Mortgage

A ship mortgage is a registered security interest over a vessel that lets the lender enforce against the ship if the borrower defaults, through sale or possession. It is recorded in the flag state’s register, and its priority is set by registration date, but it ranks behind maritime liens that arose before or after registration. Cross-border enforcement turns on the lex situs and on whether the financing structure uses the primary register or a bareboat second register, which affects which law governs the mortgagee’s remedies.