ABSTRACT
The collection of cash deposits is but one of the means whereby security may be provided by the concerned in cargo for their eventual payment of general average contribution. In most jurisdictions a shipowner is invested with a possessory lien over the cargo onboard the ship for unpaid freight and for general average. On delivery of the cargo to the consignee, the shipowner loses his right of lien but may demand alternative security for the general average in return for so doing. The Rule XXII was introduced in 1924 in order to regulate the treatment of cash deposits from the time they were collected until the time of settlement under the adjustment. In European countries, it is likewise recognised that the average adjuster has an obligation to use his influence to ensure as far as possible that the deposit funds are well looked after and that the interests of the depositors, as well as those of the shipowners, are protected.
