BAHAMAS Law and Practice Contributed by: Richard Horton and Emma Van Wynen, Alexiou, Knowles & Co.
The Bahamas or with any corporate body estab - lished under the laws of The Bahamas. 1.6 Registration of Mortgages The BMA is the official authority responsible for main - taining the Bahamian Register of Ships, including the registration of ship mortgages, discharges and trans - fers. Ship mortgages may be registered at any of the BMA’s offices, including Nassau, London, New York, Greece, Hong Kong and Tokyo. The documentary requirements for registration of a mortgage in The Bahamas are as follows: • mortgage registration form (Form R208), duly com - pleted and notarised; • written consent from all existing mortgagees to the registration of the new or additional mortgage (if applicable); • registration fees, payable in accordance with BMA Bulletin No 81; • attestation by an authorised witness (eg, notary public) confirming the identity, capacity and author - ity of the signatory; and • supporting authority documents, where required (such as a notarised power of attorney or corporate constitutional documents). 1.7 Ship Ownership and Mortgages Registry The shipping register (including mortgage details) in The Bahamas is treated as public record and may be inspected by members of the public at the registry office during normal business hours, usually for a pre - scribed fee.
to maritime liens) and give the lender strong sale and enforcement rights. The most common Bahamian ship finance transac - tions are secured loan financings, where international lenders provide acquisition or refinancing debt to Bahamian SPVs secured by first-ranking Bahamian ship mortgages and related assignments. Also fre - quently seen are refinancings, sale-and-leaseback structures, fleet financings and (increasingly) equity or hybrid investments, all leveraging The Bahamas’ established ship registry and lender-friendly legal and tax regime. In addition to a Bahamian ship mortgage, lenders almost always require a broader security package, typically including assignments of earnings and insur - ances, share pledges over the ship-owning SPV, guar - antees, and charges over bank accounts, to secure income streams and enhance recovery prospects. 2.2 Ship Leasing Ship leasing transactions in The Bahamas have been increasing in recent years, particularly sale-and-lease - back and bareboat charter structures, as ship-owners seek alternatives to traditional bank financing. There has been a noticeable shift away from traditional bank lending towards Chinese leasing houses, private equi - ty investors and other alternative credit providers. In a lessor/lessee relationship, ownership remains with the lessor while the lessee holds only possession and use rights, whereas in a lender/borrower relationship, ownership stays with the borrower and the lender holds only a security interest. Enforcement also dif - fers as lease defaults are typically resolved through arbitration, given their contractual nature, while ship mortgages are enforced through the Bahamian courts under the Merchant Shipping Act, a process that is often slower and may involve vessel liquidation. Sale- and-leaseback transactions are common and provide a faster, cleaner alternative to traditional mortgage enforcement.
2. Ship Finance and Leasing 2.1 Ship Loan Finance
Bahamian ship financing typically uses standard international loan or equity documents, secured by a first-ranking Bahamian statutory ship mortgage. Debt financing is protected by the mortgage plus assign - ments of earnings/insurances and share pledges, while equity investors rely mainly on contractual con - trol and economic rights rather than vessel security. Ship mortgages under Bahamian law are simple, reg - istration-based, ranked by time of registration (subject
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