measures to 
prevent or mitigate pollution damage arising from an 
incident in respect of which the Fund may be called upon 
to pay compensation under this Convention.

8. The Fund may on conditions to be laid down in the 
Internal Regulations provide credit facilities with a 
view to the taking of preventive measures against 
pollution damage arising from a particular incident in 
respect of which the Fund may be called upon to pay 
compensation under this Convention.


Article 5

1. For the purpose of fulfilling its function under 
Article 2, paragraph 1 (b), the Fund shall indemnify the 
owner and his guarantor for that portion of the aggregate 
amount of liability under the Liability Convention which:
(a) is in excess of an amount equivalent to 1,500 francs 
for each ton of the ship's tonnage or of an amount of 125 
million francs, whichever is the less, and (b) is not in 
excess of an amount equivalent to 2,000 francs for each 
ton of the said tonnage or an amount of 210 million 
francs, whichever is the less, provided, however, that 
the Fund shall incur no obligation under this paragraph 
where the pollution damage resulted from the willful 
misconduct of the owner himself. 

2. The Assembly may decide that the Fund shall, on 
conditions to be laid down in the Internal Regulations, 
assume the obligations of a guarantor in respect of ships 
referred to in Article 3, paragraph 2, with regard to the 
portion of liability referred to in paragraph 1 of this 
Article. However, the Fund shall assume such obligations 
only if the owner so requests and if he maintains 
adequate insurance or other financial security covering 
the owner's liability under the Liability Convention up 
to an amount equivalent to 1,500 francs for each ton of 
the ship's tonnage or an amount of 125 million francs, 
whichever is the less. If the Fund assumes such 
obligations, the owner shall in each Contracting State be 
considered to have complied with Article VII of the 
Liability Convention in respect of the portion of his 
liability mentioned above.

3. The Fund may be exonerated wholly or partially from 
its obligations under paragraph 1 towards the owner and 
his guarantor if the Fund proves that as a result of the 
actual fault or privity of the owner:

(a) the ship from which the oil causing the pollution 
damage escaped did not comply with the requirements laid 
down in:
(i) the International Convention for the Prevention of 
Pollution of the Sea by Oil, 1954, as amended in 1962; or
(ii) the International Convention for the Safety of Life 
at Sea, 1960; or
(iii) the International Convention on Load Lines, 1966; 
or
(iv) the International Regulations for Preventing 
Collisions at Sea, 1960; or
(v) any amendments to the above mentioned Conventions 
which have been determined as being of an important 
nature in accordance with Article XVI (5) of the 
Convention mentioned under (i), Article IX (e) of the 
Convention mentioned under (ii) or Article 29 (3) (d) or 
(4) (d) of the Convention mentioned under (iii), 
provided, however, that such amendments had been in force 
for at least twelve months at the time of the incident;
and 

(b) the incident or damage was caused wholly of 
partially by such non-compliance. The provisions of this 
paragraph shall apply irrespective of whether the 
Contracting State in which the ship was registered or 
whose flag it was flying is a Party to the relevant 
Instrument.

4. Upon the entry into force of a new Convention designed 
to replace, in whole or in part, any of the Instruments 
specified in paragraph 3, the Assembly may decide at 
least six months in advance a date on which the new 
Convention will replace such Instrument or part thereof 
for the purpose of paragraph 3. However, any State Party 
to this Convention may declare to the Director before 
that date that it does not accept such replacement; in 
which case the decision of the Assembly shall have no 
effect in respect of a ship registered in, or flying the 
flag of, that State at the time of the incident. Such a 
declaration may be withdrawn at any later date and shall 
in any event cease to have effect when the State in 
question becomes a party to such new Convention.

5. A ship complying with the requirements in an amendment 
to an Instrument specified in paragraph 3 or with 
requirements in a new Convention, where the amendment or 
Convention is designed to replace in whole or in part 
such Instrument, shall be considered as complying with 
the requirements in the said Instrument for the purposes 
of paragraph 3.

6. Where the Fund, acting as a guarantor by virtue of 
paragraph 2 has paid compensation for pollution damage in 
accordance with the Liability Convention, it shall have a 
right of recovery from the owner if and to the extent 
that the Fund would have been exonerated pursuant to 
paragraph 3 from its obligations under paragraph 1 to 
indemnify the owner.

7. Expenses reasonably incurred and sacrifices reasonably 
made by the owner voluntarily to prevent or minimize 
pollution damage shall be treated as included in the 
owner's liability for the purposes of this Article.


Article 6

1. Rights to compensation under Article 4 or 
indemnification under Article 5 shall be extinguished 
unless an action is brought thereunder or a notification 
has been made pursuant to Article 7, paragraph 6, within 
three years from the date when the damage occurred. 
However, in no case shall an action be brought after six 
years from the date of the incident which caused the 
damage.

2. Notwithstanding paragraph 1, the right of the owner or 
his guarantor to seek indemnification from the Fund 
pursuant to Article 5, paragraph 1, shall in no case be 
extinguished before the expiry of a period of six months 
as from the date on which the owner or his guarantor 
acquired knowledge of the bringing of an action against 
him under the Liability Convention.


Article 7

1. Subject to the subsequent provisions of this Article, 
any action against the Fund for compensation under 
Article 4 or indemnification under Article 5 of this 
Convention shall be brought only before a court competent 
under Article IX of the Liability Convention in respect 
of actions against the owner who is or who would, but for 
the provisions of Article III, paragraph 2, of that 
Convention, have been liable for pollution damage caused 
by the relevant incident.

2. Each Contracting State shall ensure that its courts 
possess the necessary jurisdiction to entertain such ac-
tions against the Fund as are referred to in paragraph 1.

3. Where an action for compensation for pollution damage 
has been brought before a court competent under Article 
IX of the Liability Convention against the owner of a 
ship or his guarantor, such court shall have exclusive 
jurisdictional competence over any action against the 
Fund for compensation or indemnification under the 
provisions of Article 4 or 5 of this Convention in 
respect of the same damage. However, where an action for 
compensation for pollution damage under the Liability 
Convention has been brought before a court in a State 
Party to the Liability Convention but not to this 
Convention, any action against the Fund under Article 4 
or under Article 5, paragraph 1, of this Convention shall 
at the option of the claimant be brought either before a 
court the State where the Fund has its headquarters or 
before any court of a State Party to this 
Convention competent under Article IX of the Liability 
Convention. 

4. Each Contracting State shall ensure that the Fund 
shall have the right to intervene as a party to any legal 
proceedings instituted in accordance with Article IX of 
the Liability Convention before a competent court of that 
State against the owner of a ship or his guarantor.

5. Except as otherwise provided in paragraph 6, the Fund 
shall not be bound by any judgment or decision in 
proceedings to which it has not been a party or by any 
settlement to which it is not a party. 

6. Without prejudice to the provisions of paragraph 4, 
where an action under the Liability Convention for 
compensation for pollution damage has been brought 
against an owner or his guarantor before a competent 
court in a Contracting State, each party to the 
proceedings shall be entitled under the national law of 
that State to notify the Fund of the proceedings. Where 
such notification has been made in accordance with the 
formalities required by the law of the court seized and 
in such time and in such a manner that the Fund has in 
fact been in a position effectively to intervene as a 
party to the proceedings, any judgment rendered by the 
court in such proceedings shall, after it has become 
final and enforceable in the State where the judgment was 
given, become binding upon the Fund in the sense that the 
facts and findings in that judgment may not be disputed 
by the Fund even if the Fund has not actually intervened 
in the proceedings.


Article 8

Subject to any decision concerning the distribution 
referred to in Article 4, paragraph 5, any judgment given 
against the Fund by a court having jurisdiction in 
accordance with Article 7, paragraphs 1 and 3, shall, 
when it has become enforceable in the State of origin and 
is in that State no longer subject to ordinary forms of 
review, be recognized and enforceable in each Contracting 
State on the same conditions as are prescribed in Article 
X of the Liability Convention.


Article 9

1. Subject to the provisions of Article 5, the Fund 
shall, in respect of any amount of compensation for 
pollution damage paid by the Fund in accordance with 
Article 4, paragraph 1, of this Convention, acquire by 
subrogation the rights that the person so compensated may 
enjoy under the Liability Convention against the owner or 
his guarantor.

2. Nothing in this Convention shall prejudice any right 
of recourse or subrogation of the Fund against persons 
other than those referred to in the preceding paragraph. 
In any event the right of the Fund to subrogation against 
such person shall not be less favourable than that of an 
insurer of the person to whom compensation or indem-
nification has been paid.

3. Without prejudice to any other rights of subrogation 
or recourse against the Fund which may exist, a 
Contracting State or agency thereof which has paid 
compensation for pollution damage in accordance with 
provisions of national law shall acquire by subrogation 
the rights which the person so compensated would 
have enjoyed under this Convention.


CONTRIBUTIONS

Article 10

1. Contributions to the Fund shall be made in respect of 
each Contracting State by any person who, in the calendar 
year referred to in Article 11, paragraph 1, as regards 
initial contributions and in Article 12, paragraph 2 (a) 
or (b), as regards annual contributions, has received in 
total quantities exceeding 150,000 tons:

(a) in the ports or terminal installations in the 
territory of that State contributing oil carried by sea 
to such ports or terminal installations; and

(b) in any installations situated in the territory of 
that Contracting State contributing oil which has been 
carried by sea and discharged in a port or terminal 
installation of a non-Contracting State, provided that 
contributing oil shall only be taken into account by 
virtue of this sub-paragraph on first receipt in a 
Contracting State after its discharge in that non-
Contracting State. 

2. (a) For the purposes of paragraph 1, where the 
quantity of contributing oil received in the territory of 
a Contracting State by any person in a calendar year when 
aggregated with the quantity of contributing oil received 
in the same Contracting State in that year by any 
associated person or persons exceeds 150,000 tons, 
such person shall pay contributions in respect of the 
actual quantity received by him notwithstanding that that 
quantity, did not exceed 150,000 tons.

(b) "Associated person" means any subsidiary or commonly 
controlled entity. The question whether a person comes 
within this definition shall be determined by the 
national law of the State concerned.


Article 11

1. In respect of each Contrac





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INTERNATIONAL CONVENTION ON THE ESTABLISHMENT OF AN 
INTERNATIONAL FUND FOR COMPENSATION FOR OIL POLLUTION 
DAMAGE

(Brussels, 18 December 1971)

The States Parties to the present Convention,

Being Parties to the International Convention on Civil 
Liability for Oil Pollution Damage, adopted at Brussels 
on 29 November 1969, Conscious of the dangers of 
pollution posed by the world-wide maritime carriage of 
oil in bulk,

Convinced of the need to ensure that adequate 
compensation is available to persons who suffer damage 
caused by pollution resulting from the escape or 
discharge of oil from ships, Considering that the 
International Convention of 29 November 1969, on Civil 
Liability for Oil Pollution Damage, by providing a regime 
for compensation for pollution damage in Contracting 
States and for the costs of measures, wherever taken, to 
prevent or minimize such damage, represents a 
considerable progress towards the achievement of this 
aim,

Considering however that this regime does not afford full 
compensation for victims of oil pollution damage in all 
cases while it imposes an additional financial burden on 
ship owners, 

Considering further that the economic consequences of oil 
pollution damage resulting from the escape or discharge 
of oil carried in bulk at sea by ships should not 
exclusively be borne by the shipping industry but should 
in part be borne by the oil cargo interests, Convinced of 
the need to elaborate a compensation and indemnification 
system supplementary to the International Convention on 
Civil Liability for Oil Pollution Damage with a view to 
ensuring that full compensation will be available to 
victims of oil pollution incidents and that the ship-
owners are at the same time given relief in respect of 
the additional financial burdens imposed on them by the 
said Convention,

Taking note of the Resolution on the Establishment of an 
International Compensation Fund for Oil Pollution Damage 
which was adopted on 29 November 1969 by the 
International Legal Conference on Marine Pollution 
Damage,

Have agreed as follows:


GENERAL PROVISIONS


Article 1

For the purposes of this Convention

1. "Liability Convention" means the International 
Convention on Civil Liability for Oil Pollution Damage, 
adopted at Brussels on 29 November 1969.

2. "Ship", "Person", "Owner", "Oil", "Pollution Damage", 
"Preventive Measures", "Incident" and "Organization" , 
have the same meaning as in Article I of the Liability 
Convention, provided however that, for the purposes of 
these terms, "oil" shall be confined to persistent 
hydrocarbon mineral oils.

3. "Contributing Oil" means crude oil and fuel oil as 
defined in sub-paragraphs (a) and (b) below:

(a) "Crude Oil" means any liquid hydrocarbon mixture 
occurring naturally in the earth whether or not treated 
to render it suitable for transportation. It also 
includes crude oils from which certain distillate 
fractions have been removed (sometimes referred to as 
"topped crudes") or to which certain distillate fractions 
have been added (sometimes referred to as "spiked" or 
"reconstituted" crudes).

(b) "Fuel Oil" means heavy distillates or residues from 
crude oil or blends of such materials intended for use as 
a fuel for the production of heat or power of a quality 
equivalent to the "American Society for Testing and 
Materials" Specification for Number Four Fuel Oil 
(Designation D 396-69), or heavier.

4. "Franc" means the unit referred to in Article V, 
paragraph 9, of the Liability Convention.

5. "Ship's tonnage" has the same meaning as in Article V, 
paragraph 10, of the Liability Convention.

6. "Ton", in relation to oil, means a metric ton.

7. "Guarantor" means any person providing insurance or 
other financial security to cover an owner's liability in 
pursuance of Article VII, paragraph 1, of the Liability 
Convention.

8. "Terminal installation" means any site for the storage 
of oil in bulk which is capable of receiving oil from 
waterborne transportation, including any facility 
situated off-shore and linked to such site.

9. Where an incident consists of a series of occurrences, 
it shall be treated as having occurred on the date of the 
first such occurrence.


Article 2

1. An International Fund for compensation for pollution 
damage, to be named "The International Oil Pollution 
Compensation Fund" and hereinafter referred to as "The 
Fund", is hereby established with the following aims:

(a) to provide compensation for pollution damage to the 
extent that the protection afforded by the Liability 
Convention is inadequate; 

(b) to give relief to ship owners in respect of the 
additional financial burden imposed on them by the 
Liability Convention, such relief 
being subject to conditions designed to insure compliance 
with safety at sea and other conventions;

(c) to give effect to the related purposes set out in 
this Convention. 2. The Fund shall in each Contracting 
State be recognized as a legal person capable under the 
laws of that State of assuming rights and obligations and 
of being a party in legal proceedings before the courts 
of that State. Each Contracting State shall recognize the 
Director of the Fund (hereinafter referred to as "The 
Director") as the legal representative of the Fund.


Article 3

This Convention shall apply:

1. with regard to compensation according to Article 4, 
exclusively to pollution damage caused on the territory 
including the territorial sea of a Contracting State, and 
to preventive measures taken to prevent or minimize such 
damage;

2. with regard to indemnification of ship owners and 
their 
guarantors according to Article 5, exclusively in respect 
of pollution damage caused on the territory including the 
territorial sea of a State party to the Liability 
Convention, by a ship registered in or flying the flag of 
a Contracting State and in respect of preventive measures 
taken to prevent or minimize such damage. Compensation 
and Indemnification


Article 4

1. For the purpose of fulfilling its function under 
Article 2, paragraph 1 (a), the Fund shall pay 
compensation to any person suffering pollution damage if 
such person has been unable to obtain full and adequate 
compensation for the damage under the terms of the 
Liability Convention,

(a) because no liability for the damage arises under the 
Liability Convention;

(b) because the owner liable for the damage under the 
Liability Convention is financially incapable of meeting 
his obligations in full and any financial security that 
may be provided under Article VII of that Convention does 
not cover or is insufficient to satisfy the claims for 
compensation for the damage; an owner being treated as 
financially incapable of meeting his obligations and a 
financial security being treated as insufficient if the 
person suffering the damage has been unable to obtain 
full satisfaction of the amount of compensation due under 
the Liability Convention after having taken 
all reasonable steps to pursue the legal remedies 
available to him;                                      

(c) because the damage exceeds the owner's liability 
under the Liability Convention as limited pursuant to 
Article V, paragraph 1, of that Convention or under the 
terms of any other international Convention in force or 
open for signature, ratification or accession at the date 
of this Convention. Expenses reasonably incurred or 
sacrifices reasonably made by the owner voluntarily to 
prevent or minimize pollution damage shall be treated as 
pollution damage for the purposes of this Article. 

2. The Fund shall incur no obligation under the preceding 
paragraph if:

(a) it proves that the pollution damage resulted from an 
act of war, hostilities, civil war or insurrection or was 
caused by oil which has escaped or been discharged from a 
warship or other ship owned or operated by a State and 
used, at the time of the incident, only on Government 
non-commercial service; or

(b) the claimant cannot prove that the damage resulted 
from an incident involving one or more ships.

3. If the Fund proves that the pollution damage resulted 
wholly or partially either from an act or omission done 
with intent to cause damage by the person who suffered 
the damage or from the negligence of that person, the 
Fund may be exonerated wholly or partially from its 
obligation to pay compensation to such person provided, 
however, that there shall be no such exoneration with 
regard to such preventive measures which are compensated 
under paragraph 1. The Fund shall in any event be 
exonerated to the extent that the ship owner may have 
been 
exonerated under Article III, paragraph 3, of the 
Liability Convention.

4. (a) Except as otherwise provided in sub-paragraph (b) 
of this paragraph, the aggregate amount of compensation 
payable by the Fund under this Article shall in respect 
of any one incident be limited, so that the total sum of 
that amount and the amount of compensation actually paid 
under the Liability Convention for pollution damage 
caused in the territory of the Contracting States, 
including any sums in respect of which the Fund is under 
an obligation to indemnify the owner pursuant to Article 
5, paragraph 1, of this Convention, shall not exceed 450 
million francs.

(b) The aggregate amount of compensation payable by the 
Fund under this Article for pollution damage resulting 
from a natural phenomenon of an exceptional, inevitable 
and irresistible character shall not exceed 450 million 
francs. 

5. Where the amount of established claims against the 
Fund exceeds the aggregate amount of compensation payable 
under paragraph 4, the amount available shall be 
distributed in such a manner that the proportion between 
any established claim and the amount of compensation 
actually recovered by the claimant under the Liability 
Convention and this Convention shall be the same for all 
claimants.

6. The Assembly of the Fund (hereinafter referred to as 
"the Assembly") may, having regard to the experience of 
incidents which have occurred and in particular the 
amount of damage resulting therefrom and to changes in 
the monetary values, decide that the amount of 450 
million francs referred to in paragraph 4, sub-paragraphs 
(a) and (b), shall be changed; provided, however, that 
this amount shall in no case exceed 900 million francs or 
be lower than 450 million francs. The changed amount 
shall apply to incidents which occur after the date of 
the decision effecting the change.

7. The Fund shall, at the request of a Contracting State, 
use its good offices as necessary to assist that State to 
secure promptly such personnel, material and services as 
are necessary to enable the State to take measures to 
prevent or mitigate pollution damage arising from an 
incident in respect of which the Fund may be called upon 
to pay compensation under this Convention.

8. The Fund may on conditions to be laid down in the 
Internal Regulations provide credit facilities with a 
view to the taking of preventive measures against 
pollution damage arising from a particular incident in 
respect of which the Fund may be called upon to pay 
compensation under this Convention.


Article 5

1. For the purpose of fulfilling its function under 
Article 2, paragraph 1 (b), the Fund shall indemnify the 
owner and his guarantor for that portion of the aggregate 
amount of liability under the Liability Convention which:
(a) is in excess of an amount equivalent to 1,500 francs 
for each ton of the ship's tonnage or of an amount of 125 
million francs, whichever is the less, and (b) is not in 
excess of an amount equivalent to 2,000 francs for each 
ton of the said tonnage or an amount of 210 million 
francs, whichever is the less, provided, however, that 
the Fund shall incur no obligation under this paragraph 
where the pollution damage resulted from the willful 
misconduct of the owner himself. 

2. The Assembly may decide that the Fund shall, on 
conditions to be laid down in the Internal Regulations, 
assume the obligations of a guarantor in respect of ships 
referred to in Article 3, paragraph 2, with regard to the 
portion of liability referred to in paragraph 1 of this 
Article. However, the Fund shall assume such obligations 
only if the owner so requests and if he maintains 
adequate insurance or other financial security covering 
the owner's liability under the Liability Convention up 
to an amount equivalent to 1,500 francs for each ton of 
the ship's tonnage or an amount of 125 million francs, 
whichever is the less. If the Fund assumes such 
obligations, the owner shall in each Contracting State be 
considered to have complied with Article VII of the 
Liability Convention in respect of the portion of his 
liability mentioned above.

3. The Fund may be exonerated wholly or partially from 
its obligations under paragraph 1 towards the owner and 
his guarantor if the Fund proves that as a result of the 
actual fault or privity of the owner:

(a) the ship from which the oil causing the pollution 
damage escaped did not comply with the requirements laid 
down in:
(i) the International Convention for the Prevention of 
Pollution of the Sea by Oil, 1954, as amended in 1962; or
(ii) the International Convention for the Safety of Life 
at Sea, 1960; or
(iii) the International Convention on Load Lines, 1966; 
or
(iv) the International Regulations for Preventing 
Collisions at Sea, 1960; or
(v) any amendments to the above mentioned Conventions 
which have been determined as being of an important 
nature in accordance with Article XVI (5) of the 
Convention mentioned under (i), Article IX (e) of the 
Convention mentioned under (ii) or Article 29 (3) (d) or 
(4) (d) of the Convention mentioned under (iii), 
provided, however, that such amendments had been in force 
for at least twelve months at the time of the incident;
and 

(b) the incident or damage was caused wholly of 
partially by such non-compliance. The provisions of this 
paragraph shall apply irrespective of whether the 
Contracting State in which the ship was registered or 
whose flag it was flying is a Party to the relevant 
Instrument.

4. Upon the entry into force of a new Convention designed 
to replace, in whole or in part, any of the Instruments 
specified in paragraph 3, the Assembly may decide at 
least six months in advance a date on which the new 
Convention will replace such Instrument or part thereof 
for the purpose of paragraph 3. However, any State Party 
to this Convention may declare to the Director before 
that date that it does not accept such replacement; in 
which case the decision of the Assembly shall have no 
effect in respect of a ship registered in, or flying the 
flag of, that State at the time of the incident. Such a 
declaration may be withdrawn at any later date and shall 
in any event cease to have effect when the State in 
question becomes a party to such new Convention.

5. A ship complying with the requirements in an amendment 
to an Instrument specified in paragraph 3 or with 
requirements in a new Convention, where the amendment or 
Convention is designed to replace in whole or in part 
such Instrument, shall be considered as complying with 
the requirements in the said Instrument for the purposes 
of paragraph 3.

6. Where the Fund, acting as a guarantor by virtue of 
paragraph 2 has paid compensation for pollution damage in 
accordance with the Liability Convention, it shall have a 
right of recovery from the owner if and to the extent 
that the Fund would have been exonerated pursuant to 
paragraph 3 from its obligations under paragraph 1 to 
indemnify the owner.

7. Expenses reasonably incurred and sacrifices reasonably 
made by the owner voluntarily to prevent or minimize 
pollution damage shall be treated as included in the 
owner's liability for the purposes of this Article.


Article 6

1. Rights to compensation under Article 4 or 
indemnification under Article 5 shall be extinguished 
unless an action is brought thereunder or a notification 
has been made pursuant to Article 7, paragraph 6, within 
three years from the date when the damage occurred. 
However, in no case shall an action be brought after six 
years from the date of the incident which caused the 
damage.

2. Notwithstanding paragraph 1, the right of the owner or 
his guarantor to seek indemnification from the Fund 
pursuant to Article 5, paragraph 1, shall in no case be 
extinguished before the expiry of a period of six months 
as from the date on which the owner or his guarantor 
acquired knowledge of the bringing of an action against 
him under the Liability Convention.


Article 7

1. Subject to the subsequent provisions of this Article, 
any action against the Fund for compensation under 
Article 4 or indemnification under Article 5 of this 
Convention shall be brought only before a court competent 
under Article IX of the Liability Convention in respect 
of actions against the owner who is or who would, but for 
the provisions of Article III, paragraph 2, of that 
Convention, have been liable for pollution damage caused 
by the relevant incident.

2. Each Contracting State shall ensure that its courts 
possess the necessary jurisdiction to entertain such ac-
tions against the Fund as are referred to in paragraph 1.

3. Where an action for compensation for pollution damage 
has been brought before a court competent under Article 
IX of the Liability Convention against the owner of a 
ship or his guarantor, such court shall have exclusive 
jurisdictional competence over any action against the 
Fund for compensation or indemnification under the 
provisions of Article 4 or 5 of this Convention in 
respect of the same damage. However, where an action for 
compensation for pollution damage under the Liability 
Convention has been brought before a court in a State 
Party to the Liability Convention but not to this 
Convention, any action against the Fund under Article 4 
or under Article 5, paragraph 1, of this Convention shall 
at the option of the claimant be brought either before a 
court the State where the Fund has its headquarters or 
before any court of a State Party to this 
Convention competent under Article IX of the Liability 
Convention. 

4. Each Contracting State shall ensure that the Fund 
shall have the right to intervene as a party to any legal 
proceedings instituted in accordance with Article IX of 
the Liability Convention before a competent court of that 
State against the owner of a ship or his guarantor.

5. Except as otherwise provided in paragraph 6, the Fund 
shall not be bound by any judgment or decision in 
proceedings to which it has not been a party or by any 
settlement to which it is not a party. 

6. Without prejudice to the provisions of paragraph 4, 
where an action under the Liability Convention for 
compensation for pollution damage has been brought 
against an owner or his guarantor before a competent 
court in a Contracting State, each party to the 
proceedings shall be entitled under the national law of 
that State to notify the Fund of the proceedings. Where 
such notification has been made in accordance with the 
formalities required by the law of the court seized and 
in such time and in such a manner that the Fund has in 
fact been in a position effectively to intervene as a 
party to the proceedings, any judgment rendered by the 
court in such proceedings shall, after it has become 
final and enforceable in the State where the judgment was 
given, become binding upon the Fund in the sense that the 
facts and findings in that judgment may not be disputed 
by the Fund even if the Fund has not actually intervened 
in the proceedings.


Article 8

Subject to any decision concerning the distribution 
referred to in Article 4, paragraph 5, any judgment given 
against the Fund by a court having jurisdiction in 
accordance with Article 7, paragraphs 1 and 3, shall, 
when it has become enforceable in the State of origin and 
is in that State no longer subject to ordinary forms of 
review, be recognized and enforceable in each Contracting 
State on the same conditions as are prescribed in Article 
X of the Liability Convention.


Article 9

1. Subject to the provisions of Article 5, the Fund 
shall, in respect of any amount of compensation for 
pollution damage paid by the Fund in accordance with 
Article 4, paragraph 1, of this Convention, acquire by 
subrogation the rights that the person so compensated may 
enjoy under the Liability Convention against the owner or 
his guarantor.

2. Nothing in this Convention shall prejudice any right 
of recourse or subrogation of the Fund against persons 
other than those referred to in the preceding paragraph. 
In any event the right of the Fund to subrogation against 
such person shall not be less favourable than that of an 
insurer of the person to whom compensation or indem-
nification has been paid.

3. Without prejudice to any other rights of subrogation 
or recourse against the Fund which may exist, a 
Contracting State or agency thereof which has paid 
compensation for pollution damage in accordance with 
provisions of national law shall acquire by subrogation 
the rights which the person so compensated would 
have enjoyed under this Convention.


CONTRIBUTIONS

Article 10

1. Contributions to the Fund shall be made in respect of 
each Contracting State by any person who, in the calendar 
year referred to in Article 11, paragraph 1, as regards 
initial contributions and in Article 12, paragraph 2 (a) 
or (b), as regards annual contributions, has received in 
total quantities exceeding 150,000 tons:

(a) in the ports or terminal installations in the 
territory of that State contributing oil carried by sea 
to such ports or terminal installations; and

(b) in any installations situated in the territory of 
that Contracting State contributing oil which has been 
carried by sea and discharged in a port or terminal 
installation of a non-Contracting State, provided that 
contributing oil shall only be taken into account by 
virtue of this sub-paragraph on first receipt in a 
Contracting State after its discharge in that non-
Contracting State. 

2. (a) For the purposes of paragraph 1, where the 
quantity of contributing oil received in the territory of 
a Contracting State by any person in a calendar year when 
aggregated with the quantity of contributing oil received 
in the same Contracting State in that year by any 
associated person or persons exceeds 150,000 tons, 
such person shall pay contributions in respect of the 
actual quantity received by him notwithstanding that that 
quantity, did not exceed 150,000 tons.

(b) "Associated person" means any subsidiary or commonly 
controlled entity. The question whether a person comes 
within this definition shall be determined by the 
national law of the State concerned.


Article 11

1. In respect of each Contracting State initial 
contributions shall be made of an amount which shall for 
each person referred to in Article 10 be calculated on 
the basis of a fixed sum for each ton of contributing oil 
received by him during the calendar year preceding that 
in which this Convention entered into force for that 
State.

2. The sum referred to in paragraph 1 shall be determined 
by the Assembly within two months after the entry into 
force of this Convention. In performing this function the 
Assembly shall, to the extent possible, fix the sum in 
such a way that the total amount of initial contributions 
would, if contributions were to be made in respect of 90 
per cent of the quantities of contributing oil carried by 
sea in the world, equal 75 million francs.

3. The initial contributions shall in respect of each 
Contracting State be paid within three months following 
the date at which the Convention entered into force for 
that State.


Article 12

1. With a view to assessing for each person referred to 
in Article 10 the amount of annual contributions due, if 
any, and taking account of the necessity to maintain 
sufficient liquid funds, the Assembly shall for each 
calendar year make an estimate in the form of a budget 
of:
(i) Expenditure
(a) costs and expenses of the administration of the Fund 
in the relevant year and any deficit from operations in 
preceding years; (b) payments to be made by the Fund in 
the relevant year for the satisfaction of claims against 
the Fund due under Article 4 or 5, including repayment on 
loans previously taken by the Fund for the satisfaction 
of such claims, to the extent that the aggregate amount 
of such claims in respect of any one incident does not 
exceed 15 million francs;
(c) payments to be made by the Fund in the relevant year 
for the satisfaction of claims against the Fund due under 
Article 4 or 5, including repayments on loans previously 
taken by the Fund for the satisfaction of such claims, to 
the extent that the aggregate amount of such claims in 
respect of any one incident is in excess of 15 million 
francs;
(ii) Income
(a) surplus funds from operations in preceding years, 
including any interest;
(b) initial contributions to be paid in the course of the 
year; 
(c) annual contributions, if required to balance the 
budget;
(d) any other income.

2. For each person referred to in Article 10 the amount 
of his annual contribution shall be determined by the 
Assembly and shall be calculated in respect of each 
Contracting State:

(a) in so far as the contribution is for the satisfaction 
of payments referred to in paragraph 1 (i) (a) and (b) on 
the basis of a fixed sum for each ton of contributing oil 
received in the relevant State by such persons during the 
preceding calendar year; and

(b) in so far as the contribution is for the satisfaction 
of payments referred to in paragraph 1 (i) (c) of this 
Article on the basis of a fixed sum for each ton of 
contributing oil received by such person during the 
calendar year preceding that in which the incident in 
question occurred, provided that State was a party to 
this Convention at the date of the incident.

3. The sums referred to in paragraph 2 above shall be 
arrived at by dividing the relevant total amount of 
contributions required by the total amount of contri-
buting oil received in all Contracting States in the 
relevant year.

4. The Assembly shall decide the portion of the annual 
contribution which shall be immediately paid in cash and 
decide on the date of payment. The remaining part of each 
annual contribution shall be paid upon notification by 
the Director.

5. The Director may, in cases and in accordance with 
conditions to be laid down in the Internal Regulations of 
the Fund, require a contributor to provide financial 
security for the sums due from him. 6. Any demand for 
payments made under paragraph 4 shall be called rateably 
from all individual contributors.


Article 13

1. The amount of any contribution due under Article 12 
and which is in arrear shall bear interest at a rate 
which shall be de





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INTERNATIONAL CONVENTION ON THE ESTABLISHMENT OF AN 
INTERNATIONAL FUND FOR COMPENSATION FOR OIL POLLUTION 
DAMAGE

(Brussels, 18 December 1971)

The States Parties to the present Convention,

Being Parties to the International Convention on Civil 
Liability for Oil Pollution Damage, adopted at Brussels 
on 29 November 1969, Conscious of the dangers of 
pollution posed by the world-wide maritime carriage of 
oil in bulk,

Convinced of the need to ensure that adequate 
compensation is available to persons who suffer damage 
caused by pollution resulting from the escape or 
discharge of oil from ships, Considering that the 
International Convention of 29 November 1969, on Civil 
Liability for Oil Pollution Damage, by providing a regime 
for compensation for pollution damage in Contracting 
States and for the costs of measures, wherever taken, to 
prevent or minimize such damage, represents a 
considerable progress towards the achievement of this 
aim,

Considering however that this regime does not afford full 
compensation for victims of oil pollution damage in all 
cases while it imposes an additional financial burden on 
ship owners, 

Considering further that the economic consequences of oil 
pollution damage resulting from the escape or discharge 
of oil carried in bulk at sea by ships should not 
exclusively be borne by the shipping industry but should 
in part be borne by the oil cargo interests, Convinced of 
the need to elaborate a compensation and indemnification 
system supplementary to the International Convention on 
Civil Liability for Oil Pollution Damage with a view to 
ensuring that full compensation will be available to 
victims of oil pollution incidents and that the ship-
owners are at the same time given relief in respect of 
the additional financial burdens imposed on them by the 
said Convention,

Taking note of the Resolution on the Establishment of an 
International Compensation Fund for Oil Pollution Damage 
which was adopted on 29 November 1969 by the 
International Legal Conference on Marine Pollution 
Damage,

Have agreed as follows:


GENERAL PROVISIONS


Article 1

For the purposes of this Convention

1. "Liability Convention" means the International 
Convention on Civil Liability for Oil Pollution Damage, 
adopted at Brussels on 29 November 1969.

2. "Ship", "Person", "Owner", "Oil", "Pollution Damage", 
"Preventive Measures", "Incident" and "Organization" , 
have the same meaning as in Article I of the Liability 
Convention, provided however that, for the purposes of 
these terms, "oil" shall be confined to persistent 
hydrocarbon mineral oils.

3. "Contributing Oil" means crude oil and fuel oil as 
defined in sub-paragraphs (a) and (b) below:

(a) "Crude Oil" means any liquid hydrocarbon mixture 
occurring naturally in the earth whether or not treated 
to render it suitable for transportation. It also 
includes crude oils from which certain distillate 
fractions have been removed (sometimes referred to as 
"topped crudes") or to which certain distillate fractions 
have been added (sometimes referred to as "spiked" or 
"reconstituted" crudes).

(b) "Fuel Oil" means heavy distillates or residues from 
crude oil or blends of such materials intended for use as 
a fuel for the production of heat or power of a quality 
equivalent to the "American Society for Testing and 
Materials" Specification for Number Four Fuel Oil 
(Designation D 396-69), or heavier.

4. "Franc" means the unit referred to in Article V, 
paragraph 9, of the Liability Convention.

5. "Ship's tonnage" has the same meaning as in Article V, 
paragraph 10, of the Liability Convention.

6. "Ton", in relation to oil, means a metric ton.

7. "Guarantor" means any person providing insurance or 
other financial security to cover an owner's liability in 
pursuance of Article VII, paragraph 1, of the Liability 
Convention.

8. "Terminal installation" means any site for the storage 
of oil in bulk which is capable of receiving oil from 
waterborne transportation, including any facility 
situated off-shore and linked to such site.

9. Where an incident consists of a series of occurrences, 
it shall be treated as having occurred on the date of the 
first such occurrence.


Article 2

1. An International Fund for compensation for pollution 
damage, to be named "The International Oil Pollution 
Compensation Fund" and hereinafter referred to as "The 
Fund", is hereby established with the following aims:

(a) to provide compensation for pollution damage to the 
extent that the protection afforded by the Liability 
Convention is inadequate; 

(b) to give relief to ship owners in respect of the 
additional financial burden imposed on them by the 
Liability Convention, such relief 
being subject to conditions designed to insure compliance 
with safety at sea and other conventions;

(c) to give effect to the related purposes set out in 
this Convention. 2. The Fund shall in each Contracting 
State be recognized as a legal person capable under the 
laws of that State of assuming rights and obligations and 
of being a party in legal proceedings before the courts 
of that State. Each Contracting State shall recognize the 
Director of the Fund (hereinafter referred to as "The 
Director") as the legal representative of the Fund.


Article 3

This Convention shall apply:

1. with regard to compensation according to Article 4, 
exclusively to pollution damage caused on the territory 
including the territorial sea of a Contracting State, and 
to preventive measures taken to prevent or minimize such 
damage;

2. with regard to indemnification of ship owners and 
their 
guarantors according to Article 5, exclusively in respect 
of pollution damage caused on the territory including the 
territorial sea of a State party to the Liability 
Convention, by a ship registered in or flying the flag of 
a Contracting State and in respect of preventive measures 
taken to prevent or minimize such damage. Compensation 
and Indemnification


Article 4

1. For the purpose of fulfilling its function under 
Article 2, paragraph 1 (a), the Fund shall pay 
compensation to any person suffering pollution damage if 
such person has been unable to obtain full and adequate 
compensation for the damage under the terms of the 
Liability Convention,

(a) because no liability for the damage arises under the 
Liability Convention;

(b) because the owner liable for the damage under the 
Liability Convention is financially incapable of meeting 
his obligations in full and any financial security that 
may be provided under Article VII of that Convention does 
not cover or is insufficient to satisfy the claims for 
compensation for the damage; an owner being treated as 
financially incapable of meeting his obligations and a 
financial security being treated as insufficient if the 
person suffering the damage has been unable to obtain 
full satisfaction of the amount of compensation due under 
the Liability Convention after having taken 
all reasonable steps to pursue the legal remedies 
available to him;                                      

(c) because the damage exceeds the owner's liability 
under the Liability Convention as limited pursuant to 
Article V, paragraph 1, of that Convention or under the 
terms of any other international Convention in force or 
open for signature, ratification or accession at the date 
of this Convention. Expenses reasonably incurred or 
sacrifices reasonably made by the owner voluntarily to 
prevent or minimize pollution damage shall be treated as 
pollution damage for the purposes of this Article. 

2. The Fund shall incur no obligation under the preceding 
paragraph if:

(a) it proves that the pollution damage resulted from an 
act of war, hostilities, civil war or insurrection or was 
caused by oil which has escaped or been discharged from a 
warship or other ship owned or operated by a State and 
used, at the time of the incident, only on Government 
non-commercial service; or

(b) the claimant cannot prove that the damage resulted 
from an incident involving one or more ships.

3. If the Fund proves that the pollution damage resulted 
wholly or partially either from an act or omission done 
with intent to cause damage by the person who suffered 
the damage or from the negligence of that person, the 
Fund may be exonerated wholly or partially from its 
obligation to pay compensation to such person provided, 
however, that there shall be no such exoneration with 
regard to such preventive measures which are compensated 
under paragraph 1. The Fund shall in any event be 
exonerated to the extent that the ship owner may have 
been 
exonerated under Article III, paragraph 3, of the 
Liability Convention.

4. (a) Except as otherwise provided in sub-paragraph (b) 
of this paragraph, the aggregate amount of compensation 
payable by the Fund under this Article shall in respect 
of any one incident be limited, so that the total sum of 
that amount and the amount of compensation actually paid 
under the Liability Convention for pollution damage 
caused in the territory of the Contracting States, 
including any sums in respect of which the Fund is under 
an obligation to indemnify the owner pursuant to Article 
5, paragraph 1, of this Convention, shall not exceed 450 
million francs.

