| * | Registration is voluntary, and only required if |
| - | the ship intends to leave Hong Kong waters; or, |
| - | a mortgage is to be registered on the ship |
| * | A vessel is registrable in Hong Kong, when |
| - | a "qualified person" either: |
| (a) | owns a majority interest in the ship; or |
| (b) | operates the ship under a demise charterparty (if registration is by virtue of (b) above, registration will cease upon termination of the demise charterparty). |
| - | not registered elsewhere |
| - | has a representative person appointed in Hong Kong in relation to the ship |
| * | A qualified person is: |
| - | an individual holding a valid HKID card and ordinarily resident in HK; or, |
| - | a Hong Kong incorporated company; or, |
| - | an overseas company with an established place of business in Hong Kong and registered under Part XI of the Hong Kong Companies Ordinance |
| Mortgage Registration |
| * | A mortgage may be created as soon as the ship is provisionally or permanently registered |
| * | The mortgage must be in the form prescribed by the Hong Kong Marine Department |
| * | An individual, joint mortgagees, local or foreign bodies corporate may be entered in the Register as mortgagees |
| * | Mortgagees need not be "qualified persons" |
| * | A mortgage is executed under seal and witnessed. In the case of a company, it should also be in accordance with its articles of association |
| Mortgage Status |
| * | Priority of the mortgage depends on date and time of presentation and acceptance for registration, not according to the date of the actual mortgage instrument |
| * | The mortgage should also be registered with the Companies Registry otherwise it would be void against a liquidator of the owning company |
| * | Mortgage remains on the Register until the mortgagee submits a specified form of memorandum of discharge and the original mortgage instrument with the Registry |
| * | The mortgage remains on the Register notwithstanding change of ownership or whether the loan under which the mortgage was created has been repaid |
| Mortgage Enforcement |
| * | Upon an event of default, the mortgagee may apply to the Hong Kong court for recourse against the mortgagor. |
