MARSHALL ISLANDS Trends and Developments Contributed by: Brad L. Berman, Berman Legal LLC
Section 309 This amendment clarifies how to treat advances or other value provided in accordance with an agree - ment. This means that, once a mortgage has been executed and registered by a shipowner, it is regard - ed as validly securing the loan amount stated in the mortgage, even when in reality, the loan has not been disbursed by the lender. Section 314 This statutory amendment eliminated the exist - ing law’s requirement to place a certified copy of a preferred mortgage instrument (Mortgages, Amend - ments, Assignments, Subordination Agreements, etc) on board the vessel. It is sufficient that a Notice of the Mortgage be posted on the vessel. Industry has accepted that this revision is in line with the wider movement in the maritime industry to streamline and digitise vessel documentation processes. Summary These changes demonstrate the RMI’s dedication to adopting new technologies and keeping up with global maritime standards. Digital signature rules, faster documentation procedures, and increased regulatory authority for the RMI Marine Administra - tor in instances of illicit activity are all examples of the forward-thinking approach to developing a robust and adaptable maritime legal system. The modifica - tions not only show how the RMI’s maritime laws have evolved globally, but they also present the Marshall Islands as a leader in responding to the ever-changing needs of the maritime sector.
due to a wide range of situations, such as economic sanctions, sub-standard shipping practices or failure to comply with the requirements of the international maritime conventions. Section 306 The amended language removes the requirement to attach a copy to the Bill of Sale to the Certificate of Registry in connection with a vessel deletion from the MI ship registry and transfer to another ship regis - try administration. This amendment is in line with the amendments to Section 225 of the RMI Maritime Act; for reference, below is the old provision in Section 225: “Whenever a documented vessel is sold or transferred wholly or partly without change of flag, or is altered in form or burden, by being lengthened or built upon, or from one denomination to another, by the mode or method of rigging or fitting, she shall be documented anew. Every such sale or transfer shall be evidenced by a written instrument in the nature of a bill of sale. Otherwise the vessel shall not be documented anew...” Section 307 The Maritime Act was amended to clarify what may constitute written proof or evidence of the amounts and dates of any documents or evidence of mort - gage debt to be submitted with or included in vessel mortgages, among other amendments affecting ves - sel registration and operation. The amendment states that such requirement may be satisfied by attaching to the mortgage the documents evidencing such debt, either in whole or in part and either with or without redactions, or by simply including a description of the debt terms (including the total amount) directly in the mortgage.
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