SHIP-MORTGAGE, ETC. Every British ship shall, unless exempted from registry, be registered under the Merchant Shipping Act, 1S94.
The chief officer of customs shall be the registrar of British ships at any port in the United Kingdom, or Isle of Man, approved by the Commissioners of Customs for the registry of ships.
When registered, the registrar shall grant a certificate of registry. The certificate of registry shall be used only for the lawful navigation of the ship, and shall not be subject to detention by reason of any title, lien, charge or interest by any owner, mortgagee or other person.
The property in a ship is divided into sixty-four shares.
A person is not entitled to be registered as owner of a fractional part of a share, but any number of persons not exceeding five may be registered as joint owners of a ship or of any share therein.
A corporation may be registered as owner by its corporate name.
A registered ship or a share therein when disposed of to a person qualified to own a British ship shall be transferred by bill of sale.
The bill of sale must be in the form as specified by the Merchant Shipping Act, 1894. The form provides for a full descrip tion of the ship, particulars of tonnage, etc., and continues :— I " or " we "] in consideration of the sum of paid to " me " or " us "] by the receipt whereof is hereby acknowledged, transfer shares in the ship above particularly described, and in her boats, guns, ammunition, small arms, and appurtenances, to the said Further :“ I " or '• we "] the said for :" myself and my " or " ourselves and our "] heirs covenant with the said and [" his," " her," or " their "] assigns that [" I " or " we "] have power to transfer in manner aforesaid the premises herein before expressed to be transferred, and that the same are free from incumbrances if there be any mortgage add " save as appears by the registry of the said ship "].
In witness whereof ha hereunto subscribed name and affixed seal this day of one thousand Executed by the above-named in the presence of A purchaser of a registered British vessel does not obtain a complete title until the bill of sale has been recorded at the port of registry of the ship ; and neglect of this precaution may entail serious consequences.
A registrar shall indorse on the bill of sale the fact of the registration with the day and hour thereof.
In addition to the above provisions of the Merchant Shipping Act, 1894, the following Sections regulate mortgages of a ship or shares therein :— llortzagc of Ship or Sh.ire 31. ;1. A registered ship or a share therein may be made a security for a loan or other valuable considera tion, and the instrument creating the security (in this Act called a mortgage) shall be in the form marked B in the first part of the first schedule to this Act, or as near thereto as circumstances permit, and on the production of such instru ment the registrar of the ship's port of registry shall record it in the register book.
(2 Mortgages shall be recorded by the registrar in the order in time in which they are produced to him for that purpose, and the registrar shall by memorandum under his hand notify on each mortgage that it has been recorded by him, stating the day and hour of that record.
Entry of of Mortgage.
32. Where a registered mortgage is dis charged, the registrar shall, on the produc tion of the mortgage deed, with a receipt for the mortgage money indorsed thereon, duly signed and attested, make an entry in the register book to the effect that the mort gage has been discharged, and on that entry being made the estate (if any which passed to the mortgagee shall N est in the person in whom (having regard to intervening acts and circumstances, if any', it would have vested if the mortgage had not been made.
Priority of Mortgages.
"33. If there are more mortgages than one registered in respect of the same ship or share, the mortgagees shall, notwithstanding any express, implied, or constructive notice, be entitled in priority, one over the other, according to the date at which each mortgage is recorded in the register book, and not according to the date of each mortgage itself.