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Bill C-15

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RECOMMENDATION

His Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled ``An Act to amend the Canada Shipping Act and to make consequential amendments to other Acts''.

SUMMARY

This enactment makes several amendments to the Canada Shipping Act. Among the more important are amendments to modernize Part I of the Act, which concerns the registration of ships and mortgages, and the addition of a Part that deals with matters of general application. The enactment also amends the Act to take into account technological, social, statutory and administrative developments in the shipping field.

EXPLANATORY NOTES

Canada Shipping Act

Clause 1: (1) The definitions ``British ship'', ``builder's mortgage'', ``pleasure yacht'', ``recorded vessel'', ``registrar'' and ``tonnage regulations'' in section 2 read as follows:

``British ship'' includes a Canadian ship;

``builder's mortgage'' means a mortgage of a recorded vessel;

``pleasure yacht'' means a ship however propelled that is used exclusively for pleasure and does not carry passengers;

``recorded vessel'' means a vessel of the character described in section 4;

``registrar'' means a registrar of British ships;

``tonnage regulations'' means the regulations made under section 94;

(2) The definitions ``Canadian ship'', ``gross tonnage'', ``passenger'' and ``register tonnage'' in section 2 read as follows:

``Canadian ship'' means a ship registered in Canada either under this Act or under the Merchant Shipping Acts before August 1, 1936;

``gross tonnage'' means the gross tonnage stated in the certificate of registry of a ship, or, where a ship is not registered, the figure found in accordance with the rules for the time being in force for the measurement of ships in respect of tonnage;

``passenger'' means any person carried on a ship, but does not include

      (a) a person carried on a Safety Convention ship who is

        (i) the master, a member of the crew or a person employed or engaged in any capacity on board the ship on the business of that ship, or

        (ii) under one year of age,

      (b) a person carried on a ship that is not a Safety Convention ship who is

        (i) the master, a member of the crew or a person employed or engaged in any capacity on board the ship on the business of that ship,

        (ii) the owner or charterer of the ship, a member of his family or a servant connected with his household,

        (iii) a guest of the owner or charterer of the ship if it is used exclusively for pleasure and the guest is carried on the ship without remuneration or any object of profit, or

        (iv) under one year of age, or

      (c) a person carried on any ship in pursuance of the obligation laid on the master to carry shipwrecked, distressed or other persons or by reason of any circumstances that neither the master nor the owner nor the charterer, if any, could have prevented or forestalled;

``register tonnage'' means the register tonnage shown on a ship's certificate of registry;

(3) The relevant portion of the definition ``wreck'' in section 2 reads as follows:

``wreck'' includes

      ...

      (d) any wrecked aircraft or any part thereof and cargo thereof;

(4) New.

Clause 2: Section 2.1 reads as follows:

2.1 Regulations made under this Act incorporating standards or specifications by reference may incorporate those standards or specifications as amended from time to time and, in such case, the reference shall be read accordingly.

Clause 3: Part 0.1 is new. Part I reads as follows:

PART I

RECORDING, REGISTERING AND LICENSING

Recording Vessels

4. (1) Every vessel that is about to be built or is being built or equipped in Canada and that when completed will be a ship registrable in Canada may be recorded, pending registration, under an assigned number and a temporary name in the office of the registrar of ships at the port in Canada at or nearest to which the vessel is about to be built or is being built or equipped.

(2) On the recording of any vessel described in subsection (1), which, after recording, is referred to in this Act as a recorded vessel, and as a condition precedent thereto, the owner thereof shall deliver to the registrar, in compliance with Form 1 in Schedule IV, a written and signed description of the vessel and a statement of the port in Canada at which it is intended to be registered.

(3) For the purposes of the provisions of this Part that relate to recording of vessels, the owner of every recorded vessel that is being built shall identify it by painting on a board, maintained near the place in the yard of the builder where the vessel is being built, on a dark ground, in white or yellow figures and letters of not less than four inches in length, the assigned number and temporary name recorded pursuant to subsections (1) and (2) and the name of the port at which the vessel is intended to be registered.

