‘Respondentia’ in California

In Division 3, Chapter 2 of the California Harbors and Navigation Code, it deals with civil actions and liens involving vessels. Article 2 deals with “respondentia.” Section 470 defines respondentia as 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.

Section 471 states that the owner of cargo may hypothecate it upon respondentia, at any time and place, and for any purpose.

Section 472 authorizes the master of a vessel to hypothecate its cargo upon respondentia only if all of the three specified conditions exist.

Section 473 provides that 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.