1854.

(5.) Every mortgage which is so registered as aforesaid on the M. S. Act,
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 instru-
ment 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 mort-
gage 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:

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

81. The following rules shall be observed as to certificates of sale, Rules as to (that is to say,)

(1.) No such certificate shall be granted except for the sale of an
entire ship:

(2.) The power shall be exercised in conformity with the direc-
tions contained in the certificate:

(3.) No sale bonâ fide made to a purchaser for valuable considera-
tion shall 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
or places at which, and a limit of time not exceeding twelve
months within which, the power is to be exercised, no sale
bona fide made to a purchaser for valuable consideration
without notice shall be impeached by reason of the bank-
ruptcy or insolvency of the person by whom the power was
given:

(5.) Any transfer made to a person qualified to be the owner of
British ships shall be by bill of sale in the form herein before
mentioned, or as near thereto as circumstances permit :
(6.) If the ship is sold to a party qualified to hold British ships,

A A

certificates of sale.

M. S. Act, 1854.

Revocation of certifi

the ship shall be registered anew; but notice of all mortgages enumerated on the certificate of sale shall be entered in the register book:

(7.) Previously to such registry anew there shall be produced to
the registrar required to make the same bill of sale by which
the ship is transferred, the certificate of sale, and the certifi-
cate of registry of such ship:

(8.) Such last mentioned registrar shall retain the certificates of
sale and registry, and, after having indorsed on both of such
instruments an entry of the fact of a sale having taken place,
shall forward the said certificates to the registrar of the port
appearing on such certificates to be the former port of registry
of the ship; and such last-mentioned registrar shall there-
upon make a memorandum of the sale in his register book,
and the registry of the ship in such book shall be considered
as closed, except as far as relates to any unsatisfied mort-
gages or existing certificates of mortgage entered therein :
(9.) On such registry anew 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, and
the declaration to be made by the purchaser shall be the
same as would be required to be made by an ordinary trans-
feree :

(10.) If the ship is sold to a party not qualified to be the owner
of a British ship, the bill of sale by which the ship is trans-
ferred, the certificate of sale, and the certificate of registry
shall be produced to some registrar or consular officer, who
shall retain the certificates of sale and registry, and, having
indorsed thereon the fact of such ship having been sold to
persons not qualified to be owners of British ships, shall
forward such certificates to the registrar of the port appear-
ing on the certificate of registry to be the port of registry of
such ship; and such last-mentioned registrar shall thereupon
make a memorandum of the sale in his register book; and
the registry of the ship in such book shall be considered as
closed, except so far as relates to any unsatisfied mortgages
or existing certificates of mortgage entered therein :
(11.) If upon a sale being made to an unqualified person default
is made in the production of such certificates as are men-
tioned in the last rule, such unqualified person shall be con-
sidered by British law as having acquired no title to or
interest in the ship; and further, the party upon whose
application such certificate was granted, and the persons
exercising the power, shall each incur a penalty not exceed-
ing one hundred pounds:

(12.) If no sale is made in conformity with the certificate of sale,
such certificate shall be delivered to the registrar by whom
the same was granted; and such registrar shall thereupon
cancel it, and enter the fact of such cancellation in the
register book; and every certificate so cancelled shall be
void to all intents.

83. The registered owner for the time being of any ship or share therein in respect of which a certificate of mortgage or sale has been

cates of

granted, specifying the place or places where the power thereby given M. 8. Act, is to be exercised, may, by an instrument under his hand made in the 1854. form O. in the schedule hereto, or as near thereto as circumstances permit, authorize the registrar by whom such certificate was granted mortgage to give notice to the registrar or consular officer, registrars or consular and sale. officers, at such place or places, that such certificate is revoked; and notice shall be given accordingly; and all registrars or consular officers receiving such notice shall record the same, and shall exhibit the same to all persons who may apply to them for the purpose of effecting or obtaining a mortgage or transfer under the said certificate of mortgage or sale; and, after such notice has been so recorded, the said certificate shall, so far as concerns any mortgage or sale to be thereafter made at such place, be deemed to be revoked and of no effect; and every registrar or consular officer recording any such notice shall thereupon state to the registrar by whom the certificate was granted whether any previous exercise of the power to which such certificate refers has taken place.

registry not

91. The transfer of the registry of any ship in manner aforesaid Transfer of shall not in any way affect the rights of the several persons interested, to affect either as owners or mortgagees, in such ship, but such rights shall in rights of all respects be maintained and continue in the same manner as if no owners, such transfer had been effected. See sec. 12 of the 18 & 19 Vict. c. 91.

THE MERCHANT SHIPPING ACT AMENDMENT

АСТ, 1862.

25 & 26 VICT. c. 63.

REGISTRY AND MEASUREMENT OF TONNAGE (PART II. OF MERCHANT

SHIPPING ACT, 1854).