(4) Unless a vessel is identified as provided in subsection (3), the registrar who recorded it may vacate the recording and remove from his records all entries with respect thereto.

5. (1) The bill of sale for a recorded vessel that is sold shall be filed with the registrar at the port at which the vessel is recorded and the ownership of that vessel shall be deemed unchanged until the bill of sale is recorded.

(2) On receipt of a bill of sale for a recorded vessel, the registrar shall enter the particulars thereof in the record book and endorse on the bill of sale the date and hour that the entry was made.

Registering Ships

6. A ship shall be deemed not to be a British ship unless it is owned wholly by a person qualified to be an owner of a British ship, namely,

    (a) a British subject within the meaning of the British Nationality Act, 1948, as amended from time to time; or

    (b) a body corporate incorporated under the law of a Commonwealth country and having its principal place of business in that country.

7. (1) Notwithstanding that an unregistered ship is owned wholly by persons qualified to be owners of British ships, that ship, unless it is exempted from registration or is not required to be registered by this Act or by the law of the port, whether in or outside Canada, to which it belongs, shall not be recognized in Canada, or for the purposes of this Act, as being entitled to the rights and privileges that are accorded to British ships registered in any Commonwealth country.

(2) Every British ship that is owned wholly by persons qualified to be owners of British ships and that is not registered outside Canada may be registered in Canada.

(3) Every British ship that is owned by persons qualified to do so a majority of which, either in number or in extent of ownership, are residents of Canada, and every British ship that being owned by persons so qualified, is, with respect to its management and use, principally controlled in Canada, shall, unless it is registered outside Canada, be registered in Canada.

(4) Any ship may be detained until the master of the ship, if so required, produces the certificate of registry of the ship.

8. Ships not exceeding fifteen tons register tonnage employed solely in navigation on the lakes, rivers or coasts of Canada and pleasure yachts not exceeding twenty tons register tonnage wherever employed or operated are exempted from registry under this Act.

Procedure for Canadian Registration of British Ships

9. (1) The chief officer of customs at any port in Canada approved by the Governor in Council for the registry of ships shall be a registrar of British ships.

(2) A registrar is not liable for damages or otherwise for any loss accruing to any person by reason of any act done or default made by him in his capacity as registrar, unless the loss occurred by reason of his neglect or wilful act.

10. Every registrar shall keep a book, to be called the register book, and entries in that book shall be made in accordance with the following provisions:

    (a) the property in a ship shall be divided into sixty-four shares;

    (b) subject to the provisions of this Act with respect to joint owners or owners by transmission, not more than sixty-four individuals are entitled to be registered at the same time as owners of any one ship, but this rule does not affect the beneficial title of any number of persons or of any company represented by or claiming under or through any registered owner or joint owner;

    (c) a person is not entitled to be registered as owner of a fractional part of a share in a ship, but any number of persons not exceeding five may be registered as joint owners of a ship or of any share or shares therein;

    (d) joint owners shall be considered as constituting one person only with respect to the persons entitled to be registered, and are not entitled to dispose in severalty of any interest in a ship or in any share therein in respect of which they are registered; and

    (e) a corporation may be registered as owner by its corporate name.

11. Every British ship shall before registry in Canada be surveyed by a surveyor of ships and its tonnage ascertained in accordance with the tonnage regulations of this Act, and the surveyor shall grant his certificate specifying the ship's tonnage and build, and such other particulars descriptive of the identity of the ship as may for the time being be required by the Minister, and the certificate shall be delivered to the registrar before registry.

