Ship Mortgage Decree Outline(R. Solis)I. Brief BackgroundTitle: The Ship Mortgage Decree of 1978

II. Purposes of PD 1521

The purpose of PD 1521 are to accelerate the growth and development of the shipping industry in the Philippines and to finance the acquisition, construction, purchase or initial operations of the vesselsIII. Salient Features of PD 1521

PD 1521 recognizes the creation of preferred mortgage that must be satisfied prior to all other claims and it allows for the arrest of the vessel which in effect treats the vessel itself as a defendant in an action

IV. Preferred Mortgage Lien and its Requisites

A preferred mortgage lien is one constituted for the financing of the acquisition, purchase, construction, and initial

A. Recorded in the MARINAB. Affidavit of Good Faith

C. Mortgage foes not stipulate waiver of preferred status

D. Valid Waiver

E. Mortgage includes whole vessel of domestic ownership

V. Vessel of Foreign Ownership: When RecognizedVI. Claims Preferred Over a Preferred Mortgage LienA. Taxes

B. Crews Wages

C. General Average

D. Salvage

E. Prior Maritime Liens

F. Damages Arising from Tort

G. Prior Preferred Mortgage Lien