470-474
HARBORS AND NAVIGATION CODE
SECTION 470-474
470. Respondentia is a contract by which all or part of a cargo is hypothecated as security for a loan, the repayment of which is dependent on maritime risks. 471. The owner of cargo may hypothecate it upon respondentia, at any time and place, and for any purpose. 472. The master of a vessel may hypothecate its cargo upon respondentia only if all of the following conditions exist: (a) He would be authorized to hypothecate the vessel and freightage. (b) He is unable to borrow sufficient money on the vessel and freightage for repairs or supplies which are necessary for the successful accomplishment of the voyage. (c) There is a reasonable prospect of benefiting the cargo. 473. The owner of a vessel is bound to repay to the owner of its cargo all which the latter is compelled to pay in order to discharge a lien under a contract of respondentia made by the master. 474. The provisions of sections 455 to 462 of this code apply equally to loans on respondentia.