Is it permissible to sell a mortgaged ship in Vietnam?

Is it permissible to sell a mortgaged ship in Vietnam?

Pursuant to Article 38 of the Vietnam Maritime Code in 2015 stipulating rules of ship mortgage in Vietnam as follows:

1. Transfer of ownership of a mortgaged ship shall not be allowed, unless otherwise approved by the mortgagee.

2. The shipowner must buy insurance for mortgaged ship, unless otherwise agreed upon in the mortgage agreement.

3. If the mortgagee has transferred the whole or a part of ownership of the debt secured by a ship secured by a mortgaged ship to other person, such ship mortgage shall also be transferred in an equivalent manner.

4. One ship may be mortgaged to secure a lot of obligations if value of the mortgaged ship is greater than total value of such obligations, unless otherwise agreed.

Priority order of ship mortgages shall be determined, based on the order of registration of an equivalent ship mortgage recorded in the national register of ships of Vietnam.

5. The mortgaging of a ship owned by two or more owners must be unanimously agreed by these owners, unless otherwise agreed.

6. The ship mortgage shall be terminated under the following circumstances:

a) Obligations secured by such mortgage come to an end;

b) Such ship mortgage is cancelled or replaced by other security alternatives;

c) The mortgaged ship has been treated under laws and regulations;

d) The mortgaged ship is subject to total loss;

dd) As agreed upon by contracting parties.

7. The mortgagee shall only keep a copy of the certificate of registration of the mortgaged ship.

As regulations above, your company can sell the mortgaged ship if you have the consent of the mortgagee of the ship.

What are regulations on registration of Vietnamese ship mortgage?

Pursuant to Article 39 of the Vietnam Maritime Code in 2015 stipulating registration of Vietnamese ship mortgage as follows:

1. Registration of Vietnamese ship mortgage shall include the following basic contents:

a) Name, place of office of the mortgagee and the shipowner;

b) Name and nationality of the mortgaged ship;

c) Mortgage sum, interest rate and debt repayment due date.

2. Mortgaging of a Vietnamese ship shall become effective if such mortgaging is recorded in the national register of ships of Vietnam.

3. Information about registration of the mortgaged Vietnamese ship shall be provided for persons who request such information.

4. Persons who register the ship mortgage and those who use information about the ship mortgage shall be liable for statutory fees.

5. The Government shall provide specific provisions on registration of mortgaging of Vietnamese ship.

Best regards!