We have recently been involved in the registration of a ships mortgage over a vessel registered in the Cook Islands.  The process involves preparing the mortgage which, in contrast to the UK, doesn’t have a statutory form required, before submitting it along with Cook Islands Shipping Registry covering forms 11 and 18 which require to be signed by both the mortgagee and mortgagor.

In the UK, the Deed of Covenants usually accompanies a Ships Mortgage and whilst the Mortgage would be registered at the Shipping Registry in Cardiff and at Companies House (if the borrower is a corporate body), the Deed of Covenants is only registered with Companies House.  As the Cook Islands Registry operates differently from the UK, to ensure that the Deed of Covenants is given effect to on the occurrence of a default, it is necessary to draft the Cook Islands mortgage and relevant forms so that they refer to the provisions of the Deed of Covenant to ensure that both will have effect on enforcement.