Shipping

The main advantages of the Maltese legal regime of the mortgage of the vessel, established by the Merchant Shipping Act 1973 as amended in 1988, can be summarised as follows:

• A mortgage is an executive title under Maltese law and can be enforced upon default without the need for a special judgment;
• Vessels constitute a particular class of movables whereby they form separate and distinct assets within the estate of their owners for the security of actions and claims to which the vessel is subject. In case of bankruptcy of the owner of a vessel, all actions and claims to which the vessel may be subject shall have preference on the said vessel over all other debts of the estate;
• In case of default on behalf of the mortgagor, the mortgagee is entitled:
• to take possession of the ship;
• to sell the vessel;
• to take any action in the name of the owner as may be required in order to maintain the status and validity of the registration of the vessel;
• Mortgages enjoy a relatively high ranking among maritime claims;
• A clause may be inserted in the mortgage deed prohibiting further mortgages and transfer of ownership of the vessel without the prior consent of the mortgagee;
• Easy procedure for transfer of mortgage to any person;
• A vessel cannot be deleted from the Register without at least one month’s notice to the mortgagee given by the Merchant Shipping Directorate of Malta;
• The mortgage attaches not only to the vessel herself but also to the insurance compensation and indemnity for accidents.
• We are on hand to assist clients in all aspects of ship and yacht finance for both owners and banks. Our services include drafting, reviewing and amending loan and finance agreements, mortgage recitals, legal opinions, as well as corporate documentation.

The reputation of the Malta maritime flag is well established. As the largest EU maritime Flag and the sixth largest in the world, the Malta maritime flag has become synonymous with blue chip ship managers. The right balance has been struck between adhering to the strict EU and international regulations and adapting to the maritime industry’s needs.

Vessels eligible for registration under the Malta Flag must be wholly owned by:

• Citizens of Malta; and/or
• European Citizens having a Maltese resident agent; and/or
• Bodies corporate established under the subjects of the Laws of Malta; and/or
• Foreign corporate bodies or entities

As a rule, ships of 25 years and over are not being considered for registration under the Malta flag.

Our team of lawyers and industry professionals are available to assist with the full registration process. From establishing eligibility of the vessel for registration and the appointment of a resident agent in Malta, right through to the permanent registration of the vessel under the Malta maritime flag.