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P&I (CLASS 3) / PART VII / RULE 37
CLOSING OF POLICY YEARS
37.1 Exceptional Calls
The Board shall, at such time as it may deem expedient after the end of a Policy Year, declare that such Policy Year shall be closed in respect of Exceptional Calls made under Rule 11.3 Exceptional Calls.
37.2 Overspill Calls
A Policy Year shall be closed automatically in respect of Overspill Calls upon the expiry of a period of three years from the commencement of that Policy Year.
Provided always that:
37.2.1 this automatic closure shall be suspended if prior to the expiry of that period any of the parties to the Pooling Agreement sends a notice in accordance with the Pooling Agreement giving notice of a possible Overspill Claim for which the Overspill Claim Date would fall in that Policy Year, in which event the Association shall, as soon as is practicable, declare that the said Policy Year shall remain open for the purpose of levying Overspill Calls. Once such a declaration has been made the Policy Year shall remain open for the purpose of levying Overspill Calls until such time as the Board may determine that all liabilities in respect of the Overspill Claim or Claims have been satisfied or sufficient provision made therefor.
37.3 Disposal of Excess Funds
If prior to closing any Policy Year the Contributions and other receipts (including transfers from reserves and provisions) in respect of such Policy Year shall exceed the claims, expenses, losses and other outgoings (whether incurred, accrued or anticipated) falling upon the Association for that year together with all transfers to reserves and provisions made out of the Contributions paid in respect of such Policy Year, then the excess may be disposed of either:
37.3.1 by being put to General Reserve in accordance with the provisions of Rule 39.1 General Reserve; and/or
37.3.2 the Board may order it to be returned in whole or in part to the Members who paid such Contributions in proportion to their respective Contributions, save that no return shall be made in respect of any Ship which has been subject to a release under Rule 14 Release or which was entered on special terms which specifically excluded liability to contribute to Exceptional Calls, or the entry of which ceased by reason of the application of Rule 33.1 Failure to Pay.
37.4 Amalgamation of Closed Policy Years
On closing a Policy Year, or at any time thereafter, the Board may resolve to amalgamate the accounts of any two or more Closed Policy Years and to pool the amounts standing to the credit of the same. If the Board shall so resolve then the two or more Closed Policy Years concerned shall for all purposes be treated as though they constitute a single Closed Policy Year.
37.5 Closed Policy Year Balances
If in respect of any Closed Policy Year it shall appear to the Board that the claims, expenses, losses and other outgoings (whether incurred, accrued or anticipated) falling upon the Association for that year, together with all transfers to reserves and provisions, will not balance with the Contributions and other receipts (including transfers from reserves and other provisions) in respect of that year, then any credit shall be transferred to the General Reserve of the Association and any deficit shall be treated as an expense of the Association and may be made up either by a transfer from the General Reserve of the Association or by Calls under Rule 10.1 Mutual Insurance.