The mortgage contract, granted inside or outside of Panama, may be held in any language and must be in written in a public deed or a private document.
If it is celebrated by a private document, the signature of the grantors must be authenticated by a notary public or by a Consul of the Republic of Panama in the exercise of their notarial functions.
The contract of the naval mortgage may be executed in accordance with the formalities required in the country of its granting.
Our registration procedures are simple and seek to protect the interests of the vessels owners and banking institutions.
Registering your naval mortgage in Panama offers many advantages, among them the most evident is the great ease with which it can be constituted and registered, which makes it highly operable and comfortable.
The General Directorate of Public Registry of Property of Vessels makes the registration of naval fleet mortgages in a preliminary way through the Panamanian Merchant Marine Consulates around the world and / or permanent through Public Deed presented before their offices.
When several vessels are mortgaged to guarantee a single credit, the amount or part of the loan that each vessel must respond, can be determined. If this determination is not made, the creditor may repeat for the whole of the guaranteed sum against any of the vessels or against all of them.
Extract of Mortgage
An extract written in Spanish and signed by the parties of the naval mortgage contract that served as the basis for the preliminary registration, may be definitively registered by means of a suitable lawyer, presenting the original document of the mortgage to the notary along with the mortgage extract that must contain the requirements required by article 260 of Law 55 of August 6, 2008.
The original mortgage contract written in English may be registered in General Directorate of Public Registry of Property of Vessels, together with the extract of the naval mortgage written in Spanish, which must contain the requirements required by article 260 of Law 55 of 6 of August 2008.
Mortgage on Vessels Under Construction
The Panamanian Naval Registry allows the registration of naval mortgages on vessels that are under construction, for which it will be essential that it is registered in the General Directorate of Public Registry of Property of Vessels, the ownership title of the vessel that is intended to be mortgaged for which may be used the Building Certificate issued by the corresponding shipyard.
The mortgage on vessels under construction must comply with the same requirements as required by article 260 of Law 55 of August 6, 2008 and other applicable legislation.
Discharge of Mortgage
Document issued by the mortgagee declaring extinguished the right of the mortgage constituted in his favor against one or several vessels, either by the fulfillment of the obligations of the mortgagor or by any other form of extinction foreseen in the naval mortgage contract.
DOCUMENTS RELATED TO MORTGAGE
Modifications to the Mortgage
All the documents that modify or amend mortgage credits may be registered before the General Directorate of Public Registry of Property of Vessels, as long as the Naval Mortgage that originates the change is duly recorded.
They are considered as documents related to the mortgage, among others the following:
Change of Mortgage Creditor
All the documents, through which a change of mortgagee or mortgagor is made, must be registered in the General Directorate of the Public Registry of Property of Vessels.
These documents can be among others the following:
- Assignment of Mortgage Credits
- Merger of Mortgage Creditors
- Incorporation of new Mortgage Creditor
- Assumption of Mortgage
Agreement between Mortgage Creditors
The agreements or agreements between mortgage creditors of the same ship may be registered with the General Directorate of the Public Registry of Property of Vessels.
These documents can be among others the following:
- Equity Agreement
- Coordination Agreement
- Subordination Agreement
PRIVILEGED MARITIME CREDITS
- The Judicial Costs caused in the common interest of the maritime creditors.
- Expenses, compensation and assistance and rescue salaries.
- Salaries, compensation and compensation due to the captain and crew members.
- The Naval Mortgage.
- The credits in favor of the Panamanian State for taxes and fees.
- Salaries and stipends due to cargo operators hired directly by the owner, operator or captain of the ship for loading or unloading it.
- Compensation for damages caused by fault or negligence.
- The amounts due as contribution in common damages.
- Sums due under obligations acquired for the needs and supply of the vessel.
- The quantities taken to the course on the hull of the vessel and rigging for the equipment, armament and sizing, and insurance premiums.
- The salaries of pilots and guardians and the expenses of conservation and custody of the vessel and his equipment.
- The compensation due to the shippers and passengers due to the non-delivery of the loaded items or due to the breakdown of these, attributable to the captain of the crew.
- The price of the last purchase of the vessel and the interest owed.
The contract of financial leasing of vessels, granted inside or outside of Panama, may be held in any language and must be in written in a public deed or a private document.
If it is celebrated by private document, the signature of the grantors must be authenticated by a notary public or by a Consul of the Republic of Panama in the exercise of their notarial functions.