i-law

Law of Ship Mortgages

1005

Page 731

Index
  • Acceleration on default 240, 241, 296, 709
  • Admiralty Court
    • common law courts, and 408
    • competency of 359–360
    • discharge, and 206
  • Admiralty jurisdiction of High Court 354–360
  • Admiralty Marshal
  • Admiralty Marshal's Conditions of Sale 728–730
  • Advance payment guarantees 564–565
  • After-acquired property 3, 134, 136
  • Agreed priority 152–156
  • Aircraft
    • Blue Sky litigation 107–110
    • conflict of laws 71, 73
    • under English domestic law 106–107
  • Amendment 198
    • obligations, change of 124–127
    • parties, change of 124
  • Anti-set-off clauses 307–309
  • Appurtenances
  • Arrest
    • conflict of laws see Conflict of laws
    • jurisdiction 89–90
    • wrongful 244, 363
  • Arrest and court sale 352–403
    • Admiralty jurisdiction of High Court 354–360
    • Admiralty Marshal, and 364–366
    • advantages 352–353
    • caution 362–363
    • claim form 360–362
    • damages, and 363
    • dealing with cargo laden onboard ship under arrest 368–370
    • English law 353
    • Forms 361–362
    • insurance of ship whilst under arrest 368
    • issurance of warrant as of right 363–364
    • moving ship for safety, repairs or lay up 366–368
    • payment and repatriation of ship's crew 370–373
    • procedure 360–373
  • Assignment
  • Bailment
  • Balance sheet insolvency 230
  • Bareboat Charter Hire Purchase Agreements (BBCHP) 445
  • Bareboat charter in ships 49
  • Bareboat charter out ships 49
  • Bareboat charters 47–49, 335–341
    • mortgages on ‘bareboat charter in’ ships 49
    • mortgages on ‘bareboat charter out’ ships 49
    • registration 47–49 see also Demise charters
  • Beneficial ownership 29–34
  • Bills of Sale Acts 19
  • Blue Sky litigation 107–110
  • Bottomry 4–5, 356
  • Bottomry bond 64
  • Breach of security maintenance (loan to value ratio) covenant 225–226
  • Break-funding 239–242
  • British ship 23
  • Bunkers
  • Cargo 313–335
    • ship under arrest 368–370 see also Liability to non-demise charterers and cargo
  • Cargo interests 313–335
  • Cash-flow insolvency 230
  • Centre of main interests (COMI) 423, 429–432
  • Certificate of Financial Responsibility (COFR) 180, 504
  • Certificate of registry 28–29
  • Change of obligations 124–127
    • doctrine of unusual features 127
    • further advances 127
    • guarantee, and 127
    • new obligation 124
    • precautionary security 125
    • refinancing 125
    • subsequent mortgage, and 126
    • underlying facility amended 124
  • Change of parties 124
  • Charge
    • section 859 Companies Act 2006 143–148
    • assignment by way of 520–522
  • Charterparty 536–543
  • Chattels 82–85
  • Classification societies 182–183
  • Clogs on the equity of redemption 131, 206, 266
  • Clubs, mutual associations and 465–466
  • Co-assurance 454–456
  • Collateral advantage
    • meaning 131
    • unconscionable 131
  • Collateral deed of covenant see Deed of covenant
  • Comité Maritime International (CMI) 47, 77–78
  • Common law 2–5, 11, 15–17
  • Common law jurisdictions 91–92, 96
  • Common law liens 210–211
  • Common law mortgages 52, 55–58
  • charge, as 157, 158
    • deed 57
    • form 57
    • maritime structures 57
    • unregistered ship 56–57
  • Companies Act 2006 Part 26A 416–420
  • Companies Act registration of charges regime 156
  • Company voluntary arrangement (CVA) 413
  • Conditional sale agreement 52
  • Conflict of laws 71–115
    • aircraft 71, 73
    • analogies 110
    • Blue Sky litigation 107–110
    • court's protection of mortgagor, and 310
    • English domestic law
      • property in registered aircraft under 106–107
      • property in registered ships under 79–81
    • English position 73
    • foreign government action 99–100, 102
    • foreign judicial proceedings, and 82
    • foreign ship mortgages 86–88
      • geographical fiction 87–88
      • law of register 86
      • Merchant Shipping Act 1995 88
      • priority dispute 86
      • recognition 86
    • fraud upon mortgages, and 83–84
    • general maritime law 75
    • insurance, and 471–473
    • international conventions 76–78
      • Bustamante Code, and 78
      • CMI, and 77–78
      • international interest, and 77
    • law of ship's register 71–72
    • lex maritima 72
    • lex situs, conclusions on 110–115
    • metaphors 110
    • mid-nineteenth-century conflicts 82–85
    • priority issues 90–97
      • common law jurisdictions 91–92, 96
