Ship Finance & Security Documentation January 2014 Syndication - - PowerPoint PPT Presentation

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Ship Finance & Security Documentation January 2014 Syndication - - PowerPoint PPT Presentation

Jan 10, 2024 356 likes •690 views

Ship Finance & Security Documentation January 2014 Syndication Lead Arranger Vessel Owner Sponsor Lessor 2 Syndication Loan Agreement Mortgage Deed of Covenant accompanying the Mortgage Assignment of Earnings

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January 2014

Ship Finance & Security Documentation

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2

Syndication

Lead Arranger Lessor Vessel Owner Sponsor

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Syndication

  • Loan Agreement
  • Mortgage
  • Deed of Covenant accompanying the Mortgage
  • Assignment of Earnings
  • Assignment of Insurances
  • Share Charge
  • Structure
  • Security
  • Registrations & filings
  • ‘Plain vanilla’ loan
  • Lease-back, trust, notes issuance
  • Mezzanine financing
  • Revolving facility
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The Loan Agreement

  • Bank standard form or law firm standard form
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The Mortgage & the accompanying Deed of Covenant

  • Statutory mortgage (British Form 10A)
  • Rights of the Mortgagee
  • Assignment of Earnings & Insurances
  • Registration obligation under company law and merchant

shipping legislation

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The Charter Assignment

  • Assignment of the Charter
  • Registration obligation under company law
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The Share Charge

  • Charge over the shares in the vessel owner
  • Registration obligation only against the shareholder in its

jurisdiction of incorporation

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The Guarantee

  • Provided by the Sponsor or Parent Company
  • Put Option
  • Registration obligation though usually not under company law
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9

Swaps & Derivatives

  • Currency hedging and interest rate derivatives
  • ISDA Agreement
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10

Ship Registration

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Chapter 1 – Singapore Ship Registry

  • Definitions
  • Qualifications
  • The register
  • Protection of mortgages entered in the register
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Chapter 1A – Malaysia Ship Registry

  • Qualifications
  • The register
  • Protection of mortgages entered in the register
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Chapter 2 – Integrity of the Register and Equities

  • The registered owner
  • The registered mortgagee
  • Equities
  • Rectification and correction of the register of Singapore ships
  • Expunging mortgages
  • Entry of discharge of mortgage
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Chapter 3 – Transfer by Sale and Mortgage

  • Transfer of Property
  • Vessels under construction
  • Second hand tonnage
  • Specific performance
  • Sale ordered by the Court
  • Transfer of mortgages
  • The problem of the Bills of Sale Act
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Rights of the Mortgagee

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Chapter 4 – Right and Remedies

  • The scope of the mortgagee’s right

– Remedies – Possession – Interception of freight – Sale – Foreclosure – Arrest

  • The charter party and mortgagees
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Chapter 5 – Priorities

  • Statute
  • Sheriff’s expenses
  • Arresting plaintiff’s costs
  • Maritime liens
  • Statutory liens
  • Possessory liens
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Chapter 6 – Priorities between Mortgages

  • Legal and equitable mortgages
  • Priority between foreign mortgages
  • Registration of charges and insolvency
  • Legal mortgage v. legal mortgage
  • Legal mortgage v. equitable mortgage
  • Equitable mortgage v. equitable mortgage
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Chapter 7 – Insurance and Freight

  • Insurance
  • Assignment of insurance
  • Equities
  • Freight – Assignment of freight

– Assignees and mortgagees – Assignment subject to equities

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Chapter 8 – Registration of Charges and Notice of Negative Pledges

  • Charges
  • Notice of negative pledges
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Taxation of Shipping Income

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Chapter 9 – Taxation of Shipping Income in Singapore

  • General
  • The income Tax Act
  • Tax residents
  • Non – residents
  • Exemption of shipping profits
  • Approved International Shipping Enterprise Scheme
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Chapter 9 – Taxation of Shipping Income in Singapore

  • Tax exempt balancing charge
  • Crew income
  • Double taxation
  • Withholding tax
  • Capital gains tax
  • Annual tonnage tax
  • Goods and service tax
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Annexure A to Chapter 9

  • Provision relating to taxation of income of crew in some of the

Singapore double taxation avoidance agreements

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Annexure B to Chapter 9

  • Primary provision relating to shipping profits in the Double Tax

Agreements

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Annexure C to Chapter 9

  • Extent of exemption under tax treaties for shipping profits
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Chapter 10 – Taxation of Shipping Income in Malaysia

  • General
  • The Malaysia Income Tax Act 1967
  • Tax residents
  • Taxation of Shipping Income of residents
  • Exemptions of shipping profits
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Chapter 10 – Taxation of Shipping Income in Malaysia

  • Taxation of shipping income of non-residents
  • Tax administration
  • Special procedures for non-resident shipping operators
  • Crew income
  • Malaysia tax implementation on financing
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Chapter 10 – Taxation of Shipping Income in Malaysia

  • Withholding tax
  • Double taxation
  • Capital gains tax
  • Annual tonnage tax
  • Good and services tax
  • Labuan – Malaysia’s International Offshore Financial Centre
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Annexure A to Chapter 10

  • Status of Malaysia Double Tax Agreement
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Index

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Thank you.

www.fuzetfarid.com fuzet.farid@fuzetfarid.com Tel: (603) 2092 9420 Fax: (603) 2092 9391 1 Sentral, Level 16, Jalan Stesen Sentral 5, KL Sentral, 50470 Kuala Lumpur, Malaysia