exercised (f), a mortgage made in good faith to a mortgagee without notice shall not be impeached by reason of the bankruptcy of the person by whom the power was given :

(5.) Every mortgage which is so registered as aforesaid (g) 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 (h); and, if there are more mortgages than one so registered, 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 each mortgage is registered on the certificate, and not according to the date of the mortgage (i):

(6.) Subject to the foregoing rules, every mortgagee whose mortgage is registered on the certificate (g) 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 (k): (7.) The discharge of any mortgage so registered on the certificate may be endorsed (1), on the certificate by any registrar (m) or British consular officer (n), on the production of such evidence as is by this Act required to be produced to the registrar on the entry of the discharge of a mortgage in the register book (o); and on that endorsement (1) being made, the interest, if any, which passed to the mortgagee shall vest in the same person or persons in whom it would (having regard to intervening acts and circumstances, if any,) have vested, if the mortgage had not been made (o):

(ƒ) § 40.
(g) Sub-s, 2.

(h) § 39. It appears from this that the registrar granting the certificate is to enter it in the register book, which is not expressly stated previously,

(i) Cf. § 33, and notes thereto.
(k) §§ 35-37, and notes.

(1) Penalties for forging, &c., §§ 66, 67.

(m) § 4.

(n) Int. Act, 1889, § 12, s. 20.
(o) § 32, and notes thereto.

Rules as
to certifi-
cates of
sale.
1854, s. 81.

(8.) On the delivery of any certificate of mortgage (p) to the registrar by whom it was granted he shall, after recording in the register book, in such manner as to preserve its priority (q), any unsatisfied mortgage registered thereon (r), cancel the certificate, and enter the fact of the cancellation in the register book; and every certificate so cancelled shall be void to all intents.

44. The following rules shall be observed as to certificates of sale (8) :

(1.) A certificate of sale shall not be granted except for the sale of an entire ship (t):

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

(3.) A sale made in good faith thereunder to a purchaser

for valuable consideration shall not be impeached by reason of the person by whom the power was given dying before the making of such sale: (4.) Whenever the certificate contains a specification of the place at which, and a limit of time not exceeding twelve months within which, the power is to be exercised (u), a sale made in good faith to a purchaser for valuable consideration without notice shall not be impeached by reason of the bankruptcy of the person by whom the power was given :

(5.) A transfer made to a person qualified to be the owner of a British ship (x) shall be by a bill of sale in accordance with this Act (y):

(6.) If the ship is sold to a person qualified to be the owner of a British ship (x) the ship shall be registered anew(); but notice of all mortgages enumerated on the certificate of sale (a) shall be entered in the register book:

(7.) Before registry anew (2) there shall be produced to

the registrar required to make the same the bill of sale by which the ship is transferred (b), the certificate of sale (c), and the certificate of registry of such ship (d): (8.) The last-mentioned registrar (e) shall retain the certificates of sale (c) and registry (d), and after having endorsed (f) on both of those instruments an entry of the fact of a sale having taken place, shall forward them to the registrar of the port appearing thereon to be the former port of registry of the ship (g), and the last-mentioned registrar (h) shall thereupon make a memorandum of the sale in his register book (i), and the registry of the ship in that book shall be considered as closed, except as far as relates to any unsatisfied mortgages or existing certificates of mortgage entered therein (k):

(9.) On such registry anew (c) the description of the ship contained in her original certificate of registry may be transferred to the new register book, without her being re-surveyed (1), and the declaration to be made by the purchaser shall be the same as would be required to be made by an ordinary transferee (m):

(10.) If the ship is sold to a person (n) not qualified to be the owner of a British ship (o), the bill of sale by which the ship is transferred (b), the certificate of sale (c), and the certificate of registry (d) shall be produced to a registrar (p) or British consular officer (q), and that registrar or officer shall retain the certificates of sale (c) and registry (d), and, having endorsed (f) thereon the fact of that ship having been sold to a person not qualified to be the owner of a British

Power of
Commis-

Customs

in case of

ship (r), shall forward the certificates to the registrar of the port appearing on the certificate of registry to be the port of registry of that ship(s); and that registrar shall thereupon make a memorandum of the sale in his register book, and the registry of the ship in that book shall be considered as closed, except so far as relates to any unsatisfied mortgages or existing certificates of mortgage entered therein (t): (11.) If, on a sale being made to a person not qualified to be the owner of a British ship (r), default is made in the production of such certificates as are mentioned in the last rule (u), that person shall be considered by British law () as having acquired no title to or interest in the ship; and further, the person upon whose application the certificate of sale was granted (y), and the person exercising the power (z), shall each be liable to a fine not exceeding one hundred pounds (a): (12.) If no sale is made in conformity with the certificate of sale (b), that certificate shall be delivered to the registrar by whom the same was granted (c); and he shall thereupon cancel it and enter the fact of the cancellation in the register book; and every certificate so cancelled shall be void for all intents and purposes.

45. On proof at any time to the satisfaction of the sioners of Commissioners of Customs that a certificate of mortgage or sale (c) is lost or destroyed, or so obliterated as to be loss of cer- useless, and that the powers thereby given have never tificate of been exercised, or if they have been exercised, then on proof of the several matters and things that have been

mortgage

or sale. 1854, s. 82.

(r) § 1.

(8) § 13.

(t) See note (k), p. 39.

(u) Certificates of sale and registry.
(2) The law of the place of sale
might recognize the transaction, and
this, under Cammell v. Sewell (1860),
5 H. & N. 728, would be sufficient by
British law, without this provision.
(y) § 39.

(z) § 10, s. 1.

(a) How recovered, §§ 680-684; how applicable, §§ 699, 716.

(b) Where a sale was made not in conformity with the certificate, but the bill of sale was filled up in accordance with the certificate, and so registered, the court disregarded the registration, and set the bill of sale aside. Orr v. Dickinson (1859), Johnson, 1, at p. 14.

(c) § 39.

done thereunder, the registrar may, with the sanction of the Commissioners, as circumstances require, either issue a new certificate, or direct such entries to be made in the register books, or such other things to be done, as might have been made or done if the loss, destruction, or obliteration had not taken place.

tion of cer

and sale

46. (1.) The registered owner of any ship (d) or share Revocatherein in respect of which a certificate of mortgage or sale tificates of has been granted (e), specifying the places where the power mortgage thereby given is to be exercised (ƒ), may, by an instrument 1854, s. 83. under his hand (g), authorize the registrar by whom the certificate was granted (h) to give notice to the registrar (i) or British consular officer (k) at every such place that the certificate is revoked.

(2.) Notice shall thereupon be given accordingly and shall be recorded by the registrar (i) or British consular officer (k) receiving it, and after it is recorded the certificate shall be deemed to be revoked and of no effect so far as respects any mortgage or sale to be thereafter made at that place.

(3.) The notice after it has been recorded shall be exhibited to every person applying for the purpose of effecting or obtaining a mortgage or transfer under the certificate.

(4.) A registrar (i) or British consular officer (k) on recording any such notice shall state to the registrar by whom the certificate was granted (h) whether any previous exercise of the power to which such certificate refers has taken place.