      • foreign-registered mortgages 96
      • French law 90–94
      • hypothèque 90–94
      • Latin American countries 96
      • lex causae 91–92, 97
      • lex fori 90–92, 94, 96–97
      • non-consensual claim 97
      • priorities disputes 93
    • property in registered ships under English domestic law 79–81
      • legislation, history of 80
      • Merchant Shipping Act 1854 79, 81
      • Navigation Acts 79
      • power of requisition 81
      • private law, and 80
      • shift from mercantilism to free trade 79
      • ship belonging to particular port 80
      • statutory regulation of proprietary interests 81
    • registered ownership and arrest jurisdiction 89–90
      • lex fori 89–90
      • relationship between ownership and registration 89–90
      • timely completion of legal formalities 90
    • registered ships, conclusions on 110–115
    • review of issues 71–74
    • rights acquired under laws of foreign states 85
    • security over earnings and charterparties 529–530
    • situs 72, 73, 84–85
    • WD Fairway litigation 97–106
      • British Register 104
      • British ships belonging to port of registry 99
      • constructive total loss 97
      • Exception 1 to Dicey's Rule 101, 104
      • facts 99
      • foreign judgment in rem 100–101
      • issues for determination 98
      • lex situs 98–99, 101
      • notice of abandonment 97
      • registered transfers of proprietary interests 98, 102–105
      • renvoi 99, 103
      • transaction defrauding creditors 103
  • Consensual restructuring 405, 406, 409–412
  • Consents 191–196
  • Consolidation 207–208
  • Containers 135, 357, 512
  • Contingent liability insurance (CLI) 616
  • Contract of affreightment 517, 527, 531, 541
    • Court bill of sale, enforceability of 387–391
    • legal effect under English law 387–388
    • Maritime Liens and Mortgages Convention 1993 389
    • recognition by courts 388–389
    • United Nations Convention on the International Effects of Judicial Sales of Ships 389–391
  • Court sale procedure 373–387; see also Arrest and court sale
    • application for sale ‘pendente lite’ 374–375
    • costs and disbursements 394–395
    • default 375–377
    • delivery of ship to successful tenderer 383–387
    • enforceability of court bill of sale 387–391
    • maritime lien claims 395–397
    • maritime liens in US 397–399
    • mortgage claims 400–403
    • mortgagee's application for determination of priorities 391–393
    • ordered to direct buyer without tender or appraisement 378–379
    • order for sale 377–378, 388–389
    • order of priorities disturbed, when 401
    • payment of purchase price into court 383–387
    • payment out 391–403
    • possessory lien claims 399–400
    • statutory liens 403
    • steps taken by Admiralty Marshal after order 380–383
  • Courts’ protection of mortgagor 276–310
    • anti-set-off clauses 307–309
    • conflict of laws 310
    • derivative liability to relevant parties 302–305
    • excluding duties 305–307
    • general law 276
    • intermeddling 309–310
    • marshalling 309
    • mortgagee in possession's duties to mortgagor 279–282
    • mortgagee's exercise of power of sale 283–288
    • mortgagee's sales to favoured buyers 291–296
    • mortgagor's right to redeem 277–279
    • sales to self 288–290
    • self-help, and 276
    • ship and land mortgages compared 296–302
  • Credit Risk Insurance (Trade Credit Insurance) 507
  • Crew, payment and repatriation of 370–373
  • Cross-border insolvency 404, 437–442, 560
  • Cross-Border Insolvency Regulations 437–442
  • Cross-border jurisdictional issues, insolvency, and 423, 443–444
  • Cross-default 226–227
  • CVA see Company voluntary arrangement
  • Deed
    • common law mortgage 57
  • Deed of covenant 176–178
    • collateral 55, 116, 127–129
    • equitable mortgages 61–62
    • provisions for protection of mortgagee 178
    • specimen 682–721
  • Default
    • breach of obligations 221
    • common law rights, and 221
    • discretions in relation to 232
    • events see Events of default
    • financial distress, and 220
    • interest and break-funding 239–242
    • lender’s/mortgagee's options following 242–244
    • meaning 222
    • time to remedy 219–220
    • waiver of events 232–235
      • discussion 234
      • express remedy or cure language 233–234
      • failure to act 233–234
      • ‘no waiver’ clause 234–235
      • scheduled payments 233
  • Demand guarantee 556–559, 562–564
