After a ship has been registered in Latvian Ship Register, a mortgage can be created thereby securing a loan or any other financial obligation. According to Maritime Code of Latvia it is not allowed to create a mortgage for vessels registered bareboat-in Mortgages shall be recorded by the Registrar in the order of time in which they are produced to him for that purpose and remains an encumbrance on the vessel until discharged by the mortgagees. Mortgages, if more than one, are registered according to the date and time they are being deposited. If there are more mortgages than one registered in respect of the same ship or share, the mortgagees shall, notwithstanding any express, implied, or constructive notice, be entitled in priority one over the other, according to the date on which each mortgage is recorded in the Register and not according to the date of each mortgage itself.
There are no restrictions for vessel’s of non-residents coming with existing mortgages, if there is mortgagee’s permission.
- Notarized Ship’s Bond (prescribed form);
- Consent of all Owners, if more than one (notary attested).
Transfer of a mortgage may be effected by completing the statutory form of transfer and submitting it to the Registrar of Latvian Ships.
In order to discharge a mortgage, a memorandum of discharge will need to be completed by mortgagee, notary attested and delivered to the Registrar of Latvian Ships.