Transfers and
Transmissions.

Transfer of

therein.

Transfers and Transmissions.

55. A registered ship or any share therein, when disposed of to persons qualified to be owners of British ships, shall be transferred by bill of sale; ships or shares and such bill of sale shall contain such description of the ship as is contained in the certificate of the surveyor, or such other description as may be sufficient to identify the ship to the satisfaction of the registrar, and shall be according to the form marked E. (n) in the schedule hereto, or as near thereto as circumstances permit, and shall be executed by the transferor in the presence of and be attested by one or more witnesses.

Declaration to be made by transferee.

Registration of transfer.

Transmission

of shares by death, bankruptcy or marriage.

Proof of transmission by bankruptcy,

56. No individual shall be entitled to be registered as transferee of a ship or any share therein until he has made a declaration in the form marked F. in the schedule hereto, stating his qualification to be registered as owner of a share in a British ship, and containing a denial similar to the denial herein before required to be contained in a declaration of ownership by an original owner; and no body corporate shall be entitled to be registered as transferee of a ship or any share therein until the secretary or other duly appointed public officer of such body corporate has made a declaration in the form marked G. in the schedule hereto, stating the name of such body corporate, and such circumstances of its constitution and business as may prove it to be qualified to own a British ship, and containing a denial similar to the denial hereinbefore required to be contained in a declaration of ownership made on behalf of a body corporate: in the case of an individual, the above declaration shall be made, if he reside within five miles of the custom house of the port of registry, in the presence of the registrar, but if beyond that distance in the presence of any registrar or of any justice of the peace; in the case of a body corporate the declaration shall be made in the presence of the registrar of the port of registry (0).

57. Every bill of sale for the transfer of any registered ship, or of any share therein, when duly executed, shall be produced to the registrar of the port at which the ship is registered, together with the declaration hereinbefore required to be made by a transferee; and the registrar shall thereupon enter in the register book the name of the transferee as owner of the ship or share comprised in such bill of sale, and shall indorse on the bill of sale the fact of such entry having been made, with the date and hour thereof; and all bills of sale of any ship or shares in a ship shall be entered in the register book in the order of their production to the registrar.

58. If the property in any ship or in any share therein becomes transmitted in consequence of the death or bankruptcy or insolvency of any registered owner, or in consequence of the marriage of any female registered owner, or by any lawful means other than by a transfer according to the provisions of this act, such transmission shall be authenticated by a declaration of the person to whom such property has been transmitted, made in the form marked H. in the schedule hereto, and containing the several statements herein before required to be contained in the declaration of a transferee, or as near thereto as circumstances permit, and, in addition, a statement describing the manner in which and the party to whom such property has been transmitted; and such declaration shall be made and subscribed if the declarant resides at or within five miles of the custom house of the port of registry in the presence of the registrar, but if beyond that distance in the presence of any registrar or of any justice of the peace (p)•

59. If such transmission has taken place by virtue of the bankruptcy or insolvency of any registered owner, the said declaration shall be ac

(n) See the form now in use, post, "Forms," No. 10.

(0) See the forms now in use, post,

"Forms," Nos. 5, 6, 7 and 8.
(P) See post, "Forms," Nos. 13, 14,

15.

companied by such evidence as may for the time being be receivable in marriage, will, courts of justice as proof of the title of parties claiming under any bank- or on intestacy. ruptcy or insolvency; and if such transmission has taken place by virtue of the marriage of a female owner, the said declaration shall be accompanied by a copy of the register of such marriage or other legal evidence of the celebration thereof, and shall declare the identity of the said female owner; and if such transmission has taken place by virtue of any testamentary instrument or by intestacy, then in England, Wales and Ireland the said declaration shall be accompanied by the probate of the will or the letters of administration or an official extract therefrom, and in Scotland or in any British possession by the will or any copy thereof that may be evidence by the laws of Scotland or of such possession, or by letters of administration or any copy thereof, or by such other document as may by the laws of Scotland or of such possession be receivable in the courts of judicature thereof as proof of the person entitled upon an intestacy.

share.

60. The registrar, upon the receipt of such declaration so accompanied Registration of as aforesaid, shall enter the name of the person or persons entitled under transmitted such transmission in the register book as owner or owners of the ship or share therein in respect of which such transmission has taken place; and such persons, if more than one, shall, however numerous, be considered as one person only as regards the rule herein before contained relating to the number of persons entitled to be registered as owners.

61. Of the documents hereby required to be produced to the registrar Registrar to he shall retain in his possession the following; that is to say, the sur- retain certain veyor's certificate, the builder's certificate, the copy of the condemnation, evidence. and all declarations of ownership.

owner entitled
by transmis-
to Court for
sion may apply
sale of ship.

