Act No. 143 on a Ship Financing Institute.

The present Act establishes the framework for a specialized credit institution dedicated to ship financing. The institute’s purpose is to provide loans, refinancing, guarantees, and related financial services for the construction, rebuilding, purchase, sale, and refinancing of ships, only against collateral. It may issue ship credit bonds (skibskreditobligationer), which can qualify as European covered bonds, and also issue specially covered bonds subject to strict EU-based collateral, liquidity buffer, and overcollateralization requirements. These activities are organized in separate “capital centres,” with assets and liabilities ring-fenced, and strict rules on coverage, liquidity, and supplementary collateral. Borrowers’ debt instruments serve as security for the institute’s obligations, and in the event of insolvency, bondholders and counterparties to risk-hedging contracts have priority claims on the relevant capital centres. The Financial Supervisory Authority (Finanstilsynet) oversees compliance, sets prudential requirements, and can impose sanctions. The Act also regulates the institute’s governance, accounting, solvency, and crisis handling, including the use of a mandatory reserve fund (the bundne fondsreserve), and links its dissolution purposes to the Danish Maritime Fund. Violations of key provisions may result in fines or, in some cases, imprisonment