FAQ

Property &
Liens

Types Of Registration

Preliminary

Allows the registration of the contracts of the vessels that are part of the Panamanian Merchant Marine for a period of six months, period of time in which the interested party must notarize these documents and present them locally to the General Directorate of Public Registry of Property of Vessels for the permanent registration.

Preliminary registration can be done through the Panamanian Merchant Marine Consulates and the Economic and Commercial Offices of Panama around the world.

The document subject to preliminary registration may be sent by email through the Merchant Marine Consulates or filed locally in the General Directorate of Public Property Registry of Vessels in the official preliminary registration forms, where the relevant information for the inscription of the document must be indicated.

Procedure

Permanent

The permanent registration consists of the notarization of the documents subject to registration in Public Deed and its presentation before the General Directorate of Public Registry of Property of Vessels for the permanent registration.

The document subject to preliminary registration may be sent by email through the Merchant Marine Consulates or filed locally in the General Directorate of Public Property Registry of Vessels in the official preliminary registration forms, where the relevant information for the inscription of the document must be indicated.

Preliminary registration can be done through the Panamanian Merchant Marine Consulates and the Economic and Commercial Offices of Panama around the world.

The document subject to preliminary registration may be sent by email through the Merchant Marine Consulates or filed locally in the General Directorate of Public Property Registry of Vessels in the official preliminary registration forms, where the relevant information for the inscription of the document must be indicated.

Procedure

Vessel Ownership Titles

The ownership title ...

The ownership title must be in a private document with the signature of the grantors duly authenticated by a notary public or by a Consul of the Republic of Panama, in the exercise of notarial functions.

The ownership title of a vessel may originate from different documents such as Bill of Sale Contracts, Builder Certificates, Deletion Certificates, Judicial or Extrajudicial Sales, among the most commonly used documents.

Requirements

Preliminary Registration Form

Preferred Mortgage

The mortgage contract, granted inside or outside of Panama, may be held in any language and must be in written in a public deed or a private document. If it is celebrated by a private document, the signature of the grantors must be authenticated by a notary public or by a Consul of the Republic of Panama in the exercise of their notarial functions.

The contract of the naval mortgage may be executed in accordance with the formalities required in the country of its granting.

Our registration procedures are simple and seek to protect the interests of the vessels owners and banking institutions.

Fleet Mortgage

Registering your naval mortgage in Panama offers many advantages, among them the most evident is the great ease with which it can be constituted and registered, which makes it highly operable and comfortable.

The General Directorate of Public Registry of Property of Vessels makes the registration of naval fleet mortgages in a preliminary way through the Panamanian Merchant Marine Consulates around the world and / or permanent through Public Deed presented before their offices.

When several vessels are mortgaged to guarantee a single credit, the amount or part of the loan that each vessel must respond, can be determined. If this determination is not made, the creditor may repeat for the whole of the guaranteed sum against any of the vessels or against all of them.

Extract Of Mortgage

The legislation allows the parties to execute an “extract” and register it rather than the  entire mortgage contract. The mortgage and the extract would have to be submitted  to the Public Notary, who would then issue a notarial deed confirming the receipt of  both documents as well as the translation of the extract, which would then be  transcribed into the notarial deed for the purposes of definitive registration of the  mortgage. 

In addition, the mortgage and/or the related loan instrument, or any other document  guaranteed by the mortgage, might be accompanied by an English translation, which  will be evidenced to third parties

Ship Mortgage

In order to create a mortgage on a vessel under construction it is indispensable to have  duly registered the ownership title in the Panama Ship Registry and evidence thereof  shall be provided by means of a builder certificate setting forth the following minimum  requirements: 

  1. Name of the person for whom the vessel is being built.
  2. Registration Number (Navigation Patent) and Call Sign granted.
  3. Registered dimensions, tonnages and type of service of the vessel.
  4. Place, name and full address of the builder and the person for whom the vessel is being built. 
  5. Statement of the intention of the builder, to transfer the vessel’s ownership title to the person for whom is building for, and the acceptance of the sale.

The validity of the preliminary registration of the ownership title and the mortgage on  vessels under construction will be dated with the date and time of the annotations of  the preliminary record in the Panama Ship Registry.

Requirements

Preliminary Registration Form

Mortgage Discharge

Ship mortgages can be discharged or cancelled by registering the mortgagee’s deed  or instrument of release of mortgage. This document must be properly legalized in the  same way that the mortgage deed was. After that, the document must be forwarded to  a Panamanian lawyer for registration, after which the ship may be regarded free of  mortgages and encumbrances. 

