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INDEX

Law of Ship Mortgages


Page 587

INDEX

INDEX

  • Bailment
    • concept of 322
  • Bareboat charter 319326
    • see also Demise charters
  • Beneficial ownership 1821
    • companies 2021
    • contract, created by 21
    • determination 19
    • duties and liabilities 19
    • express trust, created by 21
    • meaning 1920
  • Beneficial interest
    • meaning 58
  • Bills of Sale Acts 1718
  • Blue Sky litigation 110112
  • Bottomry 4, 344
  • Bottomry bond 5960
  • Brazil

  • Page 588

    British ship 2526
  • Builder’s certificate 29
  • Bunkers
  • Cargo 299319, 3535
  • Cargo interests 299319
  • Caveat 223, 348
  • Certificate of registry 2930
  • Change of obligations 128131
    • further advances 130
    • guarantee, and 130131
    • new obligation 129
    • precautionary security 128
    • refinancing 129
    • subsequent mortgage, ad 129130
    • underlying facility amended 128
  • Change of parties 127
  • Charge
    • section 859 Companies Act 2006 144
  • Charterparty 494499
  • Classification societies 189190
  • COFR 188, 471
  • Collateral advantage
  • Collateral deed of covenant
    • see Deed of covenant
  • Collateral security
  • Common law 12
  • Common law liens 208209
  • Common law mortgages 43, 5052
    • charge, as 157
    • deed 52
    • form 52
    • maritime structures 52
    • priority 158
    • unregistered ship 5052
  • Company voluntary arrangement
  • COMI 386390
  • Conditional sale agreement 43, 44
  • Conflict of laws 67119
    • aircraft 69
    • analogies 116
    • Blue Sky litigation 110112
    • cases of ownership and arrest jurisdiction 8689
      • corporate veil, and 8687
      • lex fori 8889
      • relationship between ownership and registration 8788
      • timely completion of legal formalities 89
    • court’s protection of mortgagor, and 295296
    • English position 69
    • foreign government action 8083
    • foreign judicial proceedings, and 7579
    • foreign law not confiscatory 81
    • foreign ship mortgages 8386
      • geographical fiction 85
      • law of register 85
      • priority dispute 84
      • recognition 8384
    • FPSO OSX3 in brazil 112116
    • fraud upon mortgages, and 78
    • general maritime law 76, 108109
    • insurance, and 461462
    • international conventions 105108
    • international insolvency 109110
    • law of ship’s register 6768
    • lex maritima 68
    • lex situs see situs
    • lex situs, conclusions on 116119
    • Louisiana law, and 7677
    • metaphors 116
    • mid-nineteenth century cases 7480
    • power of requisition of British ships 82
    • priority issues 8997
      • common law jurisdictions 9496
      • French law 8993
      • hypotheque 8993
      • Latin American countries 9697
      • lex causae 94
      • lex fori 9091
    • review of issues 70
    • rights acquired under laws of foreign states 7980
    • security over earnings and charterparties 488489
    • situs 68, 6970, 79
    • WD Fairway litigation 97105
      • British Register 104
      • British ships belonging to port of registry 105
      • Exception1 to Dicey’s Rule 133 103104
      • facts 97
      • geographical fiction 105
      • issues for determination 9798
      • lex situs 9899