  • Demise charters
    • duties and liabilities of mortgagee, and 335–341
    • nature of 335 see also Bareboat charters
  • Derivative liability to relevant parties 302–305
  • Determination of priorities and payment out 391–403
    • costs and disbursements 394–395
    • maritime lien claims 395–397
    • maritime liens in US 397–399
    • mortgage claims 400–403
    • mortgagee's application for determination of priorities 391–393
  • DIP financing 425–426
  • Discharge 204–207
    • preference, and 207
    • record in Register 206
    • repayment of debt 205
    • right to redeem, and 206
    • transfer to third party, and 207
  • Discretions 191–196
  • Disguised mortgages 58–59
    • motive 58
    • sale and leaseback transaction 59
    • ‘true sale’ 59
  • Domestic law 1, 17
  • Dual registration 47–48
  • Duties and liabilities of mortgagee to third parties 311–351
    • demise (bareboat) charters 335–341
    • equitable subordination 349–350
    • history of ship mortgages, and 311–313
    • issues arising under Partnership Act 1890 345–347
    • lender liability summary 350–351
    • mortgagee in possession 343–344
    • non-demise charters and cargo interests 313–335
    • third-party property 344–345
    • wider lender liability risks 347–349
  • Earnings 68, 74, 129, 131, 143, 147, 153, 159, 166, 201, 207, 219, 224, 252, 259, 268, 270–271, 274–275, 317, 321, 330, 345, 355, 374, 425, 510–552
  • Earnings account 543–544
  • Effect of registration 27–28, 35
  • Electronic copies 141
  • Electronic execution 141
  • Energy-saving technology (EST) equipment 137, 345
  • Enforcement 244
    • Admiralty Court, competency 359–360
    • ancillary equipment, and 180
    • application of proceeds of sale 267–268
    • arrest procedure 360–373
    • bareboat charter, and 180, 181
    • claims 355–359
    • common law right to take possession 245–250
    • courts’ protection of 295–296, 310
    • default in payments, and 66
    • earnings account 543–544
    • exercise of 305
    • factors relevant to decision to take possession 253–259
    • foreclosure 272–273
    • foreign judgments 74
    • impediments to mortgage 572–573
    • joint and several borrower, and 172
    • judicial sale 373–387
    • liability to third parties 339, 350
    • liens, and 209, 215
    • marshalling, and 168–169, 173–174
    • mechanics and effect of mortgagee's private sale 264–265
    • method of taking possession 250–253
    • mortgagee's expenses of sale 265–266
    • mortgagee's rights 512, 517–518, 540
    • penalties, and 130
    • receivership 268–271
    • rights of mortgagees in possession 259–260
    • sale of mortgaged ship 260–264
    • sanctions, and 190
    • security over ancillary receivables 274–275
    • security over shares 574–575, 578
    • ship mortgage 432–437
    • step-in rights 536–543
    • subsequent mortgagee, and 152–154, 273–274
    • time charter, and 180
    • unfavourable jurisdiction 154
  • Equitable charge 51–52, 63–66
    • acknowledgment of receipt, and 63–64
    • creation 63–64
    • lien, and 64–66
    • nature of 63
    • New York Produce Exchange form, clause 64–65
    • owner's lien on sub-freights 64–65
    • priority 157–158
  • Equitable interests 36, 39, 55, 62, 95, 98, 102, 116
  • Equitable liens 212
  • Equitable mortgages 51–52, 59–63
    • British-style statutory mortgage 61
    • creation 60, 62
    • definition 60
    • deposit of builder's certificate 60–61
    • deposit of title deeds 60
    • enforcement 62
    • failure to create legal mortgage, and 59–60
    • nature of 59–60
    • priority 157–158
    • security over foreign property 61
  • Equitable subordination 349–350
  • Equity 3
  • Escrow, execution 117
  • Events of default (EODs) 222–223
  • Excluding mortgagees’ duties 305–307
  • Execution 116–118
    • attorney-in-fact 117
    • company, by 116–118
    • during COVID-19 pandemic 118
    • deed 116–117
    • escrow 117
    • overseas companies 117
  • Expiry of registration 39
  • Express owners’ undertakings 176–178
  • Factors relevant to mortgagee's decision to take possession 253–259
    • limiting liability
      • bunker spills 258–259
      • loss of life, collision and non-oil pollution claims 257–258
      • oil pollution claims 258
    • mortgagee able to take actual possession 253–254
    • mortgagee's liabilities to third party containable, whether 256–259
    • reasons for 254–256
  • Failure to register mortgage 144–145, 156–157
