Merchant, Large Yacht and Pleasure Vessels (Part 1)
A mortgage is a special document called a deed which makes a ship (or shares) a security for the repayment of a loan (or the carrying out of any other obligation). It is by this deed that the registered owner states that the ship is to be used as security for a loan.
A mortgage may be referred to as an encumbrance. It may cover the whole ship or a certain number of shares.
All shares to be mortgaged must be owned by the person(s) who wants to mortgage them.