      • Page 589

        registered transfers of proprietary interests 102
      • renvoi 101, 103
      • transaction defrauding creditors 102
  • Consents 194196
  • Consolidation 205206
  • Contract of affreightment 479
  • Court sale procedure 357370
    • Admiralty Marshal’s costs and expenses 371372
    • application for sale ‘pendente lite’ 358359
    • costs and disbursements 372373
    • delivery of ship to successful tenderer 366370
    • determination of priorities 370377
    • maritime lien claims 373375
    • mortgage claims 375
    • mortgagee’s application for determination of priorities 370371
    • mortgagee’s application for judgment in default 359360
    • order for sale 368369
    • order of priorities disturbed, when 376377
    • ordered to direct buyer without tender or appraisement 361362
    • payment of purchase price into court 366370
    • payment out 370377
    • possessory lien claims 375
    • steps taken by Admiralty Marshal after order 364366
  • Courts’ protection of mortgagor 266296
    • conflict of laws 295296
    • derivative liability to relevant parties 290293
    • excluding duties 293294
    • general law 266
    • intermeddling 294295
    • mortgage in possession’s duties to mortgagor 268272
    • mortgagee’s exercise of power of sale 272277
    • right to redeem 267268
    • sales to self or favoured buyers 277286
    • self-help, and 266
    • ship and land mortgages compared 286290
  • Covenant defaults 223
  • Cross-Border Insolvency Regulation 419424
  • Cross-border jurisdictional issues insolvency, and 390391
  • CVA see company voluntary arrangement
  • Debt subordination 178180
    • deed of indemnity, interpretation of 179180
    • priority, and 178180
    • ship finance transaction, and 178
  • Deed
    • common law mortgage 52
  • Deed of covenant 184187
  • Default
    • breach of obligations 217
    • common law rights, and 217
    • discretions in relation to 223
    • effect 226228
    • events 218
    • financial distress, and 216
    • meaning 218
    • mortgagee’s options following 230232
    • post-default interest and break-funding 228230
    • time to remedy 216
    • waiver of events 223225
      • clauses 225
      • discussion 225
      • express remedy or cure language 224225
      • failure to act 224
      • inactivity of mortgagee 224
  • Demise charters 3940
    • duties and liabilities of mortgagee, and 319326
    • mortgages on demise chartered ships 39
    • nature of 320
    • registration 39
  • Derivative liability to relevant parties 290293
  • DIP financing 427
  • Discharge 202205
    • preference, and 205
    • record in Register 204
    • repayment of debt 203204
    • right to redeem, and 204
    • transfer to third party, and 205
  • Discretions 194196
  • Disguised mortgages 5354
    • motive 53
    • ‘true sale’ 54