  • Financial collateral arrangements 544–545
  • Financial lessees, issues for 618–621
  • Fishing vessels
    • ownership 25–26
    • registration 25–26
  • Flag 9, 21, 23, 42, 88, 109, 183, 254–255, 327, 353, 367, 371, 376, 387, 440–441, 450, 485, 495, 505
  • Floating charge 61
  • Foreclosure 15, 272–273
  • Foreign judgments 74
  • Form MSF 4736 REV 1118 54, 118, 120–121, 651–664
  • Form MSF 4737 REV 1118 118, 665–677
  • Form MSF 4739 REV 1118 678–681
  • Form of mortgage 118–121
  • Forum non conveniens, application of 328–329
  • General maritime law
    • conflict of laws 75
  • German, insurance terms 494
  • Hanjin insolvency 405–406, 444–445
  • Hire purchase 52
  • Hovercraft 44, 359
  • Hypothèque 90–94
  • Illegality
  • INSOL Principles 410
  • Insolvency 229–231, 404–445
    • COMI shift 416
    • Cross-Border Insolvency Regulations 437–442
    • cross-border jurisdictional issues 423, 443–444
    • foreign insolvency proceedings 443–444
    • Hanjin insolvency 405–406, 444–445
    • Recast Insolvency Regulation 429–437
    • restructuring plans under Companies Act 2006 416–420
    • scheme of arrangement under Companies Act 2006 412–416
    • SPC and ship protection in 573
    • UNCITRAL Model Law on Cross-Border Insolvency 437–442
    • United States Bankruptcy Code, Chapter 11 (and Chapter 15) 422–428
  • Institute mortgagees’ interest clauses – hulls 722–726
  • Insurable interest 449–451
  • Insurance 446–509
    • assignment 456–461
      • beneficial interest 460–461
      • clubs 465–466
      • equity 460
      • event of default, and 459
      • legal or equitable 457–458
      • marine insurance claims, proceeds and policies 460–461
      • mutual associations 465–466
      • notice of 461–465
      • present and future choses in action 457
      • present and future claim 460
      • registration 464
      • statutory provisions 457
    • assignments of reinsurances 477–478
    • brokers 288, 378–380, 394, 462, 463–464, 467, 468, 469, 470
    • claims 470–471
    • co-assurance 454–456
    • composite interest 455–456
    • conflict of laws 471–473
    • financial guarantee 506–507
    • hull 447
    • illegality risk 473–477
    • international regulation 447
    • kidnap and ransom 448
    • letters of undertaking 467–470
    • loss of hire 448
    • loss payable clauses 466–467
    • mortgagees’ additional perils (pollution) insurance see Mortgagees’ additional perils (pollution) (MAPP) insurance
    • mortgagees’ interest 478–502
    • mortgagees’ interest insurance see Mortgagees’ interest insurance
    • mortgagees’ rights insurance 505–506
    • nature of mortgagee's interest 449–452
    • other mortgagees’ 506–507
    • P&I clubs 447–448
    • placed by mortgagee for its own benefit 452–454
    • pollution 502–505
    • while under arrest 490, 491, 506
    • warranty 455
    • war risks 448
  • Interference with third-party property 344–345
  • Intermeddling
  • International conventions, conflict of laws and see Conflict of laws
  • International legacy 16–17
  • Issues on owners’ undertakings 178–183
    • bareboat charter 179
    • classification societies 182–183
    • compliance with all applicable laws and regulations 183
    • dual flagging 181
    • insurances 178–179
    • maintenance of ship 181–182
    • maritime liens 179
    • registration of ship 180–181
    • time charters 180
  • Jet skis 46, 359–360
  • Judgment in default, mortgagee's application for 375–377
  • Judicial sales to direct buyer 378–380
  • Jurisdiction 1, 4–5, 10, 21, 43, 52, 54, 76, 81, 91–92, 96, 111–112, 114, 125, 154, 173, 212, 222, 253, 255, 298, 317, 325–329, 332, 353–354, 361, 366, 412–419, 420, 471, 473
  • Lease financing 581–622
    • issues for financial lessees 618–621
    • leases and mortgages combined 616–618
    • liability of lessors to third parties 611–616
    • and loans, differences between 586
    • nature and form of 587–588
    • recharacterisation of 606–610
    • and secured loans 621–622
    • relief against forfeiture 598–602
    • repossession 602–605
    • sale 605–606
    • termination and waiver 591–592
    • termination notices 590–591
    • termination rights 588–590
    • termination sum payable 592–598
  • Legal (statutory) assignments 525–527
  • Legal ownership 18–20
    • passing of title 20
  • Legislative reform 8–11
    • Benthamite-inspired 11
  • Lender liability
  • Lender’s/mortgagee's options following default 242–244
  • Letters of undertaking 386, 467–470
