Commonwealth Consolidated Acts

SHIPPING REGISTRATION ACT 1981 - SECT 41

             (1)  A mortgagee of a ship or of a share in a ship has power absolutely to dispose of the ship or share and to give effectual receipts in respect of the disposal, but where there are 2 or more mortgages of the same ship or share, a subsequent mortgagee shall not, except under the order of a court of competent jurisdiction, dispose of the ship or share without the consent of every prior mortgagee.

             (2)  A mortgagee of a ship or of a share in a ship who intends to dispose of the ship or the share shall not dispose of the ship or share unless he or she has first given notice in writing to the Registrar of his or her intention so to dispose of the ship or share.

             (3)  Where the Registrar is notified by a mortgagee of the intention of that mortgagee to dispose of a ship or of a share in a ship, the Registrar shall forthwith inform the subsequent mortgagee (if any) or each subsequent mortgagee (if more than one) of that ship or share whose interest in that ship or share is entered in the Register of the matter so notified to him or her.

             (4)  The disposal of a ship or of a share in a ship is not invalidated because of any failure to comply with a requirement of subsection (2) in relation to the disposal.