(b) The aggregate amount of compensation payable by the 
Fund under this Article for pollution damage resulting 
from a natural phenomenon of an exceptional, inevitable 
and irresistible character shall not exceed 450 million 
francs. 

5. Where the amount of established claims against the 
Fund exceeds the aggregate amount of compensation payable 
under paragraph 4, the amount available shall be 
distributed in such a manner that the proportion between 
any established claim and the amount of compensation 
actually recovered by the claimant under the Liability 
Convention and this Convention shall be the same for all 
claimants.

6. The Assembly of the Fund (hereinafter referred to as 
"the Assembly") may, having regard to the experience of 
incidents which have occurred and in particular the 
amount of damage resulting therefrom and to changes in 
the monetary values, decide that the amount of 450 
million francs referred to in paragraph 4, sub-paragraphs 
(a) and (b), shall be changed; provided, however, that 
this amount shall in no case exceed 900 million francs or 
be lower than 450 million francs. The changed amount 
shall apply to incidents which occur after the date of 
the decision effecting the change.

7. The Fund shall, at the request of a Contracting State, 
use its good offices as necessary to assist that State to 
secure promptly such personnel, material and services as 
are necessary to enable the State to take measures to 
prevent or mitigate pollution damage arising from an 
incident in respect of which the Fund may be called upon 
to pay compensation under this Convention.

8. The Fund may on conditions to be laid down in the 
Internal Regulations provide credit facilities with a 
view to the taking of preventive measures against 
pollution damage arising from a particular incident in 
respect of which the Fund may be called upon to pay 
compensation under this Convention.


Article 5

1. For the purpose of fulfilling its function under 
Article 2, paragraph 1 (b), the Fund shall indemnify the 
owner and his guarantor for that portion of the aggregate 
amount of liability under the Liability Convention which:
(a) is in excess of an amount equivalent to 1,500 francs 
for each ton of the ship's tonnage or of an amount of 125 
million francs, whichever is the less, and (b) is not in 
excess of an amount equivalent to 2,000 francs for each 
ton of the said tonnage or an amount of 210 million 
francs, whichever is the less, provided, however, that 
the Fund shall incur no obligation under this paragraph 
where the pollution damage resulted from the willful 
misconduct of the owner himself. 

2. The Assembly may decide that the Fund shall, on 
conditions to be laid down in the Internal Regulations, 
assume the obligations of a guarantor in respect of ships 
referred to in Article 3, paragraph 2, with regard to the 
portion of liability referred to in paragraph 1 of this 
Article. However, the Fund shall assume such obligations 
only if the owner so requests and if he maintains 
adequate insurance or other financial security covering 
the owner's liability under the Liability Convention up 
to an amount equivalent to 1,500 francs for each ton of 
the ship's tonnage or an amount of 125 million francs, 
whichever is the less. If the Fund assumes such 
obligations, the owner shall in each Contracting State be 
considered to have complied with Article VII of the 
Liability Convention in respect of the portion of his 
liability mentioned above.

3. The Fund may be exonerated wholly or partially from 
its obligations under paragraph 1 towards the owner and 
his guarantor if the Fund proves that as a result of the 
actual fault or privity of the owner:

(a) the ship from which the oil causing the pollution 
damage escaped did not comply with the requirements laid 
down in:
(i) the International Convention for the Prevention of 
Pollution of the Sea by Oil, 1954, as amended in 1962; or
(ii) the International Convention for the Safety of Life 
at Sea, 1960; or
(iii) the International Convention on Load Lines, 1966; 
or
(iv) the International Regulations for Preventing 
Collisions at Sea, 1960; or
(v) any amendments to the above mentioned Conventions 
which have been determined as being of an important 
nature in accordance with Article XVI (5) of the 
Convention mentioned under (i), Article IX (e) of the 
Convention mentioned under (ii) or Article 29 (3) (d) or 
(4) (d) of the Convention mentioned under (iii), 
provided, however, that such amendments had been in force 
for at least twelve months at the time of the incident;
and 

(b) the incident or damage was caused wholly of 
partially by such non-compliance. The provisions of this 
paragraph shall apply irrespective of whether the 
Contracting State in which the ship was registered or 
whose flag it was flying is a Party to the relevant 
Instrument.

4. Upon the entry into force of a new Convention designed 
to replace, in whole or in part, any of the Instruments 
specified in paragraph 3, the Assembly may decide at 
least six months in advance a date on which the new 
Convention will replace such Instrument or part thereof 
for the purpose of paragraph 3. However, any State Party 
to this Convention may declare to the Director before 
that date that it does not accept such replacement; in 
which case the decision of the Assembly shall have no 
effect in respect of a ship registered in, or flying the 
flag of, that State at the time of the incident. Such a 
declaration may be withdrawn at any later date and shall 
in any event cease to have effect when the State in 
question becomes a party to such new Convention.

5. A ship complying with the requirements in an amendment 
to an Instrument specified in paragraph 3 or with 
requirements in a new Convention, where the amendment or 
Convention is designed to replace in whole or in part 
such Instrument, shall be considered as complying with 
the requirements in the said Instrument for the purposes 
of paragraph 3.

6. Where the Fund, acting as a guarantor by virtue of 
paragraph 2 has paid compensation for pollution damage in 
accordance with the Liability Convention, it shall have a 
right of recovery from the owner if and to the extent 
that the Fund would have been exonerated pursuant to 
paragraph 3 from its obligations under paragraph 1 to 
indemnify the owner.

7. Expenses reasonably incurred and sacrifices reasonably 
made by the owner voluntarily to prevent or minimize 
pollution damage shall be treated as included in the 
owner's liability for the purposes of this Article.


Article 6

1. Rights to compensation under Article 4 or 
indemnification under Article 5 shall be extinguished 
unless an action is brought thereunder or a notification 
has been made pursuant to Article 7, paragraph 6, within 
three years from the date when the damage occurred. 
However, in no case shall an action be brought after six 
years from the date of the incident which caused the 
damage.

2. Notwithstanding paragraph 1, the right of the owner or 
his guarantor to seek indemnification from the Fund 
pursuant to Article 5, paragraph 1, shall in no case be 
extinguished before the expiry of a period of six months 
as from the date on which the owner or his guarantor 
acquired knowledge of the bringing of an action against 
him under the Liability Convention.


Article 7

1. Subject to the subsequent provisions of this Article, 
any action against the Fund for compensation under 
Article 4 or indemnification under Article 5 of this 
Convention shall be brought only before a court competent 
under Article IX of the Liability Convention in respect 
of actions against the owner who is or who would, but for 
the provisions of Article III, paragraph 2, of that 
Convention, have been liable for pollution damage caused 
by the relevant incident.

2. Each Contracting State shall ensure that its courts 
possess the necessary jurisdiction to entertain such ac-
tions against the Fund as are referred to in paragraph 1.

3. Where an action for compensation for pollution damage 
has been brought before a court competent under Article 
IX of the Liability Convention against the owner of a 
ship or his guarantor, such court shall have exclusive 
jurisdictional competence over any action against the 
Fund for compensation or indemnification under the 
provisions of Article 4 or 5 of this Convention in 
respect of the same damage. However, where an action for 
compensation for pollution damage under the Liability 
Convention has been brought before a court in a State 
Party to the Liability Convention but not to this 
Convention, any action against the Fund under Article 4 
or under Article 5, paragraph 1, of this Convention shall 
at the option of the claimant be brought either before a 
court the State where the Fund has its headquarters or 
before any court of a State Party to this 
Convention competent under Article IX of the Liability 
Convention. 

4. Each Contracting State shall ensure that the Fund 
shall have the right to intervene as a party to any legal 
proceedings instituted in accordance with Article IX of 
the Liability Convention before a competent court of that 
State against the owner of a ship or his guarantor.

5. Except as otherwise provided in paragraph 6, the Fund 
shall not be bound by any judgment or decision in 
proceedings to which it has not been a party or by any 
settlement to which it is not a party. 

6. Without prejudice to the provisions of paragraph 4, 
where an action under the Liability Convention for 
compensation for pollution damage has been brought 
against an owner or his guarantor before a competent 
court in a Contracting State, each party to the 
proceedings shall be entitled under the national law of 
that State to notify the Fund of the proceedings. Where 
such notification has been made in accordance with the 
formalities required by the law of the court seized and 
in such time and in such a manner that the Fund has in 
fact been in a position effectively to intervene as a 
party to the proceedings, any judgment rendered by the 
court in such proceedings shall, after it has become 
final and enforceable in the State where the judgment was 
given, become binding upon the Fund in the sense that the 
facts and findings in that judgment may not be disputed 
by the Fund even if the Fund has not actually intervened 
in the proceedings.


Article 8

Subject to any decision concerning the distribution 
referred to in Article 4, paragraph 5, any judgment given 
against the Fund by a court having jurisdiction in 
accordance with Article 7, paragraphs 1 and 3, shall, 
when it has become enforceable in the State of origin and 
is in that State no longer subject to ordinary forms of 
review, be recognized and enforceable in each Contracting 
State on the same conditions as are prescribed in Article 
X of the Liability Convention.


Article 9

1. Subject to the provisions of Article 5, the Fund 
shall, in respect of any amount of compensation for 
pollution damage paid by the Fund in accordance with 
Article 4, paragraph 1, of this Convention, acquire by 
subrogation the rights that the person so compensated may 
enjoy under the Liability Convention against the owner or 
his guarantor.

2. Nothing in this Convention shall prejudice any right 
of recourse or subrogation of the Fund against persons 
other than those referred to in the preceding paragraph. 
In any event the right of the Fund to subrogation against 
such person shall not be less favourable than that of an 
insurer of the person to whom compensation or indem-
nification has been paid.

3. Without prejudice to any other rights of subrogation 
or recourse against the Fund which may exist, a 
Contracting State or agency thereof which has paid 
compensation for pollution damage in accordance with 
provisions of national law shall acquire by subrogation 
the rights which the person so compensated would 
have enjoyed under this Convention.


CONTRIBUTIONS

Article 10

1. Contributions to the Fund shall be made in respect of 
each Contracting State by any person who, in the calendar 
year referred to in Article 11, paragraph 1, as regards 
initial contributions and in Article 12, paragraph 2 (a) 
or (b), as regards annual contributions, has received in 
total quantities exceeding 150,000 tons:

(a) in the ports or terminal installations in the 
territory of that State contributing oil carried by sea 
to such ports or terminal installations; and

(b) in any installations situated in the territory of 
that Contracting State contributing oil which has been 
carried by sea and discharged in a port or terminal 
installation of a non-Contracting State, provided that 
contributing oil shall only be taken into account by 
virtue of this sub-paragraph on first receipt in a 
Contracting State after its discharge in that non-
Contracting State. 

2. (a) For the purposes of paragraph 1, where the 
quantity of contributing oil received in the territory of 
a Contracting State by any person in a calendar year when 
aggregated with the quantity of contributing oil received 
in the same Contracting State in that year by any 
associated person or persons exceeds 150,000 tons, 
such person shall pay contributions in respect of the 
actual quantity received by him notwithstanding that that 
quantity, did not exceed 150,000 tons.

(b) "Associated person" means any subsidiary or commonly 
controlled entity. The question whether a person comes 
within this definition shall be determined by the 
national law of the State concerned.


Article 11

1. In respect of each Contracting State initial 
contributions shall be made of an amount which shall for 
each person referred to in Article 10 be calculated on 
the basis of a fixed sum for each ton of contributing oil 
received by him during the calendar year preceding that 
in which this Convention entered into force for that 
State.

2. The sum referred to in paragraph 1 shall be determined 
by the Assembly within two months after the entry into 
force of this Convention. In performing this function the 
Assembly shall, to the extent possible, fix the sum in 
such a way that the total amount of initial contributions 
would, if contributions were to be made in respect of 90 
per cent of the quantities of contributing oil carried by 
sea in the world, equal 75 million francs.

3. The initial contributions shall in respect of each 
Contracting State be paid within three months following 
the date at which the Convention entered into force for 
that State.


Article 12

1. With a view to assessing for each person referred to 
in Article 10 the amount of annual contributions due, if 
any, and taking account of the necessity to maintain 
sufficient liquid funds, the Assembly shall for each 
calendar year make an estimate in the form of a budget 
of:
(i) Expenditure
(a) costs and expenses of the administration of the Fund 
in the relevant year and any deficit from operations in 
preceding years; (b) payments to be made by the Fund in 
the relevant year for the satisfaction of claims against 
the Fund due under Article 4 or 5, including repayment on 
loans previously taken by the Fund for the satisfaction 
of such claims, to the extent that the aggregate amount 
of such claims in respect of any one incident does not 
exceed 15 million francs;
(c) payments to be made by the Fund in the relevant year 
for the satisfaction of claims against the Fund due under 
Article 4 or 5, including repayments on loans previously 
taken by the Fund for the satisfaction of such claims, to 
the extent that the aggregate amount of such claims in 
respect of any one incident is in excess of 15 million 
francs;
(ii) Income
(a) surplus funds from operations in preceding years, 
including any interest;
(b) initial contributions to be paid in the course of the 
year; 
(c) annual contributions, if required to balance the 
budget;
(d) any other income.

2. For each person referred to in Article 10 the amount 
of his annual contribution shall be determined by the 
Assembly and shall be calculated in respect of each 
Contracting State:

(a) in so far as the contribution is for the satisfaction 
of payments referred to in paragraph 1 (i) (a) and (b) on 
the basis of a fixed sum for each ton of contributing oil 
received in the relevant State by such persons during the 
preceding calendar year; and

(b) in so far as the contribution is for the satisfaction 
of payments referred to in paragraph 1 (i) (c) of this 
Article on the basis of a fixed sum for each ton of 
contributing oil received by such person during the 
calendar year preceding that in which the incident in 
question occurred, provided that State was a party to 
this Convention at the date of the incident.

3. The sums referred to in paragraph 2 above shall be 
arrived at by dividing the relevant total amount of 
contributions required by the total amount of contri-
buting oil received in all Contracting States in the 
relevant year.

4. The Assembly shall decide the portion of the annual 
contribution which shall be immediately paid in cash and 
decide on the date of payment. The remaining part of each 
annual contribution shall be paid upon notification by 
the Director.

5. The Director may, in cases and in accordance with 
conditions to be laid down in the Internal Regulations of 
the Fund, require a contributor to provide financial 
security for the sums due from him. 6. Any demand for 
payments made under paragraph 4 shall be called rateably 
from all individual contributors.


Article 13

1. The amount of any contribution due under Article 12 
and which is in arrear shall bear interest at a rate 
which shall be determined by the Assembly for each 
calendar year provided that different rates may be fixed 
for different circumstances.

2. Each Contracting State shall ensure that any 
obligation to contribute to the Fund arising under this 
Convention in respect of oil received within the 
territory of that State is fulfilled and shall take any 
appropriate measures under its law, including the 
imposing of such sanctions as it may deem necessary, with 
a view to the effective execution of any such obligation; 
provided however, that such measures shall only be 
directed against those persons who are under an 
obligation to contribute to the Fund. 

3. Where a person who is liable in accordance with the 
provisions of Articles 10 and 11 to make contributions to 
the Fund does not fulfill his obligations in respect of 
any such contribution or any part thereof and is in 
arrear for a period exceeding three months, the Director 
shall take all appropriate action against such person on 
behalf of the Fund with a view to the recovery of the 
amount due. However, where the defaulting contributor is 
manifestly insolvent or the circumstances otherwise so 
warrant, the Assembly may, upon recommendation of the 
Director, decide that no action shall be taken or 
continued against the contributor.


Article 14

1. Each Contracting State may at the time when it 
deposits its instrument of ratification or accession or 
at any time thereafter declare that it assumes itself 
obligations that are incumbent under this Convention on 
any person who is liable to contribute to the Fund in 
accordance with Article 10, paragraph 1, in respect of 
oil received within the territory of that State. Such 
declaration shall be made in writing and shall specify 
which obligations are assumed.

2. Where a declaration under paragraph 1 is made prior to 
the entry into force of this Convention in accordance 
with Article 40, it shall be deposited with the 
Secretary-General of the Organization who shall after the 
entry into force of the Convention communicate the 
declaration to the Director.

3. A declaration under paragraph 1 which is made after 
the entry into force of this Convention shall be 
deposited with the Director.

4. A declaration made in accordance with this Article may 
be withdrawn by the relevant State giving notice thereof 
in writing to the Director. Such notification shall take 
effect three months after the Director's receipt thereof.

5. Any State which is bound by a declaration made under 
this Article shall, in any proceedings brought against it 
before a competent court in respect of any obligation 
specified in the declaration, waive any immunity that it 
would otherwise be entitled to invoke.

Article 15

1. Each Contracting State shall ensure that any person 
who receives contributing oil within its territory in 
such quantities that he is liable to contribute to the 
Fund appears on a list to be established and kept up to 
date by the Director in accordance with the subsequent 
provisions of this Article.

2. For the purposes set out in paragraph 1, each 
Contracting State shall communicate, at a time and in the 
manner to be prescribed in the Internal Regulations, to 
the Director the name and address of any person who in 
respect of that State is liable to contribute to the Fund 
pursuant to Article 10, as well as data on the relevant 
quantities of contributing oil received by any such 
person during the preceding calendar year.

3. For the purposes of ascertaining who are, at any given 
time, the persons liable to contribute to the Fund in 
accordance with Article 10, paragraph 1, and of 
establishing, where applicable, the quantities of oil to 
be taken into account for any such person when 
determining the amount of his contribution, the list 
shall be prima facie evidence of the facts stated 
therein.


ORGANIZATION AND ADMINISTRATION


Article 16

The Fund shall have an Assembly, a Secretariat headed by 
a Director and, in accordance with the provisions of 
Article 21, an Executive Committee.


ASSEMBLY


Article 17

The Asse





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INTERNATIONAL CONVENTION ON THE ESTABLISHMENT OF AN 
INTERNATIONAL FUND FOR COMPENSATION FOR OIL POLLUTION 
DAMAGE

(Brussels, 18 December 1971)

The States Parties to the present Convention,

Being Parties to the International Convention on Civil 
Liability for Oil Pollution Damage, adopted at Brussels 
on 29 November 1969, Conscious of the dangers of 
pollution posed by the world-wide maritime carriage of 
oil in bulk,

Convinced of the need to ensure that adequate 
compensation is available to persons who suffer damage 
caused by pollution resulting from the escape or 
discharge of oil from ships, Considering that the 
International Convention of 29 November 1969, on Civil 
Liability for Oil Pollution Damage, by providing a regime 
for compensation for pollution damage in Contracting 
States and for the costs of measures, wherever taken, to 
prevent or minimize such damage, represents a 
considerable progress towards the achievement of this 
aim,

Considering however that this regime does not afford full 
compensation for victims of oil pollution damage in all 
cases while it imposes an additional financial burden on 
ship owners, 

Considering further that the economic consequences of oil 
pollution damage resulting from the escape or discharge 
of oil carried in bulk at sea by ships should not 
exclusively be borne by the shipping industry but should 
in part be borne by the oil cargo interests, Convinced of 
the need to elaborate a compensation and indemnification 
system supplementary to the International Convention on 
Civil Liability for Oil Pollution Damage with a view to 
ensuring that full compensation will be available to 
victims of oil pollution incidents and that the ship-
owners are at the same time given relief in respect of 
the additional financial burdens imposed on them by the 
said Convention,

Taking note of the Resolution on the Establishment of an 
International Compensation Fund for Oil Pollution Damage 
which was adopted on 29 November 1969 by the 
International Legal Conference on Marine Pollution 
Damage,

Have agreed as follows:


GENERAL PROVISIONS


Article 1

For the purposes of this Convention

1. "Liability Convention" means the International 
Convention on Civil Liability for Oil Pollution Damage, 
adopted at Brussels on 29 November 1969.

2. "Ship", "Person", "Owner", "Oil", "Pollution Damage", 
"Preventive Measures", "Incident" and "Organization" , 
have the same meaning as in Article I of the Liability 
Convention, provided however that, for the purposes of 
these terms, "oil" shall be confined to persistent 
hydrocarbon mineral oils.

3. "Contributing Oil" means crude oil and fuel oil as 
defined in sub-paragraphs (a) and (b) below:

(a) "Crude Oil" means any liquid hydrocarbon mixture 
occurring naturally in the earth whether or not treated 
to render it suitable for transportation. It also 
includes crude oils from which certain distillate 
fractions have been removed (sometimes referred to as 
"topped crudes") or to which certain distillate fractions 
have been added (sometimes referred to as "spiked" or 
"reconstituted" crudes).

(b) "Fuel Oil" means heavy distillates or residues from 
crude oil or blends of such materials intended for use as 
a fuel for the production of heat or power of a quality 
equivalent to the "American Society for Testing and 
Materials" Specification for Number Four Fuel Oil 
(Designation D 396-69), or heavier.

4. "Franc" means the unit referred to in Article V, 
paragraph 9, of the Liability Convention.

5. "Ship's tonnage" has the same meaning as in Article V, 
paragraph 10, of the Liability Convention.

6. "Ton", in relation to oil, means a metric ton.

7. "Guarantor" means any person providing insurance or 
other financial security to cover an owner's liability in 
pursuance of Article VII, paragraph 1, of the Liability 
Convention.

8. "Terminal installation" means any site for the storage 
of oil in bulk which is capable of receiving oil from 
waterborne transportation, including any facility 
situated off-shore and linked to such site.

9. Where an incident consists of a series of occurrences, 
it shall be treated as having occurred on the date of the 
first such occurrence.


Article 2

1. An International Fund for compensation for pollution 
damage, to be named "The International Oil Pollution 
Compensation Fund" and hereinafter referred to as "The 
Fund", is hereby established with the following aims:

(a) to provide compensation for pollution damage to the 
extent that the protection afforded by the Liability 
Convention is inadequate; 

(b) to give relief to ship owners in respect of the 
additional financial burden imposed on them by the 
Liability Convention, such relief 
being subject to conditions designed to insure compliance 
with safety at sea and other conventions;

(c) to give effect to the related purposes set out in 
this Convention. 2. The Fund shall in each Contracting 
State be recognized as a legal person capable under the 
laws of that State of assuming rights and obligations and 
of being a party in legal proceedings before the courts 
of that State. Each Contracting State shall recognize the 
Director of the Fund (hereinafter referred to as "The 
Director") as the legal representative of the Fund.


Article 3

This Convention shall apply:

1. with regard to compensation according to Article 4, 
exclusively to pollution damage caused on the territory 
including the territorial sea of a Contracting State, and 
to preventive measures taken to prevent or minimize such 
damage;

2. with regard to indemnification of ship owners and 
their 
guarantors according to Article 5, exclusively in respect 
of pollution damage caused on the territory including the 
territorial sea of a State party to the Liability 
Convention, by a ship registered in or flying the flag of 
a Contracting State and in respect of preventive measures 
taken to prevent or minimize such damage. Compensation 
and Indemnification


Article 4

1. For the purpose of fulfilling its function under 
Article 2, paragraph 1 (a), the Fund shall pay 
compensation to any person suffering pollution damage if 
such person has been unable to obtain full and adequate 
compensation for the damage under the terms of the 
Liability Convention,

(a) because no liability for the damage arises under the 
Liability Convention;

(b) because the owner liable for the damage under the 
Liability Convention is financially incapable of meeting 
his obligations in full and any financial security that 
may be provided under Article VII of that Convention does 
not cover or is insufficient to satisfy the claims for 
compensation for the damage; an owner being treated as 
financially incapable of meeting his obligations and a 
financial security being treated as insufficient if the 
person suffering the damage has been unable to obtain 
full satisfaction of the amount of compensation due under 
the Liability Convention after having taken 
all reasonable steps to pursue the legal remedies 
available to him;                                      

(c) because the damage exceeds the owner's liability 
under the Liability Convention as limited pursuant to 
Article V, paragraph 1, of that Convention or under the 
terms of any other international Convention in force or 
open for signature, ratification or accession at the date 
of this Convention. Expenses reasonably incurred or 
sacrifices reasonably made by the owner voluntarily to 
prevent or minimize pollution damage shall be treated as 
pollution damage for the purposes of this Article. 

2. The Fund shall incur no obligation under the preceding 
paragraph if:

(a) it proves that the pollution damage resulted from an 
act of war, hostilities, civil war or insurrection or was 
caused by oil which has escaped or been discharged from a 
warship or other ship owned or operated by a State and 
used, at the time of the incident, only on Government 
non-commercial service; or

(b) the claimant cannot prove that the damage resulted 
from an incident involving one or more ships.

3. If the Fund proves that the pollution damage resulted 
wholly or partially either from an act or omission done 
with intent to cause damage by the person who suffered 
the damage or from the negligence of that person, the 
Fund may be exonerated wholly or partially from its 
obligation to pay compensation to such person provided, 
however, that there shall be no such exoneration with 
regard to such preventive measures which are compensated 
under paragraph 1. The Fund shall in any event be 
exonerated to the extent that the ship owner may have 
been 
exonerated under Article III, paragraph 3, of the 
Liability Convention.

4. (a) Except as otherwise provided in sub-paragraph (b) 
of this paragraph, the aggregate amount of compensation 
payable by the Fund under this Article shall in respect 
of any one incident be limited, so that the total sum of 
that amount and the amount of compensation actually paid 
under the Liability Convention for pollution damage 
caused in the territory of the Contracting States, 
including any sums in respect of which the Fund is under 
an obligation to indemnify the owner pursuant to Article 
5, paragraph 1, of this Convention, shall not exceed 450 
million francs.

(b) The aggregate amount of compensation payable by the 
Fund under this Article for pollution damage resulting 
from a natural phenomenon of an exceptional, inevitable 
and irresistible character shall not exceed 450 million 
francs. 

5. Where the amount of established claims against the 
Fund exceeds the aggregate amount of compensation payable 
under paragraph 4, the amount available shall be 
distributed in such a manner that the proportion between 
any established claim and the amount of compensation 
actually recovered by the claimant under the Liability 
Convention and this Convention shall be the same for all 
claimants.

6. The Assembly of the Fund (hereinafter referred to as 
"the Assembly") may, having regard to the experience of 
incidents which have occurred and in particular the 
amount of damage resulting therefrom and to changes in 
the monetary values, decide that the amount of 450 
million francs referred to in paragraph 4, sub-paragraphs 
(a) and (b), shall be changed; provided, however, that 
this amount shall in no case exceed 900 million francs or 
be lower than 450 million francs. The changed amount 
shall apply to incidents which occur after the date of 
the decision effecting the change.

7. The Fund shall, at the request of a Contracting State, 
use its good offices as necessary to assist that State to 
secure promptly such personnel, material and services as 
are necessary to enable the State to take measures to 
prevent or mitigate pollution damage arising from an 
incident in respect of which the Fund may be called upon 
to pay compensation under this Convention.

8. The Fund may on conditions to be laid down in the 
Internal Regulations provide credit facilities with a 
view to the taking of preventive measures against 
pollution damage arising from a particular incident in 
respect of which the Fund may be called upon to pay 
compensation under this Convention.


Article 5

1. For the purpose of fulfilling its function under 
Article 2, paragraph 1 (b), the Fund shall indemnify the 
owner and his guarantor for that portion of the aggregate 
amount of liability under the Liability Convention which:
(a) is in excess of an amount equivalent to 1,500 francs 
for each ton of the ship's tonnage or of an amount of 125 
million francs, whichever is the less, and (b) is not in 
excess of an amount equivalent to 2,000 francs for each 
ton of the said tonnage or an amount of 210 million 
francs, whichever is the less, provided, however, that 
the Fund shall incur no obligation under this paragraph 
where the pollution damage resulted from the willful 
misconduct of the owner himself. 

2. The Assembly may decide that the Fund shall, on 
conditions to be laid down in the Internal Regulations, 
assume the obligations of a guarantor in respect of ships 
referred to in Article 3, paragraph 2, with regard to the 
portion of liability referred to in paragraph 1 of this 
Article. However, the Fund shall assume such obligations 
only if the owner so requests and if he maintains 
adequate insurance or other financial security covering 
the owner's liability under the Liability Convention up 
to an amount equivalent to 1,500 francs for each ton of 
the ship's tonnage or an amount of 125 million francs, 
whichever is the less. If the Fund assumes such 
obligations, the owner shall in each Contracting State be 
considered to have complied with Article VII of the 
Liability Convention in respect of the portion of his 
liability mentioned above.

3. The Fund may be exonerated wholly or partially from 
its obligations under paragraph 1 towards the owner and 
his guarantor if the Fund proves that as a result of the 
actual fault or privity of the owner:

(a) the ship from which the oil causing the pollution 
damage escaped did not comply with the requirements laid 
down in:
(i) the International Convention for the Prevention of 
Pollution of the Sea by Oil, 1954, as amended in 1962; or
(ii) the International Convention for the Safety of Life 
at Sea, 1960; or
(iii) the International Convention on Load Lines, 1966; 
or
(iv) the International Regulations for Preventing 
Collisions at Sea, 1960; or
(v) any amendments to the above mentioned Conventions 
which have been determined as being of an important 
nature in accordance with Article XVI (5) of the 
Convention mentioned under (i), Article IX (e) of the 
Convention mentioned under (ii) or Article 29 (3) (d) or 
(4) (d) of the Convention mentioned under (iii), 
provided, however, that such amendments had been in force 
for at least twelve months at the time of the incident;
and 

(b) the incident or damage was caused wholly of 
partially by such non-compliance. The provisions of this 
paragraph shall apply irrespective of whether the 
Contracting State in which the ship was registered or 
whose flag it was flying is a Party to the relevant 
Instrument.

4. Upon the entry into force of a new Convention designed 
to replace, in whole or in part, any of the Instruments 
specified in paragraph 3, the Assembly may decide at 
least six months in advance a date on which the new 
Convention will replace such Instrument or part thereof 
for the purpose of paragraph 3. However, any State Party 
to this Convention may declare to the Director before 
that date that it does not accept such replacement; in 
which case the decision of the Assembly shall have no 
effect in respect of a ship registered in, or flying the 
flag of, that State at the time of the incident. Such a 
declaration may be withdrawn at any later date and shall 
in any event cease to have effect when the State in 
question becomes a party to such new Convention.

5. A ship complying with the requirements in an amendment 
to an Instrument specified in paragraph 3 or with 
requirements in a new Convention, where the amendment or 
Convention is designed to replace in whole or in part 
such Instrument, shall be considered as complying with 
the requirements in the said Instrument for the purposes 
of paragraph 3.

6. Where the Fund, acting as a guarantor by virtue of 
paragraph 2 has paid compensation for pollution damage in 
accordance with the Liability Convention, it shall have a 
right of recovery from the owner if and to the extent 
that the Fund would have been exonerated pursuant to 
paragraph 3 from its obligations under paragraph 1 to 
indemnify the owner.

7. Expenses reasonably incurred and sacrifices reasonably 
made by the owner voluntarily to prevent or minimize 
pollution damage shall be treated as included in the 
owner's liability for the purposes of this Article.


Article 6

1. Rights to compensation under Article 4 or 
indemnification under Article 5 shall be extinguished 
unless an action is brought thereunder or a notification 
has been made pursuant to Article 7, paragraph 6, within 
three years from the date when the damage occurred. 
However, in no case shall an action be brought after six 
years from the date of the incident which caused the 
damage.

2. Notwithstanding paragraph 1, the right of the owner or 
his guarantor to seek indemnification from the Fund 
pursuant to Article 5, paragraph 1, shall in no case be 
extinguished before the expiry of a period of six months 
as from the date on which the owner or his guarantor 
acquired knowledge of the bringing of an action against 
him under the Liability Convention.


Article 7

1. Subject to the subsequent provisions of this Article, 
any action against the Fund for compensation under 
Article 4 or indemnification under Article 5 of this 
Convention shall be brought only before a court competent 
under Article IX of the Liability Convention in respect 
of actions against the owner who is or who would, but for 
the provisions of Article III, paragraph 2, of that 
Convention, have been liable for pollution damage caused 
by the relevant incident.

2. Each Contracting State shall ensure that its courts 
possess the necessary jurisdiction to entertain such ac-
tions against the Fund as are referred to in paragraph 1.

3. Where an action for compensation for pollution damage 
has been brought before a court competent under Article 
IX of the Liability Convention against the owner of a 
ship or his guarantor, such court shall have exclusive 
jurisdictional competence over any action against the 
Fund for compensation or indemnification under the 
provisions of Article 4 or 5 of this Convention in 
respect of the same damage. However, where an action for 
compensation for pollution damage under the Liability 
Convention has been brought before a court in a State 
Party to the Liability Convention but not to this 
Convention, any action against the Fund under Article 4 
or under Article 5, paragraph 1, of this Convention shall 
at the option of the claimant be brought either before a 
court the State where the Fund has its headquarters or 
before any court of a State Party to this 
Convention competent under Article IX of the Liability 
Convention. 

4. Each Contracting State shall ensure that the Fund 
shall have the right to intervene as a party to any legal 
proceedings instituted in accordance with Article IX of 
the Liability Convention before a competent court of that 
State against the owner of a ship or his guarantor.

5. Except as otherwise provided in paragraph 6, the Fund 
shall not be bound by any judgment or decision in 
proceedings to which it has not been a party or by any 
settlement to which it is not a party. 

6. Without prejudice to the provisions of paragraph 4, 
where an action under the Liability Convention for 
compensation for pollution damage has been brought 
against an owner or his guarantor before a competent 
court in a Contracting State, each party to the 
proceedings shall be entitled under the national law of 
that State to notify the Fund of the proceedings. Where 
such notification has been made in accordance with the 
formalities required by the law of the court seized and 
in such time and in such a manner that the Fund has in 
fact been in a position effectively to intervene as a 
party to the proceedings, any judgment rendered by the 
court in such proceedings shall, after it has become 
final and enforceable in the State where the judgment was 
given, become binding upon the Fund in the sense that the 
facts and findings in that judgment may not be disputed 
by the Fund even if the Fund has not actually intervened 
in the proceedings.


Article 8

Subject to any decision concerning the distribution 
referred to in Article 4, paragraph 5, any judgment given 
against the Fund by a court having jurisdiction in 
accordance with Article 7, paragraphs 1 and 3, shall, 
when it has become enforceable in the State of origin and 
is in that State no longer subject to ordinary forms of 
review, be recognized and enforceable in each Contracting 
State on the same conditions as are prescribed in Article 
X of the Liability Convention.


Article 9

1. Subject to the provisions of Article 5, the Fund 
shall, in respect of any amount of compensation for 
pollution damage paid by the Fund in accordance with 
Article 4, paragraph 1, of this Convention, acquire by 
subrogation the rights that the person so compensated may 
enjoy under the Liability Convention against the owner or 
his guarantor.

2. Nothing in this Convention shall prejudice any right 
of recourse or subrogation of the Fund against persons 
other than those referred to in the preceding paragraph. 
In any event the right of the Fund to subrogation against 
such person shall not be less favourable than that of an 
insurer of the person to whom compensation or indem-
nification has been paid.

3. Without prejudice to any other rights of subrogation 
or recourse against the Fund which may exist, a 
Contracting State or agency thereof which has paid 
compensation for pollution damage in accordance with 
provisions of national law shall acquire by subrogation 
the rights which the person so compensated would 
have enjoyed under this Convention.


CONTRIBUTIONS

Article 10

1. Contributions to the Fund shall be made in respect of 
each Contracting State by any person who, in the calendar 
year referred to in Article 11, paragraph 1, as regards 
initial contributions and in Article 12, paragraph 2 (a) 
or (b), as regards annual contributions, has received in 
total quantities exceeding 150,000 tons:

(a) in the ports or terminal installations in the 
territory of that State contributing oil carried by sea 
to such ports or terminal installations; and

(b) in any installations situated in the territory of 
that Contracting State contributing oil which has been 
carried by sea and discharged in a port or terminal 
installation of a non-Contracting State, provided that 
contributing oil shall only be taken into account by 
virtue of this sub-paragraph on first receipt in a 
Contracting State after its discharge in that non-
Contracting State. 

2. (a) For the purposes of paragraph 1, where the 
quantity of contributing oil received in the territory of 
a Contracting State by any person in a calendar year when 
aggregated with the quantity of contributing oil received 
in the same Contracting State in that year by any 
associated person or persons exceeds 150,000 tons, 
such person shall pay contributions in respect of the 
actual quantity received by him notwithstanding that that 
quantity, did not exceed 150,000 tons.

(b) "Associated person" means any subsidiary or commonly 
controlled entity. The question whether a person comes 
within this definition shall be determined by the 
national law of the State concerned.


Article 11

1. In respect of each Contracting State initial 
contributions shall be made of an amount which shall for 
each person referred to in Article 10 be calculated on 
the basis of a fixed sum for each ton of contributing oil 
received by him during the calendar year preceding that 
in which this Convention entered into force for that 
State.

2. The sum referred to in paragraph 1 shall be determined 
by the Assembly within two months after the entry into 
force of this Convention. In performing this function the 
Assembly shall, to the extent possible, fix the sum in 
such a way that the total amount of initial contributions 
would, if contributions were to be made in respect of 90 
per cent of the quantities of contributing oil carried by 
sea in the world, equal 75 million francs.

3. The initial contributions shall in respect of each 
Contracting State be paid within three months following 
the date at which the Convention entered into force for 
that State.


Article 12

1. With a view to assessing for each person referred to 
in Article 10 the amount of annual contributions due, if 
any, and taking account of the necessity to maintain 
sufficient liquid funds, the Assembly shall for each 
calendar year make an estimate in the form of a budget 
of:
(i) Expenditure
(a) costs and expenses of the administration of the Fund 
in the relevant year and any deficit from operations in 
preceding years; (b) payments to be made by the Fund in 
the relevant year for the satisfaction of claims against 
the Fund due under Article 4 or 5, including repayment on 
loans previously taken by the Fund for the satisfaction 
of such claims, to the extent that the aggregate amount 
of such claims in respect of any one incident does not 
exceed 15 million francs;
(c) payments to be made by the Fund in the relevant year 
for the satisfaction of claims against the Fund due under 
Article 4 or 5, including repayments on loans previously 
taken by the Fund for the satisfaction of such claims, to 
the extent that the aggregate amount of such claims in 
respect of any one incident is in excess of 15 million 
francs;
(ii) Income
(a) surplus funds from operations in preceding years, 
including any interest;
(b) initial contributions to be paid in the course of the 
year; 
(c) annual contributions, if required to balance the 
budget;
(d) any other income.

2. For each person referred to in Article 10 the amount 
of his annual contribution shall be determined by the 
Assembly and shall be calculated in respect of each 
Contracting State:

(a) in so far as the contribution is for the satisfaction 
of payments referred to in paragraph 1 (i) (a) and (b) on 
the basis of a fixed sum for each ton of contributing oil 
received in the relevant State by such persons during the 
preceding calendar year; and

(b) in so far as the contribution is for the satisfaction 
of payments referred to in paragraph 1 (i) (c) of this 
Article on the basis of a fixed sum for each ton of 
contributing oil received by such person during the 
calendar year preceding that in which the incident in 
question occurred, provided that State was a party to 
this Convention at the date of the incident.

3. The sums referred to in paragraph 2 above shall be 
arrived at by dividing the relevant total amount of 
contributions required by the total amount of contri-
buting oil received in all Contracting States in the 
relevant year.

4. The Assembly shall decide the portion of the annual 
contribution which shall be immediately paid in cash and 
decide on the date of payment. The remaining part of each 
annual contribution shall be paid upon notification by 
the Director.

5. The Director may, in cases and in accordance with 
conditions to be laid down in the Internal Regulations of 
the Fund, require a contributor to provide financial 
security for the sums due from him. 6. Any demand for 
payments made under paragraph 4 shall be called rateably 
from all individual contributors.


Article 13

1. The amount of any contribution due under Article 12 
and which is in arrear shall bear interest at a rate 
which shall be determined by the Assembly for each 
calendar year provided that different rates may be fixed 
for different circumstances.

