Registration of an auctioned vessel in the name of the bidder
For a vessel to be transferred within the Greek Registry, among other documents, submission of a certificate
that NAT (Seamen Pension Fund) has no claims against the ship is required. It is, however, possible
for NAT to issue such a certificate without repayment of its outstanding claim, if adequate
security is provided.
The NAT BoD chairman may authorise the issuance of such a certificate where the claim is not
repaid, but a Bank guarantee has to be presented. Such authorisation is valid for 10 days. Further,
NAT’s BoD may also grant such an authorisation in case other securities are offered, with a three
month validity.
The fact the claim is not repaid, in such cases, presents no difficulty in the vessel’s transfer being
registered.
Above occurred in a case involving high bidders in an auction seeking to register the vessel in their
own name. The same applies for ordinary transfers, ie. where we have transfer in the context of a sale
and purchase transaction.
Piraeus Court of Appeal Judgment no 370/ 2014, President: P. Tsandekidou, Rapporteur Judge: Chr.
Gianerrikos, Attorneys at law: A. Vergos, I. Giannatos, Maritime law Review vol. 42, p. 109.
NOTE: It is interesting to note that NAT claims survive the auction and follow the vessel, contrary to
the general rule that an auctioned vessel is free of encumbrances following a successful bid. The practice
followed in auctions is as follows: Bidder may pay NAT or provide security; when the auction proceeds
are distributed, it is likely that NAT, enjoying privilege, will receive all or part of the claim. In
the latter case, the bidder is liable for the remaining amount. Of course, if no auction proceeds are
received by NAT, the bidder is liable for the whole amount. In case of second hand s&p, buyers need to
know in advance if there is a possible claim, so that they can negotiate the price accordingly.
The legal column was written by Manolis Eglezos, Attorney at law,
Manolis Eglezos & Associates Law Firm, Attorneys at Law and Consultants