Validity of mortgage after the termination of vessel’s registry

(1) Where the registration of a vessel terminates by virtue of any provision of this Act or any regulations made thereunder, such termination shall not affect any entry in the Register of any un-discharged registered mortgage of that vessel or any share therein. Notwithstanding the above, IMMARBE shall give 60 days’ prior notice in writing to the registered mortgagee(s) of a vessel in the event that it decides to cancel the registration of a vessel, whether provisional or permanent, in the exercise of the powers conferred upon it by Regulation 8 of the Registration of Merchant Ships (Disciplinary) Regulations, 1999, in Statuary Instrument No. 56 of 1999, or otherwise. In such circumstances, the registration of a vessel, whether provisional or permanent, shall be suspended until such time as the mortgage is discharged or the expiration of the 60 days’ notice, whichever is the earlier, at which time the registration will be cancelled, so however that such cancellation shall not affect any entry in the Register of any un-discharged registered mortgage over that ship. (2) Subsection (1) of this Act shall not apply to an entry in the Register in a case where the Deputy Registrar at IMMARBE’s Head Office is satisfied that any person appearing on the Register to be interested as a mortgagee under the mortgage in question has consented to the entry ceasing to have effect or whose existence as a legal entity has ceased by operation of law or otherwise. (3) In the case referred to in subsection (1) of this section, the mortgagee shall have absolute power to dispose of the vessel in respect of which he is registered as mortgagee in the register, notwithstanding that the mortgagor has fully complied with any other requirements of the mortgage instrument.