Cap. 234 Art. 37BTypes of charges over ships.  

(1) A ship may constitute security for a debt or other obligation either by agreement or by operation of the law as hereinafter provided. 

(2) A debt or other obligation may be secured -

(a) by means of a mortgage which is a special charge over a vessel, or

(aa) by means of a finance charter interest which is a charge over a vessel which is enforceable or erga omnes,

(b) by a general hypothec which attaches to all the assets of a debtor including any vessel such debtor may own, or

(c) by a special privilege upon the vessel: Provided that special privileges arise in virtue of law and no debt or other obligation other than those specified at law shall be secured by a special privilege.

(3) Subject to the provisions of article 40, separate items upon a vessel may themselves be subject to special privileges in accordance with the provisions of the Civil Code, in security of the debts therein specified.

(4) A mortgage shall also include a mortgage that has been registered in a foreign jurisdiction but is recognized in Malta and registered in the Maltese registry.