Key Features of Panamanian Ship Mortgages

Panama's ship mortgage laws offer flexibility and security, allowing shipowners to finance their vessels while ensuring strong creditor protections. Some of the notable features include:

• Broad Scope of Security – A ship mortgage can be granted to secure any lawful obligation, including future liabilities or conditions precedent.
• Multilingual Documentation – The mortgage contract can be executed in any language and must be in written form, whether as a private document or an authenticated deed.
• English-Language Registration – An extract of the mortgage contract can be registered in English, streamlining international transactions.
• Global Registration Flexibility – Mortgages may be preliminarily registered in Panama or abroad through a Panamanian Consulate with maritime authority.
• Retroactive Validity – Once the mortgage is formally registered in Panama, it takes effect retroactively from the date of preliminary registration.

Efficient & Cost-Effective Registration Process

The registration of Panamanian ship mortgages is designed to be efficient and straightforward, ensuring that shipowners and financial institutions can secure their interests without unnecessary administrative burdens.

• Legal Simplicity – The requirements for registering a mortgage are outlined in Article 1515 of the Panamanian Commercial Code, making the process clear and predictable.
• Reduced Translation Costs – Unlike other jurisdictions, Panama does not require the full translation or notarization of supporting mortgage documents, significantly reducing expenses.
• Expedited Processing – The entire mortgage registration process can be completed within one business day, allowing shipowners to quickly secure financing and ensure compliance.
• Flexible Preliminary Registration – A preliminary mortgage registration can be made at a Panamanian Consulate or the Panama Public Registry, providing temporary legal security for up to six months.

Unmatched Legal Protection for Creditors

A registered Panamanian ship mortgage provides full legal protection to lenders and financial institutions, ensuring that their interests remain secure, even in cases of vessel sale or legal disputes.

• The mortgage remains attached to the vessel, meaning that even if the ship is sold, the lender's rights remain intact.
• Mortgage holders have the right to initiate enforcement actions, including vessel arrest and judicial sale, to recover outstanding debts.
• Panama's maritime legal system prioritizes mortgage claims, granting mortgage holders preferential status over other creditors.
• Recognized by Global Financial Institutions – The preliminary registration of a ship mortgage is widely accepted by banks and financial institutions across the United States, Europe, and Asia, providing a secure foundation for ship financing transactions.

24-Hour Service for Urgent Transactions

Given the time zone differences between Panama and major international shipping hubs, Gerli & Co. offers a 24-hour service for urgent mortgage registrations and filings.

• By prior arrangement, we can coordinate after-hours registrations with the Public Registry and the Merchant Marine Office to ensure that time-sensitive transactions are completed without delay.
• Our team is available to handle mortgage filings, vessel title transfers, and financial security registrations on a priority basis, ensuring seamless transactions for our international clients.

Why Choose Gerli & Co. for Ship Mortgages in Panama?

• Expertise in Panamanian Maritime Law – Decades of experience in ship financing, vessel registration, and mortgage enforcement.
• Proven Track Record with International Lenders – Trusted by banks, financial institutions, and shipowners worldwide for secure mortgage registrations.
• Seamless Registration Process – Fast, cost-effective, and legally sound solutions for mortgage filings and ship financing transactions.
• 24/7 Availability for Global Clients – Ensuring urgent mortgage registrations can be handled at any time, from anywhere in the world.

For legal guidance and support in registering, enforcing, or structuring a ship mortgage in Panama, contact Gerli & Co. today. Our team is ready to navigate the complexities of maritime finance and provide strategic solutions tailored to your needs.