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