August 28 2009
On February 26 2009 Parliament approved Law 10,086, which made Albania a party to the International Convention on Maritime Liens and Mortgages. The law entered into force on March 17 2009. The International Convention on Maritime Liens and Mortgages was issued and signed by the United Nations in Geneva on May 6 1993.
According to the convention, mortgages, hypotheques and registrable charges effected on seagoing vessels shall be recognized and enforceable in states that are signatory parties to the convention provided that:
Furthermore, according to the convention, the ranking of registered mortgages, hypotheques or charges between themselves and their effect in regard to third parties shall be determined by the law of the state of registration. However, all matters relating to enforcement shall be regulated by the law of the state where enforcement takes place.
The adoption of the convention will give Albanian banks and credit Institutions greater guarantees for the recognition and enforcement of their security interests (ie, mortgages, hypotheques and charges) over seagoing vessels. Therefore, an increase in the range and number of movable assets offered as collateral to Albanian banks and credit institutions by clients is expected. At present, the number of movable assets used as collateral by banks and credit institutions operating in Albania is limited to securing charges over bank deposits, machinery and vehicles, as these types of property are easier to enforce and have a greater chance of success.
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