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INDEX

Law of Ship Mortgages

Page 587 INDEX INDEX Acceleration on default 229 , 230 , 286 , 565 Administrative receivership UK 401 – 402 Administration UK 395 – 401 Admiralty jurisdiction of High Court 340 – 346 competency 345 – 346 maritime claims in rem 341 – 345 Admiralty Marshal costs and expenses 371 – 372 custody of ship 350 – 351 sale by 137 , 349 – 50 Admiralty Marshal’s Conditions of Sale 583 – 586 Agreed priority 149 – 152 default, and 150 registration, and 150 reversal 150 second mortgage, and 152 – 153 Aircraft Blue Sky litigation 110 – 112 conflict of laws 67 , 69 property in 73 – 74 WD Fairway case 111 – 112 Amendment 198 obligations, change of 128 – 131 parties, change of 127 Appurtenances meaning 135 Arrest conflict of laws see Conflict of laws wrongful 232 , 348 Arrest and court sale 338 – 377 Admiralty jurisdiction of High Court 340 – 346 competency 345 – 346 maritime claims in rem 341 – 345 Admiralty Marshal, and 350 – 351 advantages 338 – 339 caution 348 claim form 346 – 347 damages, and 348 dealing with cargo laden on board ship under arrest 353 – 355 English law 339 Forms 347 – 8 insurance of ship whilst under arrest 352 – 353 insurance of warrant as of right 349 moving ship for safety, repairs or lay up 351 – 352 payment and repatriation of ship’s crew 355 – 357 procedure 346 – 357 search of Registry 348 Assignment earnings 157 , 317 , 475 – 476 , 479 , 482 – 484 , 487 , 499 , 502 insurances 443 – 445 proper law 54 , 452 shipbuilding contract 64 , 65 , 44 Bailment concept of 322 Bareboat charter 319 – 326 see also Demise charters Beneficial ownership 18 – 21 companies 20 – 21 contract, created by 21 determination 19 duties and liabilities 19 express trust, created by 21 meaning 19 – 20 Beneficial interest meaning 58 Bills of Sale Acts 17 – 18 Blue Sky litigation 110 – 112 Bottomry 4 , 344 Bottomry bond 59 – 60 Brazil FPSO OSX3 112 – 116 Page 588 British ship 25 – 26 Builder’s certificate 29 Bunkers whether subject to mortgage 135 , 237 , 329 , 366 – 7 Cargo 299 – 319 , 353 – 5 Cargo interests 299 – 319 Caveat 223 , 348 Certificate of registry 29 – 30 Change of obligations 128 – 131 further advances 130 guarantee, and 130 – 131 new obligation 129 precautionary security 128 refinancing 129 subsequent mortgage, ad 129 – 130 underlying facility amended 128 Change of parties 127 Charge section 859 Companies Act 2006 144 Charterparty 494 – 499 bareboat 494 , 506 – 507 demise 494 , 506 – 507 time 487 Classification societies 189 – 190 COFR 188 , 471 Collateral advantage meaning 134 Collateral deed of covenant see Deed of covenant Collateral security enforcement 262 – 263 Common law 1 – 2 Common law liens 208 – 209 Common law mortgages 43 , 50 – 52 charge, as 157 deed 52 form 52 maritime structures 52 priority 158 unregistered ship 50 – 52 Company voluntary arrangement UK 403 COMI 386 – 390 Conditional sale agreement 43 , 44 Conflict of laws 67 – 119 aircraft 69 analogies 116 Blue Sky litigation 110 – 112 cases of ownership and arrest jurisdiction 86 – 89 corporate veil, and 86 – 87 lex fori 88 – 89 relationship between ownership and registration 87 – 88 timely completion of legal formalities 89 court’s protection of mortgagor, and 295 – 296 English position 69 foreign government action 80 – 83 lex situs 81 – 82 foreign judicial proceedings, and 75 – 79 foreign law not confiscatory 81 foreign ship mortgages 83 – 86 geographical fiction 85 law of register 85 priority dispute 84 recognition 83 – 84 FPSO OSX3 in brazil 112 – 116 fraud upon mortgages, and 78 general maritime law 76 , 108 – 109 insurance, and 461 – 462 international conventions 105 – 108 CMI, and 107 – 108 international insolvency 109 – 110 law of ship’s register 67 – 68 lex maritima 68 lex situs see situs lex situs, conclusions on 116 – 119 Louisiana law, and 76 – 77 metaphors 116 mid-nineteenth century cases 74 – 80 power of requisition of British ships 82 priority issues 89 – 97 common law jurisdictions 94 – 96 French law 89 – 93 hypotheque 89 – 93 Latin American countries 96 – 97 lex causae 94 lex fori 90 – 91 review of issues 70 rights acquired under laws of foreign states 79 – 80 security over earnings and charterparties 488 – 489 situs 68 , 69 – 70 , 79 WD Fairway litigation 97 – 105 British Register 104 British ships belonging to port of registry 105 Exception1 to Dicey’s Rule 133 103 – 104 facts 97 geographical fiction 105 issues for determination 97 – 98 lex situs 98 – 99 Page 589 registered transfers of proprietary interests 102 renvoi 101 , 103 transaction defrauding creditors 102 Consents 194 – 196 Consolidation 205 – 206 Contract of affreightment 479 Court sale procedure 357 – 370 Admiralty Marshal’s costs and expenses 371 – 372 application for sale ‘pendente lite’ 358 – 359 costs and disbursements 372 – 373 delivery of ship to successful tenderer 366 – 370 determination of priorities 370 – 377 maritime lien claims 373 – 375 mortgage claims 375 mortgagee’s application for determination of priorities 370 – 371 mortgagee’s application for judgment in default 359 – 360 order for sale 368 – 369 order of priorities disturbed, when 376 – 377 ordered to direct buyer without tender or appraisement 361 – 362 payment of purchase price into court 366 – 370 payment out 370 – 377 possessory lien claims 375 steps taken by Admiralty Marshal after order 364 – 366 Courts’ protection of mortgagor 266 – 296 conflict of laws 295 – 296 derivative liability to relevant parties 290 – 293 excluding duties 293 – 294 general law 266 intermeddling 294 – 295 mortgage in possession’s duties to mortgagor 268 – 272 mortgagee’s exercise of power of sale 272 – 277 right to redeem 267 – 268 sales to self or favoured buyers 277 – 286 self-help, and 266 ship and land mortgages compared 286 – 290 Covenant defaults 223 Cross-Border Insolvency Regulation 419 – 424 Cross-border jurisdictional issues insolvency, and 390 – 391 CVA see company voluntary arrangement Debt subordination 178 – 180 deed of indemnity, interpretation of 179 – 180 priority, and 178 – 180 ship finance transaction, and 178 Deed common law mortgage 52 Deed of covenant 184 – 187 collateral 131 – 132 provisions for protection of mortgagee 186 risks 184 – 185 specimen 545 – 575 Default breach of obligations 217 common law rights, and 217 discretions in relation to 223 effect 226 – 228 events 218 financial distress, and 216 meaning 218 mortgagee’s options following 230 – 232 post-default interest and break-funding 228 – 230 time to remedy 216 waiver of events 223 – 225 clauses 225 discussion 225 express remedy or cure language 224 – 225 failure to act 224 inactivity of mortgagee 224 Demise charters 39 – 40 duties and liabilities of mortgagee, and 319 – 326 mortgages on demise chartered ships 39 nature of 320 registration 39 Derivative liability to relevant parties 290 – 293 DIP financing 427 Discharge 202 – 205 preference, and 205 record in Register 204 repayment of debt 203 – 204 right to redeem, and 204 transfer to third party, and 205 Discretions 194 – 196 Disguised mortgages 53 – 54 motive 53 ‘true sale’ 54 Page 590 Dual registration 39 Duties and liabilities of mortgagee to third parties 297 – 337 demise (bareboat) charters 319 – 326 history of ship mortgages, and 297 – 299 issues arising under Partnership Act 1890 330 – 332 lender liability summary 335 – 337 mortgagee in possession 328 – 329 non-demise charters and cargo interests 299 – 319 third party property 329 – 330 wider lender liability risks 332 – 334 Earnings 63 , 71 , 87 , 132 , 134 – 5 , 142 , 146 , 151 , 153 – 4 , 156 – 7 , 178 , 200 , 205 , 216 , 218 , 224 , 242 , 248 , 256 , 258 – 9 , 262 – 3 , 307 , 317 , 330 , 344 , 358 , 395 , 399 , 427 , 473 – 508 account 499 – 500 Effect of registration 30 – 33 delivery of bill of sale, and 32 legal title, and 32 – 33 rectification, and 32 transfer, and 31 – 32 Enforcement 233 Admiralty Court, competency 345 – 6 ancillary equipment, and 188 application of proceeds of sale 255 – 256 arrest procedure 346 – 350 bareboat charter, and 187 , 189 claims 341 – 5 collateral security, of 262 – 263 common law right to take possession 233 – 239 courts’ protection of 284 – 285 , 295 default in payments, and 62 double mortgagee, and 169 – 170 earnings account 499 – 500 exercise of 293 factors relevant to decision to take possession 242 – 248 foreclosure 260 – 261 foreign judgments 71 joint and several borrower, and 173 judicial sale 357 – 370 law of place at time of 114 liability to third parties 323 , 326 , 334 – 5 liens, and 207 , 213 marshalling, and 168 , 174 – 175 mechanics and effect of mortgagee’s private sale 252 – 253 method of taking possession 239 – 242 mortgagee’s expenses of sale 253 – 255 mortgagee’s rights 475 , 480 , 496 penalties, and 133 rights of mortgagees in possession 248 – 249 sale of mortgaged ship 249 – 252 second mortgagee, and 151 – 152 security over shares, of 264 – 265 step-in rights 494 – 499 subordinate mortgagees 261 – 262 time charter, and 187 unfavourable jurisdiction 151 – 152 Equitable charge 42 , 58 – 61 acknowledgment of receipt, and 59 lien, and 60 – 61 nature of 59 New York Produce Exchange form, clause 18 60 owner’s lien on sub-freights 60 – 61 priority 155 Equitable liens 209 Equitable mortgages 42 , 54 – 58 beneficial interest 58 creation 56 definition 55 deposit of title deeds 55 enforcement 57 – 58 failure to create legal mortgage, and 56 nature of 54 – 55 priority 155 Equitable subordination 334 – 335 Equity 2 De Mattos v Gibson 309 EU Insolvency Regulation 386 – 390 , 414 – 419 basic rule 415 enforcement of rights 417 – 418 interpretation 418 limits 416 secondary proceedings 419 Execution 120 – 121 attorney-in-fact 121 company, by 120 – 121 deed 120 escrow 121 overseas companies 121 Expiry of registration 34 Extortionate credit transactions 412 – 413 Factors relevant to mortgagee’s decision to take possession 242 – 248 limiting liability for bunker spills 247 – 248 limiting liability for loss of life, collision and non-oil pollution claims 246 limiting liability for oil pollution claims 247 Page 591 mortgagee able to take actual possession 243 mortgagee’s liabilities to third party containable, whether 245 – 248 reasons for 243 – 245 Financial collateral arrangements 501 Fishing vessels ownership 27 – 28 registration 27 – 28 Flag 8 , 20 , 22 – 24 , 35 , 84 – 86 , 102 , 107 , 113 , 114 – 115 , 175 , 190 , 243 – 244 , 313 , 335 , 339 , 346 , 352 , 356 , 360 , 369 , 407 , 432 – 433 , 466 , 468 , 472 Floating charge 58 avoidance 411 – 412 mortgagee’s security 395 pre-existing 146 priority 156 – 159 , 483 , 500 qualifying 399 – 401 use 58 Foreclosure 