Ship Mortgage: A Safe Harbor for Maritime Trade
Ship mortgage is an important financial instrument of maritime trade. It is a type of mortgage that provides security to the creditor on ships and ship shares. In this blog post, we will examine what a ship mortgage is, how it is established, its types and advantages.
What is Ship Mortgage?
Ship mortgage is a type of mortgage regulated in Article 1014 and following articles of the Turkish Commercial Code. In this type of mortgage, security is provided to the creditor over a registered ship or ship share. If the debtor does not pay his debt, the creditor can collect the receivable by having the ship sold through compulsory enforcement.
How to Establish a Ship Mortgage?
In order for a ship mortgage to be established, the following conditions must be met:
• The ship must be registered in the Turkish Ship Registry
• The mortgage must be made in writing and the signatures must be notarized.
• Registration of the mortgage in the Turkish Ship Registry
Types of Ship Mortgage
Ship mortgages are divided into different types according to the type of establishment and the receivable it secures:
• Contractual mortgage: It is a type of mortgage established by a contract between the creditor and the ship owner.
• Legal mortgage: It is a type of mortgage prescribed by law to secure certain receivables.
• Legal mortgage: It is a type of mortgage intended to secure receivables given for ship construction or equipment.
Advantages of Ship Mortgage
A ship mortgage has significant advantages for both the creditor and the debtor. Some of these advantages are:
• For the creditor: It provides the creditor with the opportunity to collect his receivables by selling the ship if the debtor does not pay his debt.
• For the debtor: It provides financing opportunity to the debtor by mortgaging the ship.
Things to Consider About Ship Mortgage
It is necessary to pay attention to some important points about ship mortgage:
• In order to establish a ship mortgage, the ship must be registered in the Turkish Ship Registry.
• The mortgage agreement must be made in writing and the signatures must be notarized.
• The mortgage must be registered in the Turkish Ship Registry.
Ship mortgage is an important financial instrument in maritime trade. You can consult a lawyer to get detailed information about this type of mortgage.