  • Lex maritima 72–73, 75, 113
  • Lex situs 73, 81, 84–85, 89, 97–99, 101–114, 136, 433, 435, 471, 579
  • Liabilities of mortgagee in possession to third parties 343–344
  • Liability of lessors to third parties 611–616
  • Liability to demise (bareboat) charterers 335–341
    • charter entered into after mortgage granted 338–339
    • nature of charterer's interest 336–337
    • notice of prohibition 340
    • position between mortgagee and lessee, and 341
    • possession as proprietary interest? 327
  • Liability to non-demise charterers and cargo
    • applicable law 334–335
    • bill of lading holder, and 332–333
    • burden of proof 317
    • cases 313–335
    • economic torts, and 324, 332–333
    • equitable relief 320
    • impairment of security 325–328
    • interests 313–335
    • language, meaning and purpose of 316
    • principles 322–327
    • remedies 324–325
    • statutory mortgage, and 316
    • wrongful interference with contracts 332
  • Liability to third parties 339, 350, 343–344, 44 see also Duties and liabilities of mortgagee to third parties
  • Liens 209–218
    • categories 209
    • common law 210–211
    • equitable 212
    • equitable charge, and 64–66
    • issues relating to 209
    • sub-freights, on 535–536
  • Loans and lease, differences between 586
  • Loan portfolio sales 202–204
  • Loan to value ratio (security maintenance) 225–226
  • Loss payable clauses 275, 466–467
  • Maritime law
    • civil law-influenced 4–5
    • history of 4–5
    • ship mortgages, and 4–8
  • Maritime liens 212–215
  • Maritime Liens and Mortgages Convention 1993 389
  • Marshalling 167–173, 309
    • bottomry bonds, holders of 172
    • common debtor rule 170–172
    • conceptual basis 173
    • contribution, right of 172
    • double mortgage, and 168–170
    • double mortgage not fully paid out 168
    • example 168
    • principle 167–168
    • scope 173
    • surety exception to common debtor rule 171
  • Material adverse change (MAC) 227–229
  • Material adverse effect (MAE) 227–229
  • Merchant Shipping Act 1854 10, 11
  • Merchant Shipping Act 1995 150
  • Merchant Shipping (Registration of Ships) Regulations 1993
  • Method of taking possession 250–253
    • actual possession 250–251
    • constructive possession 251–253
  • Mortgage claims 400–403
  • Mortgagees
    • derivative liability to relevant parties 302–305
    • equitable duty 301, 306–308, 579
    • exercise of power of sale 283–288
      • context of realisation 284–285
      • method of sale 287–288
      • preservation of value of property 285–286
      • trustee standard of care 283–284
      • unbridled discretion 283
    • expenses of sale 265–266
    • in possession's duties to mortgagor 279–282
      • account 282
      • ownership, and 281
      • reasonable use of ship 281–282
    • in possession's liability to third parties 343–344
    • private sale 264–265
    • sale to favoured buyer 291–296
    • sale to self 288–290
  • Mortgagees’ additional perils (pollution) (MAPP) insurance 446, 502–505
    • Clause 1 (Insuring Clause) 502–503
    • Clause 2 (Insured Perils) 503–504
    • Clauses 3 to 5 (Exclusions) 504
    • Clause 6 (Warranties) 504
    • Clauses 7 to 16 504–505
  • Mortgagees’ interest insurance (MI insurance) 446, 478–502
    • Clause 1 (the ‘Insuring Clause’) 483–485
    • Clause 2 (Insured Perils) 485–493
    • Clause 3 (Exclusions) 493–494
    • Clause 4 (Warranties) 494–495
    • Clause 5 (Change of ownership or control) 495–496
    • Clause 6 (Duty of assured (sue and labour)) 496–497
    • Clause 7 (Claims) 497–498
    • Clause 8 (Subrogation) 498–499
    • Clause 10 (Automatic termination) 499–500
    • delay in payment by underwriters 501–502
    • renewals 500–501
  • Mortgagees’ rights insurance (MRI) 505–506
  • Mortgages
    • and collateral deed of covenant 127–129
    • historical development 1–17
    • land, ship and 296–302
    • lease financing and
    • leases and mortgages combined 616–618
    • nature of 4
    • unregistered ships 17, 56–57, 157–158
  • Mortgagor's obligations and undertakings 174–197
    • consents 191–196
    • deed of covenant see Deed of covenant
    • discretion 191–196
    • imperilling or prejudicing security, and 175
    • issues on owners’ undertakings see Issues on owners’ undertakings
    • principal rights 174–175
    • protection of security 196–197
    • rights or incidents of ownership 175
    • sanctions 183–191
