Canary Islands (Special Register for Spain)

To be fully effective in administrative terms, the Merchant Navy Office or delegate authority at provincial level must be informed of the creation, alteration or discharge of charges, encumbrances and mortgages.
Mortgages on vessels are governed by the Decree of 28th July 1989 and the Mercantile Register Regulations of 1956 (arts. 145-190) and 1996 (DT13). Mortgages on ships must be in writing, and can be in the form of a public deed, a document signed by a broker or a simple private document. However, if granted to secure a current account or bearer certificates, the mortgage must be granted in a public deed. Mortgages must be entered on the Mercantile Register of the province in which the vessel is registered. Registered mortgages confer on the mortgagee all rights inherent in this type of security, such as preference over ordinary creditors of the mortgagor, and the right to follow the mortgaged property in order to obtain repayment of the credit notwithstanding a change of ownership. However, some creditors will have preference over the mortgagee: for example the State, provincial or municipal authorities and creditors for pilotage and port fees and for unpaid wages. The limitation period for an action to request the sale of the mortgaged vessel is ten years. In principle, mortgages of ships granted in foreign countries should be formalized before a Spanish consular official. However, the Mercantile Register Regulations 1956 acknowledge registration of mortgages granted before the competent foreign authorities in accordance with the legislation of the foreign country.