Loan claims secured by ship mortgages may be used as cover for Ship Pfandbriefe.

Here, too, eligibility as cover is limited to the first 60% of the ship mortgage lending value. In contrast to property loans, the duration of ship loans may not as a general principle exceed 20 years.

Further assets that are eligible as cover are claims under bonds of or guaranteed by central governments and sub-sovereign public-sector bodies. Money claims against suitable credit institutions and claims under derivative transactions are likewise permissible to a limited extent.

Statutory Basis

The statutory provisions governing the eligibility of assets as cover for Ship Pfandbriefe are set forth in §§ 21 to 26 Pfandbrief Act.