2. Each Contracting State shall ensure that any 
obligation to contribute to the Fund arising under this 
Convention in respect of oil received within the 
territory of that State is fulfilled and shall take any 
appropriate measures under its law, including the 
imposing of such sanctions as it may deem necessary, with 
a view to the effective execution of any such obligation; 
provided however, that such measures shall only be 
directed against those persons who are under an 
obligation to contribute to the Fund. 

3. Where a person who is liable in accordance with the 
provisions of Articles 10 and 11 to make contributions to 
the Fund does not fulfill his obligations in respect of 
any such contribution or any part thereof and is in 
arrear for a period exceeding three months, the Director 
shall take all appropriate action against such person on 
behalf of the Fund with a view to the recovery of the 
amount due. However, where the defaulting contributor is 
manifestly insolvent or the circumstances otherwise so 
warrant, the Assembly may, upon recommendation of the 
Director, decide that no action shall be taken or 
continued against the contributor.


Article 14

1. Each Contracting State may at the time when it 
deposits its instrument of ratification or accession or 
at any time thereafter declare that it assumes itself 
obligations that are incumbent under this Convention on 
any person who is liable to contribute to the Fund in 
accordance with Article 10, paragraph 1, in respect of 
oil received within the territory of that State. Such 
declaration shall be made in writing and shall specify 
which obligations are assumed.

2. Where a declaration under paragraph 1 is made prior to 
the entry into force of this Convention in accordance 
with Article 40, it shall be deposited with the 
Secretary-General of the Organization who shall after the 
entry into force of the Convention communicate the 
declaration to the Director.

3. A declaration under paragraph 1 which is made after 
the entry into force of this Convention shall be 
deposited with the Director.

4. A declaration made in accordance with this Article may 
be withdrawn by the relevant State giving notice thereof 
in writing to the Director. Such notification shall take 
effect three months after the Director's receipt thereof.

5. Any State which is bound by a declaration made under 
this Article shall, in any proceedings brought against it 
before a competent court in respect of any obligation 
specified in the declaration, waive any immunity that it 
would otherwise be entitled to invoke.

Article 15

1. Each Contracting State shall ensure that any person 
who receives contributing oil within its territory in 
such quantities that he is liable to contribute to the 
Fund appears on a list to be established and kept up to 
date by the Director in accordance with the subsequent 
provisions of this Article.

2. For the purposes set out in paragraph 1, each 
Contracting State shall communicate, at a time and in the 
manner to be prescribed in the Internal Regulations, to 
the Director the name and address of any person who in 
respect of that State is liable to contribute to the Fund 
pursuant to Article 10, as well as data on the relevant 
quantities of contributing oil received by any such 
person during the preceding calendar year.

3. For the purposes of ascertaining who are, at any given 
time, the persons liable to contribute to the Fund in 
accordance with Article 10, paragraph 1, and of 
establishing, where applicable, the quantities of oil to 
be taken into account for any such person when 
determining the amount of his contribution, the list 
shall be prima facie evidence of the facts stated 
therein.


ORGANIZATION AND ADMINISTRATION


Article 16

The Fund shall have an Assembly, a Secretariat headed by 
a Director and, in accordance with the provisions of 
Article 21, an Executive Committee.


ASSEMBLY


Article 17

The Assembly shall consist of all Contracting States to 
this Convention.


Article 18

The functions of the Assembly shall, subject to the 
provisions of Article 26, be:

1. to elect at each regular session its Chairman and two 
Vice-Chairmen who shall hold office until the next 
regular session; 

2. to determine its own rules of procedure, subject to 
the provisions of this Convention;

3. to adopt Internal Regulations necessary for the proper 
functioning of the Fund;

4. to appoint the Director and make provisions for the 
appointment of such other personnel as may be necessary 
and determine the terms and conditions of service of the 
Director and other personnel; 

5. to adopt the annual budget and fix the annual 
contributions;

6. to appoint auditors and approve the accounts of the 
Fund;

7. to approve settlements of claims against the Fund, to 
take decisions in respect of the distribution among 
claimants of the available amount of compensation in 
accordance with Article 4, paragraph 5, and to determine 
the terms and conditions according to which provisional 
payments in respect of claims shall be made with a view 
to ensuring that victims of pollution damage are 
compensated as promptly as possible;

8. to elect the members of the Assembly to be represented 
on the Executive Committee, as provided in Articles 21, 
22 and 23;

9. to establish any temporary or permanent subsidiary 
body it may consider to be necessary;

10. to determine which non-Contracting States and which 
inter-governmental and international non-governmental 
organizations shall be admitted to take part, without 
voting rights, in meetings of the Assembly, the Executive 
Committee, and subsidiary bodies;

11. to give instructions concerning the administration of 
the Fund to the Director, the Executive Committee and 
subsidiary bodies;

12. to review and approve the reports and activities of 
the Executive Committee;

13. to supervise the proper execution of the Convention 
and of its own decisions;

14. to perform such other functions as are allocated to 
it under the Convention or are otherwise necessary for 
the proper operation of the Fund.


Article 19

1. Regular sessions of the Assembly shall take place once 
every calendar year upon convocation by the Director; 
provided, however, that if the Assembly allocates to the 
Executive Committee the functions specified in Article 
18, paragraph 5, regular sessions of the Assembly shall 
be held once every two years.

2. Extraordinary sessions of the Assembly shall be 
convened by the Director at the request of the Executive 
Committee or of at least one-third of the members of the 
Assembly and may be convened on the Director's own 
initiative after consultation with the Chairman of the 
Assembly. The Director shall give members at least thirty 
days' notice of such sessions.


Article 20

A majority of the members of the Assembly shall 
constitute a quorum for its meetings. Executive Committee


Article 21

The Executive Committee shall be established at the first 
regular session of the Assembly after the date on which 
the number of Contracting States reaches fifteen.


Article 22

1. The Executive Committee shall consist of one-third of 
the members of the Assembly but of not less than seven or 
more than fifteen members. Where the number of members of 
the Assembly is not divisible by three, the one-third 
referred to shall be calculated on the next higher number 
which is divisible by three.

2. When electing the members of the Executive Committee 
the Assembly shall:

(a) secure an equitable geographical distribution of the 
seats on the Committee on the basis of an adequate 
representation of Contracting States particularly exposed 
to the risks of oil pollution and of Contracting States 
having large tanker fleets; and

(b) elect one half of the members of the Committee, or in 
case the total number of members to be elected is uneven, 
such number of the members as is equivalent to one half 
of the total number less one, among those Contracting 
States in the territory of which the lar





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INTERNATIONAL CONVENTION ON THE ESTABLISHMENT OF AN 
INTERNATIONAL FUND FOR COMPENSATION FOR OIL POLLUTION 
DAMAGE

(Brussels, 18 December 1971)

The States Parties to the present Convention,

Being Parties to the International Convention on Civil 
Liability for Oil Pollution Damage, adopted at Brussels 
on 29 November 1969, Conscious of the dangers of 
pollution posed by the world-wide maritime carriage of 
oil in bulk,

Convinced of the need to ensure that adequate 
compensation is available to persons who suffer damage 
caused by pollution resulting from the escape or 
discharge of oil from ships, Considering that the 
International Convention of 29 November 1969, on Civil 
Liability for Oil Pollution Damage, by providing a regime 
for compensation for pollution damage in Contracting 
States and for the costs of measures, wherever taken, to 
prevent or minimize such damage, represents a 
considerable progress towards the achievement of this 
aim,

Considering however that this regime does not afford full 
compensation for victims of oil pollution damage in all 
cases while it imposes an additional financial burden on 
ship owners, 

Considering further that the economic consequences of oil 
pollution damage resulting from the escape or discharge 
of oil carried in bulk at sea by ships should not 
exclusively be borne by the shipping industry but should 
in part be borne by the oil cargo interests, Convinced of 
the need to elaborate a compensation and indemnification 
system supplementary to the International Convention on 
Civil Liability for Oil Pollution Damage with a view to 
ensuring that full compensation will be available to 
victims of oil pollution incidents and that the ship-
owners are at the same time given relief in respect of 
the additional financial burdens imposed on them by the 
said Convention,

Taking note of the Resolution on the Establishment of an 
International Compensation Fund for Oil Pollution Damage 
which was adopted on 29 November 1969 by the 
International Legal Conference on Marine Pollution 
Damage,

Have agreed as follows:


GENERAL PROVISIONS


Article 1

For the purposes of this Convention

1. "Liability Convention" means the International 
Convention on Civil Liability for Oil Pollution Damage, 
adopted at Brussels on 29 November 1969.

2. "Ship", "Person", "Owner", "Oil", "Pollution Damage", 
"Preventive Measures", "Incident" and "Organization" , 
have the same meaning as in Article I of the Liability 
Convention, provided however that, for the purposes of 
these terms, "oil" shall be confined to persistent 
hydrocarbon mineral oils.

3. "Contributing Oil" means crude oil and fuel oil as 
defined in sub-paragraphs (a) and (b) below:

(a) "Crude Oil" means any liquid hydrocarbon mixture 
occurring naturally in the earth whether or not treated 
to render it suitable for transportation. It also 
includes crude oils from which certain distillate 
fractions have been removed (sometimes referred to as 
"topped crudes") or to which certain distillate fractions 
have been added (sometimes referred to as "spiked" or 
"reconstituted" crudes).

(b) "Fuel Oil" means heavy distillates or residues from 
crude oil or blends of such materials intended for use as 
a fuel for the production of heat or power of a quality 
equivalent to the "American Society for Testing and 
Materials" Specification for Number Four Fuel Oil 
(Designation D 396-69), or heavier.

4. "Franc" means the unit referred to in Article V, 
paragraph 9, of the Liability Convention.

5. "Ship's tonnage" has the same meaning as in Article V, 
paragraph 10, of the Liability Convention.

6. "Ton", in relation to oil, means a metric ton.

7. "Guarantor" means any person providing insurance or 
other financial security to cover an owner's liability in 
pursuance of Article VII, paragraph 1, of the Liability 
Convention.

8. "Terminal installation" means any site for the storage 
of oil in bulk which is capable of receiving oil from 
waterborne transportation, including any facility 
situated off-shore and linked to such site.

9. Where an incident consists of a series of occurrences, 
it shall be treated as having occurred on the date of the 
first such occurrence.


Article 2

1. An International Fund for compensation for pollution 
damage, to be named "The International Oil Pollution 
Compensation Fund" and hereinafter referred to as "The 
Fund", is hereby established with the following aims:

(a) to provide compensation for pollution damage to the 
extent that the protection afforded by the Liability 
Convention is inadequate; 

(b) to give relief to ship owners in respect of the 
additional financial burden imposed on them by the 
Liability Convention, such relief 
being subject to conditions designed to insure compliance 
with safety at sea and other conventions;

(c) to give effect to the related purposes set out in 
this Convention. 2. The Fund shall in each Contracting 
State be recognized as a legal person capable under the 
laws of that State of assuming rights and obligations and 
of being a party in legal proceedings before the courts 
of that State. Each Contracting State shall recognize the 
Director of the Fund (hereinafter referred to as "The 
Director") as the legal representative of the Fund.


Article 3

This Convention shall apply:

1. with regard to compensation according to Article 4, 
exclusively to pollution damage caused on the territory 
including the territorial sea of a Contracting State, and 
to preventive measures taken to prevent or minimize such 
damage;

2. with regard to indemnification of ship owners and 
their 
guarantors according to Article 5, exclusively in respect 
of pollution damage caused on the territory including the 
territorial sea of a State party to the Liability 
Convention, by a ship registered in or flying the flag of 
a Contracting State and in respect of preventive measures 
taken to prevent or minimize such damage. Compensation 
and Indemnification


Article 4

1. For the purpose of fulfilling its function under 
Article 2, paragraph 1 (a), the Fund shall pay 
compensation to any person suffering pollution damage if 
such person has been unable to obtain full and adequate 
compensation for the damage under the terms of the 
Liability Convention,

(a) because no liability for the damage arises under the 
Liability Convention;

(b) because the owner liable for the damage under the 
Liability Convention is financially incapable of meeting 
his obligations in full and any financial security that 
may be provided under Article VII of that Convention does 
not cover or is insufficient to satisfy the claims for 
compensation for the damage; an owner being treated as 
financially incapable of meeting his obligations and a 
financial security being treated as insufficient if the 
person suffering the damage has been unable to obtain 
full satisfaction of the amount of compensation due under 
the Liability Convention after having taken 
all reasonable steps to pursue the legal remedies 
available to him;                                      

(c) because the damage exceeds the owner's liability 
under the Liability Convention as limited pursuant to 
Article V, paragraph 1, of that Convention or under the 
terms of any other international Convention in force or 
open for signature, ratification or accession at the date 
of this Convention. Expenses reasonably incurred or 
sacrifices reasonably made by the owner voluntarily to 
prevent or minimize pollution damage shall be treated as 
pollution damage for the purposes of this Article. 

2. The Fund shall incur no obligation under the preceding 
paragraph if:

(a) it proves that the pollution damage resulted from an 
act of war, hostilities, civil war or insurrection or was 
caused by oil which has escaped or been discharged from a 
warship or other ship owned or operated by a State and 
used, at the time of the incident, only on Government 
non-commercial service; or

(b) the claimant cannot prove that the damage resulted 
from an incident involving one or more ships.

3. If the Fund proves that the pollution damage resulted 
wholly or partially either from an act or omission done 
with intent to cause damage by the person who suffered 
the damage or from the negligence of that person, the 
Fund may be exonerated wholly or partially from its 
obligation to pay compensation to such person provided, 
however, that there shall be no such exoneration with 
regard to such preventive measures which are compensated 
under paragraph 1. The Fund shall in any event be 
exonerated to the extent that the ship owner may have 
been 
exonerated under Article III, paragraph 3, of the 
Liability Convention.

4. (a) Except as otherwise provided in sub-paragraph (b) 
of this paragraph, the aggregate amount of compensation 
payable by the Fund under this Article shall in respect 
of any one incident be limited, so that the total sum of 
that amount and the amount of compensation actually paid 
under the Liability Convention for pollution damage 
caused in the territory of the Contracting States, 
including any sums in respect of which the Fund is under 
an obligation to indemnify the owner pursuant to Article 
5, paragraph 1, of this Convention, shall not exceed 450 
million francs.

(b) The aggregate amount of compensation payable by the 
Fund under this Article for pollution damage resulting 
from a natural phenomenon of an exceptional, inevitable 
and irresistible character shall not exceed 450 million 
francs. 

5. Where the amount of established claims against the 
Fund exceeds the aggregate amount of compensation payable 
under paragraph 4, the amount available shall be 
distributed in such a manner that the proportion between 
any established claim and the amount of compensation 
actually recovered by the claimant under the Liability 
Convention and this Convention shall be the same for all 
claimants.

6. The Assembly of the Fund (hereinafter referred to as 
"the Assembly") may, having regard to the experience of 
incidents which have occurred and in particular the 
amount of damage resulting therefrom and to changes in 
the monetary values, decide that the amount of 450 
million francs referred to in paragraph 4, sub-paragraphs 
(a) and (b), shall be changed; provided, however, that 
this amount shall in no case exceed 900 million francs or 
be lower than 450 million francs. The changed amount 
shall apply to incidents which occur after the date of 
the decision effecting the change.

7. The Fund shall, at the request of a Contracting State, 
use its good offices as necessary to assist that State to 
secure promptly such personnel, material and services as 
are necessary to enable the State to take measures to 
prevent or mitigate pollution damage arising from an 
incident in respect of which the Fund may be called upon 
to pay compensation under this Convention.

8. The Fund may on conditions to be laid down in the 
Internal Regulations provide credit facilities with a 
view to the taking of preventive measures against 
pollution damage arising from a particular incident in 
respect of which the Fund may be called upon to pay 
compensation under this Convention.


Article 5

1. For the purpose of fulfilling its function under 
Article 2, paragraph 1 (b), the Fund shall indemnify the 
owner and his guarantor for that portion of the aggregate 
amount of liability under the Liability Convention which:
(a) is in excess of an amount equivalent to 1,500 francs 
for each ton of the ship's tonnage or of an amount of 125 
million francs, whichever is the less, and (b) is not in 
excess of an amount equivalent to 2,000 francs for each 
ton of the said tonnage or an amount of 210 million 
francs, whichever is the less, provided, however, that 
the Fund shall incur no obligation under this paragraph 
where the pollution damage resulted from the willful 
misconduct of the owner himself. 

2. The Assembly may decide that the Fund shall, on 
conditions to be laid down in the Internal Regulations, 
assume the obligations of a guarantor in respect of ships 
referred to in Article 3, paragraph 2, with regard to the 
portion of liability referred to in paragraph 1 of this 
Article. However, the Fund shall assume such obligations 
only if the owner so requests and if he maintains 
adequate insurance or other financial security covering 
the owner's liability under the Liability Convention up 
to an amount equivalent to 1,500 francs for each ton of 
the ship's tonnage or an amount of 125 million francs, 
whichever is the less. If the Fund assumes such 
obligations, the owner shall in each Contracting State be 
considered to have complied with Article VII of the 
Liability Convention in respect of the portion of his 
liability mentioned above.

3. The Fund may be exonerated wholly or partially from 
its obligations under paragraph 1 towards the owner and 
his guarantor if the Fund proves that as a result of the 
actual fault or privity of the owner:

(a) the ship from which the oil causing the pollution 
damage escaped did not comply with the requirements laid 
down in:
(i) the International Convention for the Prevention of 
Pollution of the Sea by Oil, 1954, as amended in 1962; or
(ii) the International Convention for the Safety of Life 
at Sea, 1960; or
(iii) the International Convention on Load Lines, 1966; 
or
(iv) the International Regulations for Preventing 
Collisions at Sea, 1960; or
(v) any amendments to the above mentioned Conventions 
which have been determined as being of an important 
nature in accordance with Article XVI (5) of the 
Convention mentioned under (i), Article IX (e) of the 
Convention mentioned under (ii) or Article 29 (3) (d) or 
(4) (d) of the Convention mentioned under (iii), 
provided, however, that such amendments had been in force 
for at least twelve months at the time of the incident;
and 

(b) the incident or damage was caused wholly of 
partially by such non-compliance. The provisions of this 
paragraph shall apply irrespective of whether the 
Contracting State in which the ship was registered or 
whose flag it was flying is a Party to the relevant 
Instrument.

4. Upon the entry into force of a new Convention designed 
to replace, in whole or in part, any of the Instruments 
specified in paragraph 3, the Assembly may decide at 
least six months in advance a date on which the new 
Convention will replace such Instrument or part thereof 
for the purpose of paragraph 3. However, any State Party 
to this Convention may declare to the Director before 
that date that it does not accept such replacement; in 
which case the decision of the Assembly shall have no 
effect in respect of a ship registered in, or flying the 
flag of, that State at the time of the incident. Such a 
declaration may be withdrawn at any later date and shall 
in any event cease to have effect when the State in 
question becomes a party to such new Convention.

5. A ship complying with the requirements in an amendment 
to an Instrument specified in paragraph 3 or with 
requirements in a new Convention, where the amendment or 
Convention is designed to replace in whole or in part 
such Instrument, shall be considered as complying with 
the requirements in the said Instrument for the purposes 
of paragraph 3.

6. Where the Fund, acting as a guarantor by virtue of 
paragraph 2 has paid compensation for pollution damage in 
accordance with the Liability Convention, it shall have a 
right of recovery from the owner if and to the extent 
that the Fund would have been exonerated pursuant to 
paragraph 3 from its obligations under paragraph 1 to 
indemnify the owner.

7. Expenses reasonably incurred and sacrifices reasonably 
made by the owner voluntarily to prevent or minimize 
pollution damage shall be treated as included in the 
owner's liability for the purposes of this Article.


Article 6

1. Rights to compensation under Article 4 or 
indemnification under Article 5 shall be extinguished 
unless an action is brought thereunder or a notification 
has been made pursuant to Article 7, paragraph 6, within 
three years from the date when the damage occurred. 
However, in no case shall an action be brought after six 
years from the date of the incident which caused the 
damage.

2. Notwithstanding paragraph 1, the right of the owner or 
his guarantor to seek indemnification from the Fund 
pursuant to Article 5, paragraph 1, shall in no case be 
extinguished before the expiry of a period of six months 
as from the date on which the owner or his guarantor 
acquired knowledge of the bringing of an action against 
him under the Liability Convention.


Article 7

1. Subject to the subsequent provisions of this Article, 
any action against the Fund for compensation under 
Article 4 or indemnification under Article 5 of this 
Convention shall be brought only before a court competent 
under Article IX of the Liability Convention in respect 
of actions against the owner who is or who would, but for 
the provisions of Article III, paragraph 2, of that 
Convention, have been liable for pollution damage caused 
by the relevant incident.

2. Each Contracting State shall ensure that its courts 
possess the necessary jurisdiction to entertain such ac-
tions against the Fund as are referred to in paragraph 1.

3. Where an action for compensation for pollution damage 
has been brought before a court competent under Article 
IX of the Liability Convention against the owner of a 
ship or his guarantor, such court shall have exclusive 
jurisdictional competence over any action against the 
Fund for compensation or indemnification under the 
provisions of Article 4 or 5 of this Convention in 
respect of the same damage. However, where an action for 
compensation for pollution damage under the Liability 
Convention has been brought before a court in a State 
Party to the Liability Convention but not to this 
Convention, any action against the Fund under Article 4 
or under Article 5, paragraph 1, of this Convention shall 
at the option of the claimant be brought either before a 
court the State where the Fund has its headquarters or 
before any court of a State Party to this 
Convention competent under Article IX of the Liability 
Convention. 

4. Each Contracting State shall ensure that the Fund 
shall have the right to intervene as a party to any legal 
proceedings instituted in accordance with Article IX of 
the Liability Convention before a competent court of that 
State against the owner of a ship or his guarantor.

5. Except as otherwise provided in paragraph 6, the Fund 
shall not be bound by any judgment or decision in 
proceedings to which it has not been a party or by any 
settlement to which it is not a party. 

6. Without prejudice to the provisions of paragraph 4, 
where an action under the Liability Convention for 
compensation for pollution damage has been brought 
against an owner or his guarantor before a competent 
court in a Contracting State, each party to the 
proceedings shall be entitled under the national law of 
that State to notify the Fund of the proceedings. Where 
such notification has been made in accordance with the 
formalities required by the law of the court seized and 
in such time and in such a manner that the Fund has in 
fact been in a position effectively to intervene as a 
party to the proceedings, any judgment rendered by the 
court in such proceedings shall, after it has become 
final and enforceable in the State where the judgment was 
given, become binding upon the Fund in the sense that the 
facts and findings in that judgment may not be disputed 
by the Fund even if the Fund has not actually intervened 
in the proceedings.


Article 8

Subject to any decision concerning the distribution 
referred to in Article 4, paragraph 5, any judgment given 
against the Fund by a court having jurisdiction in 
accordance with Article 7, paragraphs 1 and 3, shall, 
when it has become enforceable in the State of origin and 
is in that State no longer subject to ordinary forms of 
review, be recognized and enforceable in each Contracting 
State on the same conditions as are prescribed in Article 
X of the Liability Convention.


Article 9

1. Subject to the provisions of Article 5, the Fund 
shall, in respect of any amount of compensation for 
pollution damage paid by the Fund in accordance with 
Article 4, paragraph 1, of this Convention, acquire by 
subrogation the rights that the person so compensated may 
enjoy under the Liability Convention against the owner or 
his guarantor.

2. Nothing in this Convention shall prejudice any right 
of recourse or subrogation of the Fund against persons 
other than those referred to in the preceding paragraph. 
In any event the right of the Fund to subrogation against 
such person shall not be less favourable than that of an 
insurer of the person to whom compensation or indem-
nification has been paid.

3. Without prejudice to any other rights of subrogation 
or recourse against the Fund which may exist, a 
Contracting State or agency thereof which has paid 
compensation for pollution damage in accordance with 
provisions of national law shall acquire by subrogation 
the rights which the person so compensated would 
have enjoyed under this Convention.


CONTRIBUTIONS

Article 10

1. Contributions to the Fund shall be made in respect of 
each Contracting State by any person who, in the calendar 
year referred to in Article 11, paragraph 1, as regards 
initial contributions and in Article 12, paragraph 2 (a) 
or (b), as regards annual contributions, has received in 
total quantities exceeding 150,000 tons:

(a) in the ports or terminal installations in the 
territory of that State contributing oil carried by sea 
to such ports or terminal installations; and

(b) in any installations situated in the territory of 
that Contracting State contributing oil which has been 
carried by sea and discharged in a port or terminal 
installation of a non-Contracting State, provided that 
contributing oil shall only be taken into account by 
virtue of this sub-paragraph on first receipt in a 
Contracting State after its discharge in that non-
Contracting State. 

2. (a) For the purposes of paragraph 1, where the 
quantity of contributing oil received in the territory of 
a Contracting State by any person in a calendar year when 
aggregated with the quantity of contributing oil received 
in the same Contracting State in that year by any 
associated person or persons exceeds 150,000 tons, 
such person shall pay contributions in respect of the 
actual quantity received by him notwithstanding that that 
quantity, did not exceed 150,000 tons.

(b) "Associated person" means any subsidiary or commonly 
controlled entity. The question whether a person comes 
within this definition shall be determined by the 
national law of the State concerned.


Article 11

1. In respect of each Contracting State initial 
contributions shall be made of an amount which shall for 
each person referred to in Article 10 be calculated on 
the basis of a fixed sum for each ton of contributing oil 
received by him during the calendar year preceding that 
in which this Convention entered into force for that 
State.

2. The sum referred to in paragraph 1 shall be determined 
by the Assembly within two months after the entry into 
force of this Convention. In performing this function the 
Assembly shall, to the extent possible, fix the sum in 
such a way that the total amount of initial contributions 
would, if contributions were to be made in respect of 90 
per cent of the quantities of contributing oil carried by 
sea in the world, equal 75 million francs.

3. The initial contributions shall in respect of each 
Contracting State be paid within three months following 
the date at which the Convention entered into force for 
that State.


Article 12

1. With a view to assessing for each person referred to 
in Article 10 the amount of annual contributions due, if 
any, and taking account of the necessity to maintain 
sufficient liquid funds, the Assembly shall for each 
calendar year make an estimate in the form of a budget 
of:
(i) Expenditure
(a) costs and expenses of the administration of the Fund 
in the relevant year and any deficit from operations in 
preceding years; (b) payments to be made by the Fund in 
the relevant year for the satisfaction of claims against 
the Fund due under Article 4 or 5, including repayment on 
loans previously taken by the Fund for the satisfaction 
of such claims, to the extent that the aggregate amount 
of such claims in respect of any one incident does not 
exceed 15 million francs;
(c) payments to be made by the Fund in the relevant year 
for the satisfaction of claims against the Fund due under 
Article 4 or 5, including repayments on loans previously 
taken by the Fund for the satisfaction of such claims, to 
the extent that the aggregate amount of such claims in 
respect of any one incident is in excess of 15 million 
francs;
(ii) Income
(a) surplus funds from operations in preceding years, 
including any interest;
(b) initial contributions to be paid in the course of the 
year; 
(c) annual contributions, if required to balance the 
budget;
(d) any other income.

2. For each person referred to in Article 10 the amount 
of his annual contribution shall be determined by the 
Assembly and shall be calculated in respect of each 
Contracting State:

(a) in so far as the contribution is for the satisfaction 
of payments referred to in paragraph 1 (i) (a) and (b) on 
the basis of a fixed sum for each ton of contributing oil 
received in the relevant State by such persons during the 
preceding calendar year; and

(b) in so far as the contribution is for the satisfaction 
of payments referred to in paragraph 1 (i) (c) of this 
Article on the basis of a fixed sum for each ton of 
contributing oil received by such person during the 
calendar year preceding that in which the incident in 
question occurred, provided that State was a party to 
this Convention at the date of the incident.

3. The sums referred to in paragraph 2 above shall be 
arrived at by dividing the relevant total amount of 
contributions required by the total amount of contri-
buting oil received in all Contracting States in the 
relevant year.

4. The Assembly shall decide the portion of the annual 
contribution which shall be immediately paid in cash and 
decide on the date of payment. The remaining part of each 
annual contribution shall be paid upon notification by 
the Director.

5. The Director may, in cases and in accordance with 
conditions to be laid down in the Internal Regulations of 
the Fund, require a contributor to provide financial 
security for the sums due from him. 6. Any demand for 
payments made under paragraph 4 shall be called rateably 
from all individual contributors.


Article 13

1. The amount of any contribution due under Article 12 
and which is in arrear shall bear interest at a rate 
which shall be determined by the Assembly for each 
calendar year provided that different rates may be fixed 
for different circumstances.

2. Each Contracting State shall ensure that any 
obligation to contribute to the Fund arising under this 
Convention in respect of oil received within the 
territory of that State is fulfilled and shall take any 
appropriate measures under its law, including the 
imposing of such sanctions as it may deem necessary, with 
a view to the effective execution of any such obligation; 
provided however, that such measures shall only be 
directed against those persons who are under an 
obligation to contribute to the Fund. 

3. Where a person who is liable in accordance with the 
provisions of Articles 10 and 11 to make contributions to 
the Fund does not fulfill his obligations in respect of 
any such contribution or any part thereof and is in 
arrear for a period exceeding three months, the Director 
shall take all appropriate action against such person on 
behalf of the Fund with a view to the recovery of the 
amount due. However, where the defaulting contributor is 
manifestly insolvent or the circumstances otherwise so 
warrant, the Assembly may, upon recommendation of the 
Director, decide that no action shall be taken or 
continued against the contributor.


Article 14

1. Each Contracting State may at the time when it 
deposits its instrument of ratification or accession or 
at any time thereafter declare that it assumes itself 
obligations that are incumbent under this Convention on 
any person who is liable to contribute to the Fund in 
accordance with Article 10, paragraph 1, in respect of 
oil received within the territory of that State. Such 
declaration shall be made in writing and shall specify 
which obligations are assumed.

2. Where a declaration under paragraph 1 is made prior to 
the entry into force of this Convention in accordance 
with Article 40, it shall be deposited with the 
Secretary-General of the Organization who shall after the 
entry into force of the Convention communicate the 
declaration to the Director.

3. A declaration under paragraph 1 which is made after 
the entry into force of this Convention shall be 
deposited with the Director.

4. A declaration made in accordance with this Article may 
be withdrawn by the relevant State giving notice thereof 
in writing to the Director. Such notification shall take 
effect three months after the Director's receipt thereof.

5. Any State which is bound by a declaration made under 
this Article shall, in any proceedings brought against it 
before a competent court in respect of any obligation 
specified in the declaration, waive any immunity that it 
would otherwise be entitled to invoke.

Article 15

1. Each Contracting State shall ensure that any person 
who receives contributing oil within its territory in 
such quantities that he is liable to contribute to the 
Fund appears on a list to be established and kept up to 
date by the Director in accordance with the subsequent 
provisions of this Article.

2. For the purposes set out in paragraph 1, each 
Contracting State shall communicate, at a time and in the 
manner to be prescribed in the Internal Regulations, to 
the Director the name and address of any person who in 
respect of that State is liable to contribute to the Fund 
pursuant to Article 10, as well as data on the relevant 
quantities of contributing oil received by any such 
person during the preceding calendar year.

3. For the purposes of ascertaining who are, at any given 
time, the persons liable to contribute to the Fund in 
accordance with Article 10, paragraph 1, and of 
establishing, where applicable, the quantities of oil to 
be taken into account for any such person when 
determining the amount of his contribution, the list 
shall be prima facie evidence of the facts stated 
therein.


ORGANIZATION AND ADMINISTRATION


Article 16

The Fund shall have an Assembly, a Secretariat headed by 
a Director and, in accordance with the provisions of 
Article 21, an Executive Committee.


ASSEMBLY


Article 17

The Assembly shall consist of all Contracting States to 
this Convention.


Article 18

The functions of the Assembly shall, subject to the 
provisions of Article 26, be:

1. to elect at each regular session its Chairman and two 
Vice-Chairmen who shall hold office until the next 
regular session; 

2. to determine its own rules of procedure, subject to 
the provisions of this Convention;

3. to adopt Internal Regulations necessary for the proper 
functioning of the Fund;

4. to appoint the Director and make provisions for the 
appointment of such other personnel as may be necessary 
and determine the terms and conditions of service of the 
Director and other personnel; 

5. to adopt the annual budget and fix the annual 
contributions;

6. to appoint auditors and approve the accounts of the 
Fund;

7. to approve settlements of claims against the Fund, to 
take decisions in respect of the distribution among 
claimants of the available amount of compensation in 
accordance with Article 4, paragraph 5, and to determine 
the terms and conditions according to which provisional 
payments in respect of claims shall be made with a view 
to ensuring that victims of pollution damage are 
compensated as promptly as possible;

8. to elect the members of the Assembly to be represented 
on the Executive Committee, as provided in Articles 21, 
22 and 23;

9. to establish any temporary or permanent subsidiary 
body it may consider to be necessary;

10. to determine which non-Contracting States and which 
inter-governmental and international non-governmental 
organizations shall be admitted to take part, without 
voting rights, in meetings of the Assembly, the Executive 
Committee, and subsidiary bodies;

11. to give instructions concerning the administration of 
the Fund to the Director, the Executive Committee and 
subsidiary bodies;

12. to review and approve the reports and activities of 
the Executive Committee;

13. to supervise the proper execution of the Convention 
and of its own decisions;

14. to perform such other functions as are allocated to 
it under the Convention or are otherwise necessary for 
the proper operation of the Fund.


Article 19

1. Regular sessions of the Assembly shall take place once 
every calendar year upon convocation by the Director; 
provided, however, that if the Assembly allocates to the 
Executive Committee the functions specified in Article 
18, paragraph 5, regular sessions of the Assembly shall 
be held once every two years.

2. Extraordinary sessions of the Assembly shall be 
convened by the Director at the request of the Executive 
Committee or of at least one-third of the members of the 
Assembly and may be convened on the Director's own 
initiative after consultation with the Chairman of the 
Assembly. The Director shall give members at least thirty 
days' notice of such sessions.


Article 20

A majority of the members of the Assembly shall 
constitute a quorum for its meetings. Executive Committee


Article 21

The Executive Committee shall be established at the first 
regular session of the Assembly after the date on which 
the number of Contracting States reaches fifteen.


Article 22

1. The Executive Committee shall consist of one-third of 
the members of the Assembly but of not less than seven or 
more than fifteen members. Where the number of members of 
the Assembly is not divisible by three, the one-third 
referred to shall be calculated on the next higher number 
which is divisible by three.

2. When electing the members of the Executive Committee 
the Assembly shall:

(a) secure an equitable geographical distribution of the 
seats on the Committee on the basis of an adequate 
representation of Contracting States particularly exposed 
to the risks of oil pollution and of Contracting States 
having large tanker fleets; and

(b) elect one half of the members of the Committee, or in 
case the total number of members to be elected is uneven, 
such number of the members as is equivalent to one half 
of the total number less one, among those Contracting 
States in the territory of which the largest quantities 
of oil to be taken into account under Article 10 were 
received during the preceding calendar year, provided 
that the number of States eligible under this sub-
paragraph shall be limited as shown in the table below:
Total number of Members on the Committee        Number of 
States eligible under sub-     Number of States to be 
elected under paragraph (b)   sub paragraph (b)
7       5       3
8       6       4
9	6	4
10	8	5
11	8	5
12	9	6
13	9	6
14	11	7
15	11	7

3. A member of the Assembly which was eligible but was 
not elected under sub-paragraph (b) shall not be eligible 
to be elected for any remaining seat on the Executive 
Committee.


Article 23

1. Members of the Executive Committee shall hold office 
until the end of the next regular session of the 
Assembly.

2. Except to the extent that may be necessary for 
complying with the requirements of Article 22, no State 
Member of the Assembly may serve on the Executive 
Committee for more than two consecutive terms.


Article 24

The Executive Committee shall meet at least once every 
calendar year at thirty days' notice upon convocation by 
the Director, either on his own initiative or at the 
request of its Chairman or of at least one-third of its 
members. It shall meet at such places as may be 
convenient.


Article 25

At least two-thirds of the members of the Executive 
Committee shall constitute a quorum for its meetings.


Article 26

1. The functions of the Executive Committee shall be:

(a) to elect its Chairman and adopt its own rules of 
procedure, except as otherwise provided in this 
Convention;

(b) to assume and exercise in place of the Assembly the 
following functions:
(i) making provision for the appointment of such 
personnel, other than the Director, as may be necessary 
and determining the terms and conditions of service of 
such personnel;
(ii) approving settlements of claims against the Fund and 
taking all other steps envisaged in relation to such 
claims in Article 18, paragraph 7;
(iii) giving instructions to the Director concerning the 
administration of the Fund and supervising the proper 
execution, by him of the Convention, of the decisions of 
the Assembly and of the Committee's own decisions; and

(c) to perform such other functions as are allocated to 
it by the Assembly. 

2. The Executive Committee shall each year prepare and 
publish a report of the activities of the Fund during the 
previous calendar year.


Article 27

Members of the Assembly who are not members of the 
Executive Committee shall have the right to attend its 
meetings as observers.


SECRETARIAT


Article 28

1. The Secretariat shall comprise the Director and such 
staff as the administration of the Fund may require.

2. The Director shall be the legal representative of the 
Fund.


Article 29

1. The Director shall be the chief administrative officer 
of the Fund and shall, subject to the instructions given 
to him by the Assembly and by the Executive Committee, 
perform those functions which are assigned to him by this 
Convention, the Internal Regulations, the Assembly and 
the Executive Committee.

2. The Director shall in particular:

(a) appoint the personnel required for the administration 
of the Fund;

(b) take all appropriate measures with a view to the 
proper administration of the Fund's assets;

(c) collect the contributions due under this Convention 
while observing in particular the provisions of Article 
13, paragraph 3; 

(d) to the extent necessary to deal with claims against 
the Fund and carry out the other functions of the Fund, 
employ the services of legal, financial and other 
experts;

(e) take all appropriate measures for dealing with claims 
against the Fund within the limits and on conditions to 
be laid down in the Internal Regulations, including the 
final settlement of claims without the prior approval of 
the Assembly or the Executive Committee where these 
Regulations so provide;

(f) prepare and submit to the Assembly or to the 
Executive Committee, as the case may be, the financial 
statements and budget estimat





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INTERNATIONAL CONVENTION ON THE ESTABLISHMENT OF AN 
INTERNATIONAL FUND FOR COMPENSATION FOR OIL POLLUTION 
DAMAGE

(Brussels, 18 December 1971)

The States Parties to the present Convention,

Being Parties to the International Convention on Civil 
Liability for Oil Pollution Damage, adopted at Brussels 
on 29 November 1969, Conscious of the dangers of 
pollution posed by the world-wide maritime carriage of 
oil in bulk,

Convinced of the need to ensure that adequate 
compensation is available to persons who suffer damage 
caused by pollution resulting from the escape or 
discharge of oil from ships, Considering that the 
International Convention of 29 November 1969, on Civil 
Liability for Oil Pollution Damage, by providing a regime 
for compensation for pollution damage in Contracting 
States and for the costs of measures, wherever taken, to 
prevent or minimize such damage, represents a 
considerable progress towards the achievement of this 
aim,

Considering however that this regime does not afford full 
compensation for victims of oil pollution damage in all 
cases while it imposes an additional financial burden on 
ship owners, 

Considering further that the economic consequences of oil 
pollution damage resulting from the escape or discharge 
of oil carried in bulk at sea by ships should not 
exclusively be borne by the shipping industry but should 
in part be borne by the oil cargo interests, Convinced of 
the need to elaborate a compensation and indemnification 
system supplementary to the International Convention on 
Civil Liability for Oil Pollution Damage with a view to 
ensuring that full compensation will be available to 
victims of oil pollution incidents and that the ship-
owners are at the same time given relief in respect of 
the additional financial burdens imposed on them by the 
said Convention,

Taking note of the Resolution on the Establishment of an 
International Compensation Fund for Oil Pollution Damage 
which was adopted on 29 November 1969 by the 
International Legal Conference on Marine Pollution 
Damage,

Have agreed as follows:


GENERAL PROVISIONS


Article 1

For the purposes of this Convention

1. "Liability Convention" means the International 
Convention on Civil Liability for Oil Pollution Damage, 
adopted at Brussels on 29 November 1969.

