Mortgage of ship or share, etc.
40. (1) [A registered ship] or a share therein may be made a security for a loan or other valuable consideration, and the instrument creating the security (hereinafter called a mortgage) shall be in the prescribed form, or in a form as near thereto as circumstances permit.
(2) Every instrument creating a mortgage shall be produced to the Registrar of the ship's port of registry for being recorded in the Register Book; and every mortgage so registered shall be called a registered mortgage.
(3) The Registrar shall record the mortgages in the Register Book in the order in which they are produced to him for the purpose and shall under his hand endorse on each instrument creating a mortgage the fact that the mortgage has been recorded by him stating the day and hour thereof.
(4) If there are more mortgages than one recorded in respect of the same ship or share, the mortgages shall, notwithstanding any express, implied or constructive notice, have priority according to the date on which each mortgage is recorded in the Register Book, and not according to the date of each mortgage itself.
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