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October 29, 2010

Amendments of the Commercial Shipping Code

The latest amendments of the Commercial Shipping Code were published in today’s issue of the State Gazette. Most of the new provisions concern ship mortgages. The amendments also introduce a single document ship registration system, as well as new sailor staffing opportunities.

The provisions on ship mortgages are broadened and detailed. Some of the new provisions include:

  • A ship mortgage now covers all receivables stipulated in the mortgage agreement (compared to the currently applicable 1-year limitation on coverage of interest by the mortgage).
  • It is now explicitly provided that mortgages do not cover ship owner's receivable on the rent of a ship.
  • Constructional modifications of a mortgaged ship can now be made only with the written consent of the mortgage holder.
  • The mortgagor is now obliged to maintain the ship’s class and documentation, as well as a marine insurance on the ship.
  • Upon default of the mortgagor, the mortgagee is entitled to sell the ship, or, if stipulated in the mortgage agreement, let the ship or entrust it to a manager, etc.
The existing two registration documents (nationality act and sailing permit) are now replaced by a single registration document – a registration certificate.

25% of the staff of ships which sail under Bulgarian flag must now be Bulgarian. The old provisions of the Code required Bulgarian-only staffing.




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