62. Whenever any property in a ship or share in a ship becomes vested Unqualified by transmission on the death of any owner or on the marriage of any female owner in any person not qualified to be the owner of British ships, it shall be lawful, if such ship is registered in England or Ireland for the Court of Chancery, if in Scotland for the Court of Session, or if in any British possession for any Court possessing the principal civil jurisdiction within such possession, upon an application made by or on behalf of such unqualified person, to order a sale to be made of the property so transmitted, and to direct the proceeds of such sale, after deducting the expenses thereof, to be paid to the person entitled under such transmission, or otherwise as the Court may direct; and it shall be in the discretion of any such Court as aforesaid to make or refuse any such order for sale, and to annex thereto any terms or conditions, and to require any evidence in support of such application, it may think fit, and generally to act in the premises in such manner as the justice of the case requires.

63. Every order for a sale made by such Court as aforesaid shall con- Order to be tain a declaration vesting the right to transfer the ship or share so to be made by Court. sold in some person or persons named by the Court, and such nominee or nominees shall thereupon be entitled to transfer such ship or share in the same manner, and to the same extent, as if he or they were the registered owner or owners of the same; and every registrar shall obey the requisition of such nominee or nominees as aforesaid in respect of any transfer to the same extent as he would be compellable to obey the requisition of any registered owner or owners of such ship or share.

64. Every such application as aforesaid for sale shall be made within Limit of time four weeks after the occurrence of the event on which such transmission for applicahas taken place, or within such further time as such Court as aforesaid tion. may allow, such time not in any case to exceed the space of one year from the date of such occurrence as aforesaid; and in the event of no such application being made within such period as aforesaid, or of such Court refusing to accede thereto, the ship or share so transmitted shall there

upon be forfeited in manner hereinafter directed with respect to interests acquired by unqualified owners in ships using a British flag and assuming the British character.

65. It shall be lawful in England or Ireland for the Court of Chancery, in Scotland for the Court of Session, in any British possession for any Court possessing the principal civil jurisdiction within such possession, without prejudice to the exercise of any other power such Court may possess, upon the summary application of any interested person made either by petition or otherwise, and either ex parte or upon service of notice on any other person, as the Court may direct, to issue an order prohibiting for a time to be named in such order any dealing with such ship or share; and it shall be in the discretion of such Court to make or refuse any such order, and to annex thereto any terms or conditions it may think fit, and to discharge such order when granted with or without costs, and generally to act in the premises in such manner as the justice of the case requires; and every registrar, without being made a party to the proceedings, upon being served with such order, or an official copy thereof, shall obey the same (q).

Mortgages.

66. A registered ship or any share therein may be made a security for a loan or other valuable consideration; and the instrument creating such security, hereafter termed a "mortgage," shall be in the form marked I. (r) in the schedule hereto, or as near thereto as circumstances permit; and on the production of such instrument the registrar of the port at which the ship is registered shall record the same in the register book.

67. Every such mortgage shall be recorded by the registrar in the order of time in which the same is produced to him for that purpose; and the registrar shall, by memorandum under his hand, notify on the instrument of mortgage that the same has been recorded by him, stating the date and hour of such record.

68. Whenever any registered mortgage has been discharged, the registrar shall, on the production 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 such mortgage has been discharged; and upon such entry being made the estate, if any, which passed to the mortgagee shall vest in the same person or persons in whom the same would, having regard to intervening acts and circumstances, if any, have vested if no such mortgage had ever been made (s).

69. If there is more than one mortgage registered of the same ship or share therein, 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 instrument is recorded in the register books, and not according to the date of each instrument itself.

70. A mortgagee shall not by reason of his mortgage be deemed to be the owner of a ship or any share therein, nor shall the mortgagor be deemed to have ceased to be owner of such mortgaged ship or share, except in so far as may be necessary for making such ship or share available as a security for the mortgage debt.

71. Every registered mortgagee shall have power absolutely to dispose of the ship or share in respect of which he is registered, and to give

(7) See the Admiralty Court Act, 1861, 24 Vict. c. 10, s. 12, and Nicholas v. Dracachis, 1 P. D. 72.

12.

(r) See post, "Forms," Nos. 11 and

(s) See Bell v. Blyth, L. R., 6 Eq. 201; L. R., 4 Ch. 136.

effectual receipts for the purchase money; but if there are more persons than one registered as mortgagees of the same ship or share, no subsequent mortgagee shall, except under the order of some Court capable of taking cognizance of such matters, sell such ship or share without the concurrence of every prior mortgagee.

72. No registered mortgage of any ship or of any share therein shall be affected by any act of bankruptcy committed by the mortgagor after the date of the record of such mortgage, notwithstanding such mortgagor at the time of his becoming bankrupt may have in his possession and disposition and be reputed owner of such ship or share thereof; and such mortgage shall be preferred to any right, claim or interest in such ship or any share thereof which may belong to the assignees of such bankrupt.

Rights of mortgagee not affected by any

act of bankruptcy of

mortgagor.

73. A registered mortgage of any ship or share in a ship may be trans- Transfer of ferred to any person, and the instrument creating such transfer shall be in mortgages. the form marked K. (t) in the schedule hereto, and on the production of such instrument the registrar shall enter in the register book the name of the transferee as mortgagee of the ship or shares therein mentioned, and shall by memorandum under his hand record on the instrument of transfer that the same has been recorded by him, stating the date and hour of such record.

riage.

