Section 6. TRANSFER OF OWNERSHIP AND MORTGAGE OF SEAGOING VESSELS

Article 32.- Transfer of ownership of seagoing vessels
1. The transfer of ownership of seagoing vessels must be established in writing according to the provisions of Vietnamese law or the law of the country where the transfer is effected.
2. The transfer of ownership of Vietnamese seagoing vessels shall be effective after it is entered into the Vietnam National Register of Ships.
3. After the completion of procedures for transfer of ownership, the whole seagoing vessel and its appurtenances shall come under the ownership of the transferee, unless otherwise agreed upon by the involved parties.
Appurtenances of a seagoing vessel include objects, facilities and equipment on board the vessel which do not constitute component parts of the vessel.
4. Regulations on transfer of ownership of seagoing vessels shall apply to the transfer of ownership of shares of seagoing vessels.
5. The Government shall provide for the conditions, order and procedures for transfer of ownership of seagoing vessels in the form of purchase and sale.

Article 33. – Mortgage of Vietnamese seagoing vessels
1. The mortgage of a seagoing vessel means an act whereby the shipowner secures with his/her seagoing vessel the performance of his/her obligation to the obligee but is not require to hand over the vessel to the mortgagee for custody.
2. Shipowners have the right to mortgage Vietnamese seagoing vessels under their ownership to mortagagees according to the provisions of this Code and other relevant provisions of law.
3. Contracts for mortgage of Vietnamese seagoing vessels must be made in writing. The mortgage of Vietnamese seagoing vessels shall comply with the provisions of Vietnamese law.
4. The provisions on mortgage of seagoing vessels shall also apply to the mortgage of seagoing vessels in course of building.

Article 34.- Principles of mortgage of Vietnamese seagoing vessels
1. Mortgaged seagoing vessels must not change hands, unless it is consented by the morgagees.
2. Mortgaged seagoing vessels must be covered with insurance by their owners, unless otherwise agreed upon in mortgage contracts.
3. Where the morgagee has transferred the whole or part of his/her right to the debt secured with the mortgaged seagoing vessel to another person, the mortgage of such seagoing vessel shall be also transferred in the same way.
4. A seagoing vessel may be used to secure several obligations, provided that its value is bigger than the aggregate value of the secured obligations, unless otherwise agreed upon.
The priority order of mortgages is determined on the basis of the corresponding order of registered mortgages in the Vietnam National Register of Ships.
5. The mortgage of a seagoing vessel owned by two or more owners must be consented by all the owners, unless otherwise agreed upon.
6. Where a seagoing vessel suffers from total loss, the mortgage shall terminate; the mortgagee shall be prioritized to receive the indemnity paid by the insurer for the total loss of the seagoing vessel.
7. Mortgagees shall only keep copies of seagoing-vessel registration certificates of mortgaged seagoing vessels.

Article 35.- Registration of mortgages of Vietnamese seagoing vessels
1. Registration of mortgage of a Vietnamese seagoing vessel has the following details:
a. The names and addresses of the head offices of the mortgagee and the shipowner;
b. The name and nationality of the mortgaged seagoing vessel;
c. The amount secured by the mortgage, interest rate and maturity.
2. The mortgage of a seagoing vessel shall become effective from the time it is entered into the Vietnam National Register of Ships.
3. Information on the registration of mortgages of Vietnamese seagoing vessels shall be supplied upon request.
4. Registrants of mortgages of seagoing vessels and users of information on mortgages of seagoing vessels shall have to pay fees.