Interim Registration is available during a transfer of ownership regarding a “foreign” owned and flagged ship transferring into the hands of an owner that is qualified to own a Cayman vessel and who intends to register the vessel in Cayman.
In this case, if full registration would be delayed while the transfer is taking place, then the vessel may be registered ahead of the completion of the transfer and a 21-day Interim Certificate of British Registry will be issued pending the receipt (upon transfer of the vessel’s ownership) of a Bill of Sale and a Declaration of Ownership.
Mortgages
Mortgages can be registered under the interim registration. If the Bill of Sale and associated Declaration are not delivered to the Registry within 21 days after the Interim Certificate of British Registry is issued, then the vessel’s registration will be terminated. Any registered mortgages will remain registered until properly discharged.
Interim Registration During the Course of Transfer of Ownership (Not a Cayman Vessel)
During the full registration process, where an existing vessel that is not registered in Cayman is under a contract of sale to a party which is qualified to own a Cayman vessel, and that intended owner has applied for vessel registration with Cayman, the vessel may, prior to the completion of sale, be granted a 21-day Interim Certificate of British Registry upon the receipt of Form CISR 856 Section 5 (IV), subject to the following pre-conditions:
1. The existence of a written contract between the current owner and the transferee under which the current owner agrees:
- to transfer the ship to the owner qualified to own a Cayman ship
- to provide the transferee with a Bill of Sale and a certificate stating that the ship is free from encumbrances
2. The transferee makes a Declaration:
- confirming the transferee’s eligibility to qualify as the owner of a Cayman ship (by completing the relevant Declaration in Sections 2B through 2E in form CISR 856)
- stating that a written contract exists for the transfer of the ship and that the ship is not already registered in Cayman
These Declarations are done pending receipt of a Bill of Sale and a Declaration of Ownership once the vessel has been sold. They must be submitted within the 21-day period in order to complete Full Registration of the vessel before the Interim Certificate of British Registry expires.