Under Construction

Registration of a Vessel Under Construction: Vessels that are under construction and any related mortgages may be registered. In this case, a vessel may be registered as soon as its keel is laid.

The documents for registration are the same as for full registration except that, in lieu of the Builder’s Certificate, documentary evidence of the ship as being under construction must be supplied and there will be no registration survey at that point. In this case, Cayman will issue a Certificate of Registry for a Vessel Under Construction.

Full Registration

Full registration on the completion of construction will depend on the vessel meeting the requirements to sail under the Cayman flag at the time of its completion.

Advantages

The two main advantages of registration under construction are as follows:

• title is ascribed to the registered owner of the vessel under construction ensuring that it is segregated from the general assets of the shipyard, depending upon the nature of the contract between the registered owner and the shipyard. This could prove useful in the event of a bankruptcy of the shipyard
• a registered mortgage on a vessel under construction shall, as for a full registration, have the same priority as a recorded mortgage and shall continue to be treated as such until it is discharged, even if the ship under construction ceases to be registered.