12. (1) Every British ship shall before registry in Canada be marked permanently and conspicuously to the satisfaction of the Minister as follows:

    (a) its name shall be marked on each of its bows, and its name and the name of its port of registry shall be marked on its stern, on a dark ground in white or yellow letters, or on a light ground in black letters, such letters to be of a length not less than four inches, and of proportionate breadth;

    (b) its official number and the number denoting its register tonnage shall be cut in on its main beam; and

    (c) a scale of feet denoting its draught of water shall be marked on each side of its stem and of its stern post in Roman capital letters or in figures, not less than six inches in length, the lower line of which letters or figures must coincide with the draught line denoted thereby, and those letters or figures must be marked by being cut in and painted white or yellow on a dark ground or in such other way as the Minister approves.

(2) The Governor in Council may exempt any class of ships from all or any of the requirements of this section.

(3) If the scale of feet showing the ship's draught of water is in any respect inaccurate, so as to be likely to mislead, the owner of the ship is guilty of an offence and liable to a fine not exceeding five hundred dollars.

(4) The marks required by this section shall be permanently continued and no alteration shall be made therein, except in the event of any of the particulars thereby denoted being altered in the manner provided by this Act.

(5) If an owner or master of a Canadian ship fails to cause his ship to be marked as required by this section, or to keep it so marked, or if any person conceals, removes, alters, defaces or obliterates, or attempts to conceal, remove, alter, deface or obliterate, or suffers any person under his control to conceal, remove, alter, deface or obliterate or to attempt to conceal, remove, alter, deface or obliterate, any of the marks, that owner, master or person is guilty of an offence and liable to a fine not exceeding five hundred dollars.

(6) No liability under subsection (5) is incurred

    (a) where an alteration is made in the manner provided by this Part; or

    (b) where the concealment, removal, alteration, defacement or obliteration is for the purpose of evading capture by an enemy.

(7) On a certificate from a surveyor of ships or a steamship inspector that a ship is insufficiently or inaccurately marked, the ship may be detained until the insufficiency or inaccuracy has been remedied to the satisfaction of the Minister.

13. An application for registry of a ship shall be made in the case of individuals by the person requesting to be registered as owner, or by some one or more of the persons so requesting if more than one, or by his or their agent, and in the case of corporations by their agent, and the authority of the agent shall be testified by writing, if appointed by individuals, under the hands of the appointers, and, if appointed by a corporation, under the common seal of that corporation.

14. A person is not entitled to be registered as owner of a ship or of a share therein until he, or in the case of a corporation the person authorized by this Act to make declarations on behalf of the corporation, has made and signed a declaration of ownership, referring to the ship as described in the certificate of the surveyor, and containing the following particulars:

    (a) a statement of his qualifications to own a British ship, or in the case of a corporation, of such circumstances of the constitution and business thereof as prove it to be qualified to own a British ship;

    (b) a statement of the time when and the place where the ship was built, or, if the ship is foreign built and the time and place of building unknown, a statement that it is foreign built, and that the declarant does not know the time or place of its building, and, in addition thereto, in the case of a foreign ship, a statement of its foreign name, or, in the case of a ship condemned, a statement of the time, place and court at and by which it was condemned;

    (c) a statement of the name of the master;

    (d) a statement of the number of shares in the ship of which he or the corporation, as the case may be, is entitled to be registered as owner; and

    (e) a declaration that, to the best of his knowledge and belief, no unqualified person or body of persons is entitled as owner to any legal or beneficial interest in the ship or any share therein.

15. (1) On the first registry of a ship the following evidence shall be produced in addition to the declaration of ownership:

    (a) in the case of a ship built within a Commonwealth country, a builder's certificate, that is to say, a certificate signed by the builder of the ship, and containing a true account of the proper denomination and of the tonnage of the ship, as estimated by him, and of the time when and the place where it was built, and of the name of the person, if any, on whose account the ship was built, and if there has been any sale, the bill of sale under which the ship, or a share therein, has become vested in the applicant for registry;

    (b) in the case of a foreign-built ship, the same evidence as in the case of a ship built within a Commonwealth country, unless the declarant who makes the declaration of ownership declares that the time and place of the ship's building are unknown to him, or that the builder's certificate cannot be procured, in which case there shall be required only the bill of sale under which the ship, or a share therein, became vested in the applicant for registry; and

    (c) in the case of a ship condemned by any competent court, an official copy of the condemnation.

