Act No. I of 2025 (the
"Act") builds upon key
principles from the Maltese Civil Code, Chapter 16 of the Laws of
Malta (the "Civil Code"),
integrating its lease concept into maritime legislation, however a
clear distinction must be made between a finance and a bareboat
charterer.
This article seeks to examine this distinction to clarify the
implications of the Act's propositions.
Definitions of finance charterer vs bareboat charterer
To grasp the proposed amendments in the Act, it is essential to
understand the definition of a "finance charterer" which
is defined as:
"the term 'finance charter' shall refer to the
chartering or lease of a ship under terms where the possession,
operation or control of that ship is given to a bareboat charterer
or to a lessee including through a demise or bareboat charter or a
similar agreement, the principal purpose and intention of
which is to finance the acquisition, operation, administration or
management of that ship"