  • Page 590

    Dual registration 39
  • Duties and liabilities of mortgagee to third parties 297337
    • demise (bareboat) charters 319326
    • history of ship mortgages, and 297299
    • issues arising under Partnership Act 1890 330332
    • lender liability summary 335337
    • mortgagee in possession 328329
    • non-demise charters and cargo interests 299319
    • third party property 329330
    • wider lender liability risks 332334
  • Earnings 63, 71, 87, 132, 1345, 142, 146, 151, 1534, 1567, 178, 200, 205, 216, 218, 224, 242, 248, 256, 2589, 2623, 307, 317, 330, 344, 358, 395, 399, 427, 473508
  • Effect of registration 3033
    • delivery of bill of sale, and 32
    • legal title, and 3233
    • rectification, and 32
    • transfer, and 3132
  • Enforcement 233
    • Admiralty Court, competency 3456
    • ancillary equipment, and 188
    • application of proceeds of sale 255256
    • arrest procedure 346350
    • bareboat charter, and 187, 189
    • claims 3415
    • collateral security, of 262263
    • common law right to take possession 233239
    • courts’ protection of 284285, 295
    • default in payments, and 62
    • double mortgagee, and 169170
    • earnings account 499500
    • exercise of 293
    • factors relevant to decision to take possession 242248
    • foreclosure 260261
    • foreign judgments 71
    • joint and several borrower, and 173
    • judicial sale 357370
    • law of place at time of 114
    • liability to third parties 323, 326, 3345
    • liens, and 207, 213
    • marshalling, and 168, 174175
    • mechanics and effect of mortgagee’s private sale 252253
    • method of taking possession 239242
    • mortgagee’s expenses of sale 253255
    • mortgagee’s rights 475, 480, 496
    • penalties, and 133
    • rights of mortgagees in possession 248249
    • sale of mortgaged ship 249252
    • second mortgagee, and 151152
    • security over shares, of 264265
    • step-in rights 494499
    • subordinate mortgagees 261262
    • time charter, and 187
    • unfavourable jurisdiction 151152
  • Equitable charge 42, 5861
    • acknowledgment of receipt, and 59
    • lien, and 6061
    • nature of 59
    • New York Produce Exchange form, clause 18 60
    • owner’s lien on sub-freights 6061
    • priority 155
  • Equitable liens 209
  • Equitable mortgages 42, 5458
    • beneficial interest 58
    • creation 56
    • definition 55
    • deposit of title deeds 55
    • enforcement 5758
    • failure to create legal mortgage, and 56
    • nature of 5455
    • priority 155
  • Equitable subordination 334335
  • Equity 2
    • De Mattos v Gibson 309
  • EU Insolvency Regulation 386390, 414419
    • basic rule 415
    • enforcement of rights 417418
    • interpretation 418
    • limits 416
    • secondary proceedings 419
  • Execution 120121
  • Expiry of registration 34
  • Extortionate credit transactions 412413
  • General maritime law
    • conflicts of law, and 108109
  • Germany
    • insolvency regime 414
  • Greece
    • insolvency regime 414
  • Illegality
  • Insolvency 378429
    • challenge to ship mortgage 404414
      • avoidance of floating charges 411412
      • extortionate credit transactions 412413
      • guarantees and security as undervalued transactions 409
      • impact of Insolvency Regulation on vulnerable transactions 413414
      • preferences 409411
      • transactions at undervalue 407409
      • transactions defrauding creditors 404407
    • COMI 386390
    • consensual restructurings 378, 381383
    • Cross-Border Insolvency Regulation 419424
    • cross-border jurisdictional issues 390391
    • effect of EU Insolvency Regulation 414419
    • EU Insolvency Regulation 386390
    • European regimes 414
    • Germany 414
    • Greece 414
    • liquidation 391395
    • scheme of arrangement under Companies Act 2006 383386
    • UK administration 395401
    • UK administrative receivership 401402
    • UK company voluntary arrangement 403
    • UK winding up 391395
    • UNCITRAL Model Law on Cross-Border Insolvency 419424
    • United States Bankruptcy Code, Chapter 11 424429
  • Institute mortgagees’ interest clauses – hulls 577581
  • Insurance 430472
  • Interference with third party property 329330
  • Intermeddling
  • International conventions
    • conflicts of law, and see Conflicts of law
  • International insolvency
    • conflicts of law, and 109110
  • Invalidity
    • priority, and 175
  • Issues in owners’ undertakings 186191
    • bareboat charter 187
    • classification societies 189190
    • compliance with all applicable laws and regulations 190
    • dual flagging 189
    • insurances 186187
    • maintenance of ship 189
    • maritime liens 187188
    • registration of ship 188189
    • time charters 187
  • Leasing arrangements 43
  • Legal mortgage 42
    • see also Common law mortgages
  • Legal ownership 1618
    • passing of title 1718
  • Legislative reform 710
  • Letters of undertaking 368, 437, 457460
  • Liabilities of mortgagee in possession to third parties 328329
  • Liability to demise (bareboat) charterers 319326
    • charter entered into after mortgage granted 324325
    • nature of charterer’s interest 323
    • notice of prohibition 325326
    • position between mortgagee and lessee, and 326
    • possession as proprietary interest 321322
  • Liability to non-demise charterers and cargo
    • interests 299319
    • applicable law 315318
    • bill of lading holder, and 315316
    • economic torts, and 319
    • entitlement to ship’s earnings 307308
    • equitable relief 305306
    • impairment of security 312313
    • modern cases 308309
    • principles 310311
    • remedies 311312
    • statutory mortgage, and 302303
    • wrongful interference with contracts 314
  • Liens 207215
    • categories 207
    • equitable charge, and 6061
    • sub-freights, on 492493
  • Liquidation 391395
  • Loss payable clauses 263, 451, 456457
  • MAC 219222
  • MAE 219222
  • Maritime law
    • history of 34
    • ship mortgages, and 37
  • Maritime liens 209213
  • Marshalling 167175, 294
    • bottomry bonds, holders of 173
    • conceptual basis 174175
    • contribution, right of 173
    • common debtor rule 170172
    • double mortgage, and 168170
    • double mortgage not fully paid out 168169
    • example 167168
    • principle 167
    • scope 174175
  • Merchant Shipping Act 1854 9
  • Merchant Shipping Act 1995, Part II
  • Merchant Shipping Act 1995, Schedule 1
  • Merchant Shipping (Registration of Ships) Regulations 1993
  • Method of taking possession 239242
    • actual possession 240241
    • constructive possession 241242