(2) The builder shall grant the certificate required by this section, and such person as the Minister recognizes as carrying on the business of the builder of a ship shall be included, for the purposes of this section, in the expression ``builder of the ship''.

(3) In the case of a recorded vessel that is about to be registered as a ship, a builder's certificate may be supplied, at any time after the building of the vessel is completed, by the first mortgagee of a builder's mortgage thereof whose claim remains unsatisfied.

(4) If the person granting a builder's certificate under this section wilfully makes a false statement in that certificate, he is guilty of an offence and liable to a fine not exceeding five hundred dollars.

16. (1) The Governor in Council may make regulations with respect to the manner in which government ships may be registered in Canada as British ships for the purposes of this Act, and thereupon this Act, subject to any exceptions and modifications that may be made by order in council, either generally or with respect to any special class of government ships, applies to government ships registered in accordance with those regulations as if they were registered in the manner provided by this Act.

(2) A government ship, or a ship belonging to Her Majesty, that is about to be built or is being built or equipped in Canada, whether or not such ship, when completed, will be registrable in Canada, may be recorded in accordance with section 4, with such modifications as the circumstances require.

17. (1) As soon as the requirements of this Act preliminary to registry of a ship have been complied with, the registrar shall enter in the register book the following particulars respecting the ship:

    (a) the name of the ship and the name of the port to which it belongs;

    (b) the details comprised in the surveyor's certificate;

    (c) the particulars respecting its origin stated in the declaration of ownership; and

    (d) the name and description of its registered owner or owners, and if there are more owners than one, the proportions in which they are interested in the ship.

(2) The first registration of a recorded vessel as a ship shall be made by the registrar in whose office the vessel is recorded.

(3) The registrar shall, on registration,

    (a) if required, change the temporary name of the vessel and register it as a ship under its changed name; and

    (b) transfer from the record book to the register book and register in that book, as mortgages made or granted after the registration of the vessel as a ship, all builder's mortgages relating to the vessel that have been recorded in the record book and according to that record remain undischarged.

(4) The registrar shall register the builder's mortgages described in paragraph (2)(b) in the order and according to the priority in which they were entered of record in the record book and they shall so have effect as fully as if they and each of them were mortgages made or granted in their recorded order and priority after the registration of the vessel to which they relate as a ship.

18. On the registry of a ship, the registrar shall retain in his possession the following documents, namely, the surveyor's certificate, the builder's certificate, any bill of sale of the ship previously made, the copy of the condemnation, if any, and all declarations of ownership.

19. The port at which a British ship is registered for the time being shall be deemed its port of registry and the port to which it belongs.

20. No registrar shall register any ship purchased or otherwise acquired from a foreign subject or corporation where any bill of sale or other document under or by virtue of which the ship became vested in the applicant for registry contains any provision, express, implied or constructive, restricting the use of the vessel or imputing any measure of continued control thereof by the government of a foreign country.

21. (1) Where, in the opinion of the Minister, any person who applies to be registered as owner of a ship has not sufficient assets in Canada, other than the ship itself, to reimburse Her Majesty for any expenses that Her Majesty may subsequently incur in connection with the ship, its master or a member of its crew, the Minister may prohibit a registrar from registering that person as owner until security for those expenses, in such form and such amount as the Minister may decide, has been furnished.

(2) Where no security is given under subsection (1) or where, in the opinion of the Minister, the security given under that subsection is not sufficient, the Minister may, by notice in writing, order the registered owner of the ship to furnish security or additional security, as the case may be, in such form and such amount as the Minister may decide, and an officer of customs at any port in Canada may detain the ship until the security or additional security is furnished.

