York Antwerp Rules
Page 227
CHAPTER 33
Rule XXI: Interest on Losses Made Good in General Average
Rule XXI: Interest on Losses Made Good in General Average
- (a) Interest shall be allowed on expenditure, sacrifices and allowances in general average until three months after the date of issue of the general average adjustment, due allowance being made for any payment on account by the contributory interests or from the general average deposit fund.
- (b) The rate for calculating interest accruing during each calendar year shall be the 12-month ICE LIBOR for the currency in which the adjustment is prepared, as announced on the first banking day of that calendar year, increased by four percentage points. If the adjustment is prepared in a currency for which no ICE LIBOR is announced, the rate shall be the 12-month US Dollar ICE LIBOR, increased by four percentage points.
Evolution
33.01 From the time of its inception in 1924, the Rule regarding interest allowed in general average has been attended with difficulties and plagued by controversy. 33.02 The Rule was proposed by the Association of Average Adjusters in 1924 in order to remedy the apparent gap in English law and practice, which was that neither commission nor interest would be allowed to the shipowner in average unless, having taken some steps to obtain a collection of account, “an out-of-pocket expense for interest and/or commission for advancing funds is reasonably incurred”.1 The text of the Rule agreed by the 1924 Stockholm Conference, then numbered XXII, read as follows:Interest on losses made good in general average