SHIP MORTGAGES
Panama ship mortgages are widely used in international financial circles and credit institutions of the world. The current regulations allow for preliminary registration to be carried out before the Public Registry office in Panama through local attorneys.
Under Panama Law, the registration of a ship mortgage requires that the mortgage be dated after the Provisional Navigation License has been issued. When a purchase money mortgage is involved, documents may have the same date.
In accordance with Article 1515 of the Commercial Code, a ship mortgage must be executed or acknowledged before a Notary Public and the signature of the Notary must be certified by a Panamanian consul.
The ship mortgage deed must contain:
- The name, civil status, occupation and domicile of the mortgagor and the mortgagee.
- The amount which the mortgage guarantees and the sum or sums to which the lien applies for the payment of costs and interest. The rate of interest must be clearly stated.
- The date of payment of the capital, the interest and any other provisions the contracting parties may desire concerning interest, insurance and the schedule of the accessories of the ship, which are covered in the mortgage.
- The name and Radio Call Letters which distinguish the ship. A complete description of the vessel, its registration data at the Public Registry Office and the number and expiration date of the Navigation Patent.
- The appraisal or price which is assigned to the ship and which would serve as the basis for an action in case that such action should become necessary.
- The proportionate value or amount assigned to each vessel in the event that there are two or more vessels covered by the same mortgage.
Registration Fees and Annual Taxes
Under the Panamanian flag, vessels are exempted from income tax on any of the activities they are engaged. The vessels must pay annual fees and taxes depending on the activity, the type of vessel and its tonnage.
Deletion from Registry
A Ship registration may be cancelled either upon request of the owner, through his legal representatives, or "Ex Officio" whenever the administration considers it necessary to the registration for some particular reason. No vessel is cancelled when having a mortgage duly registered at the Public Registry Office, unless there is consent or discharge from the mortgage holder.
Our services/Ship Registration/ Crew Endorsement
Gerli & Co. can assist you in finding the right crew for your yachts using a number of quality crew agencies. We attend all crew engagement, travel, insurance and payroll matters.
In addition, we can provide a comprehensive range of support services to crew members such as personal healthcare, accident cover and personal banking.
Civil Liability Certificate in case of Tankers
Also, any mortgage on the ship may also be registered at the same time. This provisional registration of the title and of the mortgage has the same value as permanent registration.
Types of Registration
The ship registry office has basically three types of registration that may be used to register a vessel in the Republic of Panama, to wit:
- Official Navigation License issued to a vessel duly registered in Panama.
- License issued under a Bareboat Charter Agreement.
- Special registration in case of pleasure yachts.
Bareboat Charter
Bareboat charter registration is permitted by Panama. According to our laws, a foreign vessel bareboat chartered for a period of two years, can be registered in Panama for the same period of time without losing its previous registration, and the opposite is also permissible (from Panama to the other countries). The registration is recorded into a special registration data.
