Ship mortgages

A ship mortgage is a legal agreement where a borrower pledges a ship as collateral to secure a loan, much like a mortgage on a house. If the borrower fails to repay the loan, the lender has the right to seize and sell the ship to recover the outstanding amount. This arrangement provides lenders assurance that they can recover their investment, and it allows ship owners to finance vessel purchases or operations. Ship mortgages are registered in maritime authorities, ensuring transparency and legal enforceability across international waters.