Rights Secured under the Act

An RMI Preferred Mortgage or Financing Charter may, among other rights, secure:

• debts owed to a party, including a corporation, other than the vessel owner (§ 303);
• contingent obligations (§ 303; § 309(1)(a));
• charter hire (§ 303);
• future advances, and future debts (§ 309(2));
• an agreed maximum amount even when there is no present commitment to lend (§ 309(2)), including “account current” and “ne-teito” facilities;
• a pledge or assignment of monies or rights, either presently owing or to become due in future (§ 303), including but not limited to hire, insurance and freights;
• revolving credit facilities, including multiple advances and repayments (§ 309(1));
• fees, costs, or charges incidental to the sale, operation, or charter of an RMI vessel (§ 303);
• guarantee fees (§ 303);
• amounts denominated in one or more currencies, as well as options to fund mortgage payments in one or more alternate currencies (§ 310);
• currency losses arising from fluctuations between designated currencies where a unit of account is altered (§ 310(4));
• a right arising from a contract to construct, purchase, sell, or charter a vessel (§ 309(2)(b)); and
• property other than a vessel (§§ 308(2) and 309(2)(b).

Please Note: The above list does not enumerate all mortgage or financing charter-related features of Chapter 3 of the Act.