74. If the interest of any mortgagee in any ship or in any share therein Transmission becomes transmitted in consequence of death, bankruptcy or insolvency, or of interest of in consequence of the marriage of any female mortgagee, or by any lawful mortgagee by means other than by a transfer according to the provisions of this act, such death, banktransmission shall be authenticated by a declaration of the person to whom ruptcy or marsuch interest has been transmitted, made in the form marked L. (u) in the schedule hereto, and containing a statement describing the manner in which and the party to whom such property has been transmitted; and such declaration shall be made and subscribed, if the declarant resides at or within five miles of the custom house of the port of registry, in the presence of the registrar, but if beyond that distance in the presence of any registrar or of any justice of the peace, and shall be accompanied by such evidence as is herein before required to authenticate a corresponding transmission of property from one registered owner to another.

75. The registrar, upon the receipt of such declaration and the produc- Entry of transtion of such evidence as aforesaid, shall enter the name of the person or mitted mortpersons entitled under such transmission in the register book as mortgagee gage. or mortgagees of the ship or share in respect of which such transmission has taken place.

Certificates of Mortgage and Sale.

Certificates of
Mortgage and
Sale.

sale may be conferred by

certificate.

76. Any registered owner, if desirous of disposing by way of mortgage Powers of or sale of the ship or share in respect of which he is registered at any place mortgage and out of the country or possession in which the port of registry of such ship is situate, may apply to the registrar, who shall thereupon enable him to do so by granting such certificates as are hereinafter mentioned, to be called respectively certificates of mortgage or certificates of sale, according as they purport to give a power to mortgage or a power to sell. 77. Previously to any certificate of mortgage or sale being granted, the Requisites for applicant shall state to the registrar, to be by him entered in the register certificates of book, the following particulars; (that is to say,) mortgage and

(1.) The names of the persons by whom the power mentioned in such certificate is to be exercised, and in the case of a mortgage the maximum amount of charge to be created, if it is intended to fix

(t) See post, "Forms," Indorsement

on No. 11.

(u) See post, "Forms;" Nos. 13, 14,

and 15 are applicable to the case of the
transmission of interest of owner or
mortgagee.

sale.

Restrictions on certificates of mortgage and sale.

Forms of certificates of

any such maximum, and in the case of a sale, the minimum price at which a sale is to be made, if it is intended to fix any such minimum :

(2.) The specific place or places where such power is to be exercised, or if no place be specified, then that it may be exercised anywhere, subject to the provisions hereinafter contained:

(3.) The limit of time within which such power may be exercised. 78. No certificate of mortgage or sale shall be granted so as to authorize any mortgage or sale to be made

At any place within the United Kingdom, if the port of registry of the ship be situate in the United Kingdom; or at any place within the same British possession if the port of registry is situate within a British possession; or

By any person not named in the certificate.

79. Certificates of mortgage and sale shall be in the forms marked respectively M. and N. (x) in the schedule hereto, and shall contain a statemortgage and ment of the several particulars herein before directed to be entered in the

sale.

register book, and in addition thereto an enumeration of any registered mortgages or certificates of mortgage or sale affecting the ships or shares in respect of which such certificates are given.

80. The following rules shall be observed as to certificates of mortgage; (that is to say,)

(1.) The power shall be exercised in conformity with the directions contained in the certificate:

(2.) A record of every mortgage made thereunder shall be indorsed thereon by a registrar or British consular officer:

(3.) No mortgage bona fide made thereunder shall be impeached by reason of the person by whom the power was given dying before the making of such mortgage:

(4.) Whenever the certificate contains a specification of the place or places at which, and a limit of time not exceeding twelve months within which, the power is to be exercised, no mortgage bonâ fide made to a mortgagee without notice shall be impeached by reason of the bankruptcy or insolvency of the person by whom the power was given:

(5.) Every mortgage which is so registered as aforesaid on the certificate shall have priority over all mortgages of the same ship or share created subsequently to the date of the entry of the certificate in the register book; and if there be more mortgages than one so indorsed the respective mortgagees claiming thereunder shall, notwithstanding any express, implied or constructive notice, be entitled one before the other according to the date at which a record of each instrument is indorsed on the certificate, and not according to the date of the instrument creating the mortgage:

(6.) Subject to the foregoing rules every mortgagee whose mortgage is registered on the certificate shall have the same rights and powers and be subject to the same liabilities as he would have had and been subject to if his mortgage had been registered in the register book instead of on the certificate:

(7.) The discharge of any mortgage so registered on the certificate may be indorsed thereon by any registrar or British consular officer upon the production of such evidence as is hereby required to be produced to the registrar on the entry of the discharge of a mortgage in the register book; and upon such indorsement being made, the estate, if any, which passed to the mortgagee shall vest in the same person or persons in whom the same would, having regard to intervening acts and circumstances, if any, have vested if no such mortgage had been made:

(x) See post, "Forms," Nos. 16 and 17.