What items can loans be secured on?

The correct answer highlights that loans can be secured against the hull of the vessel and provisions. In maritime commerce, particularly for shipping companies, the tangible assets related to the operation of their vessels are critical for securing financial loans. The hull represents a significant part of the vessel's value and serves as a primary asset that lenders are willing to consider when providing financing. Additionally, provisions on board—like food and supplies necessary for crew and operation—can also have value, though they may be considered secondary to the hull itself.

This answer aligns with common practices in maritime finance, where physical assets that are essential for operations are prioritized as collateral. These secured loans reflect a lender’s need for trust that there is valuable collateral that can be repossessed in case of default.

Cargo and documents, while essential to trade, are not typically used to secure loans for the vessel itself. Similarly, passenger payments and dock fees, as well as fuel and bank guarantees, do not represent assets that can be outright owned or reclaimed in a default scenario on a long-term basis for the purpose of loan security. Thus, the focus on the hull and provisions is justified in this financial context.