Registration of mortgages and rights of use over ships


Ship on sea

How to register mortgages and rights of use over ships.

Mortgages and restrictions

Mortgages can be registered in the Register of Shipping if the owner wants to provide the ship as security.

The following types of charge instruments can be registered in the Danish International Register of Shipping (DIS) and the Register of Shipping (DAS). Mortgages cannot be registered in the Boat Register (FTJ).

You must use the forms issued by the Register of Shipping.

In respect of new mortgages, you must send the original document to the Register of Shipping with consecutive page numbers and signed by the issuer .

To register changes to a mortgage document already registered, you must submit a mortgage addendum. The addendum must be physically attached (so that it cannot fall off) to the original mortgage document.

  • The Register of Shipping has prepared a standard addendum that you can use.

If you want to remove a registered mortgage from the register, you can make an endorsement on the last page of the mortgage already registered (instead of sending an addendum) or you can attach an addendum.

The same applies to addenda to mortgages already registered; depending on what is otherwise registered in the ship, signatures may be required from the creditor and the party entitled to bring an action in respect of restrictions.

Who can and must sign

  • Private individuals and one-man shipping companies: The individual person
  • Companies: The authorised officers as set out in the signing authority rules
  • Jointly owned shipping companies: All joint owners must sign, unless the mortgage only relates to the share of one joint owner of the ship
  • Associations, limited partnerships, partnerships or the like: The authorised signatories according to the articles of association
  • Municipal authorities: The mayor or according to the mayor’s instructions
  • Central government: An official in the area of relevance to the registration.

In all cases, signatures on new mortgages must be certified by attesting witnesses.

If the mortgage is to be signed by others than any of the above-mentioned persons, a power of attorney is required.

Remember that the original power of attorney must be sent to the Register of Shipping together with the mortgage document.

Changes to a registered mortgage

If you want to change a registered mortgage, you must prepare and attach one or more extra pages (an addendum) to the mortgage. You can use our standard addendum, complete it and attach it to the original mortgage and send it to the Register of Shipping. The standard addendum shows the layout of an addendum, who must sign and whether attesting witnesses are required. The standard addendum also shows examples of typical changes to mortgages.

Depending on the contents, the addendum must be signed by the person(s) authorised to sign on behalf of the mortgagor, and possibly also by the creditor and/or the party entitled to bring an action, for example in case of addenda concerning an increase or reduction of the mortgage amount or a change of creditor or debtor.

The addendum must be signed by attesting witnesses for the signatories.

Removal of mortgages

For a mortgage to be removed from the register, the mortgage must be provided with an endorsement or an addendum requesting the removal of the mortgage.

Please note that an indemnity bond may be removed from the register on presentation of a notice of discharge; this means that you do not have to submit the original indemnity bond. If the indemnity bond authorises an agent or representative to hold and exercise creditor rights, the full indemnity bond must be presented, including the authorisation.

Furthermore, indemnity bonds endorsed to the effect that they are negotiable instruments (‘to order’) may not be removed from the register on the basis of a notice of discharge.

The addendum must be signed by:

  • Owner’s mortgages: The issuer or bank authorised to sign an endorsement for removal
  • Mortgages: The creditor
  • Indemnity bonds: The creditor
  • No attesting witnesses are required for the addendum/endorsement

Removal of mortgages in special situations

You can have a mortgage removed from the Register of Shipping following a judicial sale of a ship or cancellation of a mortgage.

Restrictions

It is possible to register an interest in a ship that restricts the owner’s ability (restriction) to act in one or more specified ways, for example a prohibition to sell or a covenant against encumbrances.

The Register of Shipping has no standard form for restrictions. You must execute an original document describing the restriction.

For a restriction to be registered, its contents must involve stipulating, creating, amending or cancelling an interest or a right which restricts the owner’s ability to deal with the ship. The document must clearly identify the ship(s) against which the restriction is to be registered. It must specify the party entitled to bring an action according to the restriction. The document must also specify any time limitation of the restriction.

The restriction document must be signed by the owner of the ship or a person authorised to sign, see more under ‘Power of attorney’. The signature(s) must be certified by attesting witnesses.

Removal of a restriction

A restriction may be removed by requesting deletion in the original document specifying the restriction or in an original, separate declaration (a new letter). The party entitled to bring an action according to the restriction must sign the document. No attesting witnesses are required.

Cancellation of mortgages which are negotiable instruments

In order to deal with a mortgage which is a negotiable instrument, you must submit the original document.

Mortgages which are negotiable instruments include owner’s mortgages, but not indemnity bonds.

If a mortgage which is a negotiable instrument is lost, you can lodge an application for cancellation of the mortgage with the district court. A court fee is charged, and the cancellation process typically takes 3-12 months before the court renders its judgment ordering the cancellation of the mortgage.

Cancellation means that the physical document is declared “null and void”.

The mortgage can subsequently be removed from the Register of Shipping or a ‘replacement’ mortgage may be executed for your disposal.

You can read more about cancellation at Domstol.dk.

To apply for mortgage cancellation, you must submit a copy of the mortgage, as well as other documents, to the court. You can order a copy by writing to srg@dma.dk.

