Ship Mortgage - Registration of Statutory Mortgages - Priority Rankings

Priority Rankings

Registration confers a mortgagee higher priority over the following scenarios but not limited to:

  1. earlier unregistered mortgages, irrespective of knowledge of them;
  2. later registered or unregistered mortgages; and
  3. additional advances subsequently made under a prior registered mortgage where under the agreement was that mortgage should cover present and future advances by the mortgagee.

However, a mortgagee does not have priority over the following scenarios but not limited to:

  1. any mortgage registered earlier;
  2. any claims in connection with which the vessel had already been arrested at the time when the mortgage was entered into;
  3. any possessory lien of a ship repairer; and
  4. maritime liens, whether earlier or later

Read more about this topic:  Ship Mortgage, Registration of Statutory Mortgages

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