Lending limit

(1) Lending is limited to ships and ships under construction that are entered in a public register.
(2) Lending may not exceed the first 60 per cent of the value of the ship (ship lending value) or ship under construction determined by the Pfandbrief bank on the basis of a valuation under section 24. It may be made only by way of amortising loans, the repayment of the loan as a rule being distributed evenly over the individual years; the agreement of reducing repayment instalments is not harmful. Where it is agreed for a loan that it is to be repaid by the end of the loan term not entirely by instalments under the second sentence but also by a final instalment to be made at the end of the loan term, this is not deemed a case of uneven repayment where the final instalment does not exceed the amount that could be repaid, applying the uniform repayment agreed for the loan, by the end of the ship's 20th year of life. BaFin may, in individual cases, permit further exceptions from the provisions of the first and second sentences, where the particular nature of the ship or ship under construction to be lent against, the economic circumstances of the borrower, or additional security, justify this.
(3) (repealed)
(4) Lending may extend at most to the end of the ship's 20th year of life, unless a shorter useful life is to be expected. BaFin may, in addition, under the conditions of subsection (2), fourth sentence, permit further exceptions. A deferral granted to the borrower that would have the effect that the permissible maximum lending period is exceeded is permitted only with the consent of the trustee. Where several ships or ships under construction are lent against by a loan claim secured by ship mortgages, the loan claim is suitable for cover only insofar as, on its apportionment to the individual ships and ships under construction, the individual loan claims would be suitable for cover.
(5) Lending against ships and ships under construction registered abroad is permitted where, under the law of the state in whose register the ship or ship under construction is entered, 1. an in rem right can be created in ships and ships under construction that is entered in a public register, 2. the in rem right grants the creditor security comparable to a ship mortgage under German law, in particular the right to seek satisfaction from the ship or ship under construction for the secured loan claim, 3. the pursuit of claims for creditors belonging to another state is not materially more difficult than for the state's own nationals. The total amount of loans under the first sentence outside the Member States of the European Union, for which it is not ensured that the priority right of the ship Pfandbrief creditors under section 30(1) extends to the Pfandbrief bank's claims from those loans, may not exceed 20 per cent of the total amount of claims for which the priority right is ensured. Where the law of the state in whose register the ship or ship under construction is entered provides that the in rem right arises without entry in a public register, but can be entered in such a register to secure the creditor's rights as against third parties, lending is permitted only on condition that the Pfandbrief bank without delay brings about the entry in the public register. Lending is as a rule permitted only in first rank; subsection (2), fourth sentence applies accordingly.
(6) The registered cover assets also extend to all claims of which the Pfandbrief bank is the holder and that are directed at the economic substance of the ship or ship under construction, in particular claims to which the ship mortgage would extend, for ships and ships under construction entered in the German Register of Ocean-Going Vessels, under sections 31 and 32 of the Act on Rights in Registered Ships and Ships under Construction, as well as claims for rent and lease, claims to the transfer of the ship or ship under construction, and claims to the payment of the proceeds of a realisation. Section 12(3), second sentence applies accordingly.