2. "Ship", "Person", "Owner", "Oil", "Pollution Damage", 
"Preventive Measures", "Incident" and "Organization" , 
have the same meaning as in Article I of the Liability 
Convention, provided however that, for the purposes of 
these terms, "oil" shall be confined to persistent 
hydrocarbon mineral oils.

3. "Contributing Oil" means crude oil and fuel oil as 
defined in sub-paragraphs (a) and (b) below:

(a) "Crude Oil" means any liquid hydrocarbon mixture 
occurring naturally in the earth whether or not treated 
to render it suitable for transportation. It also 
includes crude oils from which certain distillate 
fractions have been removed (sometimes referred to as 
"topped crudes") or to which certain distillate fractions 
have been added (sometimes referred to as "spiked" or 
"reconstituted" crudes).

(b) "Fuel Oil" means heavy distillates or residues from 
crude oil or blends of such materials intended for use as 
a fuel for the production of heat or power of a quality 
equivalent to the "American Society for Testing and 
Materials" Specification for Number Four Fuel Oil 
(Designation D 396-69), or heavier.

4. "Franc" means the unit referred to in Article V, 
paragraph 9, of the Liability Convention.

5. "Ship's tonnage" has the same meaning as in Article V, 
paragraph 10, of the Liability Convention.

6. "Ton", in relation to oil, means a metric ton.

7. "Guarantor" means any person providing insurance or 
other financial security to cover an owner's liability in 
pursuance of Article VII, paragraph 1, of the Liability 
Convention.

8. "Terminal installation" means any site for the storage 
of oil in bulk which is capable of receiving oil from 
waterborne transportation, including any facility 
situated off-shore and linked to such site.

9. Where an incident consists of a series of occurrences, 
it shall be treated as having occurred on the date of the 
first such occurrence.


Article 2

1. An International Fund for compensation for pollution 
damage, to be named "The International Oil Pollution 
Compensation Fund" and hereinafter referred to as "The 
Fund", is hereby established with the following aims:

(a) to provide compensation for pollution damage to the 
extent that the protection afforded by the Liability 
Convention is inadequate; 

(b) to give relief to ship owners in respect of the 
additional financial burden imposed on them by the 
Liability Convention, such relief 
being subject to conditions designed to insure compliance 
with safety at sea and other conventions;

(c) to give effect to the related purposes set out in 
this Convention. 2. The Fund shall in each Contracting 
State be recognized as a legal person capable under the 
laws of that State of assuming rights and obligations and 
of being a party in legal proceedings before the courts 
of that State. Each Contracting State shall recognize the 
Director of the Fund (hereinafter referred to as "The 
Director") as the legal representative of the Fund.


Article 3

This Convention shall apply:

1. with regard to compensation according to Article 4, 
exclusively to pollution damage caused on the territory 
including the territorial sea of a Contracting State, and 
to preventive measures taken to prevent or minimize such 
damage;

2. with regard to indemnification of ship owners and 
their 
guarantors according to Article 5, exclusively in respect 
of pollution damage caused on the territory including the 
territorial sea of a State party to the Liability 
Convention, by a ship registered in or flying the flag of 
a Contracting State and in respect of preventive measures 
taken to prevent or minimize such damage. Compensation 
and Indemnification


Article 4

1. For the purpose of fulfilling its function under 
Article 2, paragraph 1 (a), the Fund shall pay 
compensation to any person suffering pollution damage if 
such person has been unable to obtain full and adequate 
compensation for the damage under the terms of the 
Liability Convention,

(a) because no liability for the damage arises under the 
Liability Convention;

(b) because the owner liable for the damage under the 
Liability Convention is financially incapable of meeting 
his obligations in full and any financial security that 
may be provided under Article VII of that Convention does 
not cover or is insufficient to satisfy the claims for 
compensation for the damage; an owner being treated as 
financially incapable of meeting his obligations and a 
financial security being treated as insufficient if the 
person suffering the damage has been unable to obtain 
full satisfaction of the amount of compensation due under 
the Liability Convention after having taken 
all reasonable steps to pursue the legal remedies 
available to him;                                      

(c) because the damage exceeds the owner's liability 
under the Liability Convention as limited pursuant to 
Article V, paragraph 1, of that Convention or under the 
terms of any other international Convention in force or 
open for signature, ratification or accession at the date 
of this Convention. Expenses reasonably incurred or 
sacrifices reasonably made by the owner voluntarily to 
prevent or minimize pollution damage shall be treated as 
pollution damage for the purposes of this Article. 

2. The Fund shall incur no obligation under the preceding 
paragraph if:

(a) it proves that the pollution damage resulted from an 
act of war, hostilities, civil war or insurrection or was 
caused by oil which has escaped or been discharged from a 
warship or other ship owned or operated by a State and 
used, at the time of the incident, only on Government 
non-commercial service; or

(b) the claimant cannot prove that the damage resulted 
from an incident involving one or more ships.

3. If the Fund proves that the pollution damage resulted 
wholly or partially either from an act or omission done 
with intent to cause damage by the person who suffered 
the damage or from the negligence of that person, the 
Fund may be exonerated wholly or partially from its 
obligation to pay compensation to such person provided, 
however, that there shall be no such exoneration with 
regard to such preventive measures which are compensated 
under paragraph 1. The Fund shall in any event be 
exonerated to the extent that the ship owner may have 
been 
exonerated under Article III, paragraph 3, of the 
Liability Convention.

4. (a) Except as otherwise provided in sub-paragraph (b) 
of this paragraph, the aggregate amount of compensation 
payable by the Fund under this Article shall in respect 
of any one incident be limited, so that the total sum of 
that amount and the amount of compensation actually paid 
under the Liability Convention for pollution damage 
caused in the territory of the Contracting States, 
including any sums in respect of which the Fund is under 
an obligation to indemnify the owner pursuant to Article 
5, paragraph 1, of this Convention, shall not exceed 450 
million francs.

(b) The aggregate amount of compensation payable by the 
Fund under this Article for pollution damage resulting 
from a natural phenomenon of an exceptional, inevitable 
and irresistible character shall not exceed 450 million 
francs. 

5. Where the amount of established claims against the 
Fund exceeds the aggregate amount of compensation payable 
under paragraph 4, the amount available shall be 
distributed in such a manner that the proportion between 
any established claim and the amount of compensation 
actually recovered by the claimant under the Liability 
Convention and this Convention shall be the same for all 
claimants.

6. The Assembly of the Fund (hereinafter referred to as 
"the Assembly") may, having regard to the experience of 
incidents which have occurred and in particular the 
amount of damage resulting therefrom and to changes in 
the monetary values, decide that the amount of 450 
million francs referred to in paragraph 4, sub-paragraphs 
(a) and (b), shall be changed; provided, however, that 
this amount shall in no case exceed 900 million francs or 
be lower than 450 million francs. The changed amount 
shall apply to incidents which occur after the date of 
the decision effecting the change.

7. The Fund shall, at the request of a Contracting State, 
use its good offices as necessary to assist that State to 
secure promptly such personnel, material and services as 
are necessary to enable the State to take measures to 
prevent or mitigate pollution damage arising from an 
incident in respect of which the Fund may be called upon 
to pay compensation under this Convention.

8. The Fund may on conditions to be laid down in the 
Internal Regulations provide credit facilities with a 
view to the taking of preventive measures against 
pollution damage arising from a particular incident in 
respect of which the Fund may be called upon to pay 
compensation under this Convention.


Article 5

1. For the purpose of fulfilling its function under 
Article 2, paragraph 1 (b), the Fund shall indemnify the 
owner and his guarantor for that portion of the aggregate 
amount of liability under the Liability Convention which:
(a) is in excess of an amount equivalent to 1,500 francs 
for each ton of the ship's tonnage or of an amount of 125 
million francs, whichever is the less, and (b) is not in 
excess of an amount equivalent to 2,000 francs for each 
ton of the said tonnage or an amount of 210 million 
francs, whichever is the less, provided, however, that 
the Fund shall incur no obligation under this paragraph 
where the pollution damage resulted from the willful 
misconduct of the owner himself. 

2. The Assembly may decide that the Fund shall, on 
conditions to be laid down in the Internal Regulations, 
assume the obligations of a guarantor in respect of ships 
referred to in Article 3, paragraph 2, with regard to the 
portion of liability referred to in paragraph 1 of this 
Article. However, the Fund shall assume such obligations 
only if the owner so requests and if he maintains 
adequate insurance or other financial security covering 
the owner's liability under the Liability Convention up 
to an amount equivalent to 1,500 francs for each ton of 
the ship's tonnage or an amount of 125 million francs, 
whichever is the less. If the Fund assumes such 
obligations, the owner shall in each Contracting State be 
considered to have complied with Article VII of the 
Liability Convention in respect of the portion of his 
liability mentioned above.

3. The Fund may be exonerated wholly or partially from 
its obligations under paragraph 1 towards the owner and 
his guarantor if the Fund proves that as a result of the 
actual fault or privity of the owner:

(a) the ship from which the oil causing the pollution 
damage escaped did not comply with the requirements laid 
down in:
(i) the International Convention for the Prevention of 
Pollution of the Sea by Oil, 1954, as amended in 1962; or
(ii) the International Convention for the Safety of Life 
at Sea, 1960; or
(iii) the International Convention on Load Lines, 1966; 
or
(iv) the International Regulations for Preventing 
Collisions at Sea, 1960; or
(v) any amendments to the above mentioned Conventions 
which have been determined as being of an important 
nature in accordance with Article XVI (5) of the 
Convention mentioned under (i), Article IX (e) of the 
Convention mentioned under (ii) or Article 29 (3) (d) or 
(4) (d) of the Convention mentioned under (iii), 
provided, however, that such amendments had been in force 
for at least twelve months at the time of the incident;
and 

(b) the incident or damage was caused wholly of 
partially by such non-compliance. The provisions of this 
paragraph shall apply irrespective of whether the 
Contracting State in which the ship was registered or 
whose flag it was flying is a Party to the relevant 
Instrument.

4. Upon the entry into force of a new Convention designed 
to replace, in whole or in part, any of the Instruments 
specified in paragraph 3, the Assembly may decide at 
least six months in advance a date on which the new 
Convention will replace such Instrument or part thereof 
for the purpose of paragraph 3. However, any State Party 
to this Convention may declare to the Director before 
that date that it does not accept such replacement; in 
which case the decision of the Assembly shall have no 
effect in respect of a ship registered in, or flying the 
flag of, that State at the time of the incident. Such a 
declaration may be withdrawn at any later date and shall 
in any event cease to have effect when the State in 
question becomes a party to such new Convention.

5. A ship complying with the requirements in an amendment 
to an Instrument specified in paragraph 3 or with 
requirements in a new Convention, where the amendment or 
Convention is designed to replace in whole or in part 
such Instrument, shall be considered as complying with 
the requirements in the said Instrument for the purposes 
of paragraph 3.

6. Where the Fund, acting as a guarantor by virtue of 
paragraph 2 has paid compensation for pollution damage in 
accordance with the Liability Convention, it shall have a 
right of recovery from the owner if and to the extent 
that the Fund would have been exonerated pursuant to 
paragraph 3 from its obligations under paragraph 1 to 
indemnify the owner.

7. Expenses reasonably incurred and sacrifices reasonably 
made by the owner voluntarily to prevent or minimize 
pollution damage shall be treated as included in the 
owner's liability for the purposes of this Article.


Article 6

1. Rights to compensation under Article 4 or 
indemnification under Article 5 shall be extinguished 
unless an action is brought thereunder or a notification 
has been made pursuant to Article 7, paragraph 6, within 
three years from the date when the damage occurred. 
However, in no case shall an action be brought after six 
years from the date of the incident which caused the 
damage.

2. Notwithstanding paragraph 1, the right of the owner or 
his guarantor to seek indemnification from the Fund 
pursuant to Article 5, paragraph 1, shall in no case be 
extinguished before the expiry of a period of six months 
as from the date on which the owner or his guarantor 
acquired knowledge of the bringing of an action against 
him under the Liability Convention.


Article 7

1. Subject to the subsequent provisions of this Article, 
any action against the Fund for compensation under 
Article 4 or indemnification under Article 5 of this 
Convention shall be brought only before a court competent 
under Article IX of the Liability Convention in respect 
of actions against the owner who is or who would, but for 
the provisions of Article III, paragraph 2, of that 
Convention, have been liable for pollution damage caused 
by the relevant incident.

2. Each Contracting State shall ensure that its courts 
possess the necessary jurisdiction to entertain such ac-
tions against the Fund as are referred to in paragraph 1.

3. Where an action for compensation for pollution damage 
has been brought before a court competent under Article 
IX of the Liability Convention against the owner of a 
ship or his guarantor, such court shall have exclusive 
jurisdictional competence over any action against the 
Fund for compensation or indemnification under the 
provisions of Article 4 or 5 of this Convention in 
respect of the same damage. However, where an action for 
compensation for pollution damage under the Liability 
Convention has been brought before a court in a State 
Party to the Liability Convention but not to this 
Convention, any action against the Fund under Article 4 
or under Article 5, paragraph 1, of this Convention shall 
at the option of the claimant be brought either before a 
court the State where the Fund has its headquarters or 
before any court of a State Party to this 
Convention competent under Article IX of the Liability 
Convention. 

4. Each Contracting State shall ensure that the Fund 
shall have the right to intervene as a party to any legal 
proceedings instituted in accordance with Article IX of 
the Liability Convention before a competent court of that 
State against the owner of a ship or his guarantor.

5. Except as otherwise provided in paragraph 6, the Fund 
shall not be bound by any judgment or decision in 
proceedings to which it has not been a party or by any 
settlement to which it is not a party. 

6. Without prejudice to the provisions of paragraph 4, 
where an action under the Liability Convention for 
compensation for pollution damage has been brought 
against an owner or his guarantor before a competent 
court in a Contracting State, each party to the 
proceedings shall be entitled under the national law of 
that State to notify the Fund of the proceedings. Where 
such notification has been made in accordance with the 
formalities required by the law of the court seized and 
in such time and in such a manner that the Fund has in 
fact been in a position effectively to intervene as a 
party to the proceedings, any judgment rendered by the 
court in such proceedings shall, after it has become 
final and enforceable in the State where the judgment was 
given, become binding upon the Fund in the sense that the 
facts and findings in that judgment may not be disputed 
by the Fund even if the Fund has not actually intervened 
in the proceedings.


Article 8

Subject to any decision concerning the distribution 
referred to in Article 4, paragraph 5, any judgment given 
against the Fund by a court having jurisdiction in 
accordance with Article 7, paragraphs 1 and 3, shall, 
when it has become enforceable in the State of origin and 
is in that State no longer subject to ordinary forms of 
review, be recognized and enforceable in each Contracting 
State on the same conditions as are prescribed in Article 
X of the Liability Convention.


Article 9

1. Subject to the provisions of Article 5, the Fund 
shall, in respect of any amount of compensation for 
pollution damage paid by the Fund in accordance with 
Article 4, paragraph 1, of this Convention, acquire by 
subrogation the rights that the person so compensated may 
enjoy under the Liability Convention against the owner or 
his guarantor.

2. Nothing in this Convention shall prejudice any right 
of recourse or subrogation of the Fund against persons 
other than those referred to in the preceding paragraph. 
In any event the right of the Fund to subrogation against 
such person shall not be less favourable than that of an 
insurer of the person to whom compensation or indem-
nification has been paid.

3. Without prejudice to any other rights of subrogation 
or recourse against the Fund which may exist, a 
Contracting State or agency thereof which has paid 
compensation for pollution damage in accordance with 
provisions of national law shall acquire by subrogation 
the rights which the person so compensated would 
have enjoyed under this Convention.


CONTRIBUTIONS

Article 10

1. Contributions to the Fund shall be made in respect of 
each Contracting State by any person who, in the calendar 
year referred to in Article 11, paragraph 1, as regards 
initial contributions and in Article 12, paragraph 2 (a) 
or (b), as regards annual contributions, has received in 
total quantities exceeding 150,000 tons:

(a) in the ports or terminal installations in the 
territory of that State contributing oil carried by sea 
to such ports or terminal installations; and

(b) in any installations situated in the territory of 
that Contracting State contributing oil which has been 
carried by sea and discharged in a port or terminal 
installation of a non-Contracting State, provided that 
contributing oil shall only be taken into account by 
virtue of this sub-paragraph on first receipt in a 
Contracting State after its discharge in that non-
Contracting State. 

2. (a) For the purposes of paragraph 1, where the 
quantity of contributing oil received in the territory of 
a Contracting State by any person in a calendar year when 
aggregated with the quantity of contributing oil received 
in the same Contracting State in that year by any 
associated person or persons exceeds 150,000 tons, 
such person shall pay contributions in respect of the 
actual quantity received by him notwithstanding that that 
quantity, did not exceed 150,000 tons.

(b) "Associated person" means any subsidiary or commonly 
controlled entity. The question whether a person comes 
within this definition shall be determined by the 
national law of the State concerned.


Article 11

1. In respect of each Contracting State initial 
contributions shall be made of an amount which shall for 
each person referred to in Article 10 be calculated on 
the basis of a fixed sum for each ton of contributing oil 
received by him during the calendar year preceding that 
in which this Convention entered into force for that 
State.

2. The sum referred to in paragraph 1 shall be determined 
by the Assembly within two months after the entry into 
force of this Convention. In performing this function the 
Assembly shall, to the extent possible, fix the sum in 
such a way that the total amount of initial contributions 
would, if contributions were to be made in respect of 90 
per cent of the quantities of contributing oil carried by 
sea in the world, equal 75 million francs.

3. The initial contributions shall in respect of each 
Contracting State be paid within three months following 
the date at which the Convention entered into force for 
that State.


Article 12

1. With a view to assessing for each person referred to 
in Article 10 the amount of annual contributions due, if 
any, and taking account of the necessity to maintain 
sufficient liquid funds, the Assembly shall for each 
calendar year make an estimate in the form of a budget 
of:
(i) Expenditure
(a) costs and expenses of the administration of the Fund 
in the relevant year and any deficit from operations in 
preceding years; (b) payments to be made by the Fund in 
the relevant year for the satisfaction of claims against 
the Fund due under Article 4 or 5, including repayment on 
loans previously taken by the Fund for the satisfaction 
of such claims, to the extent that the aggregate amount 
of such claims in respect of any one incident does not 
exceed 15 million francs;
(c) payments to be made by the Fund in the relevant year 
for the satisfaction of claims against the Fund due under 
Article 4 or 5, including repayments on loans previously 
taken by the Fund for the satisfaction of such claims, to 
the extent that the aggregate amount of such claims in 
respect of any one incident is in excess of 15 million 
francs;
(ii) Income
(a) surplus funds from operations in preceding years, 
including any interest;
(b) initial contributions to be paid in the course of the 
year; 
(c) annual contributions, if required to balance the 
budget;
(d) any other income.

2. For each person referred to in Article 10 the amount 
of his annual contribution shall be determined by the 
Assembly and shall be calculated in respect of each 
Contracting State:

(a) in so far as the contribution is for the satisfaction 
of payments referred to in paragraph 1 (i) (a) and (b) on 
the basis of a fixed sum for each ton of contributing oil 
received in the relevant State by such persons during the 
preceding calendar year; and

(b) in so far as the contribution is for the satisfaction 
of payments referred to in paragraph 1 (i) (c) of this 
Article on the basis of a fixed sum for each ton of 
contributing oil received by such person during the 
calendar year preceding that in which the incident in 
question occurred, provided that State was a party to 
this Convention at the date of the incident.

3. The sums referred to in paragraph 2 above shall be 
arrived at by dividing the relevant total amount of 
contributions required by the total amount of contri-
buting oil received in all Contracting States in the 
relevant year.

4. The Assembly shall decide the portion of the annual 
contribution which shall be immediately paid in cash and 
decide on the date of payment. The remaining part of each 
annual contribution shall be paid upon notification by 
the Director.

5. The Director may, in cases and in accordance with 
conditions to be laid down in the Internal Regulations of 
the Fund, require a contributor to provide financial 
security for the sums due from him. 6. Any demand for 
payments made under paragraph 4 shall be called rateably 
from all individual contributors.


Article 13

1. The amount of any contribution due under Article 12 
and which is in arrear shall bear interest at a rate 
which shall be determined by the Assembly for each 
calendar year provided that different rates may be fixed 
for different circumstances.

2. Each Contracting State shall ensure that any 
obligation to contribute to the Fund arising under this 
Convention in respect of oil received within the 
territory of that State is fulfilled and shall take any 
appropriate measures under its law, including the 
imposing of such sanctions as it may deem necessary, with 
a view to the effective execution of any such obligation; 
provided however, that such measures shall only be 
directed against those persons who are under an 
obligation to contribute to the Fund. 

3. Where a person who is liable in accordance with the 
provisions of Articles 10 and 11 to make contributions to 
the Fund does not fulfill his obligations in respect of 
any such contribution or any part thereof and is in 
arrear for a period exceeding three months, the Director 
shall take all appropriate action against such person on 
behalf of the Fund with a view to the recovery of the 
amount due. However, where the defaulting contributor is 
manifestly insolvent or the circumstances otherwise so 
warrant, the Assembly may, upon recommendation of the 
Director, decide that no action shall be taken or 
continued against the contributor.


Article 14

1. Each Contracting State may at the time when it 
deposits its instrument of ratification or accession or 
at any time thereafter declare that it assumes itself 
obligations that are incumbent under this Convention on 
any person who is liable to contribute to the Fund in 
accordance with Article 10, paragraph 1, in respect of 
oil received within the territory of that State. Such 
declaration shall be made in writing and shall specify 
which obligations are assumed.

2. Where a declaration under paragraph 1 is made prior to 
the entry into force of this Convention in accordance 
with Article 40, it shall be deposited with the 
Secretary-General of the Organization who shall after the 
entry into force of the Convention communicate the 
declaration to the Director.

3. A declaration under paragraph 1 which is made after 
the entry into force of this Convention shall be 
deposited with the Director.

4. A declaration made in accordance with this Article may 
be withdrawn by the relevant State giving notice thereof 
in writing to the Director. Such notification shall take 
effect three months after the Director's receipt thereof.

5. Any State which is bound by a declaration made under 
this Article shall, in any proceedings brought against it 
before a competent court in respect of any obligation 
specified in the declaration, waive any immunity that it 
would otherwise be entitled to invoke.

Article 15

1. Each Contracting State shall ensure that any person 
who receives contributing oil within its territory in 
such quantities that he is liable to contribute to the 
Fund appears on a list to be established and kept up to 
date by the Director in accordance with the subsequent 
provisions of this Article.

2. For the purposes set out in paragraph 1, each 
Contracting State shall communicate, at a time and in the 
manner to be prescribed in the Internal Regulations, to 
the Director the name and address of any person who in 
respect of that State is liable to contribute to the Fund 
pursuant to Article 10, as well as data on the relevant 
quantities of contributing oil received by any such 
person during the preceding calendar year.

3. For the purposes of ascertaining who are, at any given 
time, the persons liable to contribute to the Fund in 
accordance with Article 10, paragraph 1, and of 
establishing, where applicable, the quantities of oil to 
be taken into account for any such person when 
determining the amount of his contribution, the list 
shall be prima facie evidence of the facts stated 
therein.


ORGANIZATION AND ADMINISTRATION


Article 16

The Fund shall have an Assembly, a Secretariat headed by 
a Director and, in accordance with the provisions of 
Article 21, an Executive Committee.


ASSEMBLY


Article 17

The Assembly shall consist of all Contracting States to 
this Convention.


Article 18

The functions of the Assembly shall, subject to the 
provisions of Article 26, be:

1. to elect at each regular session its Chairman and two 
Vice-Chairmen who shall hold office until the next 
regular session; 

2. to determine its own rules of procedure, subject to 
the provisions of this Convention;

3. to adopt Internal Regulations necessary for the proper 
functioning of the Fund;

4. to appoint the Director and make provisions for the 
appointment of such other personnel as may be necessary 
and determine the terms and conditions of service of the 
Director and other personnel; 

5. to adopt the annual budget and fix the annual 
contributions;

6. to appoint auditors and approve the accounts of the 
Fund;

7. to approve settlements of claims against the Fund, to 
take decisions in respect of the distribution among 
claimants of the available amount of compensation in 
accordance with Article 4, paragraph 5, and to determine 
the terms and conditions according to which provisional 
payments in respect of claims shall be made with a view 
to ensuring that victims of pollution damage are 
compensated as promptly as possible;

8. to elect the members of the Assembly to be represented 
on the Executive Committee, as provided in Articles 21, 
22 and 23;

9. to establish any temporary or permanent subsidiary 
body it may consider to be necessary;

10. to determine which non-Contracting States and which 
inter-governmental and international non-governmental 
organizations shall be admitted to take part, without 
voting rights, in meetings of the Assembly, the Executive 
Committee, and subsidiary bodies;

11. to give instructions concerning the administration of 
the Fund to the Director, the Executive Committee and 
subsidiary bodies;

12. to review and approve the reports and activities of 
the Executive Committee;

13. to supervise the proper execution of the Convention 
and of its own decisions;

14. to perform such other functions as are allocated to 
it under the Convention or are otherwise necessary for 
the proper operation of the Fund.


Article 19

1. Regular sessions of the Assembly shall take place once 
every calendar year upon convocation by the Director; 
provided, however, that if the Assembly allocates to the 
Executive Committee the functions specified in Article 
18, paragraph 5, regular sessions of the Assembly shall 
be held once every two years.

2. Extraordinary sessions of the Assembly shall be 
convened by the Director at the request of the Executive 
Committee or of at least one-third of the members of the 
Assembly and may be convened on the Director's own 
initiative after consultation with the Chairman of the 
Assembly. The Director shall give members at least thirty 
days' notice of such sessions.


Article 20

A majority of the members of the Assembly shall 
constitute a quorum for its meetings. Executive Committee


Article 21

The Executive Committee shall be established at the first 
regular session of the Assembly after the date on which 
the number of Contracting States reaches fifteen.


Article 22

1. The Executive Committee shall consist of one-third of 
the members of the Assembly but of not less than seven or 
more than fifteen members. Where the number of members of 
the Assembly is not divisible by three, the one-third 
referred to shall be calculated on the next higher number 
which is divisible by three.

2. When electing the members of the Executive Committee 
the Assembly shall:

(a) secure an equitable geographical distribution of the 
seats on the Committee on the basis of an adequate 
representation of Contracting States particularly exposed 
to the risks of oil pollution and of Contracting States 
having large tanker fleets; and

(b) elect one half of the members of the Committee, or in 
case the total number of members to be elected is uneven, 
such number of the members as is equivalent to one half 
of the total number less one, among those Contracting 
States in the territory of which the largest quantities 
of oil to be taken into account under Article 10 were 
received during the preceding calendar year, provided 
that the number of States eligible under this sub-
paragraph shall be limited as shown in the table below:
Total number of Members on the Committee        Number of 
States eligible under sub-     Number of States to be 
elected under paragraph (b)   sub paragraph (b)
7       5       3
8       6       4
9	6	4
10	8	5
11	8	5
12	9	6
13	9	6
14	11	7
15	11	7

3. A member of the Assembly which was eligible but was 
not elected under sub-paragraph (b) shall not be eligible 
to be elected for any remaining seat on the Executive 
Committee.


Article 23

1. Members of the Executive Committee shall hold office 
until the end of the next regular session of the 
Assembly.

2. Except to the extent that may be necessary for 
complying with the requirements of Article 22, no State 
Member of the Assembly may serve on the Executive 
Committee for more than two consecutive terms.


Article 24

The Executive Committee shall meet at least once every 
calendar year at thirty days' notice upon convocation by 
the Director, either on his own initiative or at the 
request of its Chairman or of at least one-third of its 
members. It shall meet at such places as may be 
convenient.


Article 25

At least two-thirds of the members of the Executive 
Committee shall constitute a quorum for its meetings.


Article 26

1. The functions of the Executive Committee shall be:

(a) to elect its Chairman and adopt its own rules of 
procedure, except as otherwise provided in this 
Convention;

(b) to assume and exercise in place of the Assembly the 
following functions:
(i) making provision for the appointment of such 
personnel, other than the Director, as may be necessary 
and determining the terms and conditions of service of 
such personnel;
(ii) approving settlements of claims against the Fund and 
taking all other steps envisaged in relation to such 
claims in Article 18, paragraph 7;
(iii) giving instructions to the Director concerning the 
administration of the Fund and supervising the proper 
execution, by him of the Convention, of the decisions of 
the Assembly and of the Committee's own decisions; and

(c) to perform such other functions as are allocated to 
it by the Assembly. 

2. The Executive Committee shall each year prepare and 
publish a report of the activities of the Fund during the 
previous calendar year.


Article 27

Members of the Assembly who are not members of the 
Executive Committee shall have the right to attend its 
meetings as observers.


SECRETARIAT


Article 28

1. The Secretariat shall comprise the Director and such 
staff as the administration of the Fund may require.

2. The Director shall be the legal representative of the 
Fund.


Article 29

1. The Director shall be the chief administrative officer 
of the Fund and shall, subject to the instructions given 
to him by the Assembly and by the Executive Committee, 
perform those functions which are assigned to him by this 
Convention, the Internal Regulations, the Assembly and 
the Executive Committee.

2. The Director shall in particular:

(a) appoint the personnel required for the administration 
of the Fund;

(b) take all appropriate measures with a view to the 
proper administration of the Fund's assets;

(c) collect the contributions due under this Convention 
while observing in particular the provisions of Article 
13, paragraph 3; 

(d) to the extent necessary to deal with claims against 
the Fund and carry out the other functions of the Fund, 
employ the services of legal, financial and other 
experts;

(e) take all appropriate measures for dealing with claims 
against the Fund within the limits and on conditions to 
be laid down in the Internal Regulations, including the 
final settlement of claims without the prior approval of 
the Assembly or the Executive Committee where these 
Regulations so provide;

(f) prepare and submit to the Assembly or to the 
Executive Committee, as the case may be, the financial 
statements and budget estimates for each calendar year;

(g) assist the Executive Committee in the preparation of 
the report referred to in Article 26, paragraph 2;

(h) prepare, collect and circulate the papers, documents, 
agenda, minutes and information that may be required for 
the work of the Assembly, the Executive Committee and 
subsidiary bodies.


Article 30

In the performance of their duties the Director and the 
staff and experts appointed by him shall not seek or 
receive instructions from any Government or from any 
authority external to the Fund. They shall refrain from 
any action which might reflect on their position as 
international officials. Each Contracting State on its 
part undertakes to respect the exclusively international 
character of the responsibilities of the Director and the 
staff and experts appointed by him, and not to seek to 
influence them in the discharge of their duties.


FINANCES


Article 31

1. Each Contracting State shall bear the salary, travel 
and other expenses of its own delegation to the Assembly 
and of its representatives on the Executive Committee and 
on subsidiary bodies.

2. Any other expenses incurred in the operation of the 
Fund shall be borne by the Fund.


VOTING


Article 32

The following provisions shall apply to voting in the 
Assembly and the Executive Committee:

(a) each member shall have one vote;

(b) except as otherwise provided in Article 33, decisions 
of the Assembly and the Executive Committee shall be by a 
majority vote of the members present and voting;

(c) decisions where a three-fourths or a two-thirds 
majority is required shall be by a three-fourths or two-
thirds majority vote, as the case may be, of those 
present;

(d) for the purpose of this Article the phrase "members 
present" means "members present at the meeting at the 
time of the vote", and the phrase "members present and 
voting" means "members present and casting an affirmative 
or negative vote". Members who abstain from voting shall 
he considered as not voting.


Article 33

1. The following decisions of the Assembly shall require 
a three-fourths majority:

(a) an increase in accordance with Article 4, paragraph 
6, in the maximum amount of compensation  payable by the 
Fund;

(b) a determination, under Article 5, paragraph 4, 
relating to the replacement of the Instruments referred 
to in that paragraph;

(c) the allocation to the Executive Committee of the 
functions specified in Article 18, paragraph 5.

2. The following decisions of the Assembly shall require 
a two-thirds majority:

(a) a decision under Article 13, paragraph 3, not to take 
or continue action against a contributor;

(b) the appointment of the Director under Article 18, 
paragraph 4;                                           

(c) the establishment of subsidiary bodies, under Article 
18, paragraph 9.


Article 34

1. The Fund, its assets, income, including contributions, 
and other property shall enjoy in all Contracting States 
exemption from all direct taxation.

2. When the Fund makes substantial purchases of movable 
or immovable property, or has important work carried out 
which is necessary for the exercise of its official 
activities and the cost of which includes indirect taxes 
or sales taxes, the Governments of Member States shall 
take, whenever possible, appropriate measures for the 
remission or refund of the amount of such duties and 
taxes.

3. No exemption shall be accorded in the case of duties, 
taxes or dues which merely constitute payment for public 
utility services.

4. The Fund shall enjoy exemption from all customs 
duties, taxes and other related taxes on articles 
imported or exported by it or on its behalf for its 
official use. Articles thus imported shall not be 
transferred either for consideration or gratis on the 
territory of the country into which they have been 
imported except on conditions agreed by the government of 
that country.

5. Persons contributing to the Fund and victims and 
owners of ships receiving compensation from the Fund 
shall be subject to the fiscal legislation of the State





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INTERNATIONAL CONVENTION ON THE ESTABLISHMENT OF AN 
INTERNATIONAL FUND FOR COMPENSATION FOR OIL POLLUTION 
DAMAGE

(Brussels, 18 December 1971)

The States Parties to the present Convention,

Being Parties to the International Convention on Civil 
Liability for Oil Pollution Damage, adopted at Brussels 
on 29 November 1969, Conscious of the dangers of 
pollution posed by the world-wide maritime carriage of 
oil in bulk,

Convinced of the need to ensure that adequate 
compensation is available to persons who suffer damage 
caused by pollution resulting from the escape or 
discharge of oil from ships, Considering that the 
International Convention of 29 November 1969, on Civil 
Liability for Oil Pollution Damage, by providing a regime 
for compensation for pollution damage in Contracting 
States and for the costs of measures, wherever taken, to 
prevent or minimize such damage, represents a 
considerable progress towards the achievement of this 
aim,

Considering however that this regime does not afford full 
compensation for victims of oil pollution damage in all 
cases while it imposes an additional financial burden on 
ship owners, 

Considering further that the economic consequences of oil 
pollution damage resulting from the escape or discharge 
of oil carried in bulk at sea by ships should not 
exclusively be borne by the shipping industry but should 
in part be borne by the oil cargo interests, Convinced of 
the need to elaborate a compensation and indemnification 
system supplementary to the International Convention on 
Civil Liability for Oil Pollution Damage with a view to 
ensuring that full compensation will be available to 
victims of oil pollution incidents and that the ship-
owners are at the same time given relief in respect of 
the additional financial burdens imposed on them by the 
said Convention,

Taking note of the Resolution on the Establishment of an 
International Compensation Fund for Oil Pollution Damage 
which was adopted on 29 November 1969 by the 
International Legal Conference on Marine Pollution 
Damage,

Have agreed as follows:


GENERAL PROVISIONS


Article 1

For the purposes of this Convention

1. "Liability Convention" means the International 
Convention on Civil Liability for Oil Pollution Damage, 
adopted at Brussels on 29 November 1969.

2. "Ship", "Person", "Owner", "Oil", "Pollution Damage", 
"Preventive Measures", "Incident" and "Organization" , 
have the same meaning as in Article I of the Liability 
Convention, provided however that, for the purposes of 
these terms, "oil" shall be confined to persistent 
hydrocarbon mineral oils.

3. "Contributing Oil" means crude oil and fuel oil as 
defined in sub-paragraphs (a) and (b) below:

(a) "Crude Oil" means any liquid hydrocarbon mixture 
occurring naturally in the earth whether or not treated 
to render it suitable for transportation. It also 
includes crude oils from which certain distillate 
fractions have been removed (sometimes referred to as 
"topped crudes") or to which certain distillate fractions 
have been added (sometimes referred to as "spiked" or 
"reconstituted" crudes).

(b) "Fuel Oil" means heavy distillates or residues from 
crude oil or blends of such materials intended for use as 
a fuel for the production of heat or power of a quality 
equivalent to the "American Society for Testing and 
Materials" Specification for Number Four Fuel Oil 
(Designation D 396-69), or heavier.

4. "Franc" means the unit referred to in Article V, 
paragraph 9, of the Liability Convention.

5. "Ship's tonnage" has the same meaning as in Article V, 
paragraph 10, of the Liability Convention.

6. "Ton", in relation to oil, means a metric ton.

7. "Guarantor" means any person providing insurance or 
other financial security to cover an owner's liability in 
pursuance of Article VII, paragraph 1, of the Liability 
Convention.

8. "Terminal installation" means any site for the storage 
of oil in bulk which is capable of receiving oil from 
waterborne transportation, including any facility 
situated off-shore and linked to such site.

9. Where an incident consists of a series of occurrences, 
it shall be treated as having occurred on the date of the 
first such occurrence.


Article 2

1. An International Fund for compensation for pollution 
damage, to be named "The International Oil Pollution 
Compensation Fund" and hereinafter referred to as "The 
Fund", is hereby established with the following aims:

(a) to provide compensation for pollution damage to the 
extent that the protection afforded by the Liability 
Convention is inadequate; 

(b) to give relief to ship owners in respect of the 
additional financial burden imposed on them by the 
Liability Convention, such relief 
being subject to conditions designed to insure compliance 
with safety at sea and other conventions;

(c) to give effect to the related purposes set out in 
this Convention. 2. The Fund shall in each Contracting 
State be recognized as a legal person capable under the 
laws of that State of assuming rights and obligations and 
of being a party in legal proceedings before the courts 
of that State. Each Contracting State shall recognize the 
Director of the Fund (hereinafter referred to as "The 
Director") as the legal representative of the Fund.


Article 3

This Convention shall apply:

1. with regard to compensation according to Article 4, 
exclusively to pollution damage caused on the territory 
including the territorial sea of a Contracting State, and 
to preventive measures taken to prevent or minimize such 
damage;

2. with regard to indemnification of ship owners and 
their 
guarantors according to Article 5, exclusively in respect 
of pollution damage caused on the territory including the 
territorial sea of a State party to the Liability 
Convention, by a ship registered in or flying the flag of 
a Contracting State and in respect of preventive measures 
taken to prevent or minimize such damage. Compensation 
and Indemnification


Article 4

1. For the purpose of fulfilling its function under 
Article 2, paragraph 1 (a), the Fund shall pay 
compensation to any person suffering pollution damage if 
such person has been unable to obtain full and adequate 
compensation for the damage under the terms of the 
Liability Convention,

(a) because no liability for the damage arises under the 
Liability Convention;

(b) because the owner liable for the damage under the 
Liability Convention is financially incapable of meeting 
his obligations in full and any financial security that 
may be provided under Article VII of that Convention does 
not cover or is insufficient to satisfy the claims for 
compensation for the damage; an owner being treated as 
financially incapable of meeting his obligations and a 
financial security being treated as insufficient if the 
person suffering the damage has been unable to obtain 
full satisfaction of the amount of compensation due under 
the Liability Convention after having taken 
all reasonable steps to pursue the legal remedies 
available to him;                                      

(c) because the damage exceeds the owner's liability 
under the Liability Convention as limited pursuant to 
Article V, paragraph 1, of that Convention or under the 
terms of any other international Convention in force or 
open for signature, ratification or accession at the date 
of this Convention. Expenses reasonably incurred or 
sacrifices reasonably made by the owner voluntarily to 
prevent or minimize pollution damage shall be treated as 
pollution damage for the purposes of this Article. 

