s.74Mortgage of ship or share
74
Section 74Part 4 — PROPRIETARY INTERESTS IN REGISTERED SHIPS

Mortgage of ship or share

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A registered ship, or a share in any such ship, may be made a security for the repayment of a loan or the discharge of any other obligation.
The instrument creating any such security (referred to in this Part as a "mortgage") shall be in the prescribed form.
Where a mortgage executed in accordance with subsection (2) is produced to the Registrar of Shipping, the Registrar of Shipping shall register the mortgage in the prescribed manner.
Mortgages shall be registered in the order in which they are produced to the Registrar of Shipping for the purposes of registration and the Registrar of Shipping shall enter and sign on each mortgage a statement to the effect that it has been registered by the Registrar of Shipping, stating the date and time of the registration.
Where it is stated in the mortgage instrument that it is prohibited to create further mortgages over a vessel without the prior written consent of the mortgagee, the Registrar of Shipping shall make a note in the register to such effect, and the Registrar shall not register a further mortgage unless the consent in writing of the holder of a prior mortgage is produced to the Registrar of Shipping, and any mortgage registered in violation of this provision is null and void.
Where it is stated in the mortgage instrument that it is prohibited to transfer the ownership of a ship or terminate the registration of the ship in the manner provided in section 8(1)(d) without the prior written consent of the mortgagee, the Registrar of Shipping shall make a note in the register to such effect, and —
the Registrar shall not record a transfer of ownership of the ship or terminate the ship's registration, as may be applicable, unless the appropriate consent in writing of the holder of the mortgage is produced to the Registrar of Shipping; and
any recording in the register of a transfer of ownership or a termination of the ship's registration in the circumstances referred to in this subsection is null and void.
For the purposes of subsection (1), the word "ship" includes a ship under construction.
A mortgage in respect of a ship under construction shall be entered in the register referred to in section 11(1), however, upon the registration of the ship under construction being transferred to another part of the register as provided in section 11(3), the entries relating to the mortgage, unless the mortgage is discharged, shall in like manner be transferred to the same part of the register.
A mortgage in respect of a ship under construction shall, for the purposes of determining priority under this or any other law, and in all other respects, be treated as a registered ship mortgage and shall continue to be treated as such until it is discharged, even if the ship under construction ceases to be registered under this Act; and a ship under construction shall, for the purposes of a mortgage on the ship under this or any other law, be treated as maritime property.

Defined Terms

mortgage

Cross References