Law of Ship Mortgages
Amendment, transfer and discharge
Once a statutory form of mortgage has been registered with the Registrar General of Shipping and Seamen (the ‘Registrar’)1 it is not possible to amend it by either addition or deletion to the original form or by registration of an addendum to the mortgage. If it is necessary to secure new or revised obligations then, subject to paragraph 9.1.2 below, the owner should execute a new mortgage that should be registered with the Registrar. In this case the existing mortgage should remain registered and not discharged.2 If the owner has already granted a further mortgage or mortgages to a third party then that third party should be required to enter into a (supplemental) subordination agreement giving priority to the additional mortgage granted to the first mortgagee: see Chapter 7. If a new mortgage is registered then it will be necessary either to amend the existing security documents such as the deed of covenant or to execute new collateral security documents setting out the amended obligations.