Ship mortgage discharge can also be preliminarily registered at Panamanian Merchant  Marine Consulates for a period of six (6) months, during which time the definitive  mortgage discharge must be registered.

Requirements

Preliminary Registration Form

Ship Mortgage Modifications

All the documents that modify or amend mortgage credits may be registered before the General Directorate of Public Registry of Property of Vessels, as long as the Naval Mortgage that originates the change is duly recorded.

They are considered as documents related to the mortgage, among others the following:

 

  • Addendums
  • Amendments
  • Additions

Requirements

Preliminary Registration Form

Change Of Mortgage Creditor

All the documents, through which a change of mortgagee or mortgagor is made, must be registered in the General Directorate of the Public Registry of Property of Vessels.

These documents can be among others the following:

  • Assignment of Mortgage Credits
  • Merger of Mortgage Creditors
  • Incorporation of new Mortgage Creditor
  • Assumption of Mortgage

Requirements

Preliminary Registration Form

Agreement Between Mortgage Creditors

The agreements or agreements between mortgage creditors of the same ship may be registered with the General Directorate of the Public Registry of Property of Vessels.

These documents can be among others the following:

  • Equity Agreement
  • Coordination Agreement
  • Subordination Agreement

Requirements

Preliminary Registration Form

Financial Leasing

The contract of financial leasing of vessels, granted inside or outside of Panama, may be held in any language and must be in written in a public deed or a private document.

If it is celebrated by private document, the signature of the grantors must be authenticated by a notary public or by a Consul of the Republic of Panama in the exercise of their notarial functions.

Requirements

Preliminary Registration Form

Privileged Maritime Liens

In Panama, a ship mortgage is considered a privileged maritime lien. Article 244 of Law  55 establishes the precedence order of protected maritime liens in the Republic of  Panama. Originally, the former maritime legislation set the mortgage’s categorization in  seventh position by legal order. However, lawmakers agreed to pass Law No. 27  on October 28, 2014, revising article 244 of Law 55, elevating the ship mortgage to  fourth rank, primarily to support the growth of the Panamanian flag and to offer the  same greater priority to the mortgagees. 

  1. Acording to Panamanian Legislation the priority between ship creditor is as follow: 
  2. The Judicial Costs caused in the common interest of the maritime creditors.
  3. Expenses, compensation and assistance and rescue salaries. 
  4. Salaries, compensation and compensation due to the captain and crew members. 
  5. The Naval Mortgage.
  6. The credits in favor of the Panamanian State for taxes and fees.
  7.  Salaries and stipends due to cargo operators hired directly by the owner, operator or captain of the ship for loading or unloading it. 
  8. Compensation for damages caused by fault or negligence.
  9. The amounts due as contribution in common damages.
  10. Sums due under obligations acquired for the needs and supply of the vessel.
  11. The quantities taken to the course on the hull of the vessel and rigging for the equipment, armament and sizing, and insurance premiums. 
  12. The salaries of pilots and guardians and the expenses of conservation and custody of the vessel and his equipment. 
  13. The compensation due to the shippers and passengers due to the non-delivery of the loaded items or due to the breakdown of these, attributable to the captain of the  crew. 
  14. The price of the last purchase of the vessel and the interest owed.

Limitations To Ship Property

May be registered in the General ...

May be registered in the General Directorate of the Public Registry of Property of Vessels all the acts by which the Courts of Justice impose a restriction to the domain of the vessels that are part of the National Merchant Marine, in order to refrain from performing acts that imply the transfer, sale, alienation and / or cancellation of the Naval Registry, as well as the registry of any liens or mortgages against the vessels of the Panamanian flag.

Some of the documents by which limitations are imposed on the domain of the vessels are the following:

  • Conservative and / or General Protection Measure
  • Vessel Seizure
  • Vessel Confiscation
  • Lawsuit against the Vessel

Issuance Of Certificates Of Ownership And Encumbrances

The General Directorate ...

The General Directorate of the Public Registry of Property of Vessels issues certifications of ownership and encumbrances on the vessels that are registered in their Panamanian Naval Registry.

Certifications of property and encumbrances can be issued in Spanish or English, upon payment of the corresponding fees.

Procedure

Application Form

Authentications Of Registration Records

Authenticated Copy

Photocopy of a public deed or preliminary document issued by the General Directorate of the Public Registry of Property of Vessels, upon request by the interested party where his registration is recorded by means of a seal of faithful copy of his original.

Seal Copy

Authentication performed on a copy of the public deed issued by the corresponding notary, on notarized paper and to which the stamp with the registration data is placed, as recorded in this General Directorate of the Public Registry of Property of Vessels.

Procedure

Application Form

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