s.27Registration of ships chartered by demise to a qualified person
27
Section 27Part 2 — REGISTRATION OF SHIPS

Registration of ships chartered by demise to a qualified person

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27. (1) Subject to subsection (3), a ship of twenty-four metres or more in length is entitled to be registered under this Act in the Islands if —
the ship is operated under a charter by demise which complies with the requirements set out in subsection (2);
the charterer is a person qualified to be an owner of a Cayman Islands ship by virtue of section 4;
the requirements corresponding to those imposed on the owner of a majority interest in the ship by section 5(3) and (4) (b) with respect to entitlement to registration, are satisfied by the charterer;
the ship is registered in a registry other than that of the Islands with respect to the rights and obligations referred to in section 31; and
a provision substantially to the same effect as that of a dispensation under section 32 is granted in respect of the ship by the registry referred to in Merchant Shipping Act, 2024 Section 28 c Act 1 of 2024 Page 37 paragraph (d), where such provision is required under the law of the country of that registry.
The requirements referred to in subsection (1)(a) are that —
the charter is in writing;
the demise effected by the charter is made —
by the owner of the ship or by a charterer with the written consent of the owner of the ship; be allowed by the Chief Executive Officer; and
to a charterer who has a single legal personality; and
for a fixed period of two years or more or such lesser period as may
under the terms of the charter the operation, management and control of the ship, including responsibility for the engagement or employment of the master and crew of the ship, is vested in the charterer.
Without prejudice to subsection (4), the Registrar of Shipping may refuse to register a ship which is entitled to be registered under subsection (1) if —
the Registrar of Shipping is not satisfied that —
the owner of the ship has consented to the registration of the ship in the Islands; or in the Islands;
a mortgagee of the ship has consented to the registration of the ship
the tonnage of the ship cannot be ascertained in accordance with the tonnage regulations;
the ship cannot be marked in accordance with section 14;
the Registrar of Shipping reasonably believes that the ship would be precluded by some other law to which it is subject from flying the Islands’ national colours in accordance with section 64;
the charter by demise has an unexpired period of less than two years at the date when the application to register the ship is made; or
it is not in the interests of the Islands that the ship should be registered in the Islands.
Sections 6, 7 and 8 shall apply in respect of a ship entitled to be registered in the Islands under subsection (1) as if the ship was entitled to be registered under section 5.

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