Preferred Ship Mortgage Liens

A Preferred Ship Mortgage Lien is a legal claim against a vessel that secures a loan used to finance the ship. This type of lien is prioritized over other claims, meaning creditors with a preferred ship mortgage have the right to be paid first if the ship is sold or foreclosed upon. In maritime law, it helps protect the interests of lenders and supports the financing of ships, ensuring that the financial risks are mitigated while also ensuring the shipowner retains the right to operate the vessel within certain guidelines.