A vessel under the Palauan flag can be used as security for the repayment of a loan or discharge of other obligations by way of mortgage filed in the standard form provided by the PISR. A valid mortgage, which includes the whole of any vessel, has preferred status from its date of recordation.
Once a vessel is registered, registration of mortgage may be effected immediately on presentation of the relative documents.
A preferred mortgage may secure all debts or obligations arising, or that may arise between the parties, as a result of a transaction which is subject to the provisions of a preferred mortgage, whether such obligations are present, future, actual or contingent and the preferred mortgage shall also set forth, in addition to the other terms and conditions, the maximum amount and the maturity date of the facility, or a statement of the date of termination of the facility, if this is different to the maturity date.
Recordation of the mortgage date and hour at which PISR proceeds with recordation is the date and hour at the location of the relevant head office of the PISR at which such recordation takes place and is effected.
A certified extract of a preferred mortgage, recorded with PISR, is acceptable as evidence of the recordation of a mortgage, including also the date of recordation thereof. In this regard, a certificate of ownership and encumbrance shall also, upon request, be issued evidencing all recorded mortgages, encumbrances and related instruments with respect to the vessel.
Please contact PISR either by email email@example.com or phone +302104293500 and our qualified staff will be able to assist you about documentation and list of requirements for the recordation of mortgage.