Malta Ship & Yacht Finance
Our firm has for many years, represented both ship owners as well as several banks advising and assisting them with the drafting and registration of mortgages over Malta registered ships.
The registration of a mortgage grants the bank or any other financial institution a first ranking claim over the ship or yacht itself. Mortgages enjoy a relatively high ranking among maritime claims and the bank will thus be likely to rank above any other creditor.
Vessels constitute a particular class of movable as they form separate and distinct assets within the estate of their owners (the Malta Shipping company) for the security of actions and claims to which the vessel is subject. In case of default on behalf of the mortgagor (the Malta ship owning company) the mortgagee (the bank or financial institution) is entitled:
- to take possession of the ship
- to subsequently sell the vessel
- generally to do any such things in the name of the owner as may be required in order to maintain the status and validity of the registration of the vessel
Since a mortgage constitutes an executive title under the Maltese Law it can be enforced upon default without the need for a judgment.