ABSTRACT
The acquisition of a yacht may be financed by a leasing transaction in which the bank or leasing company acquires legal title to the yacht and then leases it to the "owner" for an agreed term. The more usual method of financing the purchase of a yacht is by loan finance, where the owner borrows part of the purchase price from a bank or other financial institution. The terms of the loan will be set out in a loan agreement and will contain the standard terms for asset financing. A mortgage at common law was a transfer of the legal title in property by the owner to the mortgagee in order to secure the repayment of a debt. The mortgage provisions in the 1854 Act were re-enacted in the 1894 Merchant Shipping Act and this Act remained in force subject to amendments until the Merchant Shipping Act 1995, which substantially re-enacted the mortgage provisions of the 1894 Act.