22. Notwithstanding anything in this Part, a ship built outside Canada shall not, without the consent of the Minister, be registered in Canada.

Certificate of Registry

23. (1) On completion of the registry of a ship, the registrar shall grant a certificate of registry comprising the particulars respecting the ship entered in the register book, with the name of the ship's master.

(2) Every Canadian ship registered on August 1, 1936 shall be deemed to be registered under this Act.

24. (1) The certificate of registry of a ship shall be used only for the lawful navigation of the ship and is not subject to detention by reason of any title, lien, charge or interest whatever had or claimed by any owner, mortgagee or other person to, on or in the ship.

(2) If any person, whether interested in a ship or not, refuses on request to deliver up the certificate of registry of the ship when in his possession or under his control to the person entitled to the custody thereof for the purposes of the lawful navigation of the ship, or to any registrar, officer of customs or other person entitled by law to require its delivery, any justice by warrant under his hand and seal, or any court capable of taking cognizance of the matter, may summon the person so refusing to appear before that justice or court, and to be examined concerning that refusal, and unless it is proved to the satisfaction of the justice or court that there was reasonable cause for that refusal, that person is guilty of an offence and liable to a fine not exceeding five hundred dollars, but if it is shown to the justice or court that the certificate of registry is lost, the person summoned shall be discharged and the justice or court shall certify that the certificate of registry is lost.

(3) Where the person refusing to deliver up a certificate of registry is proved to have absconded so that the warrant of a justice or process of a court cannot be served on him, or where he persists in not delivering up the certificate, the justice or court shall certify the fact, and the same proceedings may then be taken as in the case of a certificate mislaid, lost or destroyed, or as near thereto as circumstances permit.

25. If the master or owner of a ship uses or attempts to use for the ship's navigation a certificate of registry not legally granted in respect of the ship, he is guilty of an indictable offence and the ship is subject to forfeiture under this Act.

26. The registrar of the port of registry of a ship may, with the approval of the Minister and on the delivery up to him of the certificate of registry of a ship, grant a new certificate in lieu thereof.

27. (1) In the event of the certificate of registry of a ship being mislaid, lost or destroyed, the registrar of the ship's port of registry shall grant a new certificate of registry in lieu of the original certificate.

(2) Where the port at which the ship is at the time of the event referred to in subsection (1), or first arrives after that event, is not in Canada but has a British registrar or consular officer, the master of the ship, or some other person having knowledge of the facts of the case, shall make a declaration stating the facts of the case, and the names and descriptions of the registered owners of the ship to the best of the declarant's knowledge and belief, and the British registrar or consular officer, as the case may be, may thereupon grant a provisional certificate, containing a statement of the circumstances under which it is granted.

(3) The provisional certificate shall, within ten days after the first subsequent arrival of the ship at its port of discharge in Canada, be delivered up to the registrar of its port of registry, and the registrar shall thereupon grant the new certificate of registry.

(4) If the master without reasonable cause fails to deliver up the provisional certificate within the ten days described in subsection (3), he is guilty of an offence and liable to a fine not exceeding two hundred and fifty dollars.

28. (1) Where it appears to the Minister that there is any doubt respecting the title of any ship registered as a British ship in Canada to be so registered, he may direct the registrar of the port of registry of the ship to require evidence to be given to his satisfaction that the ship is entitled to be registered as a British ship.

(2) If within such time, not less than thirty days, as the Minister fixes, satisfactory evidence of the title of the ship to be registered is not so given, the ship is subject to forfeiture under this Part.

29. (1) Where the master of a Canadian ship is changed, each of the following persons, namely,

    (a) if the change is made in consequence of the sentence of a naval court, the presiding officer of that court,

    (b) if the change is made in consequence of the removal of the master by a court under Part VI, the proper officer of that court, and

    (c) if the change occurs from any other cause, the registrar, or if there is none, the consular officer, at the port where the change occurs,

shall endorse and sign on the certificate of registry a memorandum of the change, and shall forthwith report the change to the Minister.

