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Liens (Maritime Lien (In UK maritime lien is applied for through the…
Liens
Maritime Lien
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As the lien is on the property it stays with the ship regardless of changes in ownership. So a case of buyer beware and check for outstanding debts such as this in the purchase process.
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Debts are settled and paid out in a strict hierarchy that begins with crew/master wages and monies owed, court costs etc etc
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Ultimately failure to settle a maritime lien will result in court selling the vessel at public auction as this is the fastest way to generate the cash required to settle debts.
The court is only interested in raising sufficient cash by the sale to cover all costs and debts. So could be sold well below market value. Hence a real incentive for owner to now settle debts before it reaches this point.
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Ship Repair Lien
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Similar example might be a garage retaining a car as security until the repair bill is settled for parts fitted and labour costs.
International Convention Brussels 1952: Purpose to make ship arrests worldwide easier by recognizing each others Maritime Lien warrants
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Over 40 countries have now ratified so not yet a worldwide mechanism to recognize maritime liens of other states
A Maritime Lien issued in one country is recognized and enforcable in another making arrest of ships easier.
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