Mortgages

A Liberian preferred ship mortgage may, among other rights, secure debts owed to a party (including a corporation) other than the vessel owner; contingent obligations; future advances and debts; a pledge or assignment of monies or rights, either presently owing or to become due in future, including but not limited to hire, insurance and freights; revolving credit facilities, including multiple advances and repayments; amounts denominated in one or more currencies, as well as options to fund mortgage payments in one or more alternate currencies; and currency losses arising from fluctuations between designated currencies where a unit of account is altered.

Recordation gives notice to creditors, purchasers, suppliers and other parties with an interest in such transactions, and furnishes an internationally enforceable structure for the protection of those legal rights recorded with respect to a vessel of the Republic of Liberia.  Preferred status gives priority to the lender's mortgage lien over those of certain other claimants.