Bill C-9

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	(d) the security referred to in paragraph 116(4)(b) has not been given.
Sale of ship where no appearance and no security	(2) A port authority, the Minister or a person who has entered into an agreement under subsection 80(5), as the case may be, may apply to a court for an order authorizing the sale of a ship where
	(a) the ship is detained under a detention order for non-payment of fees or interest;
	(b) proceedings have been commenced against the ship within thirty days after the making of the detention order;
	(c) no one has appeared or filed a response in the proceedings on behalf of the ship within thirty days after the commencement of the proceedings; and
	(d) the security referred to in paragraph 116(4)(c) has not been given.
Sale of ship where no appearance and no security	(3) A port authority, the Minister or a person who has entered into an agreement under subsection 80(5), as the case may be, may apply to a court for an order authorizing the sale of a ship where
	(a) the ship is detained under a detention order in respect of damages referred to in paragraph 115(1)(c);
	(b) proceedings have been commenced against the ship within thirty days after the making of the detention order;
	(c) no one has appeared or filed a response in the proceedings on behalf of the ship within thirty days after the commencement of the proceedings; and
	(d) the security referred to in paragraph 116(4)(d) has not been given.
Sale of ship where appearance but no security	(4) A port authority, the Minister or a person who has entered into an agreement under subsection 80(5), as the case may be, may apply to a court for an order authorizing the sale of a ship where
	(a) the ship is detained under a detention order for one of the reasons referred to in paragraphs 115(1)(a) to (c);
	(b) the ship has been charged with an offence under this Act or proceedings have been brought against it in respect of the non-payment of fees or damages referred to in paragraph 115(1)(c) within thirty days after the making of the detention order;
	(c) within thirty days after the day on which the ship was charged with the offence or the proceedings were commenced, someone has appeared or filed a response on behalf of the ship but the security referred to in subsection 116(4) has not been given; and
	(d) the ship is convicted or found liable, as the case may be, and the fine imposed or the amount of the damages and interest is not immediately paid.
Notice	118. (1) As soon as is feasible after making an application for the sale of a ship under section 117, the port authority, the Minister or the person who has entered into an agreement under subsection 80(5), as the case may be, shall give notice of the application by registered mail to
	(a) the registrar of the register in which the ship is recorded;
	(b) the holder of any mortgage against the ship that is registered on the register referred to in paragraph (a); and
	(c) the holder of any maritime lien against the ship and the holder of any like interest, if the holder is known to the port authority, the Minister or the person at the time of application.
Day notice deemed to be given	(2) A notice sent by registered mail is deemed to have been given to the person to whom it was sent on the day on which an acknowledgement of receipt is received by the port authority, the Minister or the person.
Relief from giving notice	(3) Where the court seized of an application for the sale of a ship is satisfied that it is appropriate to do so, the court may relieve the port authority, the Minister or the person of the obligation to give the notice referred to in subsection (1), or authorize them to give the notice in any other manner the court considers appropriate.
Claiming interest	119. (1) Where an application is made for the sale of a ship, the following persons may apply within the periods stated to the court seized of the application for an order described in subsection (2):
	(a) any person referred to in paragraph 118(1)(b) or (c), within sixty days after the notice required under that paragraph is given to the person; and
	(b) any other person who claims an interest in the ship as a mortgagee or as the holder of a maritime lien or any like interest, within sixty days after the application is made.
Order	(2) A court seized of an application made under subsection (1) shall grant the applicant an order declaring the nature, extent and priority of the applicant's interest at the time of the commission of the offence, the non-payment of the fees or interest or the causing of damages if it is made to appear to the satisfaction of the court that the applicant
	(a) acquired the interest in good faith before the act or omission for which the ship was detained; and
	(b) is innocent of any complicity or collusion in respect of the act or omission for which the ship was detained.
Appeal	(3) A person who makes an application under subsection (1), and the port authority, the Minister or the person who has entered into an agreement under subsection 80(5), as the case may be, may appeal to the court of appeal from an order referred to in subsection (2).
Applications under subsection (1) to be heard first	(4) A court shall not hear an application for the sale of a ship until all applications made under subsection (1) in respect of the ship have been heard.
Court may authorize sale	(5) A court seized of an application for the sale of a ship may
	(a) authorize the port authority, the Minister or the person who has entered into an agreement under subsection 80(5), as the case may be, to sell the ship in the manner and subject to the terms and conditions the court considers appropriate; and
	(b) on application by the port authority, the Minister or the person, as the case may be, give directions as to the ranking of the interests of persons who have obtained an order referred to in subsection (2).
Payment of proceeds	120. (1) Where a ship is sold pursuant to an order, the proceeds of the sale shall be applied first to satisfy claims for wages of seamen under the Canada Shipping Act and then to satisfy the following claims in order of priority:
	(a) the following amount:
	(i) the maximum fine that could have been imposed for the offence in a case where subsection 117(1) applies,
	(ii) the fees and interest due and payable in a case where subsection 117(2) applies,
	(iii) the amount of the damages in a case where subsection 117(3) applies, or
	(iv) the fine actually imposed or the amount for which the ship is found liable in a case where subsection 117(4) applies;
	(b) the costs of the detention and sale; and
	(c) the interests of persons who have obtained an order referred to in subsection 119(2), according to the ranking directed by the court under paragraph 119(5)(b).
Surplus	(2) Any surplus of the proceeds of sale remaining after all claims have been satisfied shall be paid to the person registered as the owner of the ship or, in the absence of any registration, to the person who owns the ship.
