Effect of registering security on the UK Ship Register on priority of security interests
Effect of registering security on the UK Ship Register on priority of security interests

The following Banking & Finance guidance note provides comprehensive and up to date legal information covering:

  • Effect of registering security on the UK Ship Register on priority of security interests
  • Why is it important to determine priority between competing security interests?
  • What are asset registers?
  • Registration on the UK Ship Register
  • Registration on the UK Ship Register—effect on priorities
  • Comparison between effect of registering security on the UK Ship Register and effect of registering security at Companies House
  • Comparison between effect of failure to register security on the UK Ship Register and failure to register security at Companies House

Registration can have an important effect on the priority of competing security interests.

Broadly speaking, there are two different systems for registration:

  1. registration against the asset which has been secured, and

  2. registration against the entity providing the security

This Practice Note is concerned with the first system of registration, where the asset which is the subject of the security is a ship registered in the UK. It briefly outlines the registration regime for ship mortgages before explaining the impact of registration on priority of competing security interests over ships.

For information about how registration against other assets affects priority of security interests, see Practice Notes:

  1. Effect of registering security at HM Land Registry/Land Charges Department on priority of security interests

  2. Effect of registering security on the UK Register of Aircraft Mortgages on priority of security interests, and

  3. Effect of registering security at the IP registries on priority of security interests

Most security interested created byd a company formed and registered under the Companies Act 2006 will need to be registered at Companies House in order to be effective. For information about registration at Companies House, see Practice Note: Registering security at Companies House. For information about how such registration affects priority of security interests, see Practice Note: Effect of registering security at Companies House on priority of security interests.

The rules governing priority of