    • typical express owners’ undertakings 176–178
  • Mortgagor's rights to redeem 277–279
  • Multiple obligations 121–123
    • parallel debt 123
    • project bonds 123
    • security trustee 121–123
    • syndicated loans 121
  • Negative pledge 147–148, 158–160
  • Nemo dat rule 38, 339
  • Non-payment EODs 223–224
  • Non-ship structures 42–44
    • insurance 44
    • liability to third parties 44
    • ownership and security 42–44
    • regulatory regime 44–45
    • in rem proceedings 43
    • salvage, and 44
  • Norwegian/Scandinavian Plan Insurances 449, 494, 508
  • Notice of assignment 461–465, 523–524, 565, 568
  • Notice of Mortgage Intent 678–681
  • Obligations secured 118–121
    • change of obligations 124–127
    • flexibility 120
    • liabilities of third party 120–121
    • obligation, meaning 119
    • option to purchase, and 120
    • transfer of title 120
  • Oil pollution 215, 257–258
  • Oil price cap (sanctions) 184–185
  • Operating lease 582–585, 587–588, 599, 607, 613
  • Order for sale 160, 377–378, 388–389
  • Order of priorities 160
  • Other EODs 224–232
    • breach of security maintenance (loan to value ratio) covenant 225–226
    • cross-default 226–227
    • insolvency 229–231
    • MAC 227–229
    • MAE 227–229
    • representations and warranties 231–232
    • termination of Approved Charter 224–225
  • Ownership 18–20
  • P&I clubs 447–448
  • Partial assignments 520–522
  • Parties 116
    • change of parties 126
  • Partnership Act 1890
    • issues arising under 345–347
  • Payment defaults 220
  • Penalties, rule against 130–131
  • Pooling arrangements (earnings) 545–546
  • Port authority
    • over-reaching power of sale 218, 383
  • Port state control 42, 254
  • Possession
  • Possessory lien 179, 210–211
  • Power of attorney 84, 117, 141, 154–155, 181, 216, 255, 264, 471, 541, 715–716
  • Pre-delivery payments (PDPs) 554–555, 564–565, 567
  • Pre-delivery security 553–570
    • advance payment guarantees 564–565
    • assignment issues, control over disputes 565–567
    • builder's refund obligations 555–556
    • objectives 555
    • reasons 553
    • refund guarantees 556–564
    • stepping in to buyer's position 567–570
  • Priority 150–173
    • agreed 152–156
    • conflict of laws see Conflict of laws
    • equitable mortgages and charges 157–158
    • failure to register mortgage 156–157
    • floating charges 158–160
      • assignment of earnings and insurances 159–160
      • mortgage over registered ship, and 159–160
      • negative pledge 158–160
    • marshalling see Marshalling
    • mortgages of unregistered ships 157–158
    • Order of priorities in order for sale 160
    • security over ancillary receivables 166–167
    • statutory registered 150–152
    • tacking of further advances 160–165
  • Private law provisions (of MSA 1995) 17, 20, 24, 26, 46, 49, 52, 56, 67, 88, 113, 138, 140, 348
  • Proceeds of sale
  • Property covered by mortgage 133–137
    • Admiralty Marshal, sale by 137
    • appurtenances 133–137
    • cargo 135–136
    • container leasing agreement, and 135
    • equipment 133
    • passenger ships 135
    • third party owners of tangible property 137
    • wide definition 133–134
  • Property in registered aircraft under English law 106
  • Protection of mortgagor by courts see Courts’ protection of mortgagor
  • Protection of security 196–197
  • Provisional registration 25, 87, 451
  • Purchase option see Third-party purchase options
  • Recast Insolvency Regulation 429–437
  • Receivership 268–271
  • Rectification 199–200
  • Red Ensign Group 16
  • Refund, builder's obligations 555–556
  • Refund guarantees 556–564
    • litigation on 559
    • nature of 557
    • requiring demand 563
  • Refusal of registration 39
  • Register 24
    • British ship 24 see also flag
  • Registering of British Vessels Act 1845 14, 58
  • Registering of Vessels Act 1823 8
  • Registration 21–24
    • bareboat charters 47–49
    • and beneficial ownership 29–34
    • effect 27–28, 35
    • fishing vessels 25–26
    • function 21
    • Merchant Shipping Act 1988 23–24
    • name of ship 29–30
    • nature 27–28
    • Navigation Act 1660 22
    • not conclusive or relevant 38
    • ownership, and 22–23
    • Part III of Register 24, 26
    • parts 24
    • and priority 35–38
    • procedure 41–42
    • qualified owners 25
    • representative person 25
    • shares in ship 25
    • ship with no nationality 21
    • small ships 26–27
    • statutes 22
    • United Kingdom ship 23
