Legal Aspects of Ship Mortgages

Simon D. Norton and Claudio Chiste
Additional contact information
Simon D. Norton: Cardiff Business School
Claudio Chiste: Investec Bank Plc

Chapter 10 in The International Handbook of Shipping Finance, 2016, pp 231-252 from Palgrave Macmillan

Abstract: Abstract In its basic form, a mortgage may be defined as a charge by way of lien over a vessel given to secure a loan. The lien is extinguished when the obligation has been discharged, and will usually “attach” to the asset, meaning that it can be seized and sold by the original lender, leaving the new owner with a separate claim against the vendor from whom it was bought. If the prior obligation is discharged, for example by full payment of the outstanding debt and any interest thereon, the lien will detach from the asset. However, if there is default in payment, then the creditor can initiate proceedings to seize and sell the asset to which the lien has attached. In such circumstance, the buyer in this later sale will obtain good title to the asset and will have no claim against the lienee who exercised the power to sell, unless the latter was acting in bad faith. The United Kingdom Merchant Shipping Act 1988, Schedule 1, Paragraph 21, provides as follows:

Keywords: Cash Flow; Spot Market; Reasonable Care; Outstanding Debt; Merchant Shipping (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-46546-7_10

Ordering information: This item can be ordered from
http://www.palgrave.com/9781137465467

DOI: 10.1057/978-1-137-46546-7_10

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().