(2) Any officer of customs at any port in any Commonwealth country may refuse to admit any person to do any act there as master of a Canadian ship unless his name is inserted in or endorsed on the ship's certificate of registry as the ship's last appointed master.

30. (1) Subject to this Part, chief officers of customs in Canada, not being registrars, have the same power and are under the same obligation as registrars to endorse and sign on the certificate of registry of any ship at any port in Canada where the ship is, a memorandum of any change of master that occurs at that port and forthwith to report the change to the Minister.

(2) Where any registrar or chief officer of customs at any port or place in Canada receives conflicting directions from owners of any ship respecting a change of the master of such a ship, the registrar or chief officer may refuse to endorse and sign a memorandum of the change of master on the certificate of registry of the ship until he receives a declaration from the registered owners representing a majority of shares in the ship, or from their duly appointed agents.

31. (1) The declaration referred to in subsection 30(2) shall be made according to Form 2 in Schedule IV, or as near thereto as circumstances permit, and shall set forth the name of the person appointed in lieu of the former master, who shall be therein named, and shall be made and subscribed,

    (a) in the presence of the registrar if the declarant or declarants reside within five miles of the custom-house of the port of registry; and

    (b) if beyond that distance, in the presence of any registrar or collector of customs in any Commonwealth country or of any justice of the peace.

(2) In addition to the declaration referred to in subsection 30(2), the registrar or collector of customs at the port where the change is requested to be endorsed may require a certified copy of the register to be produced, or such other evidence as he deems necessary, as proof of the ownership of the ship.

(3) Where the ship is at or near a port described in subsection (2), the registrar or collector of customs shall, on demand of a majority of the owners thereof, require the master or any other person in possession of the certificate of registry to produce and deliver up the certificate to him, and if the certificate is not forthwith produced and delivered up to him, he may detain the ship and not allow it to proceed to sea until the certificate has been produced and delivered up to him.

32. Every registrar and every collector of customs shall keep a record of every endorsement of a change of master made by him on the certificate of registry of a ship, and shall specify in the record

    (a) the date of the endorsement;

    (b) the name, the official number and port of registry of the ship;

    (c) the name of the former master; and

    (d) the name of the new master, and whether or not he has a certificate of competency or a certificate of service and, if he has either of those certificates, the number and description thereof.

33. Every record described in section 32 shall be kept in the office of the registrar or collector of customs making the record, or his successor, and shall, at all times during the usual office hours, be open to all persons for inspection without fee or reward.

34. (1) Whenever a change occurs in the registered ownership of a ship, the change of ownership shall be endorsed on the ship's certificate of registry, either by the registrar of the ship's port of registry, or by the registrar of British ships at any port at which the ship arrives who has been advised of the change by the registrar of the ship's port of registry.

(2) The master shall, for the purpose of an endorsement by the registrar of the ship's port of registry, deliver the certificate of registry to the registrar forthwith after the change, if the change occurs when the ship is at its port of registry, and if it occurs during its absence from that port and the endorsement under this section is not made before the ship's return then on its first return to that port.

(3) The registrar of any port, not being the ship's port of registry, or any registrar of British ships who is required to make an endorsement under this section may for that purpose require the master to deliver to him the ship's certificate of registry so that the ship not be thereby detained, and the master shall deliver the certificate accordingly.

(4) If the master fails to deliver to the registrar the certificate of registry as required by this section, he is guilty of an offence and liable to a fine not exceeding five hundred dollars.

35. (1) In the event of a Canadian ship being either actually or constructively lost, taken by the enemy, burnt or broken up, or ceasing by reason of a transfer to persons not qualified to be owners of British ships, or otherwise, to be a British ship, every owner of the ship or any share therein shall, immediately on obtaining knowledge of the event, if no notice thereof has already been given to the registrar, give notice thereof to the registrar at the ship's port of registry, who shall make an entry thereof in the register book, and the registry of the ship in that book shall be considered as closed except in so far as it relates to any unsatisfied mortgages or existing certificates of mortgage entered therein.

