What is the necessary form, elements, and effectiveness of a mortgage contract?
In accordance with both the Chinese Maritime Code and the Chinese Guarantee Law the mortgage of a ship shall be established by a contract in writing between the mortgagor and the mortgagee (Article 13 of Chinese Maritime Code, Article 38 of Chinese Guarantee Law).
A mortgage contract shall include: (a) the categories and amount of the debts secured; (b) the time limitation for performance of the debts; (c) the mane, quantity, quality, situation, address, ownership or right to the use of the suvject matter mortgaged; (d) the scope and extent secured by the mortgaged; and (e) other items the parties consider necessary to agree.
The mortgaged contract shall be registered and a mortgage contract will be effective as from the date of registration.
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