500 



(a) to jirovkle comi)ensation for pollution damngc to the extent 

 thnt the protection afforded by the Liability Convention is 

 inadequate; 



(b) to give relief to shipowners in respect of the additional 

 financial burden imi)osed on them by the Ijiability Convention, 

 sucli relief being subject to conditions designed to ensure cotn- 

 plianco with safety at sea and other conventions; 



(c) to give effect to the related |)ur poses set out in this 

 (\)nvention. 



2. The Fund shall in each Contracting State be recognized as a 

 legal |)orson capable luidcr the laws of that State of assuming rights 

 and obligations and of being a party in legal |)rocee(iings before the 

 courts of that State. Eacli Contracting State shall recognize the 

 Director of the Fuml (hereinafter referred to as "The Director") as 

 the legal representative of the Fund. 



Article 3 



Tliis Convention shall ai)ply: 



1. With regard to comj)ensation according to Article 4, exclusively 

 to pollution (iamage caused on the tei'ritory including the territorial 

 sea of a Contracting State, and to preventive measures taken to 

 l)reyent or minimize such damage; 



2. With regard to indemnification of shipowners and their guar- 

 antors according to Article 5, exclusively in respect of pollution damage 

 caused on the territory'', including tlio tori'itonal sea, of a State party 

 to the Liability Convention by a ship registered in or ffying the ffag 

 of a Contracting State and in respect of preventive measures taken 

 to prevent or minimize such damage. 



Compensation and indemnification 



Article 4 



1. For the pin-poso of fulfilling its function under Article 2, para- 

 graph 1(a), the Fund shall pay compensation to any person suffering 

 pollution damage, if such person has been imable to obtain full and 

 adecpiate compensation for the danuigo under tlio terms of the Lia- 

 bility Convention, 



(a) because no liability for the damage arises under the 

 Liability Convention; 



(b) because the owner liable for the damage under the Lia- 

 bility Convention is financially incapable of meeting his obliga- 

 tions \\\ full and any financial security that may be j^rovided 

 under Article VII of that Convention does not cover or is in- 

 sufiTicient to 'satisfy the claims for compensation for the damage; 

 an owiuM" being treated as financially incapable of meeting his 

 obligations and a financial security being treated as insufficient 

 if the person suffering the danuige has been unable to obtain 

 full satisfaction of the amovmt of compensation duo under the 

 Ijiability Convention after Iniving takcMi all reasonable steps to 

 piu'sue the legal remedies available to him; 



(c) because the damage exceeds the owner's liability uiuler 