14 , 260 – 26 Foreign judgments 71 Form MSF 4736 122 , 124 , 529 – 535 Form MSF 4737 122 , 536 – 541 Form 4739 542 , 543 Form of mortgage 122 – 124 FPSO OSX3 in Brazil 112 – 116 General maritime law conflicts of law, and 108 – 109 Germany insolvency regime 414 Greece insolvency regime 414 Hire purchase 43 – 44 Hovercraft 37 , 345 Hypothèque 89 – 93 Illegality insurance, and 462 – 464 Insolvency 378 – 429 challenge to ship mortgage 404 – 414 avoidance of floating charges 411 – 412 extortionate credit transactions 412 – 413 guarantees and security as undervalued transactions 409 impact of Insolvency Regulation on vulnerable transactions 413 – 414 preferences 409 – 411 transactions at undervalue 407 – 409 transactions defrauding creditors 404 – 407 COMI 386 – 390 consensual restructurings 378 , 381 – 383 Cross-Border Insolvency Regulation 419 – 424 cross-border jurisdictional issues 390 – 391 effect of EU Insolvency Regulation 414 – 419 EU Insolvency Regulation 386 – 390 European regimes 414 Germany 414 Greece 414 liquidation 391 – 395 scheme of arrangement under Companies Act 2006 383 – 386 UK administration 395 – 401 UK administrative receivership 401 – 402 UK company voluntary arrangement 403 UK winding up 391 – 395 UNCITRAL Model Law on Cross-Border Insolvency 419 – 424 United States Bankruptcy Code, Chapter 11 424 – 429 Institute mortgagees’ interest clauses – hulls 577 – 581 Insurance 430 – 472 assignment 442 – 452 beneficial interest 446 – 447 clubs 455 – 456 equity, intervention of 450 – 451 event of default, and 449 , 451 legal or equitable 443 loss payable provisions 445 – 446 mutual associations 455 – 456 notice, effect of 453 – 455 potential impact of insolvency 452 present and future claim 448 registration 452 statutory provisions 443 – 444 timing of notice 449 – 451 assignments of reinsurances 464 – 465 brokers 277 , 361 – 363 , 372 , 437 , 438 , 442 , 453 , 454 , 455 , 456 , 457 , 458 , 459 , 460 claims 461 commercial interest of mortgagee 430 – 431 composite interest 438 – 442 conflict of laws 461 – 462 illegality risk 462 – 464 international regulation 432 – 433 letters of undertaking 457 – 460 loss payable clauses 456 – 457 MII 465 – 470 mortgagees’ additional perils 471 mortgagees’ interest 465 – 470 nature and structure of 431 nature of mortgagee’s interest 433 – 436 Page 592 non-disclosure 439 P&I clubs 432 pollution 471 repossession 471 – 472 risks to mortgagee 436 – 438 statutory underpinning 430 warranty 440 Interference with third party property 329 – 330 Intermeddling perils of 294 – 295 International conventions conflicts of law, and see Conflicts of law International insolvency conflicts of law, and 109 – 110 Invalidity priority, and 175 Issues in owners’ undertakings 186 – 191 bareboat charter 187 classification societies 189 – 190 compliance with all applicable laws and regulations 190 dual flagging 189 insurances 186 – 187 maintenance of ship 189 maritime liens 187 – 188 registration of ship 188 – 189 time charters 187 JOL 43 JOLCO 43 Jurisdiction 1 , 3 – 4 , 9 – 10 , 20 , 24 , 33 , 37 , 43 , 49 , 70 , 76 , 82 – 83 , 85 – 89 , 91 , 93 , 96 – 97 , 106 , 115 , 137 , 151 , 174 – 175 , 181 , 209 , 219 , 242 , 244 , 288 , 314 – 315 , 339 , 340 , 347 , 351 , 384 – 391 , 395 , 461 Leasing arrangements 43 Legal mortgage 42 see also Common law mortgages Legal ownership 16 – 18 passing of title 17 – 18 Legislative reform 7 – 10 Letters of undertaking 368 , 437 , 457 – 460 Liabilities of mortgagee in possession to third parties 328 – 329 Liability to demise (bareboat) charterers 319 – 326 charter entered into after mortgage granted 324 – 325 nature of charterer’s interest 323 notice of prohibition 325 – 326 position between mortgagee and lessee, and 326 possession as proprietary interest 321 – 322 Liability to non-demise charterers and cargo interests 299 – 319 applicable law 315 – 318 bill of lading holder, and 315 – 316 economic torts, and 319 entitlement to ship’s earnings 307 – 308 equitable relief 305 – 306 impairment of security 312 – 313 modern cases 308 – 309 principles 310 – 311 remedies 311 – 312 statutory mortgage, and 302 – 303 wrongful interference with contracts 314 Liens 207 – 215 categories 207 equitable charge, and 60 – 61 sub-freights, on 492 – 493 Liquidation 391 – 395 Loss payable clauses 263 , 451 , 456 – 457 MAC 219 – 222 MAE 219 – 222 Maritime law history of 3 – 4 ship mortgages, and 3 – 7 Maritime liens 209 – 213 extinguishment 212 – 213 history 210 – 211 nature of 211 priority 211 – 212 wages 213 Marshalling 167 – 175 , 294 bottomry bonds, holders of 173 conceptual basis 174 – 175 contribution, right of 173 common debtor rule 170 – 172 double mortgage, and 168 – 170 double mortgage not fully paid out 168 – 169 example 167 – 168 principle 167 scope 174 – 175 Merchant Shipping Act 1854 9 Merchant Shipping Act 1995, Part II text 509 – 518 Merchant Shipping Act 1995, Schedule 1 text 519 – 522 Merchant Shipping (Registration of Ships) Regulations 1993 text 523 – 525 Method of taking possession 239 – 242 actual possession 240 – 241 constructive possession 241 – 242 Page 593 Mortgagee in possession’s duties to mortgagor 268 – 272 account 271 ownership, and 270 reasonable use of ship 270 – 271 Mortgagee’s exercise of power of sale 272 – 277 context of realisation 274 method of sale 276 – 277 preservation of value of property 275 – 276 trustee standard of care 273 Mortgagee’s expenses of sale 253 – 255 Mortgages historical development 1 – 15 nature of 2 Mortgages of unregistered ships 15 Mortgagor’s obligations and undertakings 182 – 197 consents 194 – 196 deed of covenant see Deed of covenant discretion 194 – 196 imperilling or prejudicing security, and 183 issues on owners’ undertakings 186 – 191 see also Issues on owners’ undertakings principal rights 182 – 183 protection of security 196 – 197 rights or incidents of ownership 183 sanctions 191 – 194 Mortgagee’s private sale 252 – 253 effect 252 – 253 mechanics 252 – 253 Multiple obligations 124 – 127 parallel debt 126 project bonds 127 security trustee 125 – 126 syndicated form 125 Non-ship structures 35 – 39 in rem proceedings 36 insurance 36 liability to third parties 36 ownership and security 35 – 37 regulatory regime 37 – 38 salvage, and 36 Obligations secured 122 – 124 change of obligations 128 – 131 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 , 246 – 247 Ownership 16 – 21 beneficial 18 – 21 legal 16 – 18 non ship structures 16 – 18 ships 16 – 18 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 330 – 332 Payment defaults 218 – 219 Penalties, rule against 132 – 133 Port authority over-reaching power of sale 215 , 366 Port state control 35 , 243 Possession common law 233 – 235 demise charters 228 mortgagee in possession 248 – 9 , 268 – 272 method of taking 239 – 242 relevant factors 242 – 248 Possessory lien 43 Power of attorney 62 – 63 , 78 , 121 , 141 , 152 , 153 , 189 , 214 , 244 , 252 – 253 , 300 , 461 , 498 , 570 – 571 Preferences 409 – 411 Priority 149 – 181 agreed 149 – 152 see also Agreed priority conflict of laws, and see Conflict of laws courts’ approach 