SHIP AND CARGO MORTGAGE, TWO DIFFERENT LEGAL VIEWPOINTS

Although the subject-matter of cargo and ship mortgage are similar (providing financial security for creditors),the regulations of these contracts, differ from each other essentially with regard to the conditionality of taking possession in concluding the contract, the possibility of endorsement and cession in mortgage document, the creditor s kind of real right, the preference of prior or latter creditor in vindication of right and the effect of mortgage loss on the contract and the possibility of recovery of claim. Moreover the cargo mortgage regulations are, in some regards and aspects, contrary to general legal rules and hence subject to criticism.