Antigua and Barbuda Registration of Mortgage

Mortgage

1. Under the Antigua and Barbuda Merchant Shipping Act, ships registered in Antigua may be
    mortgaged.

2. The Merchant Shipping Act follows the legal ideas of English Law and in particular in  regard
    of the law on shipmortgages. Under an Antiguan and Barbudan shipmortgage the mortgagee may
    enforce the mortgage not only by having the ship auctioned in a public procedure but rather
    also by taking possession of the ship and selling it by private sale. 

3. The form of the Antigua and Barbuda mortgage is similar to the English form of mortgage.
    The mortgagor and the mortgagee usually enter into a Deed of Covenants collateral to the
    shipmortgage, 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 mortgagor
    mortgages the ship by execution of a one page mortgage deed and registering the same in the
    register of ships at the port of St. John’s, Antigua. 

4. The priority of the mortgage is determined by the date and time of its registration in the
    register of ships. Other than English Law there are no provisions in the Antiguan and Barbudan
    Law for the registration of the mortgage in the register of companies as a charge against the
    shipowning company. 

5. The Antigua and Barbuda shipmortgage is accepted as a credit security by
    the International Ship Financing Bank.
 

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