Lloyd's Maritime and Commercial Law Quarterly
RECOGNITION AND PRIORITY OF FOREIGN SHIP MORTGAGES
The Betty Ott
Ship mortgagees should perhaps not only heed Dr Lushington’s warning that they take their security “subject to all legal liens”,1 but also be wary of prior equitable charges over the vessel. In The Ship “Betty Ott” v. General Bills Ltd. (The Betty Ott)
2 the New Zealand Court of Appeal recently decided that a foreign-registered ship mortgage does not enjoy priority over an earlier equitable charge. The court’s decision is of interest for both its interpretation and application of Bankers Trust
1. The Royal Arch (1857) Swab. 269, 282.
2. [1992] 1 N.Z.L.R. 655 (C.A.). McKay, J., delivered the judgment of the court (Cooke, P., and McGechan, J., concurring).
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