Proceedings against owner	(3) Where the proceeds of sale of a ship are insufficient to satisfy the claims described in paragraph (1)(a) or (b), the port authority, the Minister or the person who has entered into an agreement under subsection 80(5), as the case may be, may proceed against the owner of the ship for the balance owing.
Clear title	(4) On selling a ship pursuant to an order, the port authority, the Minister or the person who has entered into an agreement under subsection 80(5), as the case may be, may, by bill of sale, give the purchaser a valid title to the ship free from any mortgage or other claim that is in existence at the time of the sale.
Registrability not implied	(5) Nothing in subsection (4) is to be interpreted as meaning that the ship may be registered in the name of the purchaser.
Not duty paid	(6) No ship sold pursuant to this section is deemed to have been duty paid under the Customs Tariff by reason only of that sale.
At risk, cost and charges of owner	(7) Every seizure and detention made under this Act shall be at the risk, cost and charges of the owner of the ship or goods until all amounts due or fines imposed, together with all costs and charges incurred in the seizure and detention and the costs of any conviction obtained, have been paid in full.
	Other Powers
Sale of perishable goods	121. Where, in the opinion of an enforcement officer, any goods that have been seized and detained under this Act, or that have been abandoned, are likely to rot, spoil or otherwise perish, the officer may sell or otherwise dispose of the goods in the manner and for the price that is reasonable in the circumstances, and the proceeds of the disposition are to be credited toward payment of the amount due or payable in respect of the ship or goods and the expenses incurred in connection with the detention and sale.
Lien on ships	122. (1) A port authority, the Minister or a person who has entered into an agreement under subsection 80(5), as the case may be, has at all times a lien on a ship and on the proceeds of its disposition for an amount owing to the port authority, the Minister or the person, and the lien has priority over all other rights, interests, claims and demands, other than claims for wages of seamen under the Canada Shipping Act, if the amount is owing in respect of
	(a) fees and interest in respect of the ship or goods carried on the ship; or
	(b) damage to property caused by the ship or through the fault or negligence of a member of the crew of the ship acting in the course of employment or under the orders of a superior officer.
Lien on goods	(2) A port authority, the Minister or a person who has entered into an agreement under subsection 80(5), as the case may be, has at all times a lien on goods on the property under their jurisdiction for fees and interest owing to them in respect of the goods, the lien having priority over all other rights, interests, claims and demands and they may seize the goods.
Obstruction of ports	123. (1) Where an enforcement officer is of the opinion that a ship or goods left or abandoned within the enforcement officer's area of designation as provided in subsection 108(2), impede, interfere with or render difficult or unsafe the use of that area, the officer may direct the person who appears to be in charge of the ship or goods to remove the ship or goods to a place that the officer considers suitable within or outside the area.
Detention and removal	(2) If a person fails to remove a ship or goods as directed by an enforcement officer under subsection (1) or if no person appears to be in charge of the ship or goods, the officer may detain the ship or goods and remove them to a place that the officer considers suitable, and the costs of the detention and removal are recoverable in the same manner as fees payable under this Act.
Rights exercisable	124. The right of a port authority, the Minister or a person who has entered into an agreement under subsection 80(5) to detain a ship or seize goods under this Act is exercisable whether or not title to or possession of the ship or goods is, at the time of the exercise of the right, in the same person as the person who held the title or possession at the time when, in the opinion of the port authority, the Minister or the person, the amount owing first became due and payable.
Other remedies	125. Whether or not a port authority, the Minister or a person who has entered into an agreement under subsection 80(5) exercises the right to detain ships and seize goods under this Act, they may proceed against the owner of a ship or goods in any court of competent jurisdiction for the amount owing to them, or for the balance of that amount in the event of the sale of the ship or goods, and may also exercise against the owner of the ship or goods any other right or remedy available at law.
	Offences and Punishment
Offence	126. A person is guilty of an offence if the person
	(a) fails to comply with any reasonable requirement of an enforcement officer in the course of carrying out duties and functions under this Act;
	(b) knowingly makes a false or misleading statement, either orally or in writing, to an enforcement officer; or
	(c) otherwise obstructs or hinders an enforcement officer.
Offence and fine	127. (1) A person who contravenes a provision of this Act, other than section 107, or the regulations for which no penalty is otherwise provided under this Act or under regulations made under paragraph 27(1)(a) is guilty of an offence and liable to a fine of not more than $5,000 in the case of an individual, and of not more than $50,000 in the case of a corporation.
Defence	(2) No person shall be found guilty of an offence under this Act if the person establishes that the person exercised due diligence to prevent its commission.
Code of conduct	(3) Notwithstanding subsection (1), a director or officer of a port authority is not guilty of an offence under this Act for non-compliance with the code of conduct set out in the letters patent of the port authority.
Separate offence	128. (1) When an offence under this Act is committed by a person on more than one day or is continued by a person for more than one day, it is deemed to be a separate offence for each day on which it is committed or continued.
Limitation period	(2) Proceedings in respect of an offence under this Act may be commenced at any time within, but not later than, one year after the time when the subject-matter of the proceedings arose.
Order to comply	129. (1) Where a person is guilty of an offence under Part 1 or the regulations made under paragraph 27(1)(a), a court in which proceedings in respect of the offence are taken may, in addition to any punishment it may impose, order the person to comply with those provisions for the contravention of which the person is convicted.
Civil remedy not affected	(2) No civil remedy for an act or omission is suspended or affected by reason that the act or omission is an offence under Part 1 or the regulations made under paragraph 27(1)(a).

Bill C-9

Other Powers

Offences and Punishment