Liberian registry: amendments to the mortgage recordation
The Liberian International Ship & Corporate Registry (LISCR) released a series of new laws and procedural improvements effective as of August 9, 2022. These amendments to the Liberian maritime law further streamline the mortgage recordation process and continue to make the process user-friendly while reducing costs and maintaining the full integrity of the process.
In order to address commonly asked questions, Humera Ahmed, Vice President of Legal Relations and Business Development – Americas, LISCR, walks through the three major noteworthy amendments in this short three-minute video posted to our YouTube channel.
In summary, the amendments provide that Liberia now accepts the electronic filing of mortgage instruments. In addition, the amendments clarify that mortgage debt documents, such as a loan agreement or a hedge agreement, do not need to be provided or recorded together with the mortgage instrument. These amendments also make it clear that most future modifications to the underlying debt, including a change in interest rate or payment terms, do not require the filing of a mortgage amendment.
LISCR has long led the way with technological advancements, going back to being the first ship registry to allow electronic certificates aboard its vessels and implementation of remote ship closings. The acceptance of the electronic filling of mortgages is the next step in the continuous enhancement of all services offered by Liberia. The amendments also put to rest the debate among practitioners as to whether to annex any copies or summaries of the underlying obligations to a Liberian mortgage, and provides clarity to practitioners as to what modifications to the underlying obligations will require the filing of a mortgage amendment.
22, January