Mortgages

Under the Merchant Shipping Act, Cap 7.05, vessels registered with Comoros Maritime may be used as security for loans through a ship mortgage. This applies to all types of vessels, including yachts and non-propelled ships, with no minimum size or tonnage requirements.

The legal framework follows the general principles of English law. A mortgagee has the right to enforce the mortgage by taking possession of the vessel and proceeding with its sale, either privately or by auction.

Typically, the mortgagor and mortgagee enter into a formal agreement outlining their relationship and the terms governing the mortgage. This agreement may be referred to as a Deed of Covenant, Mortgage Deed, Loan Agreement, or similar.

SHIP MORTGAGE REGISTRATION & LEGAL FRAMEWORK

The priority of a mortgage is determined by the exact date and time it is registered. There is no requirement under the Merchant Shipping Act to register the mortgage as a charge against the owning company in a corporate registry.

Standard documentation such as bills of sale and mortgage affidavits may be used, including industry-accepted formats. Guidance on applicable mortgage legislation and accepted financial institutions can be found in the relevant supporting materials, including legal opinions and reference documents provided by Comoros Maritime.

Bareboat Charter Compliance & International Standards

MORTGAGE REGISTRATION PROCEDURE

Mortgage registration is permitted once a vessel has obtained provisional registration.

For provisionally registered vessels, the following must be submitted:

  • Confirmation from the mortgagee (e.g. bank, shipyard, finance institution) that original proof of ownership has been reviewed (such as a bill of sale or sale agreement)
  • Original or certified true copy of the Deed of Covenant or similar agreement (if applicable)
  • Confirmation of payment of the applicable registration fees

If registration is carried out directly through Comoros Maritime Head Office:

  • The mortgage will be recorded in the Registry Book
  • A Transcript of Registry may be issued upon request

If registration is conducted through an authorized Maritime Registrar or the Department of Maritime Affairs:

  • Documents must first be submitted as above
  • The original will be returned to the mortgagee, and a copy sent to Head Office
  • The mortgage will be recorded in the Registry Book
  • A Transcript of Registry may be issued and transmitted electronically
  • Original documents will subsequently be forwarded to Head Office by courier
  • Upon receipt, the original Transcript of Registry will be released to the mortgagee

Notes:

  • If the mortgagee is not a bank, a recent (within 3 months) Certificate of Good Standing or equivalent proof of existence must be provided
  • The mortgagor must be the registered shipowner or an authorized company representative
  • Where a third party signs on behalf of the owner, written authorization (e.g. Power of Attorney) must be provided

The transfer of a registered mortgage is permitted for any vessel, whether provisionally or permanently registered.

For provisionally registered vessels, the following requirements apply:

  • The new mortgagee (e.g. bank, shipyard, financial institution) must confirm that original proof of ownership has been reviewed (such as a bill of sale or sale agreement)
  • A completed Form A8 indicating both the original mortgage and the new mortgage must be submitted
  • An original or certified true copy of any new Deed of Covenant or similar agreement may be provided
  • Confirmation of payment of the applicable fees is required

If the transfer is processed through Comoros Maritime Head Office:

  • Form A8 will be endorsed with the official date and time of the mortgage transfer
  • The original endorsed Form A8 will be returned to the mortgagee, with a copy retained in the vessel’s records
  • The transfer will be recorded in the Registry Book
  • A Transcript of Registry may be issued upon request

If the transfer is processed through an authorized Maritime Registrar or the Department of Maritime Affairs:

  • Documents must first be submitted as outlined above
  • Following confirmation from the International Registrar, Form A8 will be endorsed with the date and time of transfer
  • The original will be returned to the mortgagee, and a copy sent to Head Office
  • The transfer will be recorded in the Registry Book
  • A Transcript of Registry may be issued and transmitted electronically
  • All original documents will then be forwarded to Head Office by courier

Upon receipt of the original documents, the International Registrar will release the original Transcript of Registry to the mortgagee through the Maritime Registrar or the Department of Maritime Affairs.

To discharge a registered mortgage, the following requirements must be met:

  • A completed Form A8 indicating the original mortgage registration and the discharge entry must be submitted
  • Confirmation of payment of the applicable discharge fees is required

If the discharge is processed through Comoros Maritime Head Office:

  • Form A8 will be endorsed with the official date and time of discharge
  • The original endorsed Form A8 will be returned to the mortgagee, with a copy retained in the vessel’s records
  • The discharge will be recorded in the Registry Book
  • A Transcript of Registry may be issued upon request

If the discharge is processed through an authorized Maritime Registrar or the Department of Maritime Affairs:

  • Form A8 must be submitted as above
  • Following confirmation from the International Registrar, Form A8 will be endorsed with the date and time of discharge
  • The original will be returned to the mortgagee, and a copy sent to Head Office
  • The discharge will be recorded in the Registry Book
  • A Transcript of Registry may be issued and transmitted electronically
  • A copy of the endorsed document will then be forwarded to Head Office by courier

Upon receipt of the original documentation, the International Registrar will release the original Transcript of Registry to the mortgagee through the Maritime Registrar or the Department of Maritime Affairs.

If the original Form A8 is unavailable, the Registrar may still record the discharge in the Registry Book, provided sufficient evidence is submitted confirming that the mortgage has been properly discharged. Applicants should contact the International Registrar for guidance on acceptable supporting documentation.

Service provider registration process

Steps to Register

01

Review registration requirements

Download and review the applicable registration procedures and eligibility requirements relevant to the vessel type and intended registration.

02

Complete the required application forms

Prepare and complete the prescribed application forms together with all supporting documentation required for registration.

03

Submit documentation for review

Submit the completed application and supporting documents to the Comoros Maritime Administration, an authorized maritime registrar, or an approved service provider for assessment and approval.