Mortgagee not Treated as Ownev.
" 34. Except as far as may be necessary for making a mortgaged ship or share available as a security for the mortgage debt, the mortgagee shall not by reason of the mort gage be deemed the owner of the ship or share, nor shall the mortgagor be deemed to have ceased to be owner thereof.
Mortgagee to have Power of Sale.
" 35. Every registered mortgagee shall have power absolutely to dispose of the ship or share in respect of which he is registered, and to give effectual receipts for the purchase money ; but where there are more persons than one registered as mortgagees of the same ship or share, a subsequent mortgagee shall not, except under the order of a court of competent jurisdiction, sell the ship or share without the concurrence of every prior mortgagee.
Mortgage not A ffected by Bankruptcy.
"36. A registered mortgage of a ship or share shall not be affected by any act of bankruptcy committed by the mortgagor after the date of the record of the mortgage, notwithstanding that the mortgagor at the commencement of his bankruptcy had the ship or share in his possession, order or disposition, or was reputed owner thereof, and the mortgage shall be preferred to any right, claim or interest therein of the other creditors of the bankrupt or any trustee or assignee on their behalf." Transfer of Mortgages.
The main provisions of Sections 37 and 38 are : A registered mortgage of a ship or share may be transferred to any person, and the instrument effecting the transfer shall be in the prescribed form, or as near thereto as circumstances permit. On production of such instrument the registrar shall record it in the register and notify the fact on the instrument of transfer.
Where the interest of a mortgagee is transmitted on marriage, death, or bank ruptcy, or by any lawful means, other than by a transfer under this Act, the transmis sion shall be authenticated by a declaration of the person to whom the interest is trans mitted, containing a statement of the manner in which and the person to whom the pro perty has been transmitted, and shall be accompanied by the like evidence as is by this Act required in case of a corresponding transmission of the ownership of a ship or share. On receipt of the declaration and the
production of the evidence the registrar shall register the person entitled as mortgagee.
The prescribed form of mortgage (see Section 31, above) to secure an account current is as follows : [Insert description of ship and particulars as in Bill of Sale.] Whereas [here state by way of recital that there is an account current between the mortgagor (describing him) and the mortgagee (describing him) ; and describe the nature of the transaction so as to show how the amount of principal and interest due at any given time is to be ascertained, and the manner and time of payment.] Now [" I " or " we "] the undersigned in consideration of the premises for [" myself " or " ourselves "] and [" my " or " our "] heirs, covenant with the said and [" his " or " their "] assigns, to pay to him or them the sums for the time being due on this security, whether by way of principal or interest, at the times and manner aforesaid. And for the purpose of better securing to the said the payment of such sums as last aforesaid [" I " or " we "] do hereby mortgage to the said shares, of which [" I am " or " we are "] the owner in the ship above particularly described, and in her boats, guns, ammunitions, small arms, and appurtenances.
Lastly, [" I " or " we "] for [" myself " or " ourselves "] and [" my " or " our "] heirs, covenant with the said and [" his " or " their "] assigns that [" I " or " we "] ha power to mortgage in manner aforesaid the above-mentioned shares, and that the same are free from incumbrances [if any prior incumbrance add, " save as appears by the registry of the said ship "].
In witness whereof ha hereto subscribed name and affixed seal this day of one thousand nine hundred and Executed by the above-named in the presence of The prompt registration of a mortgage deed at the port of registry of the ship is essential to the security of the mortgagee, as a mortgage takes its priority from the date of registration, not from the date of the instrument.