This paper provides a legal opinion on the naval mortgages of the vessels CABALLO MARANGO and CABALLO MAYA in Panama. Both vessels are duly registered under Panamanian law, and the mortgages were executed in accordance with the applicable regulations, complying with the requirements of Article 260 of the Panamanian Maritime Commercial Law. The certifications issued in May and June 2020 by the PRPV confirm the validity and enforceability of these mortgages, which are binding on third parties.

The mortgages are valid under Article 1595 of the Panamanian Civil Code, and their cancellation can only occur in limited circumstances. Furthermore, it is not necessary to include payment schedules or a list of defaults for their validity. The registration of the mortgages with the Panama Maritime Authority guarantees their legality, and any claims from third parties —other than privileged maritime liens with a higher ranking than the naval mortgage— are considered subordinate to the registered mortgages.