    • unregistered transferee 39
  • Registration of mortgages 138–149
    • Bills of Sale Acts 148–149
    • Companies Act 2006 143–148
      • amendment 145
      • certificate 145
      • change of chargee 146
      • consequence of failure to register 144–145
      • disclosure of negative pledges 147–148
      • documentation 143–145
      • financial collateral arrangement 144
      • further security 147
      • inspection by search 147
      • limited liability partnership 148
      • overseas companies 148
      • receiver or manager 148
      • rectification 145
      • release 146
      • time limit 118, 145
    • effect 140
    • evidencing 142
    • Merchant Shipping Act 1995 139–143
      • collateral deed of covenant 140
      • deed of priority 140
      • form of mortgage 139
      • Notice of Mortgage Intent 141
      • power of sale 141
      • transfer or discharge 141
    • reform of system 149
    • registries 138
    • Shipping Registrar 138, 143
    • termination 142
  • Reinsurance 477–478
  • Relief from forfeiture 189, 278, 295, 315, 336, 598–602, 618, 621–622
  • Renvoi 73, 99, 103
  • Repossession, lease financing 602–605
  • Requisition
    • compensation 546–552
    • conflict of laws 81
  • Residual Value Insurance (RVI) 507
  • Respondentia 64, 213
  • Restrictions on assignment 530–534
  • Restructuring 404–445
  • Retention account 425, 500, 544–545
  • Rights of mortgagee in possession 259–260
  • Right to redeem
  • Right to take possession at common law 245–250
    • inadequate marine insurance 247–248
    • intended overseas voyages 248–249
    • maritime liens and impecuniosity 249–250
    • money secured by mortgage is due 246–247
    • mortgagee's security impaired or imperilled 247–250
    • unfavourable charters 250
  • Risks 176–177
    • deterioration in physical condition 177
    • incidents causing physical loss or damage 176
    • lender liability 347–349
    • non-compliance with legal or regulatory requirements 177
    • third parties acquiring competing rights against or in ship 177
  • Roman law 3
  • Sale and leaseback transaction 59, 581, 584–585, 587–588, 596, 600, 606–610, 616
  • Sale by court see Court sale procedure
  • Sale by port authority 218, 383
  • Sale, leases 605–606
  • Sale of Goods Act 1979 19–20
  • Sale of mortgaged ship 260–264
  • Sale ‘pendente lite’ 374–375
  • Sales to favoured buyers 291–296
    • allegations by mortgagor on facts 292
    • burden of proof, and 293–295
    • failure 291–292
    • improper purposes 291–296
    • precautions 291
    • proper price 293
    • special purchaser analysis 293–294
  • Sales to self 288–290
  • Salvage 44, 97, 213, 214, 355, 366, 396–397, 503, 551
  • Sanctions 183–191
  • Schemes of arrangement under Companies Act 2006 412–416
  • Securitisation 202–204
  • Security interests in ships 50–70
  • Security over ancillary receivables 274–275
  • Security over earnings and charterparties 510–552
    • assignment 510–512
    • bareboat charter 514
    • charterparties 536–543
    • commercial background 512–516
    • conflict of laws 529–530
    • demise charter 514
    • distinction between legal and equitable assignment 516
    • earnings account 543–544
    • equitable assignments 525–527
    • financial collateral arrangements 544–545
    • freight 510–511
    • future rights 517–519
    • legal assignments 525–527
    • legal issues 516
    • liens on sub-freights 535–536
    • notice of assignment 523–524
    • partial assignments 520–522
    • pooling arrangements 545–546
    • present rights 517–519
    • requisition compensation 546–552
    • restrictions on assignment 530–534
    • set-off issues 527–529
    • step-in rights 536–543
    • suspensory assignments 520–522
    • time charters 511–512
  • ‘See to it’ guarantee 557, 562, 564
  • Self-help remedies 222
  • Senior Courts Act 1981 646–649
  • Set-off
  • Share in ship, mortgage of 67–68
  • Shares security 571–580
    • conflict of laws 579–580
    • courts’ protection 577–579
    • documents 576–577
    • enforcement 574–575, 578
    • English law 576, 580
    • financial collateral 576
    • reasons for taking
      • anyone else taking, preventing 571–572
      • impediments to mortgage enforcement 572–573
      • significant contracts 572
      • SPC and ship protection 573
    • security documents, enforcement 576–577
    • SPC liabilities 574–575
  • Ship
    • definition 42
    • non-ship structures, and 42–44