Merchant
Shipping

3. It is hereby declared that the expression "beneficial interest," Equities not whenever used in the second part of the Principal Act, includes excluded by interests arising under contract and other equitable interests; and the intention of the said Act is that, without prejudice to the provisions Act. contained in the said Act for preventing notice of trusts from being entered in the register book or received by the registrar, and without prejudice to the powers of disposition and of giving receipts conferred by the said Act on registered owners and mortgagees, and without prejudice to the provisions contained in the said Act relating to the exclusion of unqualified persons from the ownership of British ships, equities may be enforced against owners and mortgagees of ships in respect of their interest therein, in the same manner as equities may be enforced against them in respect of any other personal property. See secs. 37 (2,)—38 (5,)—39 (5,)—100.

M. S. Act, 1854.

Penalty for using improper certificate.

Penalties.

For unduly assuming a

British character.

For concealment of British or assumption of foreign character.

For acquiring ownership if unqualified.

For false declaration of ownersnip.

(5.) Forfeiture of Ships.

THE MERCHANT SHIPPING ACT, 1854.

17 & 18 VICT. c. 104.

52. If the master or owner of any ship uses or attempts to use for the navigation of such ship a certificate of registry not legally granted in respect of such ship, he shall be guilty of a misdemeanour, and it shall be lawful for any commissioned officer on full pay in the military or naval service of her Majesty, or any British officer of customs, or any British consular officer, to seize and detain such ship and to bring her for adjudication before the High Court of Admiralty in England or Ireland or any Court having Admiralty jurisdiction in her Majesty's dominions; and, if such Court is of opinion that such use or attempt at use has taken place, it shall pronounce such ship, with her tackle, apparel, and furniture, to be forfeited to her Majesty, and may award such portion of the proceeds arising from the sale of such ship as it may think just to the officer so bringing in the same for adjudication.

103. The offences hereinafter mentioned shall be punishable as follows:

(1.) If any person uses the British flag and assumes the British
national character on board any ship owned in whole or in
part by any persons not entitled by law to own British ships,
for the purpose of making such ship appear to be a British
ship, such ship shall be forfeited to her Majesty, unless such
assumption has been made for the purpose of escaping cap-
ture by an enemy or by a foreign ship of war in exercise of
some belligerent right: and in any proceeding for enforcing
any such forfeiture, the burden of proving a title to use the
British flag and assume the British national character shall
lie upon the person using and assuming the same.
(2.) If the master or owner of any British ship does or permits to
be done any matter or thing, or carries or permits to be
carried any papers or documents, with intent to conceal the
British character of such ship from any person entitled by
British law to inquire into the same, or to assume a foreign
character, or with intent to deceive any such person as lastly
herein before mentioned, such ship shall be forfeited to her
Majesty; and the master, if he commits or is privy to
the commission of the offence, shall be guilty of a mis-
demeanour.

(3.) If any unqualified person, except in the case of such trans-
mitted interests as are herein before mentioned, acquires as
owner any interest, either legal or beneficial, in a ship
using a British flag and assuming the British character, such
interest shall be forfeited to her Majesty.

(4.) If any person, on behalf of himself or any other person or body of persons, wilfully makes a false declaration touching the qualification of himself or such other person or body of persons to own British ships or any shares therein, the declarant shall be guilty of a misdemeanour; and the ship

or share in respect of which such declaration is made, if the M. S. Act, same has not been forfeited under the foregoing provision, 1854. shall, to the extent of the interest therein of the person making the declaration, and, unless it is shown that he had no authority to make the same, of the parties on behalf of whom such declaration is made, be forfeited to her Majesty. And, in order that the above provisions as to forfeitures may be carried into effect, it shall be lawful for any commissioned officer on full pay in the military or naval service of her Majesty, or any British officer of customs, or any British consular officer, to seize and detain any ship which has, either wholly or as to any share therein, become subject to forfeiture as aforesaid, and to bring her for adjudication before the High Court of Admiralty in England or Ireland, or any Court having Admiralty jurisdiction in her Majesty's dominions; and such Court may thereupon make such order in the case as it may think fit, and may award to the officer bringing in the same for adjudication such portion of the proceeds of the sale of any forfeited ship or share as it may think right.

any seizure

grounds.

104. No such officer as aforesaid shall be responsible, either civilly Officer not or criminally, to any person whomsoever, in respect of the seizure liable for or detention of any ship that has been seized or detained by him in made on pursuance of the provisions herein contained, notwithstanding that reasonable such ship is not brought in for adjudication, or, if so brought in, is declared not to be liable to forfeiture, if it is shown to the satisfaction of the Judge or Court before whom any trial relating to such ship or such seizure or detention is held that there were reasonable grounds for such seizure orfdetention; but, if no such grounds are shown, such Judge or Court may award payment of costs and damages to any party aggrieved, and make such other order in the premises as it thinks just.