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On
registration, whether provisional or permanent, of a vessel under the Maltese
flag, such vessel may be used as a security for a debt by means of a mortgage.
A mortgage must be registered with the Registrar.
A
foreign mortgage will be recognised as a mortgage and will, therefore,
have the status, rights and powers of a Maltese mortgage if it satisfies
the following conditions:
-
such mortgage is recorded
in the registry of ships of the country under whose laws the ships is documented;
-
such registry is a public
registry;
-
such mortgage appears
upon a search of the registry;
-
such mortgage is granted
a preferential and generally equivalent status as a Maltese mortgage under
the laws of the country where it is registered.
However,
unlike mortgages registered in Malta, foreign mortgages do not constitute
executive titles. Amongst the most important advantages of a Maltese
mortgage are the following:
-
the mortgage is well
protected;
-
mortgages are high up
in the list of debts given priority in the distribution of the proceeds
of a forced sale.
-
registered mortgages
attach to the ship in respect of which they are registered until they are
discharged;
-
no document duty is
payable in respect of mortgage instruments;
-
mortgages on Maltese
ships are widely recognised and enforced;
-
registration and discharge
of mortgages is effected speedily and efficiently.
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Shipping in Malta
