ship mortgage registration

Ship mortgage registration is the official process of recording a loan secured by a ship as collateral, similar to a mortgage on a property. When a shipowner borrows money to buy or upgrade a vessel, they can register a mortgage with the relevant maritime authority. This registration makes clear that the lender has a legal claim on the ship if the owner defaults on the loan. It helps protect the lender’s interests and ensures transparency, allowing other potential creditors to see the mortgage’s existence before entering into agreements involving the vessel.