Desktop version

Home arrow Law

Mortgageable Means of Transport

According to Section 23 of the Vessel Mortgage Act, vessels “entered in the register” are mortgageable. This means vessels registered under the Register of Vessels Act. Section 1 of this act prescribes compulsory registration for Finnish vessels used for commercial seafaring and of at least 15 m in length. Section 2 provides for voluntary registration for smaller vessels used for commercial seafaring but of at least 10 m in length. In addition, Section 3 provides for voluntary registration of vessels under construction in Finland in the Vessel Building Register, if they will fulfill the requirements of Section 2 or 3 when completed.[1]

Section 1 of the Aircraft Mortgage Act provides that aircraft “registered in Finland or entered in the Annex of Aircraft Register” are mortgageable. Provisions on the Aircraft Register, including those on preconditions for registration, are in Chapter 2 of the Aviation Act.

According to Section 1 of the Vehicle Mortgage Act, the following vehicles are mortgageable: (1) truck (lorry), bus, coach; (2) truck trailer (trailer accepted as attached to a truck); (3) special car, tractor, motorised work machine, motorised device. Class definitions for vehicle types are provided in the Vehicles Act (1090/2002). Moreover, Section 38 of the Decree on Vehicle Registration (893/2007) provides that certain vehicles that cannot be registered for road traffic due to their measurements, mass or other features, can nevertheless be registered for the purpose of mortgaging.

Perhaps counter-intuitively, ordinary automobiles (cars) and vans are not mortgageable under the Vehicle Mortgage Act, or otherwise as individual objects. Automobiles and vans can be covered by an enterprise mortgage, or be subject to a possessory pledge, which however is unlikely to serve the security-provider debtor’s needs - due to the very possession requirement, which prevents use by the security-provider debtor.

The lists of mortgageable means of transport in the above-mentioned legislation are exhaustive. No mortgage system or other special security rights legislation exists on railway rolling stock or space assets. These assets, too, can be covered by an enterprise mortgage, or be subject to a possessory pledge.

  • [1] Section 23(5) of the Vessel Mortgage Act confirms that uncompleted vessels entered in theVessel Building Register are also mortgageable.
 
Source
< Prev   CONTENTS   Source   Next >

Related topics