Gibraltar’s common law system provides various advantages to banks and other financial institutions who wish to provide finance to yacht and ship owners. Many of the major international ship and yacht financing banks favour Gibraltar’s Ship Registry and Yacht Registry for precisely these advantages, some of which are outlined below:-
Priority of mortgages
If there is more than one mortgage registered by different mortgagees against the same yacht or ship, or a share in a yacht or ship, the mortgagees rank in priority between each other according to the date and time at which each mortgage was recorded in the Registry and not according to their respective dates and times.
Mortgagee has power of sale
Every mortgagee whose interest has been recorded in the Registry has the power to sell the mortgaged yacht, ship or share. The first recorded mortgagee can do this without a court order and without the consent of any subsequent recorded mortgagee.
Subsequent recorded mortgagees may not sell a yacht, ship or share mortgaged in their favour without a court order and without the agreement of all recorded prior mortgagees.
Mortgagee may take title
A single recorded mortgagee may take valid title to a yacht or ship, or a share in the yacht or ship, without a court order and without the agreement of the owner or of any other third party.
If there is more than one mortgage registered by different mortgagees against the same yacht or ship, or a share therein, the agreement of all registered mortgagees is necessary before any one or more of them may take valid title.
All of the above may also be done with the sanction of a court order.
Our firm regularly represents several banks, yacht and ship owners regarding yacht and ship financing transactions. We are able to advise on the nature of Gibraltar law loan agreements and security documentation including Deeds of Covenants, Mortgages, Guarantees, Assignments of Earnings and Insurances and other related documentation.
We provide a full service including registration of yachts and vessels at the Gibraltar Yacht or Ship Registry, providing Gibraltar law legal opinions and registering mortgages and charges against vessels at the Registry and at Companies House where the vessel-owner is a Gibraltar company. We will also draw up all security documentation, discharges of any current charges or mortgages, powers of attorney to enable security and other documentation to be signed in Gibraltar or elsewhere and can do any other related work.
Quotes and further information can be provided upon request.