88Claims on security

88 Claims on security (1) This section applies if the Territory incurs discharge expenses in relation to a discharge of a pollutant from a ship into coastal waters. (2) The Chief Executive Officer may recover the discharge expenses by making a demand against the security or part of it. (3) Before making the demand against the security, the Chief Executive Officer must give to the security giver a written notice under this section.

Marine Pollution Act 1999 56 (4) The notice is to: (a) outline the action taken; (b) state the amount to be demanded against the security; and (c) invite the person to make written representations to the Chief Executive Officer to show, within a stated time of at least 30 days, why the demand should not be made. (5) If, after considering all written representations made within the stated time, the Chief Executive Officer decides grounds still exist to make the demand for the amount or a lesser amount, the Chief Executive Officer must immediately give written notice to the security giver of the decision. (6) The notice is to: (a) state the reasons for the decision; (b) state that the security giver may appeal against the decision to the appropriate court within 30 days; and (c) enclose a copy of section 89. (7) If notice is given under subsection (6), the Chief Executive Officer must not make the demand until: (a) the time to appeal against the decision has ended; and (b) if an appeal is made against the decision – the appeal is finally decided. (8) If the Chief Executive Officer makes the demand, the security provider: (a) is not required to inquire into the correctness or lawfulness of the Chief Executive Officer's demand; and (b) must pay the security, or the part of it demanded, to the Territory. (9) In this section: security giver means the ship's owner or other person who arranged for the security to be given. security provider means the person providing the security.

Marine Pollution Act 1999 57