Recent changes make MAR's mortgage regime more competitive

Funchal, 9th January 2009 – Decree-Law n.º 9/2009, published on the 7th of January, changes the graduation scale of claims and liens on vessels, updating the Portuguese legislation.

Portugal has remained until now a party to the International Convention for the Unification of the Rules Concerning the Privileges and Maritime Mortgages, of the 10th of April 1926, which meant that financing entities, such as banks and leasing entities, were not well placed in the graduation scale of claims and liens on vessels.

With the revision of the legislation concerning this matter, namely article n.º 578 of the Portuguese Commercial Code, loans granted through mortgages and seizures on vessels are now placed in third place, following the judicial costs and expenses incurred on behalf of creditors and the wages due for salvation and assistance.

As such, the International Shipping Register of Madeira – MAR has reinforced its legal and regulatory framework, strengthening its competitiveness at the international level.