2. The Fund shall incur no obligation under the preceding 
paragraph if:

(a) it proves that the pollution damage resulted from an 
act of war, hostilities, civil war or insurrection or was 
caused by oil which has escaped or been discharged from a 
warship or other ship owned or operated by a State and 
used, at the time of the incident, only on Government 
non-commercial service; or

(b) the claimant cannot prove that the damage resulted 
from an incident involving one or more ships.

3. If the Fund proves that the pollution damage resulted 
wholly or partially either from an act or omission done 
with intent to cause damage by the person who suffered 
the damage or from the negligence of that person, the 
Fund may be exonerated wholly or partially from its 
obligation to pay compensation to such person provided, 
however, that there shall be no such exoneration with 
regard to such preventive measures which are compensated 
under paragraph 1. The Fund shall in any event be 
exonerated to the extent that the ship owner may have 
been 
exonerated under Article III, paragraph 3, of the 
Liability Convention.

4. (a) Except as otherwise provided in sub-paragraph (b) 
of this paragraph, the aggregate amount of compensation 
payable by the Fund under this Article shall in respect 
of any one incident be limited, so that the total sum of 
that amount and the amount of compensation actually paid 
under the Liability Convention for pollution damage 
caused in the territory of the Contracting States, 
including any sums in respect of which the Fund is under 
an obligation to indemnify the owner pursuant to Article 
5, paragraph 1, of this Convention, shall not exceed 450 
million francs.

(b) The aggregate amount of compensation payable by the 
Fund under this Article for pollution damage resulting 
from a natural phenomenon of an exceptional, inevitable 
and irresistible character shall not exceed 450 million 
francs. 

5. Where the amount of established claims against the 
Fund exceeds the aggregate amount of compensation payable 
under paragraph 4, the amount available shall be 
distributed in such a manner that the proportion between 
any established claim and the amount of compensation 
actually recovered by the claimant under the Liability 
Convention and this Convention shall be the same for all 
claimants.

6. The Assembly of the Fund (hereinafter referred to as 
"the Assembly") may, having regard to the experience of 
incidents which have occurred and in particular the 
amount of damage resulting therefrom and to changes in 
the monetary values, decide that the amount of 450 
million francs referred to in paragraph 4, sub-paragraphs 
(a) and (b), shall be changed; provided, however, that 
this amount shall in no case exceed 900 million francs or 
be lower than 450 million francs. The changed amount 
shall apply to incidents which occur after the date of 
the decision effecting the change.

7. The Fund shall, at the request of a Contracting State, 
use its good offices as necessary to assist that State to 
secure promptly such personnel, material and services as 
are necessary to enable the State to take measures to 
prevent or mitigate pollution damage arising from an 
incident in respect of which the Fund may be called upon 
to pay compensation under this Convention.

8. The Fund may on conditions to be laid down in the 
Internal Regulations provide credit facilities with a 
view to the taking of preventive measures against 
pollution damage arising from a particular incident in 
respect of which the Fund may be called upon to pay 
compensation under this Convention.


Article 5

1. For the purpose of fulfilling its function under 
Article 2, paragraph 1 (b), the Fund shall indemnify the 
owner and his guarantor for that portion of the aggregate 
amount of liability under the Liability Convention which:
(a) is in excess of an amount equivalent to 1,500 francs 
for each ton of the ship's tonnage or of an amount of 125 
million francs, whichever is the less, and (b) is not in 
excess of an amount equivalent to 2,000 francs for each 
ton of the said tonnage or an amount of 210 million 
francs, whichever is the less, provided, however, that 
the Fund shall incur no obligation under this paragraph 
where the pollution damage resulted from the willful 
misconduct of the owner himself. 

2. The Assembly may decide that the Fund shall, on 
conditions to be laid down in the Internal Regulations, 
assume the obligations of a guarantor in respect of ships 
referred to in Article 3, paragraph 2, with regard to the 
portion of liability referred to in paragraph 1 of this 
Article. However, the Fund shall assume such obligations 
only if the owner so requests and if he maintains 
adequate insurance or other financial security covering 
the owner's liability under the Liability Convention up 
to an amount equivalent to 1,500 francs for each ton of 
the ship's tonnage or an amount of 125 million francs, 
whichever is the less. If the Fund assumes such 
obligations, the owner shall in each Contracting State be 
considered to have complied with Article VII of the 
Liability Convention in respect of the portion of his 
liability mentioned above.

3. The Fund may be exonerated wholly or partially from 
its obligations under paragraph 1 towards the owner and 
his guarantor if the Fund proves that as a result of the 
actual fault or privity of the owner:

(a) the ship from which the oil causing the pollution 
damage escaped did not comply with the requirements laid 
down in:
(i) the International Convention for the Prevention of 
Pollution of the Sea by Oil, 1954, as amended in 1962; or
(ii) the International Convention for the Safety of Life 
at Sea, 1960; or
(iii) the International Convention on Load Lines, 1966; 
or
(iv) the International Regulations for Preventing 
Collisions at Sea, 1960; or
(v) any amendments to the above mentioned Conventions 
which have been determined as being of an important 
nature in accordance with Article XVI (5) of the 
Convention mentioned under (i), Article IX (e) of the 
Convention mentioned under (ii) or Article 29 (3) (d) or 
(4) (d) of the Convention mentioned under (iii), 
provided, however, that such amendments had been in force 
for at least twelve months at the time of the incident;
and 

(b) the incident or damage was caused wholly of 
partially by such non-compliance. The provisions of this 
paragraph shall apply irrespective of whether the 
Contracting State in which the ship was registered or 
whose flag it was flying is a Party to the relevant 
Instrument.

4. Upon the entry into force of a new Convention designed 
to replace, in whole or in part, any of the Instruments 
specified in paragraph 3, the Assembly may decide at 
least six months in advance a date on which the new 
Convention will replace such Instrument or part thereof 
for the purpose of paragraph 3. However, any State Party 
to this Convention may declare to the Director before 
that date that it does not accept such replacement; in 
which case the decision of the Assembly shall have no 
effect in respect of a ship registered in, or flying the 
flag of, that State at the time of the incident. Such a 
declaration may be withdrawn at any later date and shall 
in any event cease to have effect when the State in 
question becomes a party to such new Convention.

5. A ship complying with the requirements in an amendment 
to an Instrument specified in paragraph 3 or with 
requirements in a new Convention, where the amendment or 
Convention is designed to replace in whole or in part 
such Instrument, shall be considered as complying with 
the requirements in the said Instrument for the purposes 
of paragraph 3.

6. Where the Fund, acting as a guarantor by virtue of 
paragraph 2 has paid compensation for pollution damage in 
accordance with the Liability Convention, it shall have a 
right of recovery from the owner if and to the extent 
that the Fund would have been exonerated pursuant to 
paragraph 3 from its obligations under paragraph 1 to 
indemnify the owner.

7. Expenses reasonably incurred and sacrifices reasonably 
made by the owner voluntarily to prevent or minimize 
pollution damage shall be treated as included in the 
owner's liability for the purposes of this Article.


Article 6

1. Rights to compensation under Article 4 or 
indemnification under Article 5 shall be extinguished 
unless an action is brought thereunder or a notification 
has been made pursuant to Article 7, paragraph 6, within 
three years from the date when the damage occurred. 
However, in no case shall an action be brought after six 
years from the date of the incident which caused the 
damage.

2. Notwithstanding paragraph 1, the right of the owner or 
his guarantor to seek indemnification from the Fund 
pursuant to Article 5, paragraph 1, shall in no case be 
extinguished before the expiry of a period of six months 
as from the date on which the owner or his guarantor 
acquired knowledge of the bringing of an action against 
him under the Liability Convention.


Article 7

1. Subject to the subsequent provisions of this Article, 
any action against the Fund for compensation under 
Article 4 or indemnification under Article 5 of this 
Convention shall be brought only before a court competent 
under Article IX of the Liability Convention in respect 
of actions against the owner who is or who would, but for 
the provisions of Article III, paragraph 2, of that 
Convention, have been liable for pollution damage caused 
by the relevant incident.

2. Each Contracting State shall ensure that its courts 
possess the necessary jurisdiction to entertain such ac-
tions against the Fund as are referred to in paragraph 1.

3. Where an action for compensation for pollution damage 
has been brought before a court competent under Article 
IX of the Liability Convention against the owner of a 
ship or his guarantor, such court shall have exclusive 
jurisdictional competence over any action against the 
Fund for compensation or indemnification under the 
provisions of Article 4 or 5 of this Convention in 
respect of the same damage. However, where an action for 
compensation for pollution damage under the Liability 
Convention has been brought before a court in a State 
Party to the Liability Convention but not to this 
Convention, any action against the Fund under Article 4 
or under Article 5, paragraph 1, of this Convention shall 
at the option of the claimant be brought either before a 
court the State where the Fund has its headquarters or 
before any court of a State Party to this 
Convention competent under Article IX of the Liability 
Convention. 

4. Each Contracting State shall ensure that the Fund 
shall have the right to intervene as a party to any legal 
proceedings instituted in accordance with Article IX of 
the Liability Convention before a competent court of that 
State against the owner of a ship or his guarantor.

5. Except as otherwise provided in paragraph 6, the Fund 
shall not be bound by any judgment or decision in 
proceedings to which it has not been a party or by any 
settlement to which it is not a party. 

6. Without prejudice to the provisions of paragraph 4, 
where an action under the Liability Convention for 
compensation for pollution damage has been brought 
against an owner or his guarantor before a competent 
court in a Contracting State, each party to the 
proceedings shall be entitled under the national law of 
that State to notify the Fund of the proceedings. Where 
such notification has been made in accordance with the 
formalities required by the law of the court seized and 
in such time and in such a manner that the Fund has in 
fact been in a position effectively to intervene as a 
party to the proceedings, any judgment rendered by the 
court in such proceedings shall, after it has become 
final and enforceable in the State where the judgment was 
given, become binding upon the Fund in the sense that the 
facts and findings in that judgment may not be disputed 
by the Fund even if the Fund has not actually intervened 
in the proceedings.


Article 8

Subject to any decision concerning the distribution 
referred to in Article 4, paragraph 5, any judgment given 
against the Fund by a court having jurisdiction in 
accordance with Article 7, paragraphs 1 and 3, shall, 
when it has become enforceable in the State of origin and 
is in that State no longer subject to ordinary forms of 
review, be recognized and enforceable in each Contracting 
State on the same conditions as are prescribed in Article 
X of the Liability Convention.


Article 9

1. Subject to the provisions of Article 5, the Fund 
shall, in respect of any amount of compensation for 
pollution damage paid by the Fund in accordance with 
Article 4, paragraph 1, of this Convention, acquire by 
subrogation the rights that the person so compensated may 
enjoy under the Liability Convention against the owner or 
his guarantor.

2. Nothing in this Convention shall prejudice any right 
of recourse or subrogation of the Fund against persons 
other than those referred to in the preceding paragraph. 
In any event the right of the Fund to subrogation against 
such person shall not be less favourable than that of an 
insurer of the person to whom compensation or indem-
nification has been paid.

3. Without prejudice to any other rights of subrogation 
or recourse against the Fund which may exist, a 
Contracting State or agency thereof which has paid 
compensation for pollution damage in accordance with 
provisions of national law shall acquire by subrogation 
the rights which the person so compensated would 
have enjoyed under this Convention.


CONTRIBUTIONS

Article 10

1. Contributions to the Fund shall be made in respect of 
each Contracting State by any person who, in the calendar 
year referred to in Article 11, paragraph 1, as regards 
initial contributions and in Article 12, paragraph 2 (a) 
or (b), as regards annual contributions, has received in 
total quantities exceeding 150,000 tons:

(a) in the ports or terminal installations in the 
territory of that State contributing oil carried by sea 
to such ports or terminal installations; and

(b) in any installations situated in the territory of 
that Contracting State contributing oil which has been 
carried by sea and discharged in a port or terminal 
installation of a non-Contracting State, provided that 
contributing oil shall only be taken into account by 
virtue of this sub-paragraph on first receipt in a 
Contracting State after its discharge in that non-
Contracting State. 

2. (a) For the purposes of paragraph 1, where the 
quantity of contributing oil received in the territory of 
a Contracting State by any person in a calendar year when 
aggregated with the quantity of contributing oil received 
in the same Contracting State in that year by any 
associated person or persons exceeds 150,000 tons, 
such person shall pay contributions in respect of the 
actual quantity received by him notwithstanding that that 
quantity, did not exceed 150,000 tons.

(b) "Associated person" means any subsidiary or commonly 
controlled entity. The question whether a person comes 
within this definition shall be determined by the 
national law of the State concerned.


Article 11

1. In respect of each Contracting State initial 
contributions shall be made of an amount which shall for 
each person referred to in Article 10 be calculated on 
the basis of a fixed sum for each ton of contributing oil 
received by him during the calendar year preceding that 
in which this Convention entered into force for that 
State.

2. The sum referred to in paragraph 1 shall be determined 
by the Assembly within two months after the entry into 
force of this Convention. In performing this function the 
Assembly shall, to the extent possible, fix the sum in 
such a way that the total amount of initial contributions 
would, if contributions were to be made in respect of 90 
per cent of the quantities of contributing oil carried by 
sea in the world, equal 75 million francs.

3. The initial contributions shall in respect of each 
Contracting State be paid within three months following 
the date at which the Convention entered into force for 
that State.


Article 12

1. With a view to assessing for each person referred to 
in Article 10 the amount of annual contributions due, if 
any, and taking account of the necessity to maintain 
sufficient liquid funds, the Assembly shall for each 
calendar year make an estimate in the form of a budget 
of:
(i) Expenditure
(a) costs and expenses of the administration of the Fund 
in the relevant year and any deficit from operations in 
preceding years; (b) payments to be made by the Fund in 
the relevant year for the satisfaction of claims against 
the Fund due under Article 4 or 5, including repayment on 
loans previously taken by the Fund for the satisfaction 
of such claims, to the extent that the aggregate amount 
of such claims in respect of any one incident does not 
exceed 15 million francs;
(c) payments to be made by the Fund in the relevant year 
for the satisfaction of claims against the Fund due under 
Article 4 or 5, including repayments on loans previously 
taken by the Fund for the satisfaction of such claims, to 
the extent that the aggregate amount of such claims in 
respect of any one incident is in excess of 15 million 
francs;
(ii) Income
(a) surplus funds from operations in preceding years, 
including any interest;
(b) initial contributions to be paid in the course of the 
year; 
(c) annual contributions, if required to balance the 
budget;
(d) any other income.

2. For each person referred to in Article 10 the amount 
of his annual contribution shall be determined by the 
Assembly and shall be calculated in respect of each 
Contracting State:

(a) in so far as the contribution is for the satisfaction 
of payments referred to in paragraph 1 (i) (a) and (b) on 
the basis of a fixed sum for each ton of contributing oil 
received in the relevant State by such persons during the 
preceding calendar year; and

(b) in so far as the contribution is for the satisfaction 
of payments referred to in paragraph 1 (i) (c) of this 
Article on the basis of a fixed sum for each ton of 
contributing oil received by such person during the 
calendar year preceding that in which the incident in 
question occurred, provided that State was a party to 
this Convention at the date of the incident.

3. The sums referred to in paragraph 2 above shall be 
arrived at by dividing the relevant total amount of 
contributions required by the total amount of contri-
buting oil received in all Contracting States in the 
relevant year.

4. The Assembly shall decide the portion of the annual 
contribution which shall be immediately paid in cash and 
decide on the date of payment. The remaining part of each 
annual contribution shall be paid upon notification by 
the Director.

5. The Director may, in cases and in accordance with 
conditions to be laid down in the Internal Regulations of 
the Fund, require a contributor to provide financial 
security for the sums due from him. 6. Any demand for 
payments made under paragraph 4 shall be called rateably 
from all individual contributors.


Article 13

1. The amount of any contribution due under Article 12 
and which is in arrear shall bear interest at a rate 
which shall be determined by the Assembly for each 
calendar year provided that different rates may be fixed 
for different circumstances.

2. Each Contracting State shall ensure that any 
obligation to contribute to the Fund arising under this 
Convention in respect of oil received within the 
territory of that State is fulfilled and shall take any 
appropriate measures under its law, including the 
imposing of such sanctions as it may deem necessary, with 
a view to the effective execution of any such obligation; 
provided however, that such measures shall only be 
directed against those persons who are under an 
obligation to contribute to the Fund. 

3. Where a person who is liable in accordance with the 
provisions of Articles 10 and 11 to make contributions to 
the Fund does not fulfill his obligations in respect of 
any such contribution or any part thereof and is in 
arrear for a period exceeding three months, the Director 
shall take all appropriate action against such person on 
behalf of the Fund with a view to the recovery of the 
amount due. However, where the defaulting contributor is 
manifestly insolvent or the circumstances otherwise so 
warrant, the Assembly may, upon recommendation of the 
Director, decide that no action shall be taken or 
continued against the contributor.


Article 14

1. Each Contracting State may at the time when it 
deposits its instrument of ratification or accession or 
at any time thereafter declare that it assumes itself 
obligations that are incumbent under this Convention on 
any person who is liable to contribute to the Fund in 
accordance with Article 10, paragraph 1, in respect of 
oil received within the territory of that State. Such 
declaration shall be made in writing and shall specify 
which obligations are assumed.

2. Where a declaration under paragraph 1 is made prior to 
the entry into force of this Convention in accordance 
with Article 40, it shall be deposited with the 
Secretary-General of the Organization who shall after the 
entry into force of the Convention communicate the 
declaration to the Director.

3. A declaration under paragraph 1 which is made after 
the entry into force of this Convention shall be 
deposited with the Director.

4. A declaration made in accordance with this Article may 
be withdrawn by the relevant State giving notice thereof 
in writing to the Director. Such notification shall take 
effect three months after the Director's receipt thereof.

5. Any State which is bound by a declaration made under 
this Article shall, in any proceedings brought against it 
before a competent court in respect of any obligation 
specified in the declaration, waive any immunity that it 
would otherwise be entitled to invoke.

Article 15

1. Each Contracting State shall ensure that any person 
who receives contributing oil within its territory in 
such quantities that he is liable to contribute to the 
Fund appears on a list to be established and kept up to 
date by the Director in accordance with the subsequent 
provisions of this Article.

2. For the purposes set out in paragraph 1, each 
Contracting State shall communicate, at a time and in the 
manner to be prescribed in the Internal Regulations, to 
the Director the name and address of any person who in 
respect of that State is liable to contribute to the Fund 
pursuant to Article 10, as well as data on the relevant 
quantities of contributing oil received by any such 
person during the preceding calendar year.

3. For the purposes of ascertaining who are, at any given 
time, the persons liable to contribute to the Fund in 
accordance with Article 10, paragraph 1, and of 
establishing, where applicable, the quantities of oil to 
be taken into account for any such person when 
determining the amount of his contribution, the list 
shall be prima facie evidence of the facts stated 
therein.


ORGANIZATION AND ADMINISTRATION


Article 16

The Fund shall have an Assembly, a Secretariat headed by 
a Director and, in accordance with the provisions of 
Article 21, an Executive Committee.


ASSEMBLY


Article 17

The Assembly shall consist of all Contracting States to 
this Convention.


Article 18

The functions of the Assembly shall, subject to the 
provisions of Article 26, be:

1. to elect at each regular session its Chairman and two 
Vice-Chairmen who shall hold office until the next 
regular session; 

2. to determine its own rules of procedure, subject to 
the provisions of this Convention;

3. to adopt Internal Regulations necessary for the proper 
functioning of the Fund;

4. to appoint the Director and make provisions for the 
appointment of such other personnel as may be necessary 
and determine the terms and conditions of service of the 
Director and other personnel; 

5. to adopt the annual budget and fix the annual 
contributions;

6. to appoint auditors and approve the accounts of the 
Fund;

7. to approve settlements of claims against the Fund, to 
take decisions in respect of the distribution among 
claimants of the available amount of compensation in 
accordance with Article 4, paragraph 5, and to determine 
the terms and conditions according to which provisional 
payments in respect of claims shall be made with a view 
to ensuring that victims of pollution damage are 
compensated as promptly as possible;

8. to elect the members of the Assembly to be represented 
on the Executive Committee, as provided in Articles 21, 
22 and 23;

9. to establish any temporary or permanent subsidiary 
body it may consider to be necessary;

10. to determine which non-Contracting States and which 
inter-governmental and international non-governmental 
organizations shall be admitted to take part, without 
voting rights, in meetings of the Assembly, the Executive 
Committee, and subsidiary bodies;

11. to give instructions concerning the administration of 
the Fund to the Director, the Executive Committee and 
subsidiary bodies;

12. to review and approve the reports and activities of 
the Executive Committee;

13. to supervise the proper execution of the Convention 
and of its own decisions;

14. to perform such other functions as are allocated to 
it under the Convention or are otherwise necessary for 
the proper operation of the Fund.


Article 19

1. Regular sessions of the Assembly shall take place once 
every calendar year upon convocation by the Director; 
provided, however, that if the Assembly allocates to the 
Executive Committee the functions specified in Article 
18, paragraph 5, regular sessions of the Assembly shall 
be held once every two years.

2. Extraordinary sessions of the Assembly shall be 
convened by the Director at the request of the Executive 
Committee or of at least one-third of the members of the 
Assembly and may be convened on the Director's own 
initiative after consultation with the Chairman of the 
Assembly. The Director shall give members at least thirty 
days' notice of such sessions.


Article 20

A majority of the members of the Assembly shall 
constitute a quorum for its meetings. Executive Committee


Article 21

The Executive Committee shall be established at the first 
regular session of the Assembly after the date on which 
the number of Contracting States reaches fifteen.


Article 22

1. The Executive Committee shall consist of one-third of 
the members of the Assembly but of not less than seven or 
more than fifteen members. Where the number of members of 
the Assembly is not divisible by three, the one-third 
referred to shall be calculated on the next higher number 
which is divisible by three.

2. When electing the members of the Executive Committee 
the Assembly shall:

(a) secure an equitable geographical distribution of the 
seats on the Committee on the basis of an adequate 
representation of Contracting States particularly exposed 
to the risks of oil pollution and of Contracting States 
having large tanker fleets; and

(b) elect one half of the members of the Committee, or in 
case the total number of members to be elected is uneven, 
such number of the members as is equivalent to one half 
of the total number less one, among those Contracting 
States in the territory of which the largest quantities 
of oil to be taken into account under Article 10 were 
received during the preceding calendar year, provided 
that the number of States eligible under this sub-
paragraph shall be limited as shown in the table below:
Total number of Members on the Committee        Number of 
States eligible under sub-     Number of States to be 
elected under paragraph (b)   sub paragraph (b)
7       5       3
8       6       4
9	6	4
10	8	5
11	8	5
12	9	6
13	9	6
14	11	7
15	11	7

3. A member of the Assembly which was eligible but was 
not elected under sub-paragraph (b) shall not be eligible 
to be elected for any remaining seat on the Executive 
Committee.


Article 23

1. Members of the Executive Committee shall hold office 
until the end of the next regular session of the 
Assembly.

2. Except to the extent that may be necessary for 
complying with the requirements of Article 22, no State 
Member of the Assembly may serve on the Executive 
Committee for more than two consecutive terms.


Article 24

The Executive Committee shall meet at least once every 
calendar year at thirty days' notice upon convocation by 
the Director, either on his own initiative or at the 
request of its Chairman or of at least one-third of its 
members. It shall meet at such places as may be 
convenient.


Article 25

At least two-thirds of the members of the Executive 
Committee shall constitute a quorum for its meetings.


Article 26

1. The functions of the Executive Committee shall be:

(a) to elect its Chairman and adopt its own rules of 
procedure, except as otherwise provided in this 
Convention;

(b) to assume and exercise in place of the Assembly the 
following functions:
(i) making provision for the appointment of such 
personnel, other than the Director, as may be necessary 
and determining the terms and conditions of service of 
such personnel;
(ii) approving settlements of claims against the Fund and 
taking all other steps envisaged in relation to such 
claims in Article 18, paragraph 7;
(iii) giving instructions to the Director concerning the 
administration of the Fund and supervising the proper 
execution, by him of the Convention, of the decisions of 
the Assembly and of the Committee's own decisions; and

(c) to perform such other functions as are allocated to 
it by the Assembly. 

2. The Executive Committee shall each year prepare and 
publish a report of the activities of the Fund during the 
previous calendar year.


Article 27

Members of the Assembly who are not members of the 
Executive Committee shall have the right to attend its 
meetings as observers.


SECRETARIAT


Article 28

1. The Secretariat shall comprise the Director and such 
staff as the administration of the Fund may require.

2. The Director shall be the legal representative of the 
Fund.


Article 29

1. The Director shall be the chief administrative officer 
of the Fund and shall, subject to the instructions given 
to him by the Assembly and by the Executive Committee, 
perform those functions which are assigned to him by this 
Convention, the Internal Regulations, the Assembly and 
the Executive Committee.

2. The Director shall in particular:

(a) appoint the personnel required for the administration 
of the Fund;

(b) take all appropriate measures with a view to the 
proper administration of the Fund's assets;

(c) collect the contributions due under this Convention 
while observing in particular the provisions of Article 
13, paragraph 3; 

(d) to the extent necessary to deal with claims against 
the Fund and carry out the other functions of the Fund, 
employ the services of legal, financial and other 
experts;

(e) take all appropriate measures for dealing with claims 
against the Fund within the limits and on conditions to 
be laid down in the Internal Regulations, including the 
final settlement of claims without the prior approval of 
the Assembly or the Executive Committee where these 
Regulations so provide;

(f) prepare and submit to the Assembly or to the 
Executive Committee, as the case may be, the financial 
statements and budget estimates for each calendar year;

(g) assist the Executive Committee in the preparation of 
the report referred to in Article 26, paragraph 2;

(h) prepare, collect and circulate the papers, documents, 
agenda, minutes and information that may be required for 
the work of the Assembly, the Executive Committee and 
subsidiary bodies.


Article 30

In the performance of their duties the Director and the 
staff and experts appointed by him shall not seek or 
receive instructions from any Government or from any 
authority external to the Fund. They shall refrain from 
any action which might reflect on their position as 
international officials. Each Contracting State on its 
part undertakes to respect the exclusively international 
character of the responsibilities of the Director and the 
staff and experts appointed by him, and not to seek to 
influence them in the discharge of their duties.


FINANCES


Article 31

1. Each Contracting State shall bear the salary, travel 
and other expenses of its own delegation to the Assembly 
and of its representatives on the Executive Committee and 
on subsidiary bodies.

2. Any other expenses incurred in the operation of the 
Fund shall be borne by the Fund.


VOTING


Article 32

The following provisions shall apply to voting in the 
Assembly and the Executive Committee:

(a) each member shall have one vote;

(b) except as otherwise provided in Article 33, decisions 
of the Assembly and the Executive Committee shall be by a 
majority vote of the members present and voting;

(c) decisions where a three-fourths or a two-thirds 
majority is required shall be by a three-fourths or two-
thirds majority vote, as the case may be, of those 
present;

(d) for the purpose of this Article the phrase "members 
present" means "members present at the meeting at the 
time of the vote", and the phrase "members present and 
voting" means "members present and casting an affirmative 
or negative vote". Members who abstain from voting shall 
he considered as not voting.


Article 33

1. The following decisions of the Assembly shall require 
a three-fourths majority:

(a) an increase in accordance with Article 4, paragraph 
6, in the maximum amount of compensation  payable by the 
Fund;

(b) a determination, under Article 5, paragraph 4, 
relating to the replacement of the Instruments referred 
to in that paragraph;

(c) the allocation to the Executive Committee of the 
functions specified in Article 18, paragraph 5.

2. The following decisions of the Assembly shall require 
a two-thirds majority:

(a) a decision under Article 13, paragraph 3, not to take 
or continue action against a contributor;

(b) the appointment of the Director under Article 18, 
paragraph 4;                                           

(c) the establishment of subsidiary bodies, under Article 
18, paragraph 9.


Article 34

1. The Fund, its assets, income, including contributions, 
and other property shall enjoy in all Contracting States 
exemption from all direct taxation.

2. When the Fund makes substantial purchases of movable 
or immovable property, or has important work carried out 
which is necessary for the exercise of its official 
activities and the cost of which includes indirect taxes 
or sales taxes, the Governments of Member States shall 
take, whenever possible, appropriate measures for the 
remission or refund of the amount of such duties and 
taxes.

3. No exemption shall be accorded in the case of duties, 
taxes or dues which merely constitute payment for public 
utility services.

4. The Fund shall enjoy exemption from all customs 
duties, taxes and other related taxes on articles 
imported or exported by it or on its behalf for its 
official use. Articles thus imported shall not be 
transferred either for consideration or gratis on the 
territory of the country into which they have been 
imported except on conditions agreed by the government of 
that country.

5. Persons contributing to the Fund and victims and 
owners of ships receiving compensation from the Fund 
shall be subject to the fiscal legislation of the State 
where they are taxable, no special exemption or other 
benefit being conferred on them in this respect. 

6. Information relating to individual contributors 
supplied for the purpose of this Convention shall not be 
divulgated outside the Fund except in so far as it may be 
strictly necessary to enable the Fund to carry out its 
functions, including the bringing and defending of legal 
proceedings.

7. Independently of existing or future regulations 
concerning currency or transfers, Contracting States 
shall authorize the transfer and payment of any contri-
bution to the Fund and of any compensation paid by the 
Fund without any restriction.


TRANSITIONAL PROVISIONS                             


Article 35

1. The Fund shall incur no obligation whatsoever under 
Article 4 or 5 in respect of incidents occurring within a 
period of one hundred and twenty days after the entry 
into force of this Convention.

2. Claims for compensation under Article 4 and claims for 
indemnification under Article 5, arising from incidents 
occurring later than one hundred and twenty days but not 
later than two hundred and forty days after the entry 
into force of this Convention may not be brought against 
the Fund prior to the elapse of the two hundred and 
fortieth day after the entry into force of this 
Convention.


Article 36

The Secretary-General of the Organization shall convene 
the first session of the Assembly. This session shall 
take place as soon as possible after entry into force of 
this Convention and, in any case, not more than thirty 
days after such entry into force.


FINAL CLAUSES


Article 37

1. This Convention shall be open for signature by the 
States which have signed or which accede to the Liability 
Convention, and by any State represented at the 
Conference on the Establishment of an International Fund 
for Compensation for Oil Pollution Damage, 1971. The 
Convention shall remain open for signature until 31 
December 1972.

2. Subject to paragraph 4, this Convention shall be 
ratified, accepted or approved by the States which have 
signed it.

3. Subject to paragraph 4, this Convention is open for 
accession by States which did not sign it.

4. This Convention may be ratified, accepted, approved or 
acceded to, only by States which have ratified, accepted, 
approved or acceded to the Liability Convention.


Article 38

1. Ratification, acceptance, approval or accession shall 
be effected by the deposit of a formal instrument to that 
effect with the Secretary-General of the Organization.

2. Any instrument of ratification, acceptance, approval 
or accession deposited after the entry into force of an 
amendment to this Convention with respect to all existing 
Contracting States or after the completion of all 
measures required for the entry into force of the 
amendment with respect to those Parties shall be deemed 
to apply to the Convention as modified by the amendment.


Article 39

Before this Convention comes into force a State shall, 
when depositing an instrument referred to in Article 38, 
paragraph 1, and annually thereafter at a date to be 
determined by the Secretary-General of the Organization, 
communicate to him the name and address of any person who 
in respect of that State would be liable to contribute to 
the Fund pursuant to Article 10 as well as data on the 
relevant quantities of contributing oil received by any 
such person in the territory of that State during the 
preceding calendar year.


Article 40

1. This Convention shall enter into force on the 
ninetieth day following the date on which the following 
requirements are fulfilled:

(a) at least eight States have deposited instruments of 
ratification, acceptance, approval or accession with the 
Secretary-General of the Organization, and

(b) the Secretary-General of the Organization has 
received information in accordance with Article 39 that 
those persons in such States who would be liable to 
contribute pursuant to Article 10 have received during 
the preceding calendar year a total quantity of at least 
750 million tons of con





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INTERNATIONAL CONVENTION ON THE ESTABLISHMENT OF AN 
INTERNATIONAL FUND FOR COMPENSATION FOR OIL POLLUTION 
DAMAGE

(Brussels, 18 December 1971)

The States Parties to the present Convention,

Being Parties to the International Convention on Civil 
Liability for Oil Pollution Damage, adopted at Brussels 
on 29 November 1969, Conscious of the dangers of 
pollution posed by the world-wide maritime carriage of 
oil in bulk,

Convinced of the need to ensure that adequate 
compensation is available to persons who suffer damage 
caused by pollution resulting from the escape or 
discharge of oil from ships, Considering that the 
International Convention of 29 November 1969, on Civil 
Liability for Oil Pollution Damage, by providing a regime 
for compensation for pollution damage in Contracting 
States and for the costs of measures, wherever taken, to 
prevent or minimize such damage, represents a 
considerable progress towards the achievement of this 
aim,

Considering however that this regime does not afford full 
compensation for victims of oil pollution damage in all 
cases while it imposes an additional financial burden on 
ship owners, 

Considering further that the economic consequences of oil 
pollution damage resulting from the escape or discharge 
of oil carried in bulk at sea by ships should not 
exclusively be borne by the shipping industry but should 
in part be borne by the oil cargo interests, Convinced of 
the need to elaborate a compensation and indemnification 
system supplementary to the International Convention on 
Civil Liability for Oil Pollution Damage with a view to 
ensuring that full compensation will be available to 
victims of oil pollution incidents and that the ship-
owners are at the same time given relief in respect of 
the additional financial burdens imposed on them by the 
said Convention,

Taking note of the Resolution on the Establishment of an 
International Compensation Fund for Oil Pollution Damage 
which was adopted on 29 November 1969 by the 
International Legal Conference on Marine Pollution 
Damage,

Have agreed as follows:


GENERAL PROVISIONS


Article 1

For the purposes of this Convention

1. "Liability Convention" means the International 
Convention on Civil Liability for Oil Pollution Damage, 
adopted at Brussels on 29 November 1969.

2. "Ship", "Person", "Owner", "Oil", "Pollution Damage", 
"Preventive Measures", "Incident" and "Organization" , 
have the same meaning as in Article I of the Liability 
Convention, provided however that, for the purposes of 
these terms, "oil" shall be confined to persistent 
hydrocarbon mineral oils.

3. "Contributing Oil" means crude oil and fuel oil as 
defined in sub-paragraphs (a) and (b) below:

(a) "Crude Oil" means any liquid hydrocarbon mixture 
occurring naturally in the earth whether or not treated 
to render it suitable for transportation. It also 
includes crude oils from which certain distillate 
fractions have been removed (sometimes referred to as 
"topped crudes") or to which certain distillate fractions 
have been added (sometimes referred to as "spiked" or 
"reconstituted" crudes).

(b) "Fuel Oil" means heavy distillates or residues from 
crude oil or blends of such materials intended for use as 
a fuel for the production of heat or power of a quality 
equivalent to the "American Society for Testing and 
Materials" Specification for Number Four Fuel Oil 
(Designation D 396-69), or heavier.

4. "Franc" means the unit referred to in Article V, 
paragraph 9, of the Liability Convention.

5. "Ship's tonnage" has the same meaning as in Article V, 
paragraph 10, of the Liability Convention.

6. "Ton", in relation to oil, means a metric ton.

7. "Guarantor" means any person providing insurance or 
other financial security to cover an owner's liability in 
pursuance of Article VII, paragraph 1, of the Liability 
Convention.

8. "Terminal installation" means any site for the storage 
of oil in bulk which is capable of receiving oil from 
waterborne transportation, including any facility 
situated off-shore and linked to such site.

9. Where an incident consists of a series of occurrences, 
it shall be treated as having occurred on the date of the 
first such occurrence.


Article 2

1. An International Fund for compensation for pollution 
damage, to be named "The International Oil Pollution 
Compensation Fund" and hereinafter referred to as "The 
Fund", is hereby established with the following aims:

(a) to provide compensation for pollution damage to the 
extent that the protection afforded by the Liability 
Convention is inadequate; 

(b) to give relief to ship owners in respect of the 
additional financial burden imposed on them by the 
Liability Convention, such relief 
being subject to conditions designed to insure compliance 
with safety at sea and other conventions;

(c) to give effect to the related purposes set out in 
this Convention. 2. The Fund shall in each Contracting 
State be recognized as a legal person capable under the 
laws of that State of assuming rights and obligations and 
of being a party in legal proceedings before the courts 
of that State. Each Contracting State shall recognize the 
Director of the Fund (hereinafter referred to as "The 
Director") as the legal representative of the Fund.


Article 3

This Convention shall apply:

1. with regard to compensation according to Article 4, 
exclusively to pollution damage caused on the territory 
including the territorial sea of a Contracting State, and 
to preventive measures taken to prevent or minimize such 
damage;

2. with regard to indemnification of ship owners and 
their 
guarantors according to Article 5, exclusively in respect 
of pollution damage caused on the territory including the 
territorial sea of a State party to the Liability 
Convention, by a ship registered in or flying the flag of 
a Contracting State and in respect of preventive measures 
taken to prevent or minimize such damage. Compensation 
and Indemnification


Article 4

1. For the purpose of fulfilling its function under 
Article 2, paragraph 1 (a), the Fund shall pay 
compensation to any person suffering pollution damage if 
such person has been unable to obtain full and adequate 
compensation for the damage under the terms of the 
Liability Convention,

(a) because no liability for the damage arises under the 
Liability Convention;

(b) because the owner liable for the damage under the 
Liability Convention is financially incapable of meeting 
his obligations in full and any financial security that 
may be provided under Article VII of that Convention does 
not cover or is insufficient to satisfy the claims for 
compensation for the damage; an owner being treated as 
financially incapable of meeting his obligations and a 
financial security being treated as insufficient if the 
person suffering the damage has been unable to obtain 
full satisfaction of the amount of compensation due under 
the Liability Convention after having taken 
all reasonable steps to pursue the legal remedies 
available to him;                                      

(c) because the damage exceeds the owner's liability 
under the Liability Convention as limited pursuant to 
Article V, paragraph 1, of that Convention or under the 
terms of any other international Convention in force or 
open for signature, ratification or accession at the date 
of this Convention. Expenses reasonably incurred or 
sacrifices reasonably made by the owner voluntarily to 
prevent or minimize pollution damage shall be treated as 
pollution damage for the purposes of this Article. 

2. The Fund shall incur no obligation under the preceding 
paragraph if:

(a) it proves that the pollution damage resulted from an 
act of war, hostilities, civil war or insurrection or was 
caused by oil which has escaped or been discharged from a 
warship or other ship owned or operated by a State and 
used, at the time of the incident, only on Government 
non-commercial service; or

(b) the claimant cannot prove that the damage resulted 
from an incident involving one or more ships.

3. If the Fund proves that the pollution damage resulted 
wholly or partially either from an act or omission done 
with intent to cause damage by the person who suffered 
the damage or from the negligence of that person, the 
Fund may be exonerated wholly or partially from its 
obligation to pay compensation to such person provided, 
however, that there shall be no such exoneration with 
regard to such preventive measures which are compensated 
under paragraph 1. The Fund shall in any event be 
exonerated to the extent that the ship owner may have 
been 
exonerated under Article III, paragraph 3, of the 
Liability Convention.

