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878 - 04/13 - Forms of Security - Panama
The Club has been advised that amendments to Panamanian law have now been signed which will once again allow surety bonds and bank guarantees to be a legally accepted form of security for the lifting of ship arrests by the Panama Maritime Courts.
Due to a clerical error in earlier amendments to the law, the only legal form of security for the lifting of ship arrests in Panama was cash. Any other forms of security had to be agreed between parties, which caused considerable problems with local plaintiffs’ attorneys when trying to lift arrests due to the conditions and demands for the acceptance of any form of security other than cash.
The new amendment, which will allow for securities other than cash, was passed in the Panama National Assembly, signed by the President and has now been published.
Source of Information:
C. Fernie & Co.
Panama UK P&I Club Correspondent