How we accompanied the transfer of the ship as collateral
This spring, a client approached us with an intriguing case. Our task was to protect the customer as quickly as possible and ensure the return of funds that will be transferred as a loan. In this story, the interest is not only in the design of protecting the client’s interests, but also in the object of this design.
We decided to implement the following protection scheme:
- Loan agreement, considering the specifics of lending funds in installments;
- Pledge agreement in pursuance of a loan agreement;
- Guarantee agreement in pursuance of the loan agreement.
The first agreement to accompany the loan was a pledge agreement. But here was a surprise. The borrower offered to pledge a ship as collateral for loan repayment. We were faced with a new task in our practice: registration of a ship's lien.
A pledge's registration process is divided into three stages: document collection, submission, and receipt. However, there are territorial characteristics. For example, in our case, the motor ship was registered with the Federal Budgetary Institution Administration of the Volga-Don Basin of Inland Waterways, this executive authority carries out registration of ships belonging to the Volga-Don Shipping Canal, the Volgograd hydroelectric complex on the Volga River, hydroelectric complexes on the river Don - Tsimlyansky, Nikolaevsky, Konstantinovsky, Voronezh on the Voronezh River, and Fedorovsky Gateway on the river Kuban. As a result, in the absence of the ability to submit documents through the MFC, we were forced to either independently ensure our presence in the glorious city of Volgograd or send the originals of all documents by mail, despite the risks of their loss.
We decided to take advantage of this opportunity and create a small reminder for you. To register a ship's pledge you will need:
- Applications according to a special sample from two parties to the transaction with notarized signatures;
- Notarized copies of passports;
- Loan and pledge agreements;
- Notarized consents of spouses, or statements of absence of marriage;
- Notarized power of attorney (if you are acting through a representative with special powers);
- Consent to the processing of personal data, in the form provided by the government agency;
- Receipt for payment of the state fee for registration of the pledge.
The state fee to register a pledge on a low-power vessel was 3,500 rubles. Employees from the administration's registration and accounting departments kindly provided payment details. It was decided to send all documents via mail.
As a result of our operational actions, the vessel's pledge was registered successfully within two weeks.
The next, or rather, parallel stage in protecting our client's interests was the execution of a guarantee agreement. At the moment, the borrower is looking for a guarantor who is willing to enter into an agreement in the version prepared by us.
The implemented loan protection design of pledge and guarantee is, in our opinion, the most profitable for the lender. A pledge is a mechanism by which a creditor under an obligation secured by a pledge (pledgee) has the right, in the event of non-fulfillment or improper performance by the debtor of this obligation, to receive satisfaction from the value of the pledged property (the subject of the pledge) before other creditors of the person who owns the pledged property. A guarantee is a mechanism in which the guarantor agrees to be responsible to another person's creditor for the latter's complete or partial fulfillment of his obligation. A guarantee agreement can be used to secure both monetary and non-monetary obligations, as well as obligations that may arise in the future.
As a result of implementing the scheme to protect our customer's interests, we prepared a loan agreement, a pledge agreement, registered the vessel's pledge, and prepared a guarantee agreement. We believe that such a contractual arrangement is sufficient to provide guarantees of loan repayment for our client. We will keep you updated on the status of this case.