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Ship mortgages

Read how to register, discharge and alter a mortgage. Also read how to apply for a variation of priority and register the death of a mortgagee.

Mortgages can only be registered if the ship is registered in Part A, under the Ship Registration Act 1992.

Registering a mortgage

Discharging a mortgage

Variation of priority of a mortgage

Alteration of terms of a mortgage

Registering the death of a joint mortgagee

Registering the death of a sole mortgagee

Registering a mortgage

A person wanting to register a mortgage on a ship needs to send Maritime New Zealand’s Registrar of Ships the following:

• Mortgage (to secure account current) form (form SR16) – two originals, OR
• Mortgage (to secure principal sum and interest) form  (form SR17) – two originals
• a fee of NZ$171.00

Mortgage (to secure account current) (form SR16) [PDF: 186Kb, 6 pages]
Mortgage (to secure principal sum and interest) (form SR 17) [PDF: 66Kb, 5 pages]

Mortgages are registered in the order in which they are received by the registrar. The approximate processing time is five working days from receipt of the correctly completed documents AND payment of the fee.

Discharging a mortgage

A person wanting to discharge a mortgage on a ship needs to send Maritime New Zealand’s Registrar of Ships the following:

• the original registered mortgage (the one endorsed by Maritime New Zealand’s Registrar of Ships) with the discharge of mortgage section completed in full and executed by the mortgagee
• a fee of NZ$117.00.

If the discharge is executed by an attorney for the mortgagee, a certified copy of the power of attorney and a certificate of non-revocation of power of attorney must also be supplied to the registrar.

Procedure to discharge a mortgage where the original mortgage is lost

A person wanting to discharge a mortgage on a ship in this situation needs to send Maritime New Zealand’s Registrar of Ships the following:

• the statutory declaration of loss made by the mortgagee, giving full details of the circumstances of the loss of the original mortgage
• a fee of NZ$117.00.

Notes about completing the statutory declaration of loss

There is no specific format for the statutory declaration of loss except that it must comply with the requirements of the Oaths and Declarations Act 1957.

Oaths and Declarations Act 1957 [New Zealand Parliamentary Counsel Office]

If the mortgagee is a company, the person making the declaration must state his or her position within the company and that he or she is authorised to make the declaration on behalf of the company.

The declaration must include

• sufficient information to properly identify the ship and the mortgage
• details of the circumstances of the loss of the original mortgage
• confirmation that all monies owing under the mortgage have been repaid.

A separate form of discharge of mortgage is not required.

A suggested heading for the declaration of loss is as follows:

IN THE MATTER OF the Ship Registration Act 1992 AND IN THE MATTER OF Mortgage "........." [assigned mortgage letter] dated ..........and registered on .......... against the ship "........." [ship's name] having the official number ........... BETWEEN ......... as mortgagor AND .......... as mortgagee

Variation of priority of a mortgage

A person wanting to vary the priority of a mortgage on a ship needs to send Maritime New Zealand’s Registrar of Ships the following:

• a Variation of Priority of Mortgages (form SR18) – two originals
• a fee of NZ$171.00.

Variation of Priority of Mortgages (form SR18) [PDF: 128Kb, 3 pages]

Transactions are registered in the order in which they are received by the registrar. The approximate processing time is five working days from receipt of the correctly completed documents AND payment of the fee.

Alter the terms of a mortgage

A person wanting to alter the terms of a mortgage on a ship needs to send Maritime New Zealand’s Registrar of Ships the following:

• an Alteration of Terms of Mortgage by Endorsement (form SR19) – two originals
• a fee of NZ$171.00.

Alteration of Terms of Mortgage by Endorsement (form SR19) [PDF: 192Kb, 3 pages]

Transactions are registered in the order in which they are received by the registrar. The approximate processing time is five working days from receipt of the correctly completed documents and payment of the fee.

Registering the death of a joint mortgagee

Where a joint mortgagee of a registered mortgage dies, ownership passes to the remaining joint mortgagee(s) by operation of law. The transmission must be registered before the surviving joint mortgagee(s) can deal with the mortgage, eg transfer or discharge it.

A person wanting to register the death of a joint mortgagee on a ship needs to send Maritime New Zealand’s Registrar of Ships the following:

• a Declaration of Transmission(form SR 13) completed by the surviving joint mortgagee/s
• a Declaration of Identity (form SR29) made by a person well acquainted with the deceased, who must not be the joint mortgagee(s) to whom the mortgage is to be transmitted
• a certified copy of the deceased’s death certificate
• a fee of NZ$176.00.

Declaration of Transmission (form SR13) [PDF: 188Kb, 5 pages]
Declaration of Identity (form SR29) [PDF: 96Kb, 1 page]

Transactions are registered in the order in which they are received by the registrar. The approximate processing time is five working days from receipt of the correctly completed documents AND payment of the fee.

Registering the death of a sole mortgagee

Where the sole mortgagee of a registered mortgage dies, ownership passes by transmission to the legal personal representative(s) of the deceased, ie to the trustees of the deceased's estate. The transmission must be registered before the legal personal representative(s) can deal with the mortgage. For example, before they can transfer or discharge the mortgage.

A person wanting to register the death of a sole mortgagee on a ship needs to send Maritime New Zealand’s Registrar of Ships the following:

• a Declaration of Transmission (form SR13) made by the legal personal representative/s to whom the mortgage is to be transmitted
• a certified copy of probate or letters of administration
• a fee of NZ$176.00.

Declaration of Transmission (form SR13) [PDF: 188Kb, 5 pages]

Transactions are registered in the order in which they are received by the registrar. The approximate processing time is five working days from receipt of the correctly completed documents and payment of the fee.

Other forms of transmission by operation of law

For details of other forms of transmission by operation of law, eg to the Crown, Public Trustee or by Court Order, contact the registrar.

Contact Maritime New Zealand’s Registrar of Ships