175 – 177 equitable mortgages and charges 155 failure to register mortgage 154 – 155 floating charges 156 – 159 assignment of earnings and insurances 157 – 158 Companies Act regime 156 – 157 mortgage over registered ship, and 158 – 159 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 153 – 154 tacking of further advances 160 – 166 see also Taking of further advances Proceeds of sale application 255 – 256 Page 594 Property covered by mortgage 135 – 137 Admiralty Marshal, sale by 137 appurtenances 135 – 136 cargo 137 container leasing agreement, and 137 equipment 136 passenger ships 137 third party owners of tangible property 137 wide definition 135 – 136 Property in registered aircraft under English domestic law 73 – 74 ships compared 74 UK Register of Civil Aircraft 73 – 74 Property in ships under English domestic law 71 – 73 legislation, history of 71 – 72 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 256 – 260 appointment 257 duties 257 – 260 removal 257 Rectification 199 – 200 Refusal of registration 34 Register 25 – 27 see also flag British ship 25 – 26 Registering of British Vessels Act 1845 13 , 18 , 31 , 49 , 57 , 63 Registering of Vessels Act 1823 7 – 8 , 42 Registration 22 – 24 Application to Register 29 – 30 Declaration of Eligibility 29 demise charters 39 – 40 deterioration in physical condition 185 effect 30 – 33 see also Effect of registration fishing vessels 27 – 28 function 22 Merchant Shipping Act 1988 23 – 24 name of ship 29 Navigation Act 1660 22 ownership, and 22 – 23 Part III of Register 30 parts 25 procedure 29 – 30 qualified owners 26 representative person 27 shares in ship 26 – 27 ship with no nationality 24 small ships 28 statutes 22 – 23 United Kingdom ship 25 – 26 Registration of mortgages 138 – 148 Bills of Sale Acts 147 – 148 Companies Act 2006 141 – 147 amendment 142 – 143 certificate 142 change of chargee 145 consequence of failure to register 142 disclosure of negative pledges 145 documentation 141 – 142 financial collateral arrangement 141 further security 145 inspection by search 145 limited liability partnership 145 overseas companies 145 – 146 receiver or manager 145 rectification 142 release 143 time limit 143 effect 140 evidencing 139 Merchant Shipping Act 1995 139 – 141 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 , 101 – 103 , 111 – 112 Requisition conflict of laws 82 – 83 compensation 501 – 508 Right to redeem protection of 267 – 268 Right to take possession at common law 233 – 239 inadequate marine insurance 236 – 237 intended overseas voyages 237 maritime liens and impecuniosity 237 – 238 money secured by mortgage is due 235 mortgagee’s security impaired or imperilled 236 unfavourable charters 238 – 239 Rights of mortgagee in possession 248 – 249 Risks 184 – 185 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 249 – 252 Sales to self or favoured buyers 277 – 286 allegations by mortgagor on facts 280 – 284 burden of proof, and 285 – 286 improper purpose 284 – 285 precautions 279 – 280 proper price 278 – 279 protection of other persons 279 special purchaser analysis 283 – 284 Salvage 36 , 109 , 210 , 212 , 344 , 351 , 373 – 4 , 471 , 506 , 526 – 527 Sanctions 191 – 194 complexity of 192 documentation 192 – 193 effect 191 in a ship 63 issues to be addressed 194 lack of control, and 193 Schemes of arrangement under Companies Act 2006 383 – 386 Security interests in ships 41 – 66 Security over earnings and charterparties 473 – 508 assignment 475 – 476 bareboat charter 476 – 477 charterparties 494 – 499 commercial background 