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Article

Effects of Maritime Mortgages on Creditors and Debtors under the UAE Law

Aug 30, 2023

DOI:

Published in: Lex Portus

Publisher: National University Odessa Law Academy

This article aims to investigate the definition of mortgage and will clarify and address the Importance of mortgage and the application of maritime mortgage (vessel and ancillaries thereof). It is known that contracts affect the parties thereto and third parties. Therefore, we explored the effects of the mortgage contract on the creditor (mortgagee) in terms of the assignment of the mortgage right to a third party, the method of enforcement on the mortgaged vessel, and his right in priority and tracking. Moreover, the article examines the effects of the maritime mortgage on the debtor (mortgagor). We also explained that the debtor (mortgagor) is the principal party in the mortgage contract, amongst the effects thereof, to manage the mortgaged vessel with ordinary diligence, exert the effort required to maintain it, and clarify the disposals, which may be effected on the mortgaged vessel. We concluded that the maritime mortgage rules outlined in the UAE Maritime Commercial Law (26) of 1981 must be updated to promote foreign investment in the State, particularly since the said law was enacted in 1981 and various changes have taken place from that time in the field of maritime commerce.

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