4. (a) Except as otherwise provided in sub-paragraph (b) 
of this paragraph, the aggregate amount of compensation 
payable by the Fund under this Article shall in respect 
of any one incident be limited, so that the total sum of 
that amount and the amount of compensation actually paid 
under the Liability Convention for pollution damage 
caused in the territory of the Contracting States, 
including any sums in respect of which the Fund is under 
an obligation to indemnify the owner pursuant to Article 
5, paragraph 1, of this Convention, shall not exceed 450 
million francs.

(b) The aggregate amount of compensation payable by the 
Fund under this Article for pollution damage resulting 
from a natural phenomenon of an exceptional, inevitable 
and irresistible character shall not exceed 450 million 
francs. 

5. Where the amount of established claims against the 
Fund exceeds the aggregate amount of compensation payable 
under paragraph 4, the amount available shall be 
distributed in such a manner that the proportion between 
any established claim and the amount of compensation 
actually recovered by the claimant under the Liability 
Convention and this Convention shall be the same for all 
claimants.

6. The Assembly of the Fund (hereinafter referred to as 
"the Assembly") may, having regard to the experience of 
incidents which have occurred and in particular the 
amount of damage resulting therefrom and to changes in 
the monetary values, decide that the amount of 450 
million francs referred to in paragraph 4, sub-paragraphs 
(a) and (b), shall be changed; provided, however, that 
this amount shall in no case exceed 900 million francs or 
be lower than 450 million francs. The changed amount 
shall apply to incidents which occur after the date of 
the decision effecting the change.

7. The Fund shall, at the request of a Contracting State, 
use its good offices as necessary to assist that State to 
secure promptly such personnel, material and services as 
are necessary to enable the State to take measures to 
prevent or mitigate pollution damage arising from an 
incident in respect of which the Fund may be called upon 
to pay compensation under this Convention.

8. The Fund may on conditions to be laid down in the 
Internal Regulations provide credit facilities with a 
view to the taking of preventive measures against 
pollution damage arising from a particular incident in 
respect of which the Fund may be called upon to pay 
compensation under this Convention.


Article 5

1. For the purpose of fulfilling its function under 
Article 2, paragraph 1 (b), the Fund shall indemnify the 
owner and his guarantor for that portion of the aggregate 
amount of liability under the Liability Convention which:
(a) is in excess of an amount equivalent to 1,500 francs 
for each ton of the ship's tonnage or of an amount of 125 
million francs, whichever is the less, and (b) is not in 
excess of an amount equivalent to 2,000 francs for each 
ton of the said tonnage or an amount of 210 million 
francs, whichever is the less, provided, however, that 
the Fund shall incur no obligation under this paragraph 
where the pollution damage resulted from the willful 
misconduct of the owner himself. 

2. The Assembly may decide that the Fund shall, on 
conditions to be laid down in the Internal Regulations, 
assume the obligations of a guarantor in respect of ships 
referred to in Article 3, paragraph 2, with regard to the 
portion of liability referred to in paragraph 1 of this 
Article. However, the Fund shall assume such obligations 
only if the owner so requests and if he maintains 
adequate insurance or other financial security covering 
the owner's liability under the Liability Convention up 
to an amount equivalent to 1,500 francs for each ton of 
the ship's tonnage or an amount of 125 million francs, 
whichever is the less. If the Fund assumes such 
obligations, the owner shall in each Contracting State be 
considered to have complied with Article VII of the 
Liability Convention in respect of the portion of his 
liability mentioned above.

3. The Fund may be exonerated wholly or partially from 
its obligations under paragraph 1 towards the owner and 
his guarantor if the Fund proves that as a result of the 
actual fault or privity of the owner:

(a) the ship from which the oil causing the pollution 
damage escaped did not comply with the requirements laid 
down in:
(i) the International Convention for the Prevention of 
Pollution of the Sea by Oil, 1954, as amended in 1962; or
(ii) the International Convention for the Safety of Life 
at Sea, 1960; or
(iii) the International Convention on Load Lines, 1966; 
or
(iv) the International Regulations for Preventing 
Collisions at Sea, 1960; or
(v) any amendments to the above mentioned Conventions 
which have been determined as being of an important 
nature in accordance with Article XVI (5) of the 
Convention mentioned under (i), Article IX (e) of the 
Convention mentioned under (ii) or Article 29 (3) (d) or 
(4) (d) of the Convention mentioned under (iii), 
provided, however, that such amendments had been in force 
for at least twelve months at the time of the incident;
and 

(b) the incident or damage was caused wholly of 
partially by such non-compliance. The provisions of this 
paragraph shall apply irrespective of whether the 
Contracting State in which the ship was registered or 
whose flag it was flying is a Party to the relevant 
Instrument.

4. Upon the entry into force of a new Convention designed 
to replace, in whole or in part, any of the Instruments 
specified in paragraph 3, the Assembly may decide at 
least six months in advance a date on which the new 
Convention will replace such Instrument or part thereof 
for the purpose of paragraph 3. However, any State Party 
to this Convention may declare to the Director before 
that date that it does not accept such replacement; in 
which case the decision of the Assembly shall have no 
effect in respect of a ship registered in, or flying the 
flag of, that State at the time of the incident. Such a 
declaration may be withdrawn at any later date and shall 
in any event cease to have effect when the State in 
question becomes a party to such new Convention.

5. A ship complying with the requirements in an amendment 
to an Instrument specified in paragraph 3 or with 
requirements in a new Convention, where the amendment or 
Convention is designed to replace in whole or in part 
such Instrument, shall be considered as complying with 
the requirements in the said Instrument for the purposes 
of paragraph 3.

6. Where the Fund, acting as a guarantor by virtue of 
paragraph 2 has paid compensation for pollution damage in 
accordance with the Liability Convention, it shall have a 
right of recovery from the owner if and to the extent 
that the Fund would have been exonerated pursuant to 
paragraph 3 from its obligations under paragraph 1 to 
indemnify the owner.

7. Expenses reasonably incurred and sacrifices reasonably 
made by the owner voluntarily to prevent or minimize 
pollution damage shall be treated as included in the 
owner's liability for the purposes of this Article.


Article 6

1. Rights to compensation under Article 4 or 
indemnification under Article 5 shall be extinguished 
unless an action is brought thereunder or a notification 
has been made pursuant to Article 7, paragraph 6, within 
three years from the date when the damage occurred. 
However, in no case shall an action be brought after six 
years from the date of the incident which caused the 
damage.

2. Notwithstanding paragraph 1, the right of the owner or 
his guarantor to seek indemnification from the Fund 
pursuant to Article 5, paragraph 1, shall in no case be 
extinguished before the expiry of a period of six months 
as from the date on which the owner or his guarantor 
acquired knowledge of the bringing of an action against 
him under the Liability Convention.


Article 7

1. Subject to the subsequent provisions of this Article, 
any action against the Fund for compensation under 
Article 4 or indemnification under Article 5 of this 
Convention shall be brought only before a court competent 
under Article IX of the Liability Convention in respect 
of actions against the owner who is or who would, but for 
the provisions of Article III, paragraph 2, of that 
Convention, have been liable for pollution damage caused 
by the relevant incident.

2. Each Contracting State shall ensure that its courts 
possess the necessary jurisdiction to entertain such ac-
tions against the Fund as are referred to in paragraph 1.

3. Where an action for compensation for pollution damage 
has been brought before a court competent under Article 
IX of the Liability Convention against the owner of a 
ship or his guarantor, such court shall have exclusive 
jurisdictional competence over any action against the 
Fund for compensation or indemnification under the 
provisions of Article 4 or 5 of this Convention in 
respect of the same damage. However, where an action for 
compensation for pollution damage under the Liability 
Convention has been brought before a court in a State 
Party to the Liability Convention but not to this 
Convention, any action against the Fund under Article 4 
or under Article 5, paragraph 1, of this Convention shall 
at the option of the claimant be brought either before a 
court the State where the Fund has its headquarters or 
before any court of a State Party to this 
Convention competent under Article IX of the Liability 
Convention. 

4. Each Contracting State shall ensure that the Fund 
shall have the right to intervene as a party to any legal 
proceedings instituted in accordance with Article IX of 
the Liability Convention before a competent court of that 
State against the owner of a ship or his guarantor.

5. Except as otherwise provided in paragraph 6, the Fund 
shall not be bound by any judgment or decision in 
proceedings to which it has not been a party or by any 
settlement to which it is not a party. 

6. Without prejudice to the provisions of paragraph 4, 
where an action under the Liability Convention for 
compensation for pollution damage has been brought 
against an owner or his guarantor before a competent 
court in a Contracting State, each party to the 
proceedings shall be entitled under the national law of 
that State to notify the Fund of the proceedings. Where 
such notification has been made in accordance with the 
formalities required by the law of the court seized and 
in such time and in such a manner that the Fund has in 
fact been in a position effectively to intervene as a 
party to the proceedings, any judgment rendered by the 
court in such proceedings shall, after it has become 
final and enforceable in the State where the judgment was 
given, become binding upon the Fund in the sense that the 
facts and findings in that judgment may not be disputed 
by the Fund even if the Fund has not actually intervened 
in the proceedings.


Article 8

Subject to any decision concerning the distribution 
referred to in Article 4, paragraph 5, any judgment given 
against the Fund by a court having jurisdiction in 
accordance with Article 7, paragraphs 1 and 3, shall, 
when it has become enforceable in the State of origin and 
is in that State no longer subject to ordinary forms of 
review, be recognized and enforceable in each Contracting 
State on the same conditions as are prescribed in Article 
X of the Liability Convention.


Article 9

1. Subject to the provisions of Article 5, the Fund 
shall, in respect of any amount of compensation for 
pollution damage paid by the Fund in accordance with 
Article 4, paragraph 1, of this Convention, acquire by 
subrogation the rights that the person so compensated may 
enjoy under the Liability Convention against the owner or 
his guarantor.

2. Nothing in this Convention shall prejudice any right 
of recourse or subrogation of the Fund against persons 
other than those referred to in the preceding paragraph. 
In any event the right of the Fund to subrogation against 
such person shall not be less favourable than that of an 
insurer of the person to whom compensation or indem-
nification has been paid.

3. Without prejudice to any other rights of subrogation 
or recourse against the Fund which may exist, a 
Contracting State or agency thereof which has paid 
compensation for pollution damage in accordance with 
provisions of national law shall acquire by subrogation 
the rights which the person so compensated would 
have enjoyed under this Convention.


CONTRIBUTIONS

Article 10

1. Contributions to the Fund shall be made in respect of 
each Contracting State by any person who, in the calendar 
year referred to in Article 11, paragraph 1, as regards 
initial contributions and in Article 12, paragraph 2 (a) 
or (b), as regards annual contributions, has received in 
total quantities exceeding 150,000 tons:

(a) in the ports or terminal installations in the 
territory of that State contributing oil carried by sea 
to such ports or terminal installations; and

(b) in any installations situated in the territory of 
that Contracting State contributing oil which has been 
carried by sea and discharged in a port or terminal 
installation of a non-Contracting State, provided that 
contributing oil shall only be taken into account by 
virtue of this sub-paragraph on first receipt in a 
Contracting State after its discharge in that non-
Contracting State. 

2. (a) For the purposes of paragraph 1, where the 
quantity of contributing oil received in the territory of 
a Contracting State by any person in a calendar year when 
aggregated with the quantity of contributing oil received 
in the same Contracting State in that year by any 
associated person or persons exceeds 150,000 tons, 
such person shall pay contributions in respect of the 
actual quantity received by him notwithstanding that that 
quantity, did not exceed 150,000 tons.

(b) "Associated person" means any subsidiary or commonly 
controlled entity. The question whether a person comes 
within this definition shall be determined by the 
national law of the State concerned.


Article 11

1. In respect of each Contracting State initial 
contributions shall be made of an amount which shall for 
each person referred to in Article 10 be calculated on 
the basis of a fixed sum for each ton of contributing oil 
received by him during the calendar year preceding that 
in which this Convention entered into force for that 
State.

2. The sum referred to in paragraph 1 shall be determined 
by the Assembly within two months after the entry into 
force of this Convention. In performing this function the 
Assembly shall, to the extent possible, fix the sum in 
such a way that the total amount of initial contributions 
would, if contributions were to be made in respect of 90 
per cent of the quantities of contributing oil carried by 
sea in the world, equal 75 million francs.

3. The initial contributions shall in respect of each 
Contracting State be paid within three months following 
the date at which the Convention entered into force for 
that State.


Article 12

1. With a view to assessing for each person referred to 
in Article 10 the amount of annual contributions due, if 
any, and taking account of the necessity to maintain 
sufficient liquid funds, the Assembly shall for each 
calendar year make an estimate in the form of a budget 
of:
(i) Expenditure
(a) costs and expenses of the administration of the Fund 
in the relevant year and any deficit from operations in 
preceding years; (b) payments to be made by the Fund in 
the relevant year for the satisfaction of claims against 
the Fund due under Article 4 or 5, including repayment on 
loans previously taken by the Fund for the satisfaction 
of such claims, to the extent that the aggregate amount 
of such claims in respect of any one incident does not 
exceed 15 million francs;
(c) payments to be made by the Fund in the relevant year 
for the satisfaction of claims against the Fund due under 
Article 4 or 5, including repayments on loans previously 
taken by the Fund for the satisfaction of such claims, to 
the extent that the aggregate amount of such claims in 
respect of any one incident is in excess of 15 million 
francs;
(ii) Income
(a) surplus funds from operations in preceding years, 
including any interest;
(b) initial contributions to be paid in the course of the 
year; 
(c) annual contributions, if required to balance the 
budget;
(d) any other income.

2. For each person referred to in Article 10 the amount 
of his annual contribution shall be determined by the 
Assembly and shall be calculated in respect of each 
Contracting State:

(a) in so far as the contribution is for the satisfaction 
of payments referred to in paragraph 1 (i) (a) and (b) on 
the basis of a fixed sum for each ton of contributing oil 
received in the relevant State by such persons during the 
preceding calendar year; and

(b) in so far as the contribution is for the satisfaction 
of payments referred to in paragraph 1 (i) (c) of this 
Article on the basis of a fixed sum for each ton of 
contributing oil received by such person during the 
calendar year preceding that in which the incident in 
question occurred, provided that State was a party to 
this Convention at the date of the incident.

3. The sums referred to in paragraph 2 above shall be 
arrived at by dividing the relevant total amount of 
contributions required by the total amount of contri-
buting oil received in all Contracting States in the 
relevant year.

4. The Assembly shall decide the portion of the annual 
contribution which shall be immediately paid in cash and 
decide on the date of payment. The remaining part of each 
annual contribution shall be paid upon notification by 
the Director.

5. The Director may, in cases and in accordance with 
conditions to be laid down in the Internal Regulations of 
the Fund, require a contributor to provide financial 
security for the sums due from him. 6. Any demand for 
payments made under paragraph 4 shall be called rateably 
from all individual contributors.


Article 13

1. The amount of any contribution due under Article 12 
and which is in arrear shall bear interest at a rate 
which shall be determined by the Assembly for each 
calendar year provided that different rates may be fixed 
for different circumstances.

2. Each Contracting State shall ensure that any 
obligation to contribute to the Fund arising under this 
Convention in respect of oil received within the 
territory of that State is fulfilled and shall take any 
appropriate measures under its law, including the 
imposing of such sanctions as it may deem necessary, with 
a view to the effective execution of any such obligation; 
provided however, that such measures shall only be 
directed against those persons who are under an 
obligation to contribute to the Fund. 

3. Where a person who is liable in accordance with the 
provisions of Articles 10 and 11 to make contributions to 
the Fund does not fulfill his obligations in respect of 
any such contribution or any part thereof and is in 
arrear for a period exceeding three months, the Director 
shall take all appropriate action against such person on 
behalf of the Fund with a view to the recovery of the 
amount due. However, where the defaulting contributor is 
manifestly insolvent or the circumstances otherwise so 
warrant, the Assembly may, upon recommendation of the 
Director, decide that no action shall be taken or 
continued against the contributor.


Article 14

1. Each Contracting State may at the time when it 
deposits its instrument of ratification or accession or 
at any time thereafter declare that it assumes itself 
obligations that are incumbent under this Convention on 
any person who is liable to contribute to the Fund in 
accordance with Article 10, paragraph 1, in respect of 
oil received within the territory of that State. Such 
declaration shall be made in writing and shall specify 
which obligations are assumed.

2. Where a declaration under paragraph 1 is made prior to 
the entry into force of this Convention in accordance 
with Article 40, it shall be deposited with the 
Secretary-General of the Organization who shall after the 
entry into force of the Convention communicate the 
declaration to the Director.

3. A declaration under paragraph 1 which is made after 
the entry into force of this Convention shall be 
deposited with the Director.

4. A declaration made in accordance with this Article may 
be withdrawn by the relevant State giving notice thereof 
in writing to the Director. Such notification shall take 
effect three months after the Director's receipt thereof.

5. Any State which is bound by a declaration made under 
this Article shall, in any proceedings brought against it 
before a competent court in respect of any obligation 
specified in the declaration, waive any immunity that it 
would otherwise be entitled to invoke.

Article 15

1. Each Contracting State shall ensure that any person 
who receives contributing oil within its territory in 
such quantities that he is liable to contribute to the 
Fund appears on a list to be established and kept up to 
date by the Director in accordance with the subsequent 
provisions of this Article.

2. For the purposes set out in paragraph 1, each 
Contracting State shall communicate, at a time and in the 
manner to be prescribed in the Internal Regulations, to 
the Director the name and address of any person who in 
respect of that State is liable to contribute to the Fund 
pursuant to Article 10, as well as data on the relevant 
quantities of contributing oil received by any such 
person during the preceding calendar year.

3. For the purposes of ascertaining who are, at any given 
time, the persons liable to contribute to the Fund in 
accordance with Article 10, paragraph 1, and of 
establishing, where applicable, the quantities of oil to 
be taken into account for any such person when 
determining the amount of his contribution, the list 
shall be prima facie evidence of the facts stated 
therein.


ORGANIZATION AND ADMINISTRATION


Article 16

The Fund shall have an Assembly, a Secretariat headed by 
a Director and, in accordance with the provisions of 
Article 21, an Executive Committee.


ASSEMBLY


Article 17

The Assembly shall consist of all Contracting States to 
this Convention.


Article 18

The functions of the Assembly shall, subject to the 
provisions of Article 26, be:

1. to elect at each regular session its Chairman and two 
Vice-Chairmen who shall hold office until the next 
regular session; 

2. to determine its own rules of procedure, subject to 
the provisions of this Convention;

3. to adopt Internal Regulations necessary for the proper 
functioning of the Fund;

4. to appoint the Director and make provisions for the 
appointment of such other personnel as may be necessary 
and determine the terms and conditions of service of the 
Director and other personnel; 

5. to adopt the annual budget and fix the annual 
contributions;

6. to appoint auditors and approve the accounts of the 
Fund;

7. to approve settlements of claims against the Fund, to 
take decisions in respect of the distribution among 
claimants of the available amount of compensation in 
accordance with Article 4, paragraph 5, and to determine 
the terms and conditions according to which provisional 
payments in respect of claims shall be made with a view 
to ensuring that victims of pollution damage are 
compensated as promptly as possible;

8. to elect the members of the Assembly to be represented 
on the Executive Committee, as provided in Articles 21, 
22 and 23;

9. to establish any temporary or permanent subsidiary 
body it may consider to be necessary;

10. to determine which non-Contracting States and which 
inter-governmental and international non-governmental 
organizations shall be admitted to take part, without 
voting rights, in meetings of the Assembly, the Executive 
Committee, and subsidiary bodies;

11. to give instructions concerning the administration of 
the Fund to the Director, the Executive Committee and 
subsidiary bodies;

12. to review and approve the reports and activities of 
the Executive Committee;

13. to supervise the proper execution of the Convention 
and of its own decisions;

14. to perform such other functions as are allocated to 
it under the Convention or are otherwise necessary for 
the proper operation of the Fund.


Article 19

1. Regular sessions of the Assembly shall take place once 
every calendar year upon convocation by the Director; 
provided, however, that if the Assembly allocates to the 
Executive Committee the functions specified in Article 
18, paragraph 5, regular sessions of the Assembly shall 
be held once every two years.

2. Extraordinary sessions of the Assembly shall be 
convened by the Director at the request of the Executive 
Committee or of at least one-third of the members of the 
Assembly and may be convened on the Director's own 
initiative after consultation with the Chairman of the 
Assembly. The Director shall give members at least thirty 
days' notice of such sessions.


Article 20

A majority of the members of the Assembly shall 
constitute a quorum for its meetings. Executive Committee


Article 21

The Executive Committee shall be established at the first 
regular session of the Assembly after the date on which 
the number of Contracting States reaches fifteen.


Article 22

1. The Executive Committee shall consist of one-third of 
the members of the Assembly but of not less than seven or 
more than fifteen members. Where the number of members of 
the Assembly is not divisible by three, the one-third 
referred to shall be calculated on the next higher number 
which is divisible by three.

2. When electing the members of the Executive Committee 
the Assembly shall:

(a) secure an equitable geographical distribution of the 
seats on the Committee on the basis of an adequate 
representation of Contracting States particularly exposed 
to the risks of oil pollution and of Contracting States 
having large tanker fleets; and

(b) elect one half of the members of the Committee, or in 
case the total number of members to be elected is uneven, 
such number of the members as is equivalent to one half 
of the total number less one, among those Contracting 
States in the territory of which the largest quantities 
of oil to be taken into account under Article 10 were 
received during the preceding calendar year, provided 
that the number of States eligible under this sub-
paragraph shall be limited as shown in the table below:
Total number of Members on the Committee        Number of 
States eligible under sub-     Number of States to be 
elected under paragraph (b)   sub paragraph (b)
7       5       3
8       6       4
9	6	4
10	8	5
11	8	5
12	9	6
13	9	6
14	11	7
15	11	7

3. A member of the Assembly which was eligible but was 
not elected under sub-paragraph (b) shall not be eligible 
to be elected for any remaining seat on the Executive 
Committee.


Article 23

1. Members of the Executive Committee shall hold office 
until the end of the next regular session of the 
Assembly.

2. Except to the extent that may be necessary for 
complying with the requirements of Article 22, no State 
Member of the Assembly may serve on the Executive 
Committee for more than two consecutive terms.


Article 24

The Executive Committee shall meet at least once every 
calendar year at thirty days' notice upon convocation by 
the Director, either on his own initiative or at the 
request of its Chairman or of at least one-third of its 
members. It shall meet at such places as may be 
convenient.


Article 25

At least two-thirds of the members of the Executive 
Committee shall constitute a quorum for its meetings.


Article 26

1. The functions of the Executive Committee shall be:

(a) to elect its Chairman and adopt its own rules of 
procedure, except as otherwise provided in this 
Convention;

(b) to assume and exercise in place of the Assembly the 
following functions:
(i) making provision for the appointment of such 
personnel, other than the Director, as may be necessary 
and determining the terms and conditions of service of 
such personnel;
(ii) approving settlements of claims against the Fund and 
taking all other steps envisaged in relation to such 
claims in Article 18, paragraph 7;
(iii) giving instructions to the Director concerning the 
administration of the Fund and supervising the proper 
execution, by him of the Convention, of the decisions of 
the Assembly and of the Committee's own decisions; and

(c) to perform such other functions as are allocated to 
it by the Assembly. 

2. The Executive Committee shall each year prepare and 
publish a report of the activities of the Fund during the 
previous calendar year.


Article 27

Members of the Assembly who are not members of the 
Executive Committee shall have the right to attend its 
meetings as observers.


SECRETARIAT


Article 28

1. The Secretariat shall comprise the Director and such 
staff as the administration of the Fund may require.

2. The Director shall be the legal representative of the 
Fund.


Article 29

1. The Director shall be the chief administrative officer 
of the Fund and shall, subject to the instructions given 
to him by the Assembly and by the Executive Committee, 
perform those functions which are assigned to him by this 
Convention, the Internal Regulations, the Assembly and 
the Executive Committee.

2. The Director shall in particular:

(a) appoint the personnel required for the administration 
of the Fund;

(b) take all appropriate measures with a view to the 
proper administration of the Fund's assets;

(c) collect the contributions due under this Convention 
while observing in particular the provisions of Article 
13, paragraph 3; 

(d) to the extent necessary to deal with claims against 
the Fund and carry out the other functions of the Fund, 
employ the services of legal, financial and other 
experts;

(e) take all appropriate measures for dealing with claims 
against the Fund within the limits and on conditions to 
be laid down in the Internal Regulations, including the 
final settlement of claims without the prior approval of 
the Assembly or the Executive Committee where these 
Regulations so provide;

(f) prepare and submit to the Assembly or to the 
Executive Committee, as the case may be, the financial 
statements and budget estimates for each calendar year;

(g) assist the Executive Committee in the preparation of 
the report referred to in Article 26, paragraph 2;

(h) prepare, collect and circulate the papers, documents, 
agenda, minutes and information that may be required for 
the work of the Assembly, the Executive Committee and 
subsidiary bodies.


Article 30

In the performance of their duties the Director and the 
staff and experts appointed by him shall not seek or 
receive instructions from any Government or from any 
authority external to the Fund. They shall refrain from 
any action which might reflect on their position as 
international officials. Each Contracting State on its 
part undertakes to respect the exclusively international 
character of the responsibilities of the Director and the 
staff and experts appointed by him, and not to seek to 
influence them in the discharge of their duties.


FINANCES


Article 31

1. Each Contracting State shall bear the salary, travel 
and other expenses of its own delegation to the Assembly 
and of its representatives on the Executive Committee and 
on subsidiary bodies.

2. Any other expenses incurred in the operation of the 
Fund shall be borne by the Fund.


VOTING


Article 32

The following provisions shall apply to voting in the 
Assembly and the Executive Committee:

(a) each member shall have one vote;

(b) except as otherwise provided in Article 33, decisions 
of the Assembly and the Executive Committee shall be by a 
majority vote of the members present and voting;

(c) decisions where a three-fourths or a two-thirds 
majority is required shall be by a three-fourths or two-
thirds majority vote, as the case may be, of those 
present;

(d) for the purpose of this Article the phrase "members 
present" means "members present at the meeting at the 
time of the vote", and the phrase "members present and 
voting" means "members present and casting an affirmative 
or negative vote". Members who abstain from voting shall 
he considered as not voting.


Article 33

1. The following decisions of the Assembly shall require 
a three-fourths majority:

(a) an increase in accordance with Article 4, paragraph 
6, in the maximum amount of compensation  payable by the 
Fund;

(b) a determination, under Article 5, paragraph 4, 
relating to the replacement of the Instruments referred 
to in that paragraph;

(c) the allocation to the Executive Committee of the 
functions specified in Article 18, paragraph 5.

2. The following decisions of the Assembly shall require 
a two-thirds majority:

(a) a decision under Article 13, paragraph 3, not to take 
or continue action against a contributor;

(b) the appointment of the Director under Article 18, 
paragraph 4;                                           

(c) the establishment of subsidiary bodies, under Article 
18, paragraph 9.


Article 34

1. The Fund, its assets, income, including contributions, 
and other property shall enjoy in all Contracting States 
exemption from all direct taxation.

2. When the Fund makes substantial purchases of movable 
or immovable property, or has important work carried out 
which is necessary for the exercise of its official 
activities and the cost of which includes indirect taxes 
or sales taxes, the Governments of Member States shall 
take, whenever possible, appropriate measures for the 
remission or refund of the amount of such duties and 
taxes.

3. No exemption shall be accorded in the case of duties, 
taxes or dues which merely constitute payment for public 
utility services.

4. The Fund shall enjoy exemption from all customs 
duties, taxes and other related taxes on articles 
imported or exported by it or on its behalf for its 
official use. Articles thus imported shall not be 
transferred either for consideration or gratis on the 
territory of the country into which they have been 
imported except on conditions agreed by the government of 
that country.

5. Persons contributing to the Fund and victims and 
owners of ships receiving compensation from the Fund 
shall be subject to the fiscal legislation of the State 
where they are taxable, no special exemption or other 
benefit being conferred on them in this respect. 

6. Information relating to individual contributors 
supplied for the purpose of this Convention shall not be 
divulgated outside the Fund except in so far as it may be 
strictly necessary to enable the Fund to carry out its 
functions, including the bringing and defending of legal 
proceedings.

7. Independently of existing or future regulations 
concerning currency or transfers, Contracting States 
shall authorize the transfer and payment of any contri-
bution to the Fund and of any compensation paid by the 
Fund without any restriction.


TRANSITIONAL PROVISIONS                             


Article 35

1. The Fund shall incur no obligation whatsoever under 
Article 4 or 5 in respect of incidents occurring within a 
period of one hundred and twenty days after the entry 
into force of this Convention.

2. Claims for compensation under Article 4 and claims for 
indemnification under Article 5, arising from incidents 
occurring later than one hundred and twenty days but not 
later than two hundred and forty days after the entry 
into force of this Convention may not be brought against 
the Fund prior to the elapse of the two hundred and 
fortieth day after the entry into force of this 
Convention.


Article 36

The Secretary-General of the Organization shall convene 
the first session of the Assembly. This session shall 
take place as soon as possible after entry into force of 
this Convention and, in any case, not more than thirty 
days after such entry into force.


FINAL CLAUSES


Article 37

1. This Convention shall be open for signature by the 
States which have signed or which accede to the Liability 
Convention, and by any State represented at the 
Conference on the Establishment of an International Fund 
for Compensation for Oil Pollution Damage, 1971. The 
Convention shall remain open for signature until 31 
December 1972.

2. Subject to paragraph 4, this Convention shall be 
ratified, accepted or approved by the States which have 
signed it.

3. Subject to paragraph 4, this Convention is open for 
accession by States which did not sign it.

4. This Convention may be ratified, accepted, approved or 
acceded to, only by States which have ratified, accepted, 
approved or acceded to the Liability Convention.


Article 38

1. Ratification, acceptance, approval or accession shall 
be effected by the deposit of a formal instrument to that 
effect with the Secretary-General of the Organization.

2. Any instrument of ratification, acceptance, approval 
or accession deposited after the entry into force of an 
amendment to this Convention with respect to all existing 
Contracting States or after the completion of all 
measures required for the entry into force of the 
amendment with respect to those Parties shall be deemed 
to apply to the Convention as modified by the amendment.


Article 39

Before this Convention comes into force a State shall, 
when depositing an instrument referred to in Article 38, 
paragraph 1, and annually thereafter at a date to be 
determined by the Secretary-General of the Organization, 
communicate to him the name and address of any person who 
in respect of that State would be liable to contribute to 
the Fund pursuant to Article 10 as well as data on the 
relevant quantities of contributing oil received by any 
such person in the territory of that State during the 
preceding calendar year.


Article 40

1. This Convention shall enter into force on the 
ninetieth day following the date on which the following 
requirements are fulfilled:

(a) at least eight States have deposited instruments of 
ratification, acceptance, approval or accession with the 
Secretary-General of the Organization, and

(b) the Secretary-General of the Organization has 
received information in accordance with Article 39 that 
those persons in such States who would be liable to 
contribute pursuant to Article 10 have received during 
the preceding calendar year a total quantity of at least 
750 million tons of contributing oil. 

2. However, this Convention shall not enter into force 
before the Liability Convention has entered into force.

3. For each State which subsequently ratifies, accepts, 
approves or accedes to it, this Convention shall enter 
into force on the ninetieth day after deposit by such 
State of the appropriate instrument.


Article 41

1. This Convention may be denounced by any Contracting 
State at any time after the date on which the Convention 
comes into force for that State.

2. Denunciation shall be effected by the deposit of an 
instrument with the Secretary-General of the 
Organization.

3. A denunciation shall take effect one year, or such 
longer period as may be specified in the instrument of 
denunciation, after its deposit with the Secretary-
General of the Organization.

4. Denunciation of the Liability Convention shall be 
deemed to be a denunciation of this Convention. Such 
denunciation shall take effect on the same date as the 
denunciation of the Liability Convention takes effect 
according to paragraph 3 of Article XVI of that 
Convention.

5. Notwithstanding a denunciation by a Contracting State 
pursuant to this Article, any provisions of this 
Convention relating to the obligations to make 
contributions under Article 10 with respect to 
an incident referred to in Article 12, paragraph 2 (b), 
and occurring before the denunciation takes effect shall 
continue to apply.


Article 42

1. Any Contracting State may, within ninety days after 
the deposit of an instrument of denunciation the result 
of which it considers will significantly increase the 
level of contributions for remaining Contracting States, 
request the Director to convene an extraordinary session 
of the Assembly. The Director shall convene the Assembly 
to meet not later than sixty days after receipt of the 
request.

2. The Director may convene, on his own initiative, an 
extraordinary session of the Assembly to meet within 
sixty days after the deposit of any instrument of 
denunciation, if he considers that such denunciation will 
result in a significant increase in the level of 
contributions for the remaining Contracting States.

3. If the Assembly at an extraordinary session convened 
in accordance with paragraph 1 or 2 decides that the 
denunciation will result in a significant increase in the 
level of contributions for the remaining Contracting 
States, any such State may, not later than one hundred 
and twenty days before the date on which that 
denunciation takes effect, denounce this Convention with 
effect from the same date.


Article 43

1. This Convention shall cease to be in force on the date 
when the number of Contracting States falls below three.

2. Contracting States which are bound by this Convention 
on the date before the day it ceases to be in force, 
shall enable the Fund to exercise its functions as 
described under Article 44 and shall, for that purpose 
only, remain bound by this Convention.


Article 44

1. If this Convention ceases to be in force, the Fund 
shall nevertheless

(a) meet its obligations in respect of any incident 
occurring before the Convention ceased to be in force;

(b) be entitled to exercise its rights to contributions 
to the extent that these contributions are necessary to 
meet the obligations under subparagraph (a), including 
expenses for the administration of the Fund necessary for 
this purpose. 

2. The Assembly shall take all appropriate measures to 
complete the winding up of the Fund, including the 
distribution in an equitable manner of any remaining 
assets among those persons who have contributed to the 
Fund.

3. For the purposes of this Article the Fund shall remain 
a legal person.


Article 45

1. A Conference for the purpose of revising or amending 
this Convention may be convened by the Organization.

2. The Organization shall convene a Conference of the 
Contracting States for the purpose of revising or 
amending the Convention at the request of not less than 
one-third of all Contracting States.


Article 46

1. This Convention shall be deposited wit





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INTERNATIONAL CONVENTION ON THE ESTABLISHMENT OF AN 
INTERNATIONAL FUND FOR COMPENSATION FOR OIL POLLUTION 
DAMAGE

(Brussels, 18 December 1971)

The States Parties to the present Convention,

Being Parties to the International Convention on Civil 
Liability for Oil Pollution Damage, adopted at Brussels 
on 29 November 1969, Conscious of the dangers of 
pollution posed by the world-wide maritime carriage of 
oil in bulk,

Convinced of the need to ensure that adequate 
compensation is available to persons who suffer damage 
caused by pollution resulting from the escape or 
discharge of oil from ships, Considering that the 
International Convention of 29 November 1969, on Civil 
Liability for Oil Pollution Damage, by providing a regime 
for compensation for pollution damage in Contracting 
States and for the costs of measures, wherever taken, to 
prevent or minimize such damage, represents a 
considerable progress towards the achievement of this 
aim,

Considering however that this regime does not afford full 
compensation for victims of oil pollution damage in all 
cases while it imposes an additional financial burden on 
ship owners, 

Considering further that the economic consequences of oil 
pollution damage resulting from the escape or discharge 
of oil carried in bulk at sea by ships should not 
exclusively be borne by the shipping industry but should 
in part be borne by the oil cargo interests, Convinced of 
the need to elaborate a compensation and indemnification 
system supplementary to the International Convention on 
Civil Liability for Oil Pollution Damage with a view to 
ensuring that full compensation will be available to 
victims of oil pollution incidents and that the ship-
owners are at the same time given relief in respect of 
the additional financial burdens imposed on them by the 
said Convention,

Taking note of the Resolution on the Establishment of an 
International Compensation Fund for Oil Pollution Damage 
which was adopted on 29 November 1969 by the 
International Legal Conference on Marine Pollution 
Damage,

Have agreed as follows:


GENERAL PROVISIONS


Article 1

For the purposes of this Convention

1. "Liability Convention" means the International 
Convention on Civil Liability for Oil Pollution Damage, 
adopted at Brussels on 29 November 1969.

2. "Ship", "Person", "Owner", "Oil", "Pollution Damage", 
"Preventive Measures", "Incident" and "Organization" , 
have the same meaning as in Article I of the Liability 
Convention, provided however that, for the purposes of 
these terms, "oil" shall be confined to persistent 
hydrocarbon mineral oils.

3. "Contributing Oil" means crude oil and fuel oil as 
defined in sub-paragraphs (a) and (b) below:

(a) "Crude Oil" means any liquid hydrocarbon mixture 
occurring naturally in the earth whether or not treated 
to render it suitable for transportation. It also 
includes crude oils from which certain distillate 
fractions have been removed (sometimes referred to as 
"topped crudes") or to which certain distillate fractions 
have been added (sometimes referred to as "spiked" or 
"reconstituted" crudes).

(b) "Fuel Oil" means heavy distillates or residues from 
crude oil or blends of such materials intended for use as 
a fuel for the production of heat or power of a quality 
equivalent to the "American Society for Testing and 
Materials" Specification for Number Four Fuel Oil 
(Designation D 396-69), or heavier.

4. "Franc" means the unit referred to in Article V, 
paragraph 9, of the Liability Convention.

5. "Ship's tonnage" has the same meaning as in Article V, 
paragraph 10, of the Liability Convention.

6. "Ton", in relation to oil, means a metric ton.

7. "Guarantor" means any person providing insurance or 
other financial security to cover an owner's liability in 
pursuance of Article VII, paragraph 1, of the Liability 
Convention.

8. "Terminal installation" means any site for the storage 
of oil in bulk which is capable of receiving oil from 
waterborne transportation, including any facility 
situated off-shore and linked to such site.

9. Where an incident consists of a series of occurrences, 
it shall be treated as having occurred on the date of the 
first such occurrence.


Article 2

1. An International Fund for compensation for pollution 
damage, to be named "The International Oil Pollution 
Compensation Fund" and hereinafter referred to as "The 
Fund", is hereby established with the following aims:

(a) to provide compensation for pollution damage to the 
extent that the protection afforded by the Liability 
Convention is inadequate; 

(b) to give relief to ship owners in respect of the 
additional financial burden imposed on them by the 
Liability Convention, such relief 
being subject to conditions designed to insure compliance 
with safety at sea and other conventions;

(c) to give effect to the related purposes set out in 
this Convention. 2. The Fund shall in each Contracting 
State be recognized as a legal person capable under the 
laws of that State of assuming rights and obligations and 
of being a party in legal proceedings before the courts 
of that State. Each Contracting State shall recognize the 
Director of the Fund (hereinafter referred to as "The 
Director") as the legal representative of the Fund.


Article 3

This Convention shall apply:

1. with regard to compensation according to Article 4, 
exclusively to pollution damage caused on the territory 
including the territorial sea of a Contracting State, and 
to preventive measures taken to prevent or minimize such 
damage;

2. with regard to indemnification of ship owners and 
their 
guarantors according to Article 5, exclusively in respect 
of pollution damage caused on the territory including the 
territorial sea of a State party to the Liability 
Convention, by a ship registered in or flying the flag of 
a Contracting State and in respect of preventive measures 
taken to prevent or minimize such damage. Compensation 
and Indemnification


Article 4

1. For the purpose of fulfilling its function under 
Article 2, paragraph 1 (a), the Fund shall pay 
compensation to any person suffering pollution damage if 
such person has been unable to obtain full and adequate 
compensation for the damage under the terms of the 
Liability Convention,

(a) because no liability for the damage arises under the 
Liability Convention;

(b) because the owner liable for the damage under the 
Liability Convention is financially incapable of meeting 
his obligations in full and any financial security that 
may be provided under Article VII of that Convention does 
not cover or is insufficient to satisfy the claims for 
compensation for the damage; an owner being treated as 
financially incapable of meeting his obligations and a 
financial security being treated as insufficient if the 
person suffering the damage has been unable to obtain 
full satisfaction of the amount of compensation due under 
the Liability Convention after having taken 
all reasonable steps to pursue the legal remedies 
available to him;                                      

(c) because the damage exceeds the owner's liability 
under the Liability Convention as limited pursuant to 
Article V, paragraph 1, of that Convention or under the 
terms of any other international Convention in force or 
open for signature, ratification or accession at the date 
of this Convention. Expenses reasonably incurred or 
sacrifices reasonably made by the owner voluntarily to 
prevent or minimize pollution damage shall be treated as 
pollution damage for the purposes of this Article. 

