The registration of the mortgage in Panama Maritime Authority main office located in Panama City or in preliminarily manner before Panamanian Consulates abroad, may only be executed after recording the title of ownership at the Naval Property Registry in PMA main office in Panama or also preliminarily in a Panama Consulate abroad. The procedure is simultaneously with the recording of said Title of Ownership.
- Formalities and requirements.
Formalities to constitute / register a ship mortgage: it may be constituted in Panama Maritime Authority head office in Panama City or in a Panama Maritime Consulate abroad, in any
Language as long as it is later translated into Spanish language, the mortgage can be either drafted by a private document or a public document, and in accordance with the formalities required by the place of execution and in none contradiction with Panama maritime laws; however, once the mortgage is registered (preliminarily or permanently) it will affect third parties, this is from the date of recording at the Naval Property Registry Office in Panama City or abroad at a Panama Maritime Consulate. All documents that are to be issued abroad , must be legalized or by apostille or at a Panama Maritime Consulate abroad. Should such validation not be executed, then the validity of the mortgage documents can be jeopardized or rejected at registry process.
A Panama naval ship mortgage must always be a drawn in a bilateral manner, this is, contain a or be executed by a mortgagor and consented / accepted by the mortgagee.
- What information must be contained in a Panama Ship Naval Mortgage?
- Name and address of the mortgagor and the mortgagee.
- The exact amount, currency and the maximum amount secured.
- Payment schedule, dates on which the main capital and agreed interest must be paid (Time schedule) or precise manner to determine same, except in such events where the obligations that are guaranteed is payable on demand of future obligations or obligations subject to a precedent condition.
- Interest rate or manner of ascertaining it with accuracy.
- Name of the vessel, its full description, number of patent, call sign identification, gross and net tonnage and measurements / dimensions of the Ship; in the event the vessel is under construction and if vessel is under construction, this status must should be mentioned
- What does a naval mortgage secure?
In principle the mortgage secures the creditors liability, and among others, a mortgage will secure capital of the loan, interest to be collected , costs, collection expenses of amounts due, those sums that result from variations in the currency fluctuations, or any other sums set forth in the mortgage deed. It is a general presumption, as to the parties, that the amounts due are the one set forth in the foreclosure complaint to be, unless shown established otherwise .
It can be agreed, provisions over the interests and therefore stated in the mortgage, meaning the interest rate is that prevailing in a given market (Libor). It can be stipulated that the rate is that prevailing on the date of the mortgage or any other the parties may decide upon at the closing of the mortgage agreement
Preliminary registration proceedings.
The following documents should be submitted for preliminary registration:
- Titles of ownership. Bill of Sale, Builder’s Certificate or Judicial sale, whichever is the case.
- Existing agreements amending, modifying mortgages or assignment of mortgage liens constituted over vessels registered in the Merchant Marine Registry of Panama.