CONVENTION 

RELATING TO REGISTRATION OF RIGHTS IN RESPECT OF VESSELS UNDER CONSTRUCTION

(Brussels, 27.V.1967)

 

 

The Contracting Parties,

 

Having recognized the desirability of determining by agreement certain rules relating to registration of rights in respect of ships under construction.

 

Have decided to conclude a convention for this purpose, and thereto agreed as follows:

 

Article 1

 

The Contracting States undertake that their national law shall contain provisions permitting the registration in accordance with the provisions of this Convention, in an official public register established by or under the, control of the Slate, of the rights set out in Article 5 in respect of vessels which are to be or are being constructed within their territories.

 

The registration of such rights may be restricted to vessels which under the national law of the State of registration will be of a type and size making them eligible, when completed, for registration as sea-going vessels.

 

Article 2

 

The Contracting States may restrict registration of such rights to cases where vessels are to be or are being constructed for a foreign purchaser.

 

The Contracting States shall allow registration of rights in respect of vessels which are to be or are being constructed irrespective of the nationality or domicile of the applicant. However, the foregoing shall not affect any provision of the national law of the State of registration restricting the acquisition of such rights by aliens or for controlling shipbuilding.

 

The effects of registrations under the provisions of this Convention as regards the national status of any vessel shall be determined by the law of the State where the vessel is to be or is being constructed.

 

Article 3

 

No right in respect of a vessel which is to be or is being constructed within the territory of a Contracting State shall be admissible for registration in any other Contracting State.

 

Article 4

 

Registration of rights in respect of a vessel which is to be or is being constructed shall be permitted when a contract for the building of a properly speciled vessel has been executed or the builder declares that he has decided to build such a vessel for his own account.

 

However, the national law may make is a condition for registration that the keel has been laid or equivalent constructional work has been performed in the place of launching.

 

Article 5

 

Titles to and mortgages and "hypotheques" on a vessel which is to be or is being constructed shall on application be entered in the register.

 

Article 6

 

The effects of the registration of the rights set out in Article 5 including the ranking of mortgages and "hypotheques" between themselves shall be determined by the law of the State where the vessel is to be or is being constructed; however, without prejudice to the provisions of this Convention all matters relating to the procedure of enforcement shall be regulated by the law of the State where the enforcement takes place.

 

Article 7

 

The ranking between registered mortgages and "hypotheques" on vessels under construction on the one hand and liens and rights of retention on such vessels on the other hand shall be determined according to the rules applicable to vessels registered after completion.

 

Article 8

 

The national law may provide that the registered rights on a vessel under construction shall attach to materials, machinery and equipment which are within the precincts of the builders yard and which by marking or other means are distinctly identified as intended, to be incorporated in the vessel.

 

Article 9

 

The rights set out in Article 5 which are registered in one of the Contracting States in accordance with the national law of such State, and the priority thereby obtained, shall be recognized in all other Contracting States.

 

Article 10

 

No contracting State shall permit except in the case of forced sale, the deregistration of the rights set out in Article 5 without the written consent of the holders of such rights.

 

A vessel which is being or has been constructed in a Contracting State shall not be eligible for registration in another Contracting State unless a certificate has been issued by the former State to the effect that the rights registered pursuant to Article 1 have been deregistered or that such rights will be deregistered on the day when the vessel is registered.

 

Article 11

 

Any dispute between two more contracting Parties concerning the interpretation or application of this Convention which cannot be settled through negotiation, shall, at the request of one of them, be submitted to arbitration. If within six months from the date of the request for arbitration the Parties are unable to agree on the organization of the arbitration of those Parties may refer the dispute to the International Court of Justice by request in conformity with the Statute of the Court.

 

Article 12

 

1. Each contracting Party may at the time of signature or ratification of this Convention of accession thereto, declare that it does not consider itself bound by Article 11 of the Convention. The other contracting Parties shall not be bound by this Article with respect to any contracting Party having made such a reservation.

 

2. Any contracting Party having made a reservation in accordance with paragraph 1 may at any time withdraw this reservation by notification to the Belgian Government.

 

Article 13

 

This Convention shall be open for signature by the States represented at the twelfth session of the Diplomatic Conference on Maritime Law.

 

Article 14

 

This Convention shall be ratified and the instruments of ratification shall be deposited with the Belgian Government.

 

Article 15

 

1. This Convention shall come into force three months after the date of the deposit of the fifth instrument of ratification.

 

2. This Convention shall come into force in respect of each signatory State which ratifies it after the deposit of the fifth instrument of ratification, three months after the date of the deposit of the instrument of ratification.

 

Article 16

 

1. States, Members of the United Nations or Members of the specialized agencies, not represented at the twelfth session of the Diplomatic Conference on Maritime Law, may accede to this Convention.

 

2. The instruments of accession shall be deposited with the Belgian Government.

 

3. The Convention shall come into force in respect of the acceding State three months after the date of deposit of the instrument of accession of that State, but not before the date of entry into force of the Convention as established by Article 15 (1).