A mortgage is an instrument created to secure the mortgagor’s (owner of a Hong Kong registered ship) obligation owing to the mortgagee of the ship. Once a ship is registered, whether on provisional registration or full registration, a mortgage may be created. Registration of a mortgage must be in the specified form, “RS/M1” in A3 size.
Mortgages rank in priority according to the date and time when they are presented and accepted for registration, and not according to the date of the actual mortgage instrument.
Mortgages may be transferred to any of the classes of persons entitled to be recorded as mortgagees: that is, individuals, a number of persons acting jointly, and bodies corporate. The transfer is effected by the mortgagee executing the instrument in the specified form, “RS/M3” or as near thereto as circumstances permit. For a transfer by joint mortgagees all the parties must sign the instrument; and a transfer by a body corporate must be executed under its common seal.
Partial dealings in mortgages are not allowed and only the whole interest in a mortgage can be transferred.
A mortgage will remain on the Register until the Registrar is told that it has been discharged. A mortgagee should submit a memorandum of discharge of mortgage with is specified format, “RS/M2” together with the original ship mortgage. A memorandum of discharge by a body corporate must be executed under its seal. The discharge with the date and time will then be entered on the Register.
Where the registration of a ship is closed under the Ordinance, the closure shall not affect any existing entry on the register so far as the entry relates to any undischarged registered mortgage of that ship or of any share in it.
A ship with registered mortgage(s) can be closed with the written consent on specified form, “RS/C4” from each of the registered mortgagee to the owner’s voluntary closure of a ship’s registration.
Forms for “Registration of Mortgages” can be downloaded at HKMD web site: https://www.mardep.gov.hk/en/forms/home.html#register
For more details, please refer to “Ship Registration Guidelines” (https://www.mardep.gov.hk/en/pub_services/pdf/sr_guide.pdf)