What is the scope of the International Convention on Maritime Liens and Mortgages?

The International Convention on Maritime Liens and Mortgages, also known as the ‘Lien-Mortgage Convention,’ is an international agreement intended to give financial security to creditors in the maritime industry. The Convention applies to ships registered at any port in a contracting state, and to ships flying the flag of a contracting state. The Convention scope encompasses maritime liens. These are special rights or privileges held by creditors against a ship or its cargo, and they are imposed by law to protect creditors or persons seeking to enforce a claim. Examples of the kinds of claims that can give rise to a maritime lien include shipbuilding and repair costs, crew wages, towage and pilotage fees, and salvage awards. The scope of the Convention also covers the issue of mortgages. A maritime mortgage is like a loan secured against a ship, where the ship itself serves as collateral. Mortgagees can use maritime mortgages to help finance the purchase of a new vessel, or to raise money for repairs, or refitting. Under the Convention, these types of mortgages are enforceable against ship owners in any contracting state. The Convention therefore provides creditors with a means of protecting their rights and enables them to enforce their claims in the event of a ship owner’s default. The Convention also provides a uniform set of rules for the creation and enforcement of liens and mortgages, which is especially important in an international context. The Convention is in force in Florida and in many other countries around the world.

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What is the scope of the International Convention on Maritime Liens and Mortgages?

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