CYPRUS Law and Practice Contributed by: Kyriacos Scordis and Sofi Mylona, SCORDIS PAPAPETROU & Co LLC
• Non-eligibility for registration: (a) ships banned by port state control authori - ties from entering ports in states party to any memorandum of understanding (MoU) on port state control (eg, Paris, Tokyo or Mediterranean MoUs, or the US Coast Guard); (b) ships that have been detained on port state control grounds three or more times in the past two years by signatories to the Paris, Tokyo or Mediterranean MoUs, or the US Coast Guard; and (c) ships built exclusively for inland navigation or intended for such use (eg, in rivers, lakes or canals). • Age limits and registration conditions. • Inspection requirements: (a) the entry inspection and any additional inspec - tions are conducted by surveyors of the SDM at the expense of the registered owner or bare - boat charterer; and (b) the entry inspection must occur within three months of provisional or parallel-in registration, or within one month of permanent registration. 1.5 Temporary Registration of Vessels In Cyprus, the following three types of registration are allowed: • provisional; • permanent; and • bareboat-charter registration (parallel). Provisional registration of a ship may remain in force for six months. Thereafter, it may be renewed once, for a further three-month period. Dual registration and flagging out are permissible in Cyprus. The basis of such types of registration is the bareboat-chartering of a ship by the ship-owner to the charterer on the condition that the respective laws of the underlying registry and of the bareboat registry explicitly permit dual registration and contain preventative covenants whereby matters relating to ownership and to mortgages over the ship shall be exclusively governed by the laws of the ship’s underly - ing register. In addition, the bareboat charterer must undertake to maintain the same safety standards on the ship, even if the chosen bareboat register applies
safety standards that are lower than those applied by the ship’s underlying register. 1.6 Registration of Mortgages The Register of Mortgages is entrusted to the Regis - trar, and contains a description of: • the vessel; • the owner of the vessel; • the particulars of the mortgages registered on the vessel; and • the registered mortgagees. A mortgage against a ship can be registered at any time after the completion of the vessel’s registration under the Cyprus flag. Once created, a mortgage must be deposited with the Registrar or with a con - sular officer following instructions of the Registrar. Whether deposited with the Registrar or with a con - sular officer, the mortgage is recorded in the Register as from the date and time of its deposit, and remains an encumbrance on the ship until it is discharged by the mortgagees. A Cyprus mortgage consists of a statutory mortgage and collateral deed of covenants (the “Mortgage”). The documentary requirements for the registration of a Mortgage on a Cyprus ship are: • a written application by a local lawyer; • resolutions of directors, on behalf of the ship- owners; • a duly executed power of attorney, on behalf of the • a Certificate of Directors and Secretary (if the ship- owner is a Cyprus-registered company) or a duly executed Incumbency Certificate (if the ship-owner is a foreign entity). ship-owners and the mortgagee; • the duly executed Mortgage; and 1.7 Ship Ownership and Mortgages Registry Depending on the SDM’s policies and facilities at the relevant time, access to ship ownership and mortgage details may be available through the following. • In-person visits: individuals may be able to visit the SDM in person for inspection. However, while own -
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