(2) In any case described in subsection (1), except where the ship's certificate of registry is lost or destroyed, the master shall, if the event occurs in port immediately, but if it occurs elsewhere then within ten days after his arrival in port, deliver the certificate to the registrar or registrar of British ships, or, if there is none, to the consular officer there, and the registrar, if he is not himself the registrar of the ship's port of registry, or the consular officer, shall forthwith forward the certificate delivered to him to the registrar of the ship's port of registry.

(3) If any owner or master fails, without reasonable cause, to comply with this section, he is guilty of an offence and liable to a fine not exceeding five hundred dollars.

36. (1) Where, at a port not within any Commonwealth country and not being a port of registry established by order in council under the Merchant Shipping Acts, a ship becomes the property of persons qualified to own a British ship and those persons declare to the consular officer at that port an intent to apply to have the ship registered in Canada, the consular officer may grant to the ship's master, on his application, a provisional certificate stating

    (a) the name of the ship,

    (b) the time and place of its purchase and the names of its purchasers,

    (c) the name of its master, and

    (d) the best particulars respecting its tonnage, build and description that he is able to obtain,

and shall forward a copy of the certificate at the first convenient opportunity to the Minister.

(2) A provisional certificate has the effect of a certificate of registry until the expiration of six months from its date, or until the ship's arrival at a port in Canada where there is a registrar, whichever first happens, and on either of those events happening, the certificate ceases to have effect.

37. Where it appears to the Minister that by reason of special circumstances it would be desirable to grant permission to any British ship to pass, without being previously registered, from any port in Canada to any other port within any Commonwealth country, the Minister may grant a pass accordingly, and that pass, for the time and within the limits therein mentioned, has the same effect as a certificate of registry.

Transfers and Transmissions

38. (1) A registered ship or any share therein, when disposed of to a person qualified to own a British ship, shall be transferred by bill of sale.

(2) The bill of sale shall contain such description of the ship as is contained in the surveyor's certificate, or some other description sufficient to identify the ship to the satisfaction of the registrar, shall be in the form prescribed by the Governor in Council and shall be executed by the transferor in the presence of and be attested by a witness or witnesses.

39. Where a registered ship or any share therein is transferred, the transferee is not entitled to be registered as owner thereof until he, or, in the case of a corporation, the person authorized by this Act to make declarations on behalf of the corporation, has made and signed a declaration, in this Act called a ``declaration of transfer'', referring to the ship and containing

    (a) a statement of the qualification of the transferee to own a British ship, or, if the transferee is a corporation, of such circumstances of the constitution and business thereof as prove it to be qualified to own a British ship; and

    (b) a declaration that, to the best of his knowledge and belief, no unqualified person or body of persons is entitled as owner to any legal or beneficial interest in the ship or any share therein.

40. (1) Every bill of sale for the transfer of a registered ship or of a share therein, when duly executed, shall be produced to the registrar of the ship's port of registry with the declaration of transfer, and the registrar shall thereupon enter in the register book the name of the transferee as owner of the ship or share, and shall endorse on the bill of sale the fact of that entry having been made, with the day and hour thereof.

(2) Bills of sale of a ship or any share therein shall be entered in the register book in the order of their production to the registrar.

41. (1) Where the property in a registered ship or share therein is transmitted to a person qualified to own a British ship on the marriage, death or bankruptcy of any registered owner, or by any lawful means other than by a transfer under this Act,

    (a) that person shall authenticate the transmission by making and signing a declaration, in this Act called a ``declaration of transmission'', identifying the ship and containing the several statements required by this Act to be contained in a declaration of transfer, or as near thereto as circumstances admit, and also a statement of the manner in which and the person to whom the property has been transmitted;

    (b) if the transmission takes place by virtue of marriage, the declaration shall be accompanied by a copy of the register of the marriage or other legal evidence of the celebration thereof;

    (c) if the transmission is consequent on bankruptcy, the declaration of transmission shall be accompanied by such evidence as is for the time being admissible in courts of justice as proof of the title of persons claiming under a bankruptcy; and

    (d) if the transmission is consequent on death, the declaration of transmission shall be accompanied by the instrument of representation, or an official extract therefrom.