A transcript costs DKK 175 to be paid to the account of the Danish Maritime Authority:

Danske Bank
sort code 0216
account no. 4069 0316 25
IBAN: DK8402164069031625
SWIFT: DABADKKK
stating distinctive number or letters/Boat Register (FTJ) no . and the document type ‘mortgage’.

When an application for cancellation has been lodged with the district court

You must inform the Register of Shipping that you have lodged an application for cancellation. This is done by sending an original certified transcript of the court records to the Register or arranging for the court to send a transcript to the Register via e-Boks. The Register will then make an entry of the application for mortgage cancellation in the ship record.

The entry has the additional effect that if the mortgage and ship are removed from the Register when a judgment ordering cancellation has been rendered, your duty to pay the annual fee will cease as from the date when the Register received the notification that the application for mortgage cancellation had been lodged.

When a judgment ordering cancellation has been rendered

When the court has rendered its judgment, you can either:

  • remove the lost mortgage from the Register by sending us the judgment provided with the court’s note stating that the period allowed for appeal has expired. The original judgment must be sent either by post or electronically via the court’s e-Boks. The judgment must specify the mortgage concerned and that the mortgage is declared null and void pursuant to section 2(2) of the Danish Act on Cancellation;
  • apply for registration of changes to the mortgage in the Register of Shipping if you have requested the court to issue a replacement mortgage.

The judgment for cancellation must explicitly decide on the reissue of the lost mortgage. The transcript of the judgment must carry a note stating that the period allowed for appeal has expired. Also in this situation, you must send an original, certified transcript of the court records by post or electronically via the court’s e-Boks to the Register of Shipping.

Please note that when all mortgage interests in a pleasure craft of less than 20 GT are removed, the ship will be deleted from the Register of Shipping as unencumbered pleasure craft of less than 20 GT can no longer be registered in the Register of Shipping after 1 March 2018.

Judicial sale of a ship

Notice of judicial sale

  • When a ship is subject to judicial sale, the Register of Shipping will be notified by the court. The court sends a transcript of the notice of judicial sale to the Register of Shipping, which then enters the information about the notice in the ship record.

Purchase of ship at judicial sale

  • If you purchase a ship at a judicial sale, the court will issue a judicial bill of sale. When you submit the original bill of sale to the Register of Shipping, the transfer of ownership will be recorded. If you are not already registered as owner of a ship in the Register of Shipping, you must also send a company application form – Find the relevant company application form (R forms) under ‘Forms’.
You are required to report a transfer of ownership for all ships registered in a ship register:
  • All ships used for commercial purposes must be registered in a Danish ship register
  • All pleasure craft of 20 GT or more must be registered in a Danish ship register

Removing a mortgage

Mortgage interests in a ship purchased at a judicial sale may be removed from the Register of Shipping on request by you or the party who applied for the judicial sale.

In order for mortgage interests to be removed, a request for removal must be sent to the Register of Shipping. The request must be sent by post.

You must either:

  • enclose the original transcript of the court records for the judicial sale with a note stating that the period allowed for appeal has expired; or
  • submit the original judicial bill of sale including an addendum (a page attached to the bill of sale) requesting the removal of mortgage interests. The request, or the addendum, must list the interests to be removed.

When all mortgage interests in a pleasure craft of less than 20 GT are removed, the ship will be deleted from the Register of Shipping. Unencumbered pleasure craft of less than 20 GT cannot be registered in the Register of Shipping following a legislative amendment on 1 March 2018.

Execution

If you have debts that you cannot pay, the creditor may – at an enforcement court hearing – levy execution against your assets, including your ship registered in a Danish ship register. As a result of the execution, the creditor may apply for a judicial sale of the ship. Upon registration, a further legal effect of the execution is that you can no longer deal with the ship, for example by selling it, without the execution creditor’s consent.

Registration of execution

In order for the Register of Shipping to register the execution, an original transcript of the enforcement court records must be submitted or sent directly via the court’s e-Boks. It is important that the enforcement court transcript specifies the ship against which execution is levied, the names of the creditor and the debtor, and the amount for which execution is levied. The following particulars are sufficient: the creditor’s name; the owner’s name; the amount for which execution is levied; the ship’s name, port of registry and distinctive number or letters. 

Removal of execution

The creditor may remove an execution from the Register based on a notice of discharge, meaning that the Register of Shipping only needs to receive a letter from the creditor requesting that the execution be removed from the Register of Shipping. The letter must state the ship’s distinctive number or letters and the amount for which execution was levied, and the letter must be signed by the creditor. If the creditor is a company, the letter must be signed by the authorised officers of the company.

Removal of execution after judicial sale

Following the issue of a judicial bill of sale, the purchaser of a ship sold by judicial sale may request the Register of Shipping to remove from the Register any execution (or other encumbrances) not satisfied at the judicial sale. This requires, however, that it is stated in the order for the judicial sale that any unsatisfied interests will be extinguished at the judicial sale. The new owner of the ship may request the removal by letter to the Register of Shipping. Where the request for removal from the register refers to several levies of execution (or other encumbrances), each of them must be stated explicitly.

Removal of execution after bankruptcy

In the case of bankruptcy, the trustee may request removal of execution levied less than three months before the filing date. The Register of Shipping must receive an original court transcript or a transcript sent via the court’s e-Boks.

 Contact

Contact

Danish Ship Register
Skibsregistret
+45 72 19 60 00