Mortgages

Home

INFORMATION RELATING TO THE REGISTRATION, TRANSFER AND DISCHARGE OF A MORTGAGE

Under the Merchant Shipping Act No. 24 of 2002, all Ships registered in St. Kitts & Nevis may be mortgaged.  This includes Yachts and Non-Propelled Craft and there is no lower size/tonnage/length limit.  Refer to sections 77 to 83 inclusive of the Merchant Shipping Act.

The Merchant Shipping Act follows the general legal principal of English Law on ship mortgages.  The mortgagee may enforce the mortgage by taking possession of the ship and selling it by private sale or at auction.

The mortgagor mortgages the ship by execution of a simple mortgage deed (available on this website to download - Application Form A8) and registering the same at the offices of the International Registrar of Shipping and Seamen, where the existence of the mortgage is then recorded in the ship's records in the Registry Book.  See Mortgage Registration, Transfer and Discharge procedure below.

It is usual for the mortgagor and the mortgagee to enter into a Deed of Covenant collateral to the ship mortgage, setting out in detail the legal relation between them and the terms and conditions under which the mortgagee may enforce its rights under the mortgage.

The priority of the mortgage is determined by the date and time of its registration in the Registry Book.  There are no provisions in the Merchant Shipping Act for the registration of the mortgage in the register of companies as a charge against the shipowning company.

For guidance of shipowners and financiers as to the applicability of St. Kitts & Nevis mortgage legislation, please refer to the Legal Opinion prepared by Messrs Daniel Brantley & Associates. 

Please click here for some of the banks who have accepted St Kitts &Nevis Mortgage Legislation and granted mortgages to our ships.

Mortgage Registration, Transfer and Discharge procedure

Registration of Mortgages:

  1. Registration of Mortgages is allowed as soon as a vessel is provisionally registered.
  2. For a vessel that is Provisionally Registered, the mortgagee (bank, shipyard, finance house etc) is to confirm that they have sighted the original evidence of ownership of title in the ship i.e. bill of sale, sale contract etc. (Example Letter)
  3. Completed Application Form A8 "Mortgage Registration, Transfer & Discharge" is to be submitted (can be downloaded from website).
  4. An original or certified true copy of Covenant or similar document may also be submitted.
  5. Payment of Mortgage Registration fees is to be confirmed.
  6. If registration is to be effected at SKANReg Head Office, documents (1.2), (1.3) & (1.4) are to be submitted;
    1. Form A8 will be endorsed with the date and time of registration of the mortgage.
    2. The original endorsed Form A8 will be returned to the mortgagee and a copy retained in the ship's records by the International Registrar.
    3. An entry will be made in the Registry Book, recording the registration of the mortgage.
    4. If requested, a Transcript of Registry will be issued by the International Registrar.
  8. If registration is to be effected at the office of an authorised Maritime Registrar or that of the Department of Maritime Affairs, documents (1.2), (1.3) & (1.4) are to be submitted;
    1. After confirmation from the International Registrar, Form A8 will be endorsed, by the Maritime Registrar or the Director of Maritime Affairs, with the date and time of registration of the mortgage.
    2. The original endorsed Form A8 will be returned to the mortgagee and a copy transmitted by fax/email to SKANReg head office.
    3. An entry will be made in the Registry Book, recording the registration of the mortgage
    4. If requested, a Transcript of Registry will then be issued by the International Registrar and sent by fax/email to the Maritime Registrar or Department of Maritime Affairs
    5. Documents (1.2), (1.3 - copy of endorsed document) & (1.4) above) will then be sent by the Maritime Registrar or Department of Maritime Affairs to SKANReg head office by courier.
    6. On receipt of the original documents, the International Registrar shall release the original Transcript of Registry to the mortgagee via the Maritime Registrar or the Department of Maritime Affairs.

Transfer of Mortgage:

  1. Transfer of a Registered Mortgage is allowed on any ship, whether provisionally or permanently registered.
  2. For a vessel that is Provisionally Registered, the new mortgagee (bank, shipyard, finance house etc) is to confirm that they have sighted the original evidence of ownership of title in the ship i.e. bill of sale, sale contract etc.
  3. Completed Application Form A8 showing the original Mortgage Registration and new Mortgage is to be submitted.
  4. An original or certified true copy of any new accompanying Mortgage Deed of Covenant or similar document may also be submitted.
  5. Payment of Mortgage Registration fees is to be confirmed.
  6. If registration is to be effected at SKANReg Head Office, documents (2.2), (2.3) & (2.4) are to be submitted;
    1. Form A8 will be endorsed with the date and time of transfer of the mortgage.
    2. The original newly endorsed Form A8 will be returned to the mortgagee and a copy retained in the ship's records by the International Registrar.
    3. An entry will be made in the Registry Book, recording the transfer of the mortgage.
    4. If requested, a Transcript of Registry will be issued by the International Registrar.
  7. If registration is to be effected at the office of an authorised Maritime Registrar or that of the Department of Maritime Affairs, documents (2.2), (2.3) & (2.4) are to be submitted;
    1. After confirmation from the International Registrar, Form A8 will be endorsed, by the Maritime Registrar or the Director of Maritime Affairs, with the date and time of the transfer of the mortgage.
    2. The original endorsed Form A8 will be returned to the mortgagee and a copy transmitted by fax/email to SKANReg head office.
    3. An entry will be made in the Registry Book, recording the transfer of the mortgage
    4. If requested, a Transcript of Registry will then be issued by the International Registrar and sent by fax/email to the Maritime Registrar or Department of Maritime Affairs
    5. Documents (2.2), (2.3 - copy of endorsed document) & (2.4) above will then be sent by the Maritime Registrar or Department of Maritime Affairs to SKANReg head office by courier.
    6. On receipt of the original documents, the International Registrar shall release the original Transcript of Registry to the mortgagee via the Maritime Registrar or the Department of Maritime Affairs.

Discharge of Mortgage:

  1. Completed Application Form A8 showing the original Mortgage Registration and entry for the Discharge is to be submitted.
  2. Payment of Mortgage Discharge fees is to be confirmed.
  3. If discharge is to be effected at SKANReg Head Office, document (3.1) is to be submitted;
    1. Form A8 will be endorsed with the date and time of discharge of the mortgage.
    2. The original endorsed Form A8 will be returned to the mortgagee and a copy retained in the ship's records by the International Registrar.
    3. An entry will be made in the Registry Book, recording the discharge of the mortgage.
    4. If requested, A Transcript of Registry will be issued by the International Registrar.
  4. If discharge is to be effected at the office of an authorised Maritime Registrar or that of the Department of Maritime Affairs, document (3.1) is to be submitted;
    1. After confirmation from the International Registrar, Form A8 will be endorsed by the Maritime Registrar or the Director of Maritime Affairs with the date and time of discharge of the mortgage.
    2. The original endorsed Form A8 will be returned to the mortgagee and a copy transmitted by fax/email to SKANReg head office.
    3. An entry will be made in the Registry Book, recording the discharge of the mortgage
    4. If requested, a Transcript of Registry will then be issued by the International Registrar and sent by fax/email to the Maritime Registrar or Department of Maritime Affairs
    5. Document 3.1 (copy of endorsed document) will then be sent by the Maritime Registrar or Department of Maritime Affairs to SKANReg head office by courier.
    6. On receipt of the original document, the International Registrar shall release the original Transcript of Registry to the mortgagee via the Maritime Registrar or the Department of Maritime Affairs.