Release Calls upon Cesser of Insurance
Upon an entered ship ceasing to be insured by the Association for any reason, whether or not the circumstances giving rise to such cesser of insurance shall be any of those specified in Rules 17 and 18 or in paragraphs (A), (B) and (C) of Rule 29, the Managers may:
A. Release the Owner from liability to pay Supplementary Premiums in respect of such ship, wholly or partly or upon such terms as the Managers in their discretion may deem to be appropriate in the circumstances.
B. Whether or not negotiations may have taken place with the view to the application of paragraph (A) hereof, assess as at the date of the cesser of insurance the amount which seems to the Managers in their discretion to represent the likely liability of the Owner for Supplementary Premiums and for Mutual Premiums falling due after such date in respect of such ship.
If the Managers shall exercise their powers under paragraph (A) or paragraph (B) of this Rule, then:
i. Any terms imposed by the Managers or agreed between the Managers and the Owner pursuant to paragraph (A) hereof shall be performed at such time or times as the Managers shall have specified;
ii. The amount of any assessment made under paragraph (B) hereof shall be payable by the Owner without deduction on demand; and
iii. If the Managers shall exercise their power under paragraph (A) or (B) or (C) of this Rule, then the Owner shall be under no liability for any Supplementary Premiums which the Directors may decide to levy after the date of a release given under paragraph (A) hereof or after the date of an assessment made under paragraph (B) hereof, as the case may be, or for any Mutual Premiums becoming due after such date, and the Owner shall have no right to share in any return of contributions or other receipts, or any Mutual Premium Discount, which the Directors may thereafter decide to declare or make in accordance with Rule 20 or 25 (E) respectively.
iv. The Owner shall not be released from liability to pay Overspill Calls.
C. Notwithstanding paragraph (A) and paragraph (B) of this Rule, the Managers may in their discretion at any time or times accept a guarantee in an amount, in the form and from a bank approved by them, within any time limit the Managers may have specified, to secure the payment by the Owner of Supplementary Premiums and Mutual Premiums falling due in respect of such ship after the date when it has ceased to be insured by the Association.