2. The Fund shall incur no obligation under the preceding 
paragraph if:

(a) it proves that the pollution damage resulted from an 
act of war, hostilities, civil war or insurrection or was 
caused by oil which has escaped or been discharged from a 
warship or other ship owned or operated by a State and 
used, at the time of the incident, only on Government 
non-commercial service; or

(b) the claimant cannot prove that the damage resulted 
from an incident involving one or more ships.

3. If the Fund proves that the pollution damage resulted 
wholly or partially either from an act or omission done 
with intent to cause damage by the person who suffered 
the damage or from the negligence of that person, the 
Fund may be exonerated wholly or partially from its 
obligation to pay compensation to such person provided, 
however, that there shall be no such exoneration with 
regard to such preventive measures which are compensated 
under paragraph 1. The Fund shall in any event be 
exonerated to the extent that the ship owner may have 
been 
exonerated under Article III, paragraph 3, of the 
Liability Convention.

4. (a) Except as otherwise provided in sub-paragraph (b) 
of this paragraph, the aggregate amount of compensation 
payable by the Fund under this Article shall in respect 
of any one incident be limited, so that the total sum of 
that amount and the amount of compensation actually paid 
under the Liability Convention for pollution damage 
caused in the territory of the Contracting States, 
including any sums in respect of which the Fund is under 
an obligation to indemnify the owner pursuant to Article 
5, paragraph 1, of this Convention, shall not exceed 450 
million francs.

(b) The aggregate amount of compensation payable by the 
Fund under this Article for pollution damage resulting 
from a natural phenomenon of an exceptional, inevitable 
and irresistible character shall not exceed 450 million 
francs. 

5. Where the amount of established claims against the 
Fund exceeds the aggregate amount of compensation payable 
under paragraph 4, the amount available shall be 
distributed in such a manner that the proportion between 
any established claim and the amount of compensation 
actually recovered by the claimant under the Liability 
Convention and this Convention shall be the same for all 
claimants.

6. The Assembly of the Fund (hereinafter referred to as 
"the Assembly") may, having regard to the experience of 
incidents which have occurred and in particular the 
amount of damage resulting therefrom and to changes in 
the monetary values, decide that the amount of 450 
million francs referred to in paragraph 4, sub-paragraphs 
(a) and (b), shall be changed; provided, however, that 
this amount shall in no case exceed 900 million francs or 
be lower than 450 million francs. The changed amount 
shall apply to incidents which occur after the date of 
the decision effecting the change.

7. The Fund shall, at the request of a Contracting State, 
use its good offices as necessary to assist that State to 
secure promptly such personnel, material and services as 
are necessary to enable the State to take measures to 
prevent or mitigate pollution damage arising from an 
incident in respect of which the Fund may be called upon 
to pay compensation under this Convention.

8. The Fund may on conditions to be laid down in the 
Internal Regulations provide credit facilities with a 
view to the taking of preventive measures against 
pollution damage arising from a particular incident in 
respect of which the Fund may be called upon to pay 
compensation under this Convention.


Article 5

1. For the purpose of fulfilling its function under 
Article 2, paragraph 1 (b), the Fund shall indemnify the 
owner and his guarantor for that portion of the aggregate 
amount of liability under the Liability Convention which:
(a) is in excess of an amount equivalent to 1,500 francs 
for each ton of the ship's tonnage or of an amount of 125 
million francs, whichever is the less, and (b) is not in 
excess of an amount equivalent to 2,000 francs for each 
ton of the said tonnage or an amount of 210 million 
francs, whichever is the less, provided, however, that 
the Fund shall incur no obligation under this paragraph 
where the pollution damage resulted from the willful 
misconduct of the owner himself. 

2. The Assembly may decide that the Fund shall, on 
conditions to be laid down in the Internal Regulations, 
assume the obligations of a guarantor in respect of ships 
referred to in Article 3, paragraph 2, with regard to the 
portion of liability referred to in paragraph 1 of this 
Article. However, the Fund shall assume such obligations 
only if the owner so requests and if he maintains 
adequate insurance or other financial security covering 
the owner's liability under the Liability Convention up 
to an amount equivalent to 1,500 francs for each ton of 
the ship's tonnage or an amount of 125 million francs, 
whichever is the less. If the Fund assumes such 
obligations, the owner shall in each Contracting State be 
considered to have complied with Article VII of the 
Liability Convention in respect of the portion of his 
liability mentioned above.

3. The Fund may be exonerated wholly or partially from 
its obligations under paragraph 1 towards the owner and 
his guarantor if the Fund proves that as a result of the 
actual fault or privity of the owner:

(a) the ship from which the oil causing the pollution 
damage escaped did not comply with the requirements laid 
down in:
(i) the International Convention for the Prevention of 
Pollution of the Sea by Oil, 1954, as amended in 1962; or
(ii) the International Convention for the Safety of Life 
at Sea, 1960; or
(iii) the International Convention on Load Lines, 1966; 
or
(iv) the International Regulations for Preventing 
Collisions at Sea, 1960; or
(v) any amendments to the above mentioned Conventions 
which have been determined as being of an important 
nature in accordance with Article XVI (5) of the 
Convention mentioned under (i), Article IX (e) of the 
Convention mentioned under (ii) or Article 29 (3) (d) or 
(4) (d) of the Convention mentioned under (iii), 
provided, however, that such amendments had been in force 
for at least twelve months at the time of the incident;
and 

(b) the incident or damage was caused wholly of 
partially by such non-compliance. The provisions of this 
paragraph shall apply irrespective of whether the 
Contracting State in which the ship was registered or 
whose flag it was flying is a Party to the relevant 
Instrument.

4. Upon the entry into force of a new Convention designed 
to replace, in whole or in part, any of the Instruments 
specified in paragraph 3, the Assembly may decide at 
least six months in advance a date on which the new 
Convention will replace such Instrument or part thereof 
for the purpose of paragraph 3. However, any State Party 
to this Convention may declare to the Director before 
that date that it does not accept such replacement; in 
which case the decision of the Assembly shall have no 
effect in respect of a ship registered in, or flying the 
flag of, that State at the time of the incident. Such a 
declaration may be withdrawn at any later date and shall 
in any event cease to have effect when the State in 
question becomes a party to such new Convention.

5. A ship complying with the requirements in an amendment 
to an Instrument specified in paragraph 3 or with 
requirements in a new Convention, where the amendment or 
Convention is designed to replace in whole or in part 
such Instrument, shall be considered as complying with 
the requirements in the said Instrument for the purposes 
of paragraph 3.

6. Where the Fund, acting as a guarantor by virtue of 
paragraph 2 has paid compensation for pollution damage in 
accordance with the Liability Convention, it shall have a 
right of recovery from the owner if and to the extent 
that the Fund would have been exonerated pursuant to 
paragraph 3 from its obligations under paragraph 1 to 
indemnify the owner.

7. Expenses reasonably incurred and sacrifices reasonably 
made by the owner voluntarily to prevent or minimize 
pollution damage shall be treated as included in the 
owner's liability for the purposes of this Article.


Article 6

1. Rights to compensation under Article 4 or 
indemnification under Article 5 shall be extinguished 
unless an action is brought thereunder or a notification 
has been made pursuant to Article 7, paragraph 6, within 
three years from the date when the damage occurred. 
However, in no case shall an action be brought after six 
years from the date of the incident which caused the 
damage.

2. Notwithstanding paragraph 1, the right of the owner or 
his guarantor to seek indemnification from the Fund 
pursuant to Article 5, paragraph 1, shall in no case be 
extinguished before the expiry of a period of six months 
as from the date on which the owner or his guarantor 
acquired knowledge of the bringing of an action against 
him under the Liability Convention.


Article 7

1. Subject to the subsequent provisions of this Article, 
any action against the Fund for compensation under 
Article 4 or indemnification under Article 5 of this 
Convention shall be brought only before a court competent 
under Article IX of the Liability Convention in respect 
of actions against the owner who is or who would, but for 
the provisions of Article III, paragraph 2, of that 
Convention, have been liable for pollution damage caused 
by the relevant incident.

2. Each Contracting State shall ensure that its courts 
possess the necessary jurisdiction to entertain such ac-
tions against the Fund as are referred to in paragraph 1.

3. Where an action for compensation for pollution damage 
has been brought before a court competent under Article 
IX of the Liability Convention against the owner of a 
ship or his guarantor, such court shall have exclusive 
jurisdictional competence over any action against the 
Fund for compensation or indemnification under the 
provisions of Article 4 or 5 of this Convention in 
respect of the same damage. However, where an action for 
compensation for pollution damage under the Liability 
Convention has been brought before a court in a State 
Party to the Liability Convention but not to this 
Convention, any action against the Fund under Article 4 
or under Article 5, paragraph 1, of this Convention shall 
at the option of the claimant be brought either before a 
court the State where the Fund has its headquarters or 
before any court of a State Party to this 
Convention competent under Article IX of the Liability 
Convention. 

4. Each Contracting State shall ensure that the Fund 
shall have the right to intervene as a party to any legal 
proceedings instituted in accordance with Article IX of 
the Liability Convention before a competent court of that 
State against the owner of a ship or his guarantor.

5. Except as otherwise provided in paragraph 6, the Fund 
shall not be bound by any judgment or decision in 
proceedings to which it has not been a party or by any 
settlement to which it is not a party. 

6. Without prejudice to the provisions of paragraph 4, 
where an action under the Liability Convention for 
compensation for pollution damage has been brought 
against an owner or his guarantor before a competent 
court in a Contracting State, each party to the 
proceedings shall be entitled under the national law of 
that State to notify the Fund of the proceedings. Where 
such notification has been made in accordance with the 
formalities required by the law of the court seized and 
in such time and in such a manner that the Fund has in 
fact been in a position effectively to intervene as a 
party to the proceedings, any judgment rendered by the 
court in such proceedings shall, after it has become 
final and enforceable in the State where the judgment was 
given, become binding upon the Fund in the sense that the 
facts and findings in that judgment may not be disputed 
by the Fund even if the Fund has not actually intervened 
in the proceedings.


Article 8

Subject to any decision concerning the distribution 
referred to in Article 4, paragraph 5, any judgment given 
against the Fund by a court having jurisdiction in 
accordance with Article 7, paragraphs 1 and 3, shall, 
when it has become enforceable in the State of origin and 
is in that State no longer subject to ordinary forms of 
review, be recognized and enforceable in each Contracting 
State on the same conditions as are prescribed in Article 
X of the Liability Convention.


Article 9

1. Subject to the provisions of Article 5, the Fund 
shall, in respect of any amount of compensation for 
pollution damage paid by the Fund in accordance with 
Article 4, paragraph 1, of this Convention, acquire by 
subrogation the rights that the person so compensated may 
enjoy under the Liability Convention against the owner or 
his guarantor.

2. Nothing in this Convention shall prejudice any right 
of recourse or subrogation of the Fund against persons 
other than those referred to in the preceding paragraph. 
In any event the right of the Fund to subrogation against 
such person shall not be less favourable than that of an 
insurer of the person to whom compensation or indem-
nification has been paid.

3. Without prejudice to any other rights of subrogation 
or recourse against the Fund which may exist, a 
Contracting State or agency thereof which has paid 
compensation for pollution damage in accordance with 
provisions of national law shall acquire by subrogation 
the rights which the person so compensated would 
have enjoyed under this Convention.


CONTRIBUTIONS

Article 10

1. Contributions to the Fund shall be made in respect of 
each Contracting State by any person who, in the calendar 
year referred to in Article 11, paragraph 1, as regards 
initial contributions and in Article 12, paragraph 2 (a) 
or (b), as regards annual contributions, has received in 
total quantities exceeding 150,000 tons:

(a) in the ports or terminal installations in the 
territory of that State contributing oil carried by sea 
to such ports or terminal installations; and

(b) in any installations situated in the territory of 
that Contracting State contributing oil which has been 
carried by sea and discharged in a port or terminal 
installation of a non-Contracting State, provided that 
contributing oil shall only be taken into account by 
virtue of this sub-paragraph on first receipt in a 
Contracting State after its discharge in that non-
Contracting State. 

2. (a) For the purposes of paragraph 1, where the 
quantity of contributing oil received in the territory of 
a Contracting State by any person in a calendar year when 
aggregated with the quantity of contributing oil received 
in the same Contracting State in that year by any 
associated person or persons exceeds 150,000 tons, 
such person shall pay contributions in respect of the 
actual quantity received by him notwithstanding that that 
quantity, did not exceed 150,000 tons.

(b) "Associated person" means any subsidiary or commonly 
controlled entity. The question whether a person comes 
within this definition shall be determined by the 
national law of the State concerned.


Article 11

1. In respect of each Contracting State initial 
contributions shall be made of an amount which shall for 
each person referred to in Article 10 be calculated on 
the basis of a fixed sum for each ton of contributing oil 
received by him during the calendar year preceding that 
in which this Convention entered into force for that 
State.

2. The sum referred to in paragraph 1 shall be determined 
by the Assembly within two months after the entry into 
force of this Convention. In performing this function the 
Assembly shall, to the extent possible, fix the sum in 
such a way that the total amount of initial contributions 
would, if contributions were to be made in respect of 90 
per cent of the quantities of contributing oil carried by 
sea in the world, equal 75 million francs.

3. The initial contributions shall in respect of each 
Contracting State be paid within three months following 
the date at which the Convention entered into force for 
that State.


Article 12

1. With a view to assessing for each person referred to 
in Article 10 the amount of annual contributions due, if 
any, and taking account of the necessity to maintain 
sufficient liquid funds, the Assembly shall for each 
calendar year make an estimate in the form of a budget 
of:
(i) Expenditure
(a) costs and expenses of the administration of the Fund 
in the relevant year and any deficit from operations in 
preceding years; (b) payments to be made by the Fund in 
the relevant year for the satisfaction of claims against 
the Fund due under Article 4 or 5, including repayment on 
loans previously taken by the Fund for the satisfaction 
of such claims, to the extent that the aggregate amount 
of such claims in respect of any one incident does not 
exceed 15 million francs;
(c) payments to be made by the Fund in the relevant year 
for the satisfaction of claims against the Fund due under 
Article 4 or 5, including repayments on loans previously 
taken by the Fund for the satisfaction of such claims, to 
the extent that the aggregate amount of such claims in 
respect of any one incident is in excess of 15 million 
francs;
(ii) Income
(a) surplus funds from operations in preceding years, 
including any interest;
(b) initial contributions to be paid in the course of the 
year; 
(c) annual contributions, if required to balance the 
budget;
(d) any other income.

2. For each person referred to in Article 10 the amount 
of his annual contribution shall be determined by the 
Assembly and shall be calculated in respect of each 
Contracting State:

(a) in so far as the contribution is for the satisfaction 
of payments referred to in paragraph 1 (i) (a) and (b) on 
the basis of a fixed sum for each ton of contributing oil 
received in the relevant State by such persons during the 
preceding calendar year; and

(b) in so far as the contribution is for the satisfaction 
of payments referred to in paragraph 1 (i) (c) of this 
Article on the basis of a fixed sum for each ton of 
contributing oil received by such person during the 
calendar year preceding that in which the incident in 
question occurred, provided that State was a party to 
this Convention at the date of the incident.

3. The sums referred to in paragraph 2 above shall be 
arrived at by dividing the relevant total amount of 
contributions required by the total amount of contri-
buting oil received in all Contracting States in the 
relevant year.

4. The Assembly shall decide the portion of the annual 
contribution which shall be immediately paid in cash and 
decide on the date of payment. The remaining part of each 
annual contribution shall be paid upon notification by 
the Director.

5. The Director may, in cases and in accordance with 
conditions to be laid down in the Internal Regulations of 
the Fund, require a contributor to provide financial 
security for the sums due from him. 6. Any demand for 
payments made under paragraph 4 shall be called rateably 
from all individual contributors.


Article 13

1. The amount of any contribution due under Article 12 
and which is in arrear shall bear interest at a rate 
which shall be determined by the Assembly for each 
calendar year provided that different rates may be fixed 
for different circumstances.

2. Each Contracting State shall ensure that any 
obligation to contribute to the Fund arising under this 
Convention in respect of oil received within the 
territory of that State is fulfilled and shall take any 
appropriate measures under its law, including the 
imposing of such sanctions as it may deem necessary, with 
a view to the effective execution of any such obligation; 
provided however, that such measures shall only be 
directed against those persons who are under an 
obligation to contribute to the Fund. 

3. Where a person who is liable in accordance with the 
provisions of Articles 10 and 11 to make contributions to 
the Fund does not fulfill his obligations in respect of 
any such contribution or any part thereof and is in 
arrear for a period exceeding three months, the Director 
shall take all appropriate action against such person on 
behalf of the Fund with a view to the recovery of the 
amount due. However, where the defaulting contributor is 
manifestly insolvent or the circumstances otherwise so 
warrant, the Assembly may, upon recommendation of the 
Director, decide that no action shall be taken or 
continued against the contributor.


Article 14

1. Each Contracting State may at the time when it 
deposits its instrument of ratification or accession or 
at any time thereafter declare that it assumes itself 
obligations that are incumbent under this Convention on 
any person who is liable to contribute to the Fund in 
accordance with Article 10, paragraph 1, in respect of 
oil received within the territory of that State. Such 
declaration shall be made in writing and shall specify 
which obligations are assumed.

2. Where a declaration under paragraph 1 is made prior to 
the entry into force of this Convention in accordance 
with Article 40, it shall be deposited with the 
Secretary-General of the Organization who shall after the 
entry into force of the Convention communicate the 
declaration to the Director.

3. A declaration under paragraph 1 which is made after 
the entry into force of this Convention shall be 
deposited with the Director.

4. A declaration made in accordance with this Article may 
be withdrawn by the relevant State giving notice thereof 
in writing to the Director. Such notification shall take 
effect three months after the Director's receipt thereof.

5. Any State which is bound by a declaration made under 
this Article shall, in any proceedings brought against it 
before a competent court in respect of any obligation 
specified in the declaration, waive any immunity that it 
would otherwise be entitled to invoke.

Article 15

1. Each Contracting State shall ensure that any person 
who receives contributing oil within its territory in 
such quantities that he is liable to contribute to the 
Fund appears on a list to be established and kept up to 
date by the Director in accordance with the subsequent 
provisions of this Article.

2. For the purposes set out in paragraph 1, each 
Contracting State shall communicate, at a time and in the 
manner to be prescribed in the Internal Regulations, to 
the Director the name and address of any person who in 
respect of that State is liable to contribute to the Fund 
pursuant to Article 10, as well as data on the relevant 
quantities of contributing oil received by any such 
person during the preceding calendar year.

3. For the purposes of ascertaining who are, at any given 
time, the persons liable to contribute to the Fund in 
accordance with Article 10, paragraph 1, and of 
establishing, where applicable, the quantities of oil to 
be taken into account for any such person when 
determining the amount of his contribution, the list 
shall be prima facie evidence of the facts stated 
therein.


ORGANIZATION AND ADMINISTRATION


Article 16

The Fund shall have an Assembly, a Secretariat headed by 
a Director and, in accordance with the provisions of 
Article 21, an Executive Committee.


ASSEMBLY


Article 17

The Assembly shall consist of all Contracting States to 
this Convention.


Article 18

The functions of the Assembly shall, subject to the 
provisions of Article 26, be:

1. to elect at each regular session its Chairman and two 
Vice-Chairmen who shall hold office until the next 
regular session; 

2. to determine its own rules of procedure, subject to 
the provisions of this Convention;

3. to adopt Internal Regulations necessary for the proper 
functioning of the Fund;

4. to appoint the Director and make provisions for the 
appointment of such other personnel as may be necessary 
and determine the terms and conditions of service of the 
Director and other personnel; 

5. to adopt the annual budget and fix the annual 
contributions;

6. to appoint auditors and approve the accounts of the 
Fund;

7. to approve settlements of claims against the Fund, to 
take decisions in respect of the distribution among 
claimants of the available amount of compensation in 
accordance with Article 4, paragraph 5, and to determine 
the terms and conditions according to which provisional 
payments in respect of claims shall be made with a view 
to ensuring that victims of pollution damage are 
compensated as promptly as possible;

8. to elect the members of the Assembly to be represented 
on the Executive Committee, as provided in Articles 21, 
22 and 23;

9. to establish any temporary or permanent subsidiary 
body it may consider to be necessary;

10. to determine which non-Contracting States and which 
inter-governmental and international non-governmental 
organizations shall be admitted to take part, without 
voting rights, in meetings of the Assembly, the Executive 
Committee, and subsidiary bodies;

11. to give instructions concerning the administration of 
the Fund to the Director, the Executive Committee and 
subsidiary bodies;

12. to review and approve the reports and activities of 
the Executive Committee;

13. to supervise the proper execution of the Convention 
and of its own decisions;

14. to perform such other functions as are allocated to 
it under the Convention or are otherwise necessary for 
the proper operation of the Fund.


Article 19

1. Regular sessions of the Assembly shall take place once 
every calendar year upon convocation by the Director; 
provided, however, that if the Assembly allocates to the 
Executive Committee the functions specified in Article 
18, paragraph 5, regular sessions of the Assembly shall 
be held once every two years.

2. Extraordinary sessions of the Assembly shall be 
convened by the Director at the request of the Executive 
Committee or of at least one-third of the members of the 
Assembly and may be convened on the Director's own 
initiative after consultation with the Chairman of the 
Assembly. The Director shall give members at least thirty 
days' notice of such sessions.


Article 20

A majority of the members of the Assembly shall 
constitute a quorum for its meetings. Executive Committee


Article 21

The Executive Committee shall be established at the first 
regular session of the Assembly after the date on which 
the number of Contracting States reaches fifteen.


Article 22

1. The Executive Committee shall consist of one-third of 
the members of the Assembly but of not less than seven or 
more than fifteen members. Where the number of members of 
the Assembly is not divisible by three, the one-third 
referred to shall be calculated on the next higher number 
which is divisible by three.

2. When electing the members of the Executive Committee 
the Assembly shall:

(a) secure an equitable geographical distribution of the 
seats on the Committee on the basis of an adequate 
representation of Contracting States particularly exposed 
to the risks of oil pollution and of Contracting States 
having large tanker fleets; and

(b) elect one half of the members of the Committee, or in 
case the total number of members to be elected is uneven, 
such number of the members as is equivalent to one half 
of the total number less one, among those Contracting 
States in the territory of which the largest quantities 
of oil to be taken into account under Article 10 were 
received during the preceding calendar year, provided 
that the number of States eligible under this sub-
paragraph shall be limited as shown in the table below:
Total number of Members on the Committee        Number of 
States eligible under sub-     Number of States to be 
elected under paragraph (b)   sub paragraph (b)
7       5       3
8       6       4
9	6	4
10	8	5
11	8	5
12	9	6
13	9	6
14	11	7
15	11	7

3. A member of the Assembly which was eligible but was 
not elected under sub-paragraph (b) shall not be eligible 
to be elected for any remaining seat on the Executive 
Committee.


Article 23

1. Members of the Executive Committee shall hold office 
until the end of the next regular session of the 
Assembly.

2. Except to the extent that may be necessary for 
complying with the requirements of Article 22, no State 
Member of the Assembly may serve on the Executive 
Committee for more than two consecutive terms.


Article 24

The Executive Committee shall meet at least once every 
calendar year at thirty days' notice upon convocation by 
the Director, either on his own initiative or at the 
request of its Chairman or of at least one-third of its 
members. It shall meet at such places as may be 
convenient.


Article 25

At least two-thirds of the members of the Executive 
Committee shall constitute a quorum for its meetings.


Article 26

1. The functions of the Executive Committee shall be:

(a) to elect its Chairman and adopt its own rules of 
procedure, except as otherwise provided in this 
Convention;

(b) to assume and exercise in place of the Assembly the 
following functions:
(i) making provision for the appointment of such 
personnel, other than the Director, as may be necessary 
and determining the terms and conditions of service of 
such personnel;
(ii) approving settlements of claims against the Fund and 
taking all other steps envisaged in relation to such 
claims in Article 18, paragraph 7;
(iii) giving instructions to the Director concerning the 
administration of the Fund and supervising the proper 
execution, by him of the Convention, of the decisions of 
the Assembly and of the Committee's own decisions; and

(c) to perform such other functions as are allocated to 
it by the Assembly. 

2. The Executive Committee shall each year prepare and 
publish a report of the activities of the Fund during the 
previous calendar year.


Article 27

Members of the Assembly who are not members of the 
Executive Committee shall have the right to attend its 
meetings as observers.


SECRETARIAT


Article 28

1. The Secretariat shall comprise the Director and such 
staff as the administration of the Fund may require.

2. The Director shall be the legal representative of the 
Fund.


Article 29

1. The Director shall be the chief administrative officer 
of the Fund and shall, subject to the instructions given 
to him by the Assembly and by the Executive Committee, 
perform those functions which are assigned to him by this 
Convention, the Internal Regulations, the Assembly and 
the Executive Committee.

2. The Director shall in particular:

(a) appoint the personnel required for the administration 
of the Fund;

(b) take all appropriate measures with a view to the 
proper administration of the Fund's assets;

(c) collect the contributions due under this Convention 
while observing in particular the provisions of Article 
13, paragraph 3; 

(d) to the extent necessary to deal with claims against 
the Fund and carry out the other functions of the Fund, 
employ the services of legal, financial and other 
experts;

(e) take all appropriate measures for dealing with claims 
against the Fund within the limits and on conditions to 
be laid down in the Internal Regulations, including the 
final settlement of claims without the prior approval of 
the Assembly or the Executive Committee where these 
Regulations so provide;

(f) prepare and submit to the Assembly or to the 
Executive Committee, as the case may be, the financial 
statements and budget estimates for each calendar year;

(g) assist the Executive Committee in the preparation of 
the report referred to in Article 26, paragraph 2;

(h) prepare, collect and circulate the papers, documents, 
agenda, minutes and information that may be required for 
the work of the Assembly, the Executive Committee and 
subsidiary bodies.


Article 30

In the performance of their duties the Director and the 
staff and experts appointed by him shall not seek or 
receive instructions from any Government or from any 
authority external to the Fund. They shall refrain from 
any action which might reflect on their position as 
international officials. Each Contracting State on its 
part undertakes to respect the exclusively international 
character of the responsibilities of the Director and the 
staff and experts appointed by him, and not to seek to 
influence them in the discharge of their duties.


FINANCES


Article 31

1. Each Contracting State shall bear the salary, travel 
and other expenses of its own delegation to the Assembly 
and of its representatives on the Executive Committee and 
on subsidiary bodies.

2. Any other expenses incurred in the operation of the 
Fund shall be borne by the Fund.


VOTING


Article 32

The following provisions shall apply to voting in the 
Assembly and the Executive Committee:

(a) each member shall have one vote;

(b) except as otherwise provided in Article 33, decisions 
of the Assembly and the Executive Committee shall be by a 
majority vote of the members present and voting;

(c) decisions where a three-fourths or a two-thirds 
majority is required shall be by a three-fourths or two-
thirds majority vote, as the case may be, of those 
present;

(d) for the purpose of this Article the phrase "members 
present" means "members present at the meeting at the 
time of the vote", and the phrase "members present and 
voting" means "members present and casting an affirmative 
or negative vote". Members who abstain from voting shall 
he considered as not voting.


Article 33

1. The following decisions of the Assembly shall require 
a three-fourths majority:

(a) an increase in accordance with Article 4, paragraph 
6, in the maximum amount of compensation  payable by the 
Fund;

(b) a determination, under Article 5, paragraph 4, 
relating to the replacement of the Instruments referred 
to in that paragraph;

(c) the allocation to the Executive Committee of the 
functions specified in Article 18, paragraph 5.

2. The following decisions of the Assembly shall require 
a two-thirds majority:

(a) a decision under Article 13, paragraph 3, not to take 
or continue action against a contributor;

(b) the appointment of the Director under Article 18, 
paragraph 4;                                           

(c) the establishment of subsidiary bodies, under Article 
18, paragraph 9.


Article 34

1. The Fund, its assets, income, including contributions, 
and other property shall enjoy in all Contracting States 
exemption from all direct taxation.

2. When the Fund makes substantial purchases of movable 
or immovable property, or has important work carried out 
which is necessary for the exercise of its official 
activities and the cost of which includes indirect taxes 
or sales taxes, the Governments of Member States shall 
take, whenever possible, appropriate measures for the 
remission or refund of the amount of such duties and 
taxes.

3. No exemption shall be accorded in the case of duties, 
taxes or dues which merely constitute payment for public 
utility services.

4. The Fund shall enjoy exemption from all customs 
duties, taxes and other related taxes on articles 
imported or exported by it or on its behalf for its 
official use. Articles thus imported shall not be 
transferred either for consideration or gratis on the 
territory of the country into which they have been 
imported except on conditions agreed by the government of 
that country.

5. Persons contributing to the Fund and victims and 
owners of ships receiving compensation from the Fund 
shall be subject to the fiscal legislation of the State 
where they are taxable, no special exemption or other 
benefit being conferred on them in this respect. 

6. Information relating to individual contributors 
supplied for the purpose of this Convention shall not be 
divulgated outside the Fund except in so far as it may be 
strictly necessary to enable the Fund to carry out its 
functions, including the bringing and defending of legal 
proceedings.

7. Independently of existing or future regulations 
concerning currency or transfers, Contracting States 
shall authorize the transfer and payment of any contri-
bution to the Fund and of any compensation paid by the 
Fund without any restriction.


TRANSITIONAL PROVISIONS                             


Article 35

1. The Fund shall incur no obligation whatsoever under 
Article 4 or 5 in respect of incidents occurring within a 
period of one hundred and twenty days after the entry 
into force of this Convention.

2. Claims for compensation under Article 4 and claims for 
indemnification under Article 5, arising from incidents 
occurring later than one hundred and twenty days but not 
later than two hundred and forty days after the entry 
into force of this Convention may not be brought against 
the Fund prior to the elapse of the two hundred and 
fortieth day after the entry into force of this 
Convention.


Article 36

The Secretary-General of the Organization shall convene 
the first session of the Assembly. This session shall 
take place as soon as possible after entry into force of 
this Convention and, in any case, not more than thirty 
days after such entry into force.


FINAL CLAUSES


Article 37

1. This Convention shall be open for signature by the 
States which have signed or which accede to the Liability 
Convention, and by any State represented at the 
Conference on the Establishment of an International Fund 
for Compensation for Oil Pollution Damage, 1971. The 
Convention shall remain open for signature until 31 
December 1972.

2. Subject to paragraph 4, this Convention shall be 
ratified, accepted or approved by the States which have 
signed it.

3. Subject to paragraph 4, this Convention is open for 
accession by States which did not sign it.

4. This Convention may be ratified, accepted, approved or 
acceded to, only by States which have ratified, accepted, 
approved or acceded to the Liability Convention.


Article 38

1. Ratification, acceptance, approval or accession shall 
be effected by the deposit of a formal instrument to that 
effect with the Secretary-General of the Organization.

2. Any instrument of ratification, acceptance, approval 
or accession deposited after the entry into force of an 
amendment to this Convention with respect to all existing 
Contracting States or after the completion of all 
measures required for the entry into force of the 
amendment with respect to those Parties shall be deemed 
to apply to the Convention as modified by the amendment.


Article 39

Before this Convention comes into force a State shall, 
when depositing an instrument referred to in Article 38, 
paragraph 1, and annually thereafter at a date to be 
determined by the Secretary-General of the Organization, 
communicate to him the name and address of any person who 
in respect of that State would be liable to contribute to 
the Fund pursuant to Article 10 as well as data on the 
relevant quantities of contributing oil received by any 
such person in the territory of that State during the 
preceding calendar year.


Article 40

1. This Convention shall enter into force on the 
ninetieth day following the date on which the following 
requirements are fulfilled:

(a) at least eight States have deposited instruments of 
ratification, acceptance, approval or accession with the 
Secretary-General of the Organization, and

(b) the Secretary-General of the Organization has 
received information in accordance with Article 39 that 
those persons in such States who would be liable to 
contribute pursuant to Article 10 have received during 
the preceding calendar year a total quantity of at least 
750 million tons of contributing oil. 

2. However, this Convention shall not enter into force 
before the Liability Convention has entered into force.

3. For each State which subsequently ratifies, accepts, 
approves or accedes to it, this Convention shall enter 
into force on the ninetieth day after deposit by such 
State of the appropriate instrument.


Article 41

1. This Convention may be denounced by any Contracting 
State at any time after the date on which the Convention 
comes into force for that State.

2. Denunciation shall be effected by the deposit of an 
instrument with the Secretary-General of the 
Organization.

3. A denunciation shall take effect one year, or such 
longer period as may be specified in the instrument of 
denunciation, after its deposit with the Secretary-
General of the Organization.

4. Denunciation of the Liability Convention shall be 
deemed to be a denunciation of this Convention. Such 
denunciation shall take effect on the same date as the 
denunciation of the Liability Convention takes effect 
according to paragraph 3 of Article XVI of that 
Convention.

5. Notwithstanding a denunciation by a Contracting State 
pursuant to this Article, any provisions of this 
Convention relating to the obligations to make 
contributions under Article 10 with respect to 
an incident referred to in Article 12, paragraph 2 (b), 
and occurring before the denunciation takes effect shall 
continue to apply.


Article 42

1. Any Contracting State may, within ninety days after 
the deposit of an instrument of denunciation the result 
of which it considers will significantly increase the 
level of contributions for remaining Contracting States, 
request the Director to convene an extraordinary session 
of the Assembly. The Director shall convene the Assembly 
to meet not later than sixty days after receipt of the 
request.

2. The Director may convene, on his own initiative, an 
extraordinary session of the Assembly to meet within 
sixty days after the deposit of any instrument of 
denunciation, if he considers that such denunciation will 
result in a significant increase in the level of 
contributions for the remaining Contracting States.

3. If the Assembly at an extraordinary session convened 
in accordance with paragraph 1 or 2 decides that the 
denunciation will result in a significant increase in the 
level of contributions for the remaining Contracting 
States, any such State may, not later than one hundred 
and twenty days before the date on which that 
denunciation takes effect, denounce this Convention with 
effect from the same date.


Article 43

1. This Convention shall cease to be in force on the date 
when the number of Contracting States falls below three.

2. Contracting States which are bound by this Convention 
on the date before the day it ceases to be in force, 
shall enable the Fund to exercise its functions as 
described under Article 44 and shall, for that purpose 
only, remain bound by this Convention.


Article 44

1. If this Convention ceases to be in force, the Fund 
shall nevertheless

(a) meet its obligations in respect of any incident 
occurring before the Convention ceased to be in force;

(b) be entitled to exercise its rights to contributions 
to the extent that these contributions are necessary to 
meet the obligations under subparagraph (a), including 
expenses for the administration of the Fund necessary for 
this purpose. 

2. The Assembly shall take all appropriate measures to 
complete the winding up of the Fund, including the 
distribution in an equitable manner of any remaining 
assets among those persons who have contributed to the 
Fund.

3. For the purposes of this Article the Fund shall remain 
a legal person.


Article 45

1. A Conference for the purpose of revising or amending 
this Convention may be convened by the Organization.

2. The Organization shall convene a Conference of the 
Contracting States for the purpose of revising or 
amending the Convention at the request of not less than 
one-third of all Contracting States.


Article 46

1. This Convention shall be deposited with the Secretary-
General of the Organization.

2. The Secretary-General of the Organization shall:

(a) inform all States which have signed or acceded to 
this Convention of:
(i) each new signature or deposit of instrument and the 
date thereof;
(ii) the date of entry into force of the Convention;
(iii) any denunciation of the Convention and the date on 
which it takes effect;

(b) transmit certified true copies of this Convention to 
all Signatory States and to all States which accede to 
the Convention.


Article 47

As soon as this Convention enters into force, a certified 
true copy thereof shall be transmitted by the Secretary-
General of the Organization to the Secretariat of the 
United Nations for registration and publication in 
accordance with Article 102 of the Charter of the United 
Nations.


Article 48

This Convention is established in a single original in 
the English and French languages, both texts being 
equally authentic. Official translations in the Russian 
and Spanish languages shall be prepared by the 
Secretariat of the Organization and deposited with the 
signed original.


In Witness whereof the undersigned plenipotentiaries 
being duly authorized for that purpose have signed the 
present Convention. 

Done at Brussels this eighteenth day of December one 
thousand nine hundred and seventy-one.














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INTERNATIONAL CONVENTION ON THE ESTABLISHMENT OF AN 
INTERNATIONAL FUND FOR COMPENSATION FOR OIL POLLUTION 
DAMAGE

(Brussels, 18 December 1971)

The States Parties to the present Convention,

Being Parties to the International Convention on Civil 
Liability for Oil Pollution Damage, adopted at Brussels 
on 29 November 1969, Conscious of the dangers of 
pollution posed by the world-wide maritime carriage of 
oil in bulk,

Convinced of the need to ensure that adequate 
compensation is available to persons who suffer damage 
caused by pollution resulting from the escape or 
discharge of oil from ships, Considering that the 
International Convention of 29 November 1969, on Civil 
Liability for Oil Pollution Damage, by providing a regime 
for compensation for pollution damage in Contracting 
States and for the costs of measures, wherever taken, to 
prevent or minimize such damage, represents a 
considerable progress towards the achievement of this 
aim,

Considering however that this regime does not afford full 
compensation for victims of oil pollution damage in all 
cases while it imposes an additional financial burden on 
ship owners, 

Considering further that the economic consequences of oil 
pollution damage resulting from the escape or discharge 
of oil carried in bulk at sea by ships should not 
exclusively be borne by the shipping industry but should 
in part be borne by the oil cargo interests, Convinced of 
the need to elaborate a compensation and indemnification 
system supplementary to the International Convention on 
Civil Liability for Oil Pollution Damage with a view to 
ensuring that full compensation will be available to 
victims of oil pollution incidents and that the ship-
owners are at the same time given relief in respect of 
the additional financial burdens imposed on them by the 
said Convention,

Taking note of the Resolution on the Establishment of an 
International Compensation Fund for Oil Pollution Damage 
which was adopted on 29 November 1969 by the 
International Legal Conference on Marine Pollution 
Damage,

Have agreed as follows:


GENERAL PROVISIONS


Article 1

For the purposes of this Convention

1. "Liability Convention" means the International 
Convention on Civil Liability for Oil Pollution Damage, 
adopted at Brussels on 29 November 1969.

2. "Ship", "Person", "Owner", "Oil", "Pollution Damage", 
"Preventive Measures", "Incident" and "Organization" , 
have the same meaning as in Article I of the Liability 
Convention, provided however that, for the purposes of 
these terms, "oil" shall be confined to persistent 
hydrocarbon mineral oils.

3. "Contributing Oil" means crude oil and fuel oil as 
defined in sub-paragraphs (a) and (b) below:

(a) "Crude Oil" means any liquid hydrocarbon mixture 
occurring naturally in the earth whether or not treated 
to render it suitable for transportation. It also 
includes crude oils from which certain distillate 
fractions have been removed (sometimes referred to as 
"topped crudes") or to which certain distillate fractions 
have been added (sometimes referred to as "spiked" or 
"reconstituted" crudes).