  • Shipbuilding Credit Guarantee Scheme 70
  • Ship mortgages
    • exemption of transfers of 2
    • increased need for 7–8
    • Industrial Revolution, and 10
    • jurisdiction 4–5
    • maritime law, and 4–8
    • nationality requirements 9
    • priority of 1
    • registration, and 2, 6
    • risks 1
    • shares, in a ship 67–68
  • Ships under construction
    • Bills of Sale Act 70
    • construction register 69–70
    • equitable assignment 68
    • lex situs, and 68
    • material used in construction 69
    • mortgage of 68–70
    • progressive title transfer 69
    • terms of shipbuilding contract 70 see also Pre-delivery security
  • Small ships
    • registration 26–27
  • Special fees 129–133
  • Special purpose company (SPC) 571
  • Statutory charge by way of legal mortgage 15–16, 50, 52, 60, 134, 166, 316
  • Statutory liens 210, 216–217, 403
  • Statutory mortgages
    • competing claims of mortgagee 52–53
    • definition 50
    • detailed formal agreements 55
    • effect of registration 53–55
    • endorsement 14
    • form of registration 55
    • Merchant Shipping Act 1854 53–54
    • Merchant Shipping Act 1995 53
    • nationality requirements, and 13
    • nature of 11–16
    • nature of registration 53
    • power of sale 25, 54–55
    • primacy of registration 52–53
    • priority 13–14, 53
    • registration, and 13–15
    • secure liabilities 120–121
    • statutory charge, whether 15–16
    • sub-mortgages, and 66
    • transfer of title, and 11–12, 56
  • Statutory possessory liens 217–218
  • Statutory registered priority 150–152
    • asset registration 150
    • debtor registration 150
    • priority notices 151
    • prior mortgagee's consent, and 152–155
    • private sale, power of 151
    • rank in 150
    • subsequent mortgagee, and 152–156
  • Step-in rights
    • charterparties and 536–543
    • shipbuilding contract 569–570
  • Sub-freights
  • Submortgages 66–67
    • deed 66
    • equitable 67
    • nature of 66
    • power of sale, and 67
  • Subrogation 498–499
  • Subsequent mortgagees 273–274
  • Suspensory assignments 520–522
  • Syndicated loans 122, 123, 414–415
  • Tabula in naufragio 165–166
  • Tacking of further advances 160–165
    • common law 161, 162–163
    • constructive notice, and 161–163
    • court sale in foreign jurisdiction 165
    • mitigation of uncertainty 164–165
    • notice, and 161–163
    • registered ship mortgages, and 164
    • statutory regime 162–163
    • subsequent claims 164–165
  • Termination
  • Termination of Approved Charter 224–225
  • Third Parties (Rights against Insurers) Act 2010 448
  • Third-party property, interference with 344–345
  • Third-party purchase options 341–343
  • Time charter
  • Title transfer mortgage 9, 11–12, 15–17, 52, 62, 69, 83, 111, 246, 280, 316
  • Transfer and transmission of mortgages 200–204
  • Trust 29, 39, 62–63, 67, 80, 95, 105–106, 123–124, 267, 289, 294, 298, 305, 450, 523, 531
  • UNCITRAL Model Law on Cross-Border Insolvency 437–442
  • United Kingdom ship 23
  • United Nations Convention on the International Effects of Judicial Sales of Ships 389–391
  • United States Bankruptcy Code, Chapter 11 (and Chapter 15) 422–428
  • Unregistered ships, mortgages of 17, 56–57, 157–158
  • Upside sharing arrangements 129–133
  • Waiver of EODs 232–235
  • War risks 166, 256–257, 448, 465–468, 469, 551
  • WD Fairway litigation 97–106
    • British Register 104
    • British ships belonging to port of registry 99
    • constructive total loss 97
    • Exception 1 to Dicey's Rule 101, 104
    • facts 99
    • foreign judgment in rem 100–101
    • issues for determination 98
    • lex situs 98–99, 101
    • notice of abandonment 97
    • registered transfers of proprietary interests 98, 102–105
    • renvoi 99, 103
    • transaction defrauding creditors 103
  • Wilful misconduct, guilty of 292
  • Wrongful arrest 244, 333, 363, 591

The rest of this document is only available to i-law.com online subscribers.

If you are already a subscriber, click Log In button.

Copyright © 2024 Maritime Insights & Intelligence Limited. Maritime Insights & Intelligence Limited is registered in England and Wales with company number 13831625 and address 5th Floor, 10 St Bride Street, London, EC4A 4AD, United Kingdom. Lloyd's List Intelligence is a trading name of Maritime Insights & Intelligence Limited.

Lloyd's is the registered trademark of the Society Incorporated by the Lloyd's Act 1871 by the name of Lloyd's.