First, borrower alliances in marine financing loans are an important part of the lender`s rights package and can be invoked even if the borrower moves the loan and interest in a timely manner. The court will not rewrite the financial documents. If the LTV rate falls below the agreed threshold, but the debt service is up to date, most commercial lenders will prefer to give the owner time to refinance the loan or sell the ship through brokers. These factors may explain the market`s misperception that LTV clauses cannot be applied. However, in this case, lenders have the option of relying on LTV clauses on any doubt (at least as far as English law is concerned). Indeed, issuing notices to ensure that LTV-Bund-Compliance and confidence in non-compliance with events of Default should be essential for each lender in order to maintain security at a level that not only covers the loan, but does so with a margin large enough to always obtain full recovery. Many of the operational provisions of a maritime loan contract are general in nature and are recognizable by medical specialists, while others are very specific to credit to ships and, in some cases, to specific sub-sectors of the maritime industry. On the other hand, a private sale can be a faster and less expensive option (compared to the arrest procedure). The lender could either require the borrower to sell the vessel himself or, depending on the jurisdiction, exercise its purchasing power as part of the mortgage. In the case of a private sale, all marine deposit rights follow the vessel, which can have a negative effect on the price the lender can obtain.  This article focuses on purchase and sale transactions involving buyers and sellers of existing vessels. For a transaction involving vessels under construction by a developer, a similar agreement signed by the owner and the buyer should be prepared, negotiated and executed by the parties. Provisions similar to those in this section are often included in shipbuilding contracts.
 For vessels documented by the Coast Guard, the CG-1340-Form Bill of Sale is recommended.  As a general rule, used for the transfer of charters and other intangible assets.  With a few exceptions, a buyer of a ship must be a U.S. citizen (46 US.C. 50501 ff., to operate coastal trade (46.C 12112).  Due diligence considerations may include a specific reference to the purchaser`s physical inspection of vessels, as well as an audit of the seller`s records relating to vessels and potential charters.