  • Page 593

    Mortgagee in possession’s duties to mortgagor 268272
    • account 271
    • ownership, and 270
    • reasonable use of ship 270271
  • Mortgagee’s exercise of power of sale 272277
    • context of realisation 274
    • method of sale 276277
    • preservation of value of property 275276
    • trustee standard of care 273
  • Mortgagee’s expenses of sale 253255
  • Mortgages
    • historical development 115
    • nature of 2
  • Mortgages of unregistered ships 15
  • Mortgagor’s obligations and undertakings 182197
    • consents 194196
    • deed of covenant see Deed of covenant
    • discretion 194196
    • imperilling or prejudicing security, and 183
    • issues on owners’ undertakings 186191 see also Issues on owners’ undertakings
    • principal rights 182183
    • protection of security 196197
    • rights or incidents of ownership 183
    • sanctions 191194
  • Mortgagee’s private sale 252253
  • Multiple obligations 124127
    • parallel debt 126
    • project bonds 127
    • security trustee 125126
    • syndicated form 125
  • Non-ship structures 3539
    • in rem proceedings 36
    • insurance 36
    • liability to third parties 36
    • ownership and security 3537
    • regulatory regime 3738
    • salvage, and 36
  • Obligations secured 122124
    • change of obligations 128131 see also Change of obligations
    • flexibility 123
    • liabilities of third party 124
    • obligation, meaning 123
    • option to purchase, and 124
    • transfer of title 123
  • Oil pollution 25, 213, 246247
  • Ownership 1621
  • P&I clubs 432
  • Parties 120
    • change of see Change of parties
  • Parties to subordination or priorities
    • agreement 181
  • Partnership Act 1890
    • issues arising under 330332
  • Payment defaults 218219
  • Penalties, rule against 132133
  • Port authority
    • over-reaching power of sale 215, 366
  • Port state control 35, 243
  • Possession
  • Possessory lien 43
  • Power of attorney 6263, 78, 121, 141, 152, 153, 189, 214, 244, 252253, 300, 461, 498, 570571
  • Preferences 409411
  • Priority 149181
    • agreed 149152 see also Agreed priority
    • conflict of laws, and see Conflict of laws
    • courts’ approach 175177
    • equitable mortgages and charges 155
    • failure to register mortgage 154155
    • floating charges 156159
      • assignment of earnings and insurances 157158
      • Companies Act regime 156157
      • mortgage over registered ship, and 158159
      • negative pledge 156
      • post-2013 regime 158
    • invalidity, and 175
    • marshalling see Marshalling
    • mortgages of foreign-registered ships 159
    • mortgages of unregistered ships 155
    • parties to subordination or priorities agreement 181
    • registered statutory 149
    • security over collateral assets 153154
    • tacking of further advances 160166 see also Taking of further advances
  • Proceeds of sale

  • Page 594

    Property covered by mortgage 135137
    • Admiralty Marshal, sale by 137
    • appurtenances 135136
    • cargo 137
    • container leasing agreement, and 137
    • equipment 136
    • passenger ships 137
    • third party owners of tangible property 137
    • wide definition 135136
  • Property in registered aircraft under English
    • domestic law 7374
    • ships compared 74
    • UK Register of Civil Aircraft 7374
  • Property in ships under English domestic
    • law 7173
    • legislation, history of 7172
    • Merchant Shipping Act 1854 73
    • shift from mercantilism to free trade 72
    • ship belonging to particular port 72
  • Purchase option see Third party purchase options
  • Receivership 256260
  • Rectification 199200
  • Refusal of registration 34
  • Register 2527 see also flag
    • British ship 2526
  • Registering of British Vessels Act 1845 13, 18, 31, 49, 57, 63
  • Registering of Vessels Act 1823 78, 42
  • Registration 2224
    • Application to Register 2930
    • Declaration of Eligibility 29
    • demise charters 3940
    • deterioration in physical condition 185
    • effect 3033 see also Effect of registration
    • fishing vessels 2728
    • function 22
    • Merchant Shipping Act 1988 2324
    • name of ship 29
    • Navigation Act 1660 22
    • ownership, and 2223
    • Part III of Register 30
    • parts 25
    • procedure 2930
    • qualified owners 26
    • representative person 27
    • shares in ship 2627
    • ship with no nationality 24
    • small ships 28
    • statutes 2223
    • United Kingdom ship 2526
  • Registration of mortgages 138148
    • Bills of Sale Acts 147148
    • Companies Act 2006 141147
      • amendment 142143
      • certificate 142
      • change of chargee 145
      • consequence of failure to register 142
      • disclosure of negative pledges 145
      • documentation 141142
      • financial collateral arrangement 141
      • further security 145
      • inspection by search 145
      • limited liability partnership 145
      • overseas companies 145146
      • receiver or manager 145
      • rectification 142
      • release 143
      • time limit 143
    • effect 140
    • evidencing 139
    • Merchant Shipping Act 1995 139141
      • collateral deed of covenant 139
      • deed of priority 139
      • form of mortgage 139
      • notice of mortgage intent 140
      • power of sale 140
      • transfer or discharge 140
    • reform of system 148
    • registries 138
    • Shipping Registrar 138
  • Renvoi 69, 98, 101103, 111112
  • Requisition
  • Right to redeem
  • Right to take possession at common law 233239
    • inadequate marine insurance 236237
    • intended overseas voyages 237
    • maritime liens and impecuniosity 237238
    • money secured by mortgage is due 235
    • mortgagee’s security impaired or imperilled 236
    • unfavourable charters 238239
  • Rights of mortgagee in possession 248249
  • Risks 184185
    • incidents causing physical loss or damage 185
    • non-compliance with legal or regulatory requirements 185
    • third parties acquiring competing rights against or in ship 185
  • Roman law 1

