Once a vessel is provisionally registered, registration, transfer and discharge of mortgages may be effected immediately on presentation of the relative documents to the Registrar. The 1986, 1988, 1990 and 2000 amendments introduced important safeguards in respect of registered mortgages thus making financing of Maltese ships more attractive.
A ship registered in Malta together with its equipment, machinery and other accessories, or any share therein, may be made a security by way of mortgage. A mortgage is indivisible notwithstanding the divisibility of the underlying debt which it may secure. A mortgage over a Maltese ship shall have effect vis-à-vis third parties once it is duly recorded in the register. The priority of mortgages over the said ship is determined by the date and time of their record in the register.
Maltese mortgages offer adequate protection to ship financiers for the following reasons, among others: