Under Finnish law, vessels, aircraft and certain land-based vehicles can be used as security for credit by way of a mortgage system. The interplay between the statutory framework, financing practice and register authorities has given rise to a somewhat peculiar “system of two promissory notes”, which involves using bearer bonds as a mortgage instrument. As compared to the original idea underlying the statutory framework, this development has added some flexibility. However, remaining rigidities and uncertainties raise questions as to the law’s suitability for contemporary finance. At the same time, the law can be criticised for undue complexity. The need for reform has long been recognised, but proposals presented so far have not resulted in legislation. Any major reform can hardly be expected before Finland decides its position on the Cape Town Convention on International Interests in Mobile Equipment. The option of signing and ratifying the Convention and its Protocols on Aircraft and Railway Rolling Stock is currently under review by the Finnish Ministry of Justice.