  • Page 595

    Sale by port authority 215, 366
  • Sale of Goods Act 1979 16, 18
  • Sale of mortgaged ship 249252
  • Sales to self or favoured buyers 277286
    • allegations by mortgagor on facts 280284
    • burden of proof, and 285286
    • improper purpose 284285
    • precautions 279280
    • proper price 278279
    • protection of other persons 279
    • special purchaser analysis 283284
  • Salvage 36, 109, 210, 212, 344, 351, 3734, 471, 506, 526527
  • Sanctions 191194
    • complexity of 192
    • documentation 192193
    • effect 191
    • in a ship 63
    • issues to be addressed 194
    • lack of control, and 193
  • Schemes of arrangement under Companies
  • Security interests in ships 4166
  • Security over earnings and charterparties 473508
    • assignment 475476
    • bareboat charter 476477
    • charterparties 494499
    • commercial background 475479
    • conflict of laws 488489
    • demise charter 476477
    • distinction between legal and equitable assignment 478479
    • earnings account 499500
    • equitable assignments 483484
    • financial collateral arrangements 501
    • freight 474
    • future rights 479481
    • legal assignments 483484
    • legal issues 477478
    • liens on sub-freights 492493
    • notice of assignment 484485
    • partial assignments 481483
    • pooling arrangements 500501
    • present rights 479481
    • requisition compensation 501508
    • restrictions on assignment 489492
    • set-off issues 484488
    • step-in rights 494499
    • suspensory assignments 481483
    • time charters 475476
  • Security over shares 263265
  • Self-help remedies 217
  • Senior Courts Act 1981, section 20(2) text 526527
  • Share in ship, mortgage of 63
  • Ship
    • definition 35
    • non-ship structures, and 3536
  • Ship mortgages
    • increased need for 67
    • Industrial Revolution, and 910
    • jurisdiction 4
    • maritime law, and 37
    • nationality requirements 89
    • nature of 23
    • registration, and 56
    • risks 1
    • shares, in a ship 63
  • Ships under construction, mortgage of 6366
    • construction register 66
    • equitable assignment 64
    • lex situs, and 65
    • material used in construction 65
    • terms of shipbuilding contract 64, 66
  • Small ships
    • registration 28
  • Special fees 132135
  • Statutory mortgages
    • central public register 46
    • competing claims of mortgagee 44
    • current form 4850
    • definition 41
    • detailed formal agreements 50
    • effect of registration 4546
    • endorsement 13
    • Merchant Shipping Act 1854 4647
    • Merchant Shipping Act 1995 48
    • nationality requirements, and 1112
    • primacy of registration 4448
    • priority 1213, 49
    • registration 4849
    • statutory charge, whether 14
    • sub-mortgages, and 62
    • transfer of title, and 1011, 50
    • unique significance of system 47
  • Status defaults 219223
  • Statutory liens 213215
  • Statutory possessory liens 215
  • Step-in rights 475, 478, 494499
  • Sub-freights

  • Page 596

    Subordinate mortgagees 261262
    • enforcement rights 261262
  • Submortgages 6163
    • deed 62
    • equitable 62
    • nature of 6162
    • power of sale, and 6263
  • Syndicated loans 125, 126, 388
  • Tabula in naufragio 66
  • Tacking of further advances 160166
    • common law 160161
    • constructive notice, and 160162
    • court sale in foreign jurisdiction 165
    • mitigation of uncertainty 166
    • notice, and 163164
    • registered ship mortgages, and 164165
    • statutory regime 163
    • subsequent claims 165
  • Termination of registration 34
  • Third Parties (Rights against Insurers) Act 2010 430, 452
  • Third party purchase options 326327
  • Time charter
  • Transactions at undervalue 407409
  • Transactions defrauding creditors 404407
  • Transfer 200202
  • UK administration 395401
  • UK winding up 391395
  • UNCITRAL Model Law on Cross–Border
  • United Kingdom ship 2526
  • United States Bankruptcy Code, Chapter 11 424429
    • automatic stay 425429
    • cram-down 428
    • DIP financing 427
    • features of concern 426
    • jurisdiction 4245
  • Upside sharing arrangements 132135
  • Usual terms of mortgage 131132
  • War risks 154, 245, 431, 455, 456, 457458, 506, 526527
  • WD Fairway litigation 97105
    • British Register 104
    • British ships belonging to port of registry 105
    • Exception1 to Dicey’s Rule 133 103104
    • facts 97
    • geographical fiction 105
    • issues for determination 9798
    • lex situs 9899
    • registered transfers of proprietary interests 102
    • renvoi 101, 103
    • transaction defrauding creditors 102

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