(b) "Fuel Oil" means heavy distillates or residues from 
crude oil or blends of such materials intended for use as 
a fuel for the production of heat or power of a quality 
equivalent to the "American Society for Testing and 
Materials" Specification for Number Four Fuel Oil 
(Designation D 396-69), or heavier.

4. "Franc" means the unit referred to in Article V, 
paragraph 9, of the Liability Convention.

5. "Ship's tonnage" has the same meaning as in Article V, 
paragraph 10, of the Liability Convention.

6. "Ton", in relation to oil, means a metric ton.

7. "Guarantor" means any person providing insurance or 
other financial security to cover an owner's liability in 
pursuance of Article VII, paragraph 1, of the Liability 
Convention.

8. "Terminal installation" means any site for the storage 
of oil in bulk which is capable of receiving oil from 
waterborne transportation, including any facility 
situated off-shore and linked to such site.

9. Where an incident consists of a series of occurrences, 
it shall be treated as having occurred on the date of the 
first such occurrence.


Article 2

1. An International Fund for compensation for pollution 
damage, to be named "The International Oil Pollution 
Compensation Fund" and hereinafter referred to as "The 
Fund", is hereby established with the following aims:

(a) to provide compensation for pollution damage to the 
extent that the protection afforded by the Liability 
Convention is inadequate; 

(b) to give relief to ship owners in respect of the 
additional financial burden imposed on them by the 
Liability Convention, such relief 
being subject to conditions designed to insure compliance 
with safety at sea and other conventions;

(c) to give effect to the related purposes set out in 
this Convention. 2. The Fund shall in each Contracting 
State be recognized as a legal person capable under the 
laws of that State of assuming rights and obligations and 
of being a party in legal proceedings before the courts 
of that State. Each Contracting State shall recognize the 
Director of the Fund (hereinafter referred to as "The 
Director") as the legal representative of the Fund.


Article 3

This Convention shall apply:

1. with regard to compensation according to Article 4, 
exclusively to pollution damage caused on the territory 
including the territorial sea of a Contracting State, and 
to preventive measures taken to prevent or minimize such 
damage;

2. with regard to indemnification of ship owners and 
their 
guarantors according to Article 5, exclusively in respect 
of pollution damage caused on the territory including the 
territorial sea of a State party to the Liability 
Convention, by a ship registered in or flying the flag of 
a Contracting State and in respect of preventive measures 
taken to prevent or minimize such damage. Compensation 
and Indemnification


Article 4

1. For the purpose of fulfilling its function under 
Article 2, paragraph 1 (a), the Fund shall pay 
compensation to any person suffering pollution damage if 
such person has been unable to obtain full and adequate 
compensation for the damage under the terms of the 
Liability Convention,

(a) because no liability for the damage arises under the 
Liability Convention;

(b) because the owner liable for the damage under the 
Liability Convention is financially incapable of meeting 
his obligations in full and any financial security that 
may be provided under Article VII of that Convention does 
not cover or is insufficient to satisfy the claims for 
compensation for the damage; an owner being treated as 
financially incapable of meeting his obligations and a 
financial security being treated as insufficient if the 
person suffering the damage has been unable to obtain 
full satisfaction of the amount of compensation due under 
the Liability Convention after having taken 
all reasonable steps to pursue the legal remedies 
available to him;                                      

(c) because the damage exceeds the owner's liability 
under the Liability Convention as limited pursuant to 
Article V, paragraph 1, of that Convention or under the 
terms of any other international Convention in force or 
open for signature, ratification or accession at the date 
of this Convention. Expenses reasonably incurred or 
sacrifices reasonably made by the owner voluntarily to 
prevent or minimize pollution damage shall be treated as 
pollution damage for the purposes of this Article. 

2. The Fund shall incur no obligation under the preceding 
paragraph if:

(a) it proves that the pollution damage resulted from an 
act of war, hostilities, civil war or insurrection or was 
caused by oil which has escaped or been discharged from a 
warship or other ship owned or operated by a State and 
used, at the time of the incident, only on Government 
non-commercial service; or

(b) the claimant cannot prove that the damage resulted 
from an incident involving one or more ships.

3. If the Fund proves that the pollution damage resulted 
wholly or partially either from an act or omission done 
with intent to cause damage by the person who suffered 
the damage or from the negligence of that person, the 
Fund may be exonerated wholly or partially from its 
obligation to pay compensation to such person provided, 
however, that there shall be no such exoneration with 
regard to such preventive measures which are compensated 
under paragraph 1. The Fund shall in any event be 
exonerated to the extent that the ship owner may have 
been 
exonerated under Article III, paragraph 3, of the 
Liability Convention.

4. (a) Except as otherwise provided in sub-paragraph (b) 
of this paragraph, the aggregate amount of compensation 
payable by the Fund under this Article shall in respect 
of any one incident be limited, so that the total sum of 
that amount and the amount of compensation actually paid 
under the Liability Convention for pollution damage 
caused in the territory of the Contracting States, 
including any sums in respect of which the Fund is under 
an obligation to indemnify the owner pursuant to Article 
5, paragraph 1, of this Convention, shall not exceed 450 
million francs.

(b) The aggregate amount of compensation payable by the 
Fund under this Article for pollution damage resulting 
from a natural phenomenon of an exceptional, inevitable 
and irresistible character shall not exceed 450 million 
francs. 

5. Where the amount of established claims against the 
Fund exceeds the aggregate amount of compensation payable 
under paragraph 4, the amount available shall be 
distributed in such a manner that the proportion between 
any established claim and the amount of compensation 
actually recovered by the claimant under the Liability 
Convention and this Convention shall be the same for all 
claimants.

6. The Assembly of the Fund (hereinafter referred to as 
"the Assembly") may, having regard to the experience of 
incidents which have occurred and in particular the 
amount of damage resulting therefrom and to changes in 
the monetary values, decide that the amount of 450 
million francs referred to in paragraph 4, sub-paragraphs 
(a) and (b), shall be changed; provided, however, that 
this amount shall in no case exceed 900 million francs or 
be lower than 450 million francs. The changed amount 
shall apply to incidents which occur after the date of 
the decision effecting the change.

7. The Fund shall, at the request of a Contracting State, 
use its good offices as necessary to assist that State to 
secure promptly such personnel, material and services as 
are necessary to enable the State to take measures to 
prevent or mitigate pollution damage arising from an 
incident in respect of which the Fund may be called upon 
to pay compensation under this Convention.

8. The Fund may on conditions to be laid down in the 
Internal Regulations provide credit facilities with a 
view to the taking of preventive measures against 
pollution damage arising from a particular incident in 
respect of which the Fund may be called upon to pay 
compensation under this Convention.


Article 5

1. For the purpose of fulfilling its function under 
Article 2, paragraph 1 (b), the Fund shall indemnify the 
owner and his guarantor for that portion of the aggregate 
amount of liability under the Liability Convention which:
(a) is in excess of an amount equivalent to 1,500 francs 
for each ton of the ship's tonnage or of an amount of 125 
million francs, whichever is the less, and (b) is not in 
excess of an amount equivalent to 2,000 francs for each 
ton of the said tonnage or an amount of 210 million 
francs, whichever is the less, provided, however, that 
the Fund shall incur no obligation under this paragraph 
where the pollution damage resulted from the willful 
misconduct of the owner himself. 

2. The Assembly may decide that the Fund shall, on 
conditions to be laid down in the Internal Regulations, 
assume the obligations of a guarantor in respect of ships 
referred to in Article 3, paragraph 2, with regard to the 
portion of liability referred to in paragraph 1 of this 
Article. However, the Fund shall assume such obligations 
only if the owner so requests and if he maintains 
adequate insurance or other financial security covering 
the owner's liability under the Liability Convention up 
to an amount equivalent to 1,500 francs for each ton of 
the ship's tonnage or an amount of 125 million francs, 
whichever is the less. If the Fund assumes such 
obligations, the owner shall in each Contracting State be 
considered to have complied with Article VII of the 
Liability Convention in respect of the portion of his 
liability mentioned above.

3. The Fund may be exonerated wholly or partially from 
its obligations under paragraph 1 towards the owner and 
his guarantor if the Fund proves that as a result of the 
actual fault or privity of the owner:

(a) the ship from which the oil causing the pollution 
damage escaped did not comply with the requirements laid 
down in:
(i) the International Convention for the Prevention of 
Pollution of the Sea by Oil, 1954, as amended in 1962; or
(ii) the International Convention for the Safety of Life 
at Sea, 1960; or
(iii) the International Convention on Load Lines, 1966; 
or
(iv) the International Regulations for Preventing 
Collisions at Sea, 1960; or
(v) any amendments to the above mentioned Conventions 
which have been determined as being of an important 
nature in accordance with Article XVI (5) of the 
Convention mentioned under (i), Article IX (e) of the 
Convention mentioned under (ii) or Article 29 (3) (d) or 
(4) (d) of the Convention mentioned under (iii), 
provided, however, that such amendments had been in force 
for at least twelve months at the time of the incident;
and 

(b) the incident or damage was caused wholly of 
partially by such non-compliance. The provisions of this 
paragraph shall apply irrespective of whether the 
Contracting State in which the ship was registered or 
whose flag it was flying is a Party to the relevant 
Instrument.

4. Upon the entry into force of a new Convention designed 
to replace, in whole or in part, any of the Instruments 
specified in paragraph 3, the Assembly may decide at 
least six months in advance a date on which the new 
Convention will replace such Instrument or part thereof 
for the purpose of paragraph 3. However, any State Party 
to this Convention may declare to the Director before 
that date that it does not accept such replacement; in 
which case the decision of the Assembly shall have no 
effect in respect of a ship registered in, or flying the 
flag of, that State at the time of the incident. Such a 
declaration may be withdrawn at any later date and shall 
in any event cease to have effect when the State in 
question becomes a party to such new Convention.

5. A ship complying with the requirements in an amendment 
to an Instrument specified in paragraph 3 or with 
requirements in a new Convention, where the amendment or 
Convention is designed to replace in whole or in part 
such Instrument, shall be considered as complying with 
the requirements in the said Instrument for the purposes 
of paragraph 3.

6. Where the Fund, acting as a guarantor by virtue of 
paragraph 2 has paid compensation for pollution damage in 
accordance with the Liability Convention, it shall have a 
right of recovery from the owner if and to the extent 
that the Fund would have been exonerated pursuant to 
paragraph 3 from its obligations under paragraph 1 to 
indemnify the owner.

7. Expenses reasonably incurred and sacrifices reasonably 
made by the owner voluntarily to prevent or minimize 
pollution damage shall be treated as included in the 
owner's liability for the purposes of this Article.


Article 6

1. Rights to compensation under Article 4 or 
indemnification under Article 5 shall be extinguished 
unless an action is brought thereunder or a notification 
has been made pursuant to Article 7, paragraph 6, within 
three years from the date when the damage occurred. 
However, in no case shall an action be brought after six 
years from the date of the incident which caused the 
damage.

2. Notwithstanding paragraph 1, the right of the owner or 
his guarantor to seek indemnification from the Fund 
pursuant to Article 5, paragraph 1, shall in no case be 
extinguished before the expiry of a period of six months 
as from the date on which the owner or his guarantor 
acquired knowledge of the bringing of an action against 
him under the Liability Convention.


Article 7

1. Subject to the subsequent provisions of this Article, 
any action against the Fund for compensation under 
Article 4 or indemnification under Article 5 of this 
Convention shall be brought only before a court competent 
under Article IX of the Liability Convention in respect 
of actions against the owner who is or who would, but for 
the provisions of Article III, paragraph 2, of that 
Convention, have been liable for pollution damage caused 
by the relevant incident.

2. Each Contracting State shall ensure that its courts 
possess the necessary jurisdiction to entertain such ac-
tions against the Fund as are referred to in paragraph 1.

3. Where an action for compensation for pollution damage 
has been brought before a court competent under Article 
IX of the Liability Convention against the owner of a 
ship or his guarantor, such court shall have exclusive 
jurisdictional competence over any action against the 
Fund for compensation or indemnification under the 
provisions of Article 4 or 5 of this Convention in 
respect of the same damage. However, where an action for 
compensation for pollution damage under the Liability 
Convention has been brought before a court in a State 
Party to the Liability Convention but not to this 
Convention, any action against the Fund under Article 4 
or under Article 5, paragraph 1, of this Convention shall 
at the option of the claimant be brought either before a 
court the State where the Fund has its headquarters or 
before any court of a State Party to this 
Convention competent under Article IX of the Liability 
Convention. 

4. Each Contracting State shall ensure that the Fund 
shall have the right to intervene as a party to any legal 
proceedings instituted in accordance with Article IX of 
the Liability Convention before a competent court of that 
State against the owner of a ship or his guarantor.

5. Except as otherwise provided in paragraph 6, the Fund 
shall not be bound by any judgment or decision in 
proceedings to which it has not been a party or by any 
settlement to which it is not a party. 

6. Without prejudice to the provisions of paragraph 4, 
where an action under the Liability Convention for 
compensation for pollution damage has been brought 
against an owner or his guarantor before a competent 
court in a Contracting State, each party to the 
proceedings shall be entitled under the national law of 
that State to notify the Fund of the proceedings. Where 
such notification has been made in accordance with the 
formalities required by the law of the court seized and 
in such time and in such a manner that the Fund has in 
fact been in a position effectively to intervene as a 
party to the proceedings, any judgment rendered by the 
court in such proceedings shall, after it has become 
final and enforceable in the State where the judgment was 
given, become binding upon the Fund in the sense that the 
facts and findings in that judgment may not be disputed 
by the Fund even if the Fund has not actually intervened 
in the proceedings.


Article 8

Subject to any decision concerning the distribution 
referred to in Article 4, paragraph 5, any judgment given 
against the Fund by a court having jurisdiction in 
accordance with Article 7, paragraphs 1 and 3, shall, 
when it has become enforceable in the State of origin and 
is in that State no longer subject to ordinary forms of 
review, be recognized and enforceable in each Contracting 
State on the same conditions as are prescribed in Article 
X of the Liability Convention.


Article 9

1. Subject to the provisions of Article 5, the Fund 
shall, in respect of any amount of compensation for 
pollution damage paid by the Fund in accordance with 
Article 4, paragraph 1, of this Convention, acquire by 
subrogation the rights that the person so compensated may 
enjoy under the Liability Convention against the owner or 
his guarantor.

2. Nothing in this Convention shall prejudice any right 
of recourse or subrogation of the Fund against persons 
other than those referred to in the preceding paragraph. 
In any event the right of the Fund to subrogation against 
such person shall not be less favourable than that of an 
insurer of the person to whom compensation or indem-
nification has been paid.

3. Without prejudice to any other rights of subrogation 
or recourse against the Fund which may exist, a 
Contracting State or agency thereof which has paid 
compensation for pollution damage in accordance with 
provisions of national law shall acquire by subrogation 
the rights which the person so compensated would 
have enjoyed under this Convention.


CONTRIBUTIONS

Article 10

1. Contributions to the Fund shall be made in respect of 
each Contracting State by any person who, in the calendar 
year referred to in Article 11, paragraph 1, as regards 
initial contributions and in Article 12, paragraph 2 (a) 
or (b), as regards annual contributions, has received in 
total quantities exceeding 150,000 tons:

(a) in the ports or terminal installations in the 
territory of that State contributing oil carried by sea 
to such ports or terminal installations; and

(b) in any installations situated in the territory of 
that Contracting State contributing oil which has been 
carried by sea and discharged in a port or terminal 
installation of a non-Contracting State, provided that 
contributing oil shall only be taken into account by 
virtue of this sub-paragraph on first receipt in a 
Contracting State after its discharge in that non-
Contracting State. 

2. (a) For the purposes of paragraph 1, where the 
quantity of contributing oil received in the territory of 
a Contracting State by any person in a calendar year when 
aggregated with the quantity of contributing oil received 
in the same Contracting State in that year by any 
associated person or persons exceeds 150,000 tons, 
such person shall pay contributions in respect of the 
actual quantity received by him notwithstanding that that 
quantity, did not exceed 150,000 tons.

(b) "Associated person" means any subsidiary or commonly 
controlled entity. The question whether a person comes 
within this definition shall be determined by the 
national law of the State concerned.


Article 11

1. In respect of each Contracting State initial 
contributions shall be made of an amount which shall for 
each person referred to in Article 10 be calculated on 
the basis of a fixed sum for each ton of contributing oil 
received by him during the calendar year preceding that 
in which this Convention entered into force for that 
State.

2. The sum referred to in paragraph 1 shall be determined 
by the Assembly within two months after the entry into 
force of this Convention. In performing this function the 
Assembly shall, to the extent possible, fix the sum in 
such a way that the total amount of initial contributions 
would, if contributions were to be made in respect of 90 
per cent of the quantities of contributing oil carried by 
sea in the world, equal 75 million francs.

3. The initial contributions shall in respect of each 
Contracting State be paid within three months following 
the date at which the Convention entered into force for 
that State.


Article 12

1. With a view to assessing for each person referred to 
in Article 10 the amount of annual contributions due, if 
any, and taking account of the necessity to maintain 
sufficient liquid funds, the Assembly shall for each 
calendar year make an estimate in the form of a budget 
of:
(i) Expenditure
(a) costs and expenses of the administration of the Fund 
in the relevant year and any deficit from operations in 
preceding years; (b) payments to be made by the Fund in 
the relevant year for the satisfaction of claims against 
the Fund due under Article 4 or 5, including repayment on 
loans previously taken by the Fund for the satisfaction 
of such claims, to the extent that the aggregate amount 
of such claims in respect of any one incident does not 
exceed 15 million francs;
(c) payments to be made by the Fund in the relevant year 
for the satisfaction of claims against the Fund due under 
Article 4 or 5, including repayments on loans previously 
taken by the Fund for the satisfaction of such claims, to 
the extent that the aggregate amount of such claims in 
respect of any one incident is in excess of 15 million 
francs;
(ii) Income
(a) surplus funds from operations in preceding years, 
including any interest;
(b) initial contributions to be paid in the course of the 
year; 
(c) annual contributions, if required to balance the 
budget;
(d) any other income.

2. For each person referred to in Article 10 the amount 
of his annual contribution shall be determined by the 
Assembly and shall be calculated in respect of each 
Contracting State:

(a) in so far as the contribution is for the satisfaction 
of payments referred to in paragraph 1 (i) (a) and (b) on 
the basis of a fixed sum for each ton of contributing oil 
received in the relevant State by such persons during the 
preceding calendar year; and

(b) in so far as the contribution is for the satisfaction 
of payments referred to in paragraph 1 (i) (c) of this 
Article on the basis of a fixed sum for each ton of 
contributing oil received by such person during the 
calendar year preceding that in which the incident in 
question occurred, provided that State was a party to 
this Convention at the date of the incident.

3. The sums referred to in paragraph 2 above shall be 
arrived at by dividing the relevant total amount of 
contributions required by the total amount of contri-
buting oil received in all Contracting States in the 
relevant year.

4. The Assembly shall decide the portion of the annual 
contribution which shall be immediately paid in cash and 
decide on the date of payment. The remaining part of each 
annual contribution shall be paid upon notification by 
the Director.

5. The Director may, in cases and in accordance with 
conditions to be laid down in the Internal Regulations of 
the Fund, require a contributor to provide financial 
security for the sums due from him. 6. Any demand for 
payments made under paragraph 4 shall be called rateably 
from all individual contributors.


Article 13

1. The amount of any contribution due under Article 12 
and which is in arrear shall bear interest at a rate 
which shall be determined by the Assembly for each 
calendar year provided that different rates may be fixed 
for different circumstances.

2. Each Contracting State shall ensure that any 
obligation to contribute to the Fund arising under this 
Convention in respect of oil received within the 
territory of that State is fulfilled and shall take any 
appropriate measures under its law, including the 
imposing of such sanctions as it may deem necessary, with 
a view to the effective execution of any such obligation; 
provided however, that such measures shall only be 
directed against those persons who are under an 
obligation to contribute to the Fund. 

3. Where a person who is liable in accordance with the 
provisions of Articles 10 and 11 to make contributions to 
the Fund does not fulfill his obligations in respect of 
any such contribution or any part thereof and is in 
arrear for a period exceeding three months, the Director 
shall take all appropriate action against such person on 
behalf of the Fund with a view to the recovery of the 
amount due. However, where the defaulting contributor is 
manifestly insolvent or the circumstances otherwise so 
warrant, the Assembly may, upon recommendation of the 
Director, decide that no action shall be taken or 
continued against the contributor.


Article 14

1. Each Contracting State may at the time when it 
deposits its instrument of ratification or accession or 
at any time thereafter declare that it assumes itself 
obligations that are incumbent under this Convention on 
any person who is liable to contribute to the Fund in 
accordance with Article 10, paragraph 1, in respect of 
oil received within the territory of that State. Such 
declaration shall be made in writing and shall specify 
which obligations are assumed.

2. Where a declaration under paragraph 1 is made prior to 
the entry into force of this Convention in accordance 
with Article 40, it shall be deposited with the 
Secretary-General of the Organization who shall after the 
entry into force of the Convention communicate the 
declaration to the Director.

3. A declaration under paragraph 1 which is made after 
the entry into force of this Convention shall be 
deposited with the Director.

4. A declaration made in accordance with this Article may 
be withdrawn by the relevant State giving notice thereof 
in writing to the Director. Such notification shall take 
effect three months after the Director's receipt thereof.

5. Any State which is bound by a declaration made under 
this Article shall, in any proceedings brought against it 
before a competent court in respect of any obligation 
specified in the declaration, waive any immunity that it 
would otherwise be entitled to invoke.

Article 15

1. Each Contracting State shall ensure that any person 
who receives contributing oil within its territory in 
such quantities that he is liable to contribute to the 
Fund appears on a list to be established and kept up to 
date by the Director in accordance with the subsequent 
provisions of this Article.

2. For the purposes set out in paragraph 1, each 
Contracting State shall communicate, at a time and in the 
manner to be prescribed in the Internal Regulations, to 
the Director the name and address of any person who in 
respect of that State is liable to contribute to the Fund 
pursuant to Article 10, as well as data on the relevant 
quantities of contributing oil received by any such 
person during the preceding calendar year.

3. For the purposes of ascertaining who are, at any given 
time, the persons liable to contribute to the Fund in 
accordance with Article 10, paragraph 1, and of 
establishing, where applicable, the quantities of oil to 
be taken into account for any such person when 
determining the amount of his contribution, the list 
shall be prima facie evidence of the facts stated 
therein.


ORGANIZATION AND ADMINISTRATION


Article 16

The Fund shall have an Assembly, a Secretariat headed by 
a Director and, in accordance with the provisions of 
Article 21, an Executive Committee.


ASSEMBLY


Article 17

The Assembly shall consist of all Contracting States to 
this Convention.


Article 18

The functions of the Assembly shall, subject to the 
provisions of Article 26, be:

1. to elect at each regular session its Chairman and two 
Vice-Chairmen who shall hold office until the next 
regular session; 

2. to determine its own rules of procedure, subject to 
the provisions of this Convention;

3. to adopt Internal Regulations necessary for the proper 
functioning of the Fund;

4. to appoint the Director and make provisions for the 
appointment of such other personnel as may be necessary 
and determine the terms and conditions of service of the 
Director and other personnel; 

5. to adopt the annual budget and fix the annual 
contributions;

6. to appoint auditors and approve the accounts of the 
Fund;

7. to approve settlements of claims against the Fund, to 
take decisions in respect of the distribution among 
claimants of the available amount of compensation in 
accordance with Article 4, paragraph 5, and to determine 
the terms and conditions according to which provisional 
payments in respect of claims shall be made with a view 
to ensuring that victims of pollution damage are 
compensated as promptly as possible;

8. to elect the members of the Assembly to be represented 
on the Executive Committee, as provided in Articles 21, 
22 and 23;

9. to establish any temporary or permanent subsidiary 
body it may consider to be necessary;

10. to determine which non-Contracting States and which 
inter-governmental and international non-governmental 
organizations shall be admitted to take part, without 
voting rights, in meetings of the Assembly, the Executive 
Committee, and subsidiary bodies;

11. to give instructions concerning the administration of 
the Fund to the Director, the Executive Committee and 
subsidiary bodies;

12. to review and approve the reports and activities of 
the Executive Committee;

13. to supervise the proper execution of the Convention 
and of its own decisions;

14. to perform such other functions as are allocated to 
it under the Convention or are otherwise necessary for 
the proper operation of the Fund.


Article 19

1. Regular sessions of the Assembly shall take place once 
every calendar year upon convocation by the Director; 
provided, however, that if the Assembly allocates to the 
Executive Committee the functions specified in Article 
18, paragraph 5, regular sessions of the Assembly shall 
be held once every two years.

2. Extraordinary sessions of the Assembly shall be 
convened by the Director at the request of the Executive 
Committee or of at least one-third of the members of the 
Assembly and may be convened on the Director's own 
initiative after consultation with the Chairman of the 
Assembly. The Director shall give members at least thirty 
days' notice of such sessions.


Article 20

A majority of the members of the Assembly shall 
constitute a quorum for its meetings. Executive Committee


Article 21

The Executive Committee shall be established at the first 
regular session of the Assembly after the date on which 
the number of Contracting States reaches fifteen.


Article 22

1. The Executive Committee shall consist of one-third of 
the members of the Assembly but of not less than seven or 
more than fifteen members. Where the number of members of 
the Assembly is not divisible by three, the one-third 
referred to shall be calculated on the next higher number 
which is divisible by three.

2. When electing the members of the Executive Committee 
the Assembly shall:

(a) secure an equitable geographical distribution of the 
seats on the Committee on the basis of an adequate 
representation of Contracting States particularly exposed 
to the risks of oil pollution and of Contracting States 
having large tanker fleets; and

(b) elect one half of the members of the Committee, or in 
case the total number of members to be elected is uneven, 
such number of the members as is equivalent to one half 
of the total number less one, among those Contracting 
States in the territory of which the largest quantities 
of oil to be taken into account under Article 10 were 
received during the preceding calendar year, provided 
that the number of States eligible under this sub-
paragraph shall be limited as shown in the table below:
Total number of Members on the Committee        Number of 
States eligible under sub-     Number of States to be 
elected under paragraph (b)   sub paragraph (b)
7       5       3
8       6       4
9	6	4
10	8	5
11	8	5
12	9	6
13	9	6
14	11	7
15	11	7

3. A member of the Assembly which was eligible but was 
not elected under sub-paragraph (b) shall not be eligible 
to be elected for any remaining seat on the Executive 
Committee.


Article 23

1. Members of the Executive Committee shall hold office 
until the end of the next regular session of the 
Assembly.

2. Except to the extent that may be necessary for 
complying with the requirements of Article 22, no State 
Member of the Assembly may serve on the Executive 
Committee for more than two consecutive terms.


Article 24

The Executive Committee shall meet at least once every 
calendar year at thirty days' notice upon convocation by 
the Director, either on his own initiative or at the 
request of its Chairman or of at least one-third of its 
members. It shall meet at such places as may be 
convenient.


Article 25

At least two-thirds of the members of the Executive 
Committee shall constitute a quorum for its meetings.


Article 26

1. The functions of the Executive Committee shall be:

(a) to elect its Chairman and adopt its own rules of 
procedure, except as otherwise provided in this 
Convention;

(b) to assume and exercise in place of the Assembly the 
following functions:
(i) making provision for the appointment of such 
personnel, other than the Director, as may be necessary 
and determining the terms and conditions of service of 
such personnel;
(ii) approving settlements of claims against the Fund and 
taking all other steps envisaged in relation to such 
claims in Article 18, paragraph 7;
(iii) giving instructions to the Director concerning the 
administration of the Fund and supervising the proper 
execution, by him of the Convention, of the decisions of 
the Assembly and of the Committee's own decisions; and

(c) to perform such other functions as are allocated to 
it by the Assembly. 

2. The Executive Committee shall each year prepare and 
publish a report of the activities of the Fund during the 
previous calendar year.


Article 27

Members of the Assembly who are not members of the 
Executive Committee shall have the right to attend its 
meetings as observers.


SECRETARIAT


Article 28

1. The Secretariat shall comprise the Director and such 
staff as the administration of the Fund may require.

2. The Director shall be the legal representative of the 
Fund.


Article 29

1. The Director shall be the chief administrative officer 
of the Fund and shall, subject to the instructions given 
to him by the Assembly and by the Executive Committee, 
perform those functions which are assigned to him by this 
Convention, the Internal Regulations, the Assembly and 
the Executive Committee.

2. The Director shall in particular:

(a) appoint the personnel required for the administration 
of the Fund;

(b) take all appropriate measures with a view to the 
proper administration of the Fund's assets;

(c) collect the contributions due under this Convention 
while observing in particular the provisions of Article 
13, paragraph 3; 

(d) to the extent necessary to deal with claims against 
the Fund and carry out the other functions of the Fund, 
employ the services of legal, financial and other 
experts;

(e) take all appropriate measures for dealing with claims 
against the Fund within the limits and on conditions to 
be laid down in the Internal Regulations, including the 
final settlement of claims without the prior approval of 
the Assembly or the Executive Committee where these 
Regulations so provide;

(f) prepare and submit to the Assembly or to the 
Executive Committee, as the case may be, the financial 
statements and budget estimates for each calendar year;

(g) assist the Executive Committee in the preparation of 
the report referred to in Article 26, paragraph 2;

(h) prepare, collect and circulate the papers, documents, 
agenda, minutes and information that may be required for 
the work of the Assembly, the Executive Committee and 
subsidiary bodies.


Article 30

In the performance of their duties the Director and the 
staff and experts appointed by him shall not seek or 
receive instructions from any Government or from any 
authority external to the Fund. They shall refrain from 
any action which might reflect on their position as 
international officials. Each Contracting State on its 
part undertakes to respect the exclusively international 
character of the responsibilities of the Director and the 
staff and experts appointed by him, and not to seek to 
influence them in the discharge of their duties.


FINANCES


Article 31

1. Each Contracting State shall bear the salary, travel 
and other expenses of its own delegation to the Assembly 
and of its representatives on the Executive Committee and 
on subsidiary bodies.

2. Any other expenses incurred in the operation of the 
Fund shall be borne by the Fund.


VOTING


Article 32

The following provisions shall apply to voting in the 
Assembly and the Executive Committee:

(a) each member shall have one vote;

(b) except as otherwise provided in Article 33, decisions 
of the Assembly and the Executive Committee shall be by a 
majority vote of the members present and voting;

(c) decisions where a three-fourths or a two-thirds 
majority is required shall be by a three-fourths or two-
thirds majority vote, as the case may be, of those 
present;

(d) for the purpose of this Article the phrase "members 
present" means "members present at the meeting at the 
time of the vote", and the phrase "members present and 
voting" means "members present and casting an affirmative 
or negative vote". Members who abstain from voting shall 
he considered as not voting.


Article 33

1. The following decisions of the Assembly shall require 
a three-fourths majority:

(a) an increase in accordance with Article 4, paragraph 
6, in the maximum amount of compensation  payable by the 
Fund;

(b) a determination, under Article 5, paragraph 4, 
relating to the replacement of the Instruments referred 
to in that paragraph;

(c) the allocation to the Executive Committee of the 
functions specified in Article 18, paragraph 5.

2. The following decisions of the Assembly shall require 
a two-thirds majority:

(a) a decision under Article 13, paragraph 3, not to take 
or continue action against a contributor;

(b) the appointment of the Director under Article 18, 
paragraph 4;                                           

(c) the establishment of subsidiary bodies, under Article 
18, paragraph 9.


Article 34

1. The Fund, its assets, income, including contributions, 
and other property shall enjoy in all Contracting States 
exemption from all direct taxation.

2. When the Fund makes substantial purchases of movable 
or immovable property, or has important work carried out 
which is necessary for the exercise of its official 
activities and the cost of which includes indirect taxes 
or sales taxes, the Governments of Member States shall 
take, whenever possible, appropriate measures for the 
remission or refund of the amount of such duties and 
taxes.

3. No exemption shall be accorded in the case of duties, 
taxes or dues which merely constitute payment for public 
utility services.

4. The Fund shall enjoy exemption from all customs 
duties, taxes and other related taxes on articles 
imported or exported by it or on its behalf for its 
official use. Articles thus imported shall not be 
transferred either for consideration or gratis on the 
territory of the country into which they have been 
imported except on conditions agreed by the government of 
that country.

5. Persons contributing to the Fund and victims and 
owners of ships receiving compensation from the Fund 
shall be subject to the fiscal legislation of the State 
where they are taxable, no special exemption or other 
benefit being conferred on them in this respect. 

6. Information relating to individual contributors 
supplied for the purpose of this Convention shall not be 
divulgated outside the Fund except in so far as it may be 
strictly necessary to enable the Fund to carry out its 
functions, including the bringing and defending of legal 
proceedings.

7. Independently of existing or future regulations 
concerning currency or transfers, Contracting States 
shall authorize the transfer and payment of any contri-
bution to the Fund and of any compensation paid by the 
Fund without any restriction.


TRANSITIONAL PROVISIONS                             


Article 35

1. The Fund shall incur no obligation whatsoever under 
Article 4 or 5 in respect of incidents occurring within a 
period of one hundred and twenty days after the entry 
into force of this Convention.

2. Claims for compensation under Article 4 and claims for 
indemnification under Article 5, arising from incidents 
occurring later than one hundred and twenty days but not 
later than two hundred and forty days after the entry 
into force of this Convention may not be brought against 
the Fund prior to the elapse of the two hundred and 
fortieth day after the entry into force of this 
Convention.


Article 36

The Secretary-General of the Organization shall convene 
the first session of the Assembly. This session shall 
take place as soon as possible after entry into force of 
this Convention and, in any case, not more than thirty 
days after such entry into force.


FINAL CLAUSES


Article 37

1. This Convention shall be open for signature by the 
States which have signed or which accede to the Liability 
Convention, and by any State represented at the 
Conference on the Establishment of an International Fund 
for Compensation for Oil Pollution Damage, 1971. The 
Convention shall remain open for signature until 31 
December 1972.

2. Subject to paragraph 4, this Convention shall be 
ratified, accepted or approved by the States which have 
signed it.

3. Subject to paragraph 4, this Convention is open for 
accession by States which did not sign it.

4. This Convention may be ratified, accepted, approved or 
acceded to, only by States which have ratified, accepted, 
approved or acceded to the Liability Convention.


Article 38

1. Ratification, acceptance, approval or accession shall 
be effected by the deposit of a formal instrument to that 
effect with the Secretary-General of the Organization.

2. Any instrument of ratification, acceptance, approval 
or accession deposited after the entry into force of an 
amendment to this Convention with respect to all existing 
Contracting States or after the completion of all 
measures required for the entry into force of the 
amendment with respect to those Parties shall be deemed 
to apply to the Convention as modified by the amendment.


Article 39

Before this Convention comes into force a State shall, 
when depositing an instrument referred to in Article 38, 
paragraph 1, and annually thereafter at a date to be 
determined by the Secretary-General of the Organization, 
communicate to him the name and address of any person who 
in respect of that State would be liable to contribute to 
the Fund pursuant to Article 10 as well as data on the 
relevant quantities of contributing oil received by any 
such person in the territory of that State during the 
preceding calendar year.


Article 40

1. This Convention shall enter into force on the 
ninetieth day following the date on which the following 
requirements are fulfilled:

(a) at least eight States have deposited instruments of 
ratification, acceptance, approval or accession with the 
Secretary-General of the Organization, and

(b) the Secretary-General of the Organization has 
received information in accordance with Article 39 that 
those persons in such States who would be liable to 
contribute pursuant to Article 10 have received during 
the preceding calendar year a total quantity of at least 
750 million tons of contributing oil. 

2. However, this Convention shall not enter into force 
before the Liability Convention has entered into force.

3. For each State which subsequently ratifies, accepts, 
approves or accedes to it, this Convention shall enter 
into force on the ninetieth day after deposit by such 
State of the appropriate instrument.


Article 41

1. This Convention may be denounced by any Contracting 
State at any time after the date on which the Convention 
comes into force for that State.

2. Denunciation shall be effected by the deposit of an 
instrument with the Secretary-General of the 
Organization.

3. A denunciation shall take effect one year, or such 
longer period as may be specified in the instrument of 
denunciation, after its deposit with the Secretary-
General of the Organization.

4. Denunciation of the Liability Convention shall be 
deemed to be a denunciation of this Convention. Such 
denunciation shall take effect on the same date as the 
denunciation of the Liability Convention takes effect 
according to paragraph 3 of Article XVI of that 
Convention.

5. Notwithstanding a denunciation by a Contracting State 
pursuant to this Article, any provisions of this 
Convention relating to the obligations to make 
contributions under Article 10 with respect to 
an incident referred to in Article 12, paragraph 2 (b), 
and occurring before the denunciation takes effect shall 
continue to apply.


Article 42

1. Any Contracting State may, within ninety days after 
the deposit of an instrument of denunciation the result 
of which it considers will significantly increase the 
level of contributions for remaining Contracting States, 
request the Director to convene an extraordinary session 
of the Assembly. The Director shall convene the Assembly 
to meet not later than sixty days after receipt of the 
request.

2. The Director may convene, on his own initiative, an 
extraordinary session of the Assembly to meet within 
sixty days after the deposit of any instrument of 
denunciation, if he considers that such denunciation will 
result in a significant increase in the level of 
contributions for the remaining Contracting States.

3. If the Assembly at an extraordinary session convened 
in accordance with paragraph 1 or 2 decides that the 
denunciation will result in a significant increase in the 
level of contributions for the remaining Contracting 
States, any such State may, not later than one hundred 
and twenty days before the date on which that 
denunciation takes effect, denounce this Convention with 
effect from the same date.


Article 43

1. This Convention shall cease to be in force on the date 
when the number of Contracting States falls below three.

2. Contracting States which are bound by this Convention 
on the date before the day it ceases to be in force, 
shall enable the Fund to exercise its functions as 
described under Article 44 and shall, for that purpose 
only, remain bound by this Convention.


Article 44

1. If this Convention ceases to be in force, the Fund 
shall nevertheless

(a) meet its obligations in respect of any incident 
occurring before the Convention ceased to be in force;

(b) be entitled to exercise its rights to contributions 
to the extent that these contributions are necessary to 
meet the obligations under subparagraph (a), including 
expenses for the administration of the Fund necessary for 
this purpose. 

2. The Assembly shall take all appropriate measures to 
complete the winding up of the Fund, including the 
distribution in an equitable manner of any remaining 
assets among those persons who have contributed to the 
Fund.

3. For the purposes of this Article the Fund shall remain 
a legal person.


Article 45

1. A Conference for the purpose of revising or amending 
this Convention may be convened by the Organization.

2. The Organization shall convene a Conference of the 
Contracting States for the purpose of revising or 
amending the Convention at the request of not less than 
one-third of all Contracting States.


Article 46

1. This Convention shall be deposited with the Secretary-
General of the Organization.

2. The Secretary-General of the Organization shall:

(a) inform all States which have signed or acceded to 
this Convention of:
(i) each new signature or deposit of instrument and the 
date thereof;
(ii) the date of entry into force of the Convention;
(iii) any denunciation of the Convention and the date on 
which it takes effect;

(b) transmit certified true copies of this Convention to 
all Signatory States and to all States which accede to 
the Convention.


Article 47

As soon as this Convention enters into force, a certified 
true copy thereof shall be transmitted by the Secretary-
General of the Organization to the Secretariat of the 
United Nations for registration and publication in 
accordance with Article 102 of the Charter of the United 
Nations.


Article 48

This Convention is established in a single original in 
the English and French languages, both texts being 
equally authentic. Official translations in the Russian 
and Spanish languages shall be prepared by the 
Secretariat of the Organization and deposited with the 
signed original.


In Witness whereof the undersigned plenipotentiaries 
being duly authorized for that purpose have signed the 
present Convention. 

Done at Brussels this eighteenth day of December one 
thousand nine hundred and seventy-one.