475 – 479 conflict of laws 488 – 489 demise charter 476 – 477 distinction between legal and equitable assignment 478 – 479 earnings account 499 – 500 equitable assignments 483 – 484 financial collateral arrangements 501 freight 474 future rights 479 – 481 legal assignments 483 – 484 legal issues 477 – 478 liens on sub-freights 492 – 493 notice of assignment 484 – 485 partial assignments 481 – 483 pooling arrangements 500 – 501 present rights 479 – 481 requisition compensation 501 – 508 restrictions on assignment 489 – 492 set-off issues 484 – 488 step-in rights 494 – 499 suspensory assignments 481 – 483 time charters 475 – 476 Security over shares 263 – 265 Self-help remedies 217 Senior Courts Act 1981, section 20(2) text 526 – 527 Share in ship, mortgage of 63 Ship definition 35 non-ship structures, and 35 – 36 Ship mortgages increased need for 6 – 7 Industrial Revolution, and 9 – 10 jurisdiction 4 maritime law, and 3 – 7 nationality requirements 8 – 9 nature of 2 – 3 registration, and 5 – 6 risks 1 shares, in a ship 63 Ships under construction, mortgage of 63 – 66 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 132 – 135 enforceability 132 – 133 Statutory mortgages central public register 46 competing claims of mortgagee 44 current form 48 – 50 definition 41 detailed formal agreements 50 effect of registration 45 – 46 endorsement 13 Merchant Shipping Act 1854 46 – 47 Merchant Shipping Act 1995 48 nationality requirements, and 11 – 12 nature of 10 – 15 power of sale 13 – 14 , 49 – 50 primacy of registration 44 – 48 priority 12 – 13 , 49 registration 48 – 49 statutory charge, whether 14 sub-mortgages, and 62 transfer of title, and 10 – 11 , 50 unique significance of system 47 Status defaults 219 – 223 loan to value 222 – 223 MAC 219 – 222 MAE 219 – 222 negotiations with creditors 222 Statutory liens 213 – 215 Statutory possessory liens 215 Step-in rights 475 , 478 , 494 – 499 Sub-freights lien on 492 – 493 Page 596 Subordinate mortgagees 261 – 262 enforcement rights 261 – 262 Submortgages 61 – 63 deed 62 equitable 62 nature of 61 – 62 power of sale, and 62 – 63 Syndicated loans 125 , 126 , 388 Tabula in naufragio 66 Tacking of further advances 160 – 166 common law 160 – 161 constructive notice, and 160 – 162 court sale in foreign jurisdiction 165 mitigation of uncertainty 166 notice, and 163 – 164 registered ship mortgages, and 164 – 165 statutory regime 163 subsequent claims 165 Termination of registration 34 Third Parties (Rights against Insurers) Act 2010 430 , 452 Third party purchase options 326 – 327 property, and 329 – 330 Time charter liability 299 – 319 nature of 300 – 301 Transactions at undervalue 407 – 409 Transactions defrauding creditors 404 – 407 Transfer 200 – 202 UK administration 395 – 401 UK winding up 391 – 395 UNCITRAL Model Law on Cross–Border Insolvency 419 – 424 United Kingdom ship 25 – 26 United States Bankruptcy Code, Chapter 11 424 – 429 automatic stay 425 – 429 cram-down 428 DIP financing 427 features of concern 426 jurisdiction 424 – 5 Upside sharing arrangements 132 – 135 Usual terms of mortgage 131 – 132 War risks 154 , 245 , 431 , 455 , 456 , 457 – 458 , 506 , 526 – 527 WD Fairway litigation 97 – 105 British Register 104 British ships belonging to port of registry 105 Exception1 to Dicey’s Rule 133 103 – 104 facts 97 geographical fiction 105 issues for determination 97 – 98 lex situs 98 – 99 registered transfers of proprietary interests 102 renvoi 101 , 103 transaction defrauding creditors 102

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