(2) The registrar, on receipt of the declaration of transmission so accompanied, shall enter in the register book the name of the person entitled under the transmission to be registered as owner of the ship or any share therein that has been transmitted, and, where there is more than one such person, shall enter the names of all those persons, but those persons, however numerous, shall, for the purpose of this Act with respect to the number of persons entitled to be registered as owners, be considered as one person.

42. (1) Where the property in a Canadian ship or share therein is transmitted on marriage, death, bankruptcy or otherwise to a person not qualified to own a British ship, the Admiralty Court may, on application by or on behalf of the unqualified person, order a sale of the property so transmitted, and direct that the proceeds of the sale, after deducting the expenses thereof, be paid to the person entitled under the transmission or otherwise as the Court directs.

(2) The Admiralty Court may require any evidence in support of the application it thinks requisite, and may make the order on any terms and conditions it thinks just, or may refuse to make the order, and generally may act in the case as the justice of the case requires.

(3) Every application for sale must be made within four weeks after the occurrence of the event on which the transmission has taken place, or within such further time, not exceeding in the whole one year from the date of the occurrence, as the Court allows.

(4) If an application is not made within the time referred to in subsection (3), or if the Court refuses an order for sale, the ship or share transmitted is thereupon subject to forfeiture under this Act.

43. Where any court, whether under the preceding sections or otherwise, orders the sale of any ship or share therein, the order of the court shall contain a declaration vesting in some person named by the court the right to transfer that ship or share, and that person is thereupon entitled to transfer the ship or share in the same manner and to the same extent as if he were the registered owner thereof, and every registrar shall obey the requisition of the person so named in respect of any transfer to the same extent as if that person were the registered owner.

44. The Admiralty Court may, if it thinks fit, without prejudice to the exercise of any other power of the Court, on the application of any interested person, make an order prohibiting for a time specified any dealing with a ship or any share therein, and the Court may make the order on any terms or conditions it thinks just, may refuse to make the order or may discharge the order when made, with or without costs, and generally may act in the case as the justice of the case requires, and every registrar, without being made a party to the proceeding, shall on being served with an order or an official copy thereof obey the order.

Mortgages

45. (1) A recorded vessel may be made security for the repayment of a debt or the discharge of any other obligation.

(2) A builder's mortgage shall be in Form 3 in Schedule IV and may be filed with the registrar at the port at which the vessel is recorded.

(3) On receipt of a builder's mortgage in the required form, the registrar shall enter the particulars thereof in the record book.

46. Every builder's mortgage

    (a) binds the recorded vessel to which it relates during the period from the commencement of building until launching;

    (b) binds the recorded vessel to which it relates at and from the time of its launching until its registration in Canada as a British ship; and

    (c) operates in all respects as if it were a mortgage made after the registration of the recorded vessel to which it relates as a British ship pursuant to this Part, and subsection 47(2) and sections 48 to 54 respecting a registered mortgage apply with such modifications as the circumstances require to a builder's mortgage.

47. (1) A registered ship or any share therein may be made a security for a loan or other valuable consideration, and the instrument creating the security, in this Act called a ``mortgage'', shall be in the form prescribed by the Governor in Council, and on the production of the instrument the registrar of the ship's port of registry shall record it in the register book.

(2) Mortgages shall be recorded by the registrar in the order in time in which they are produced to him for that purpose, and the registrar shall by memorandum under his hand indicate on each mortgage that it has been recorded by him, stating the date and hour of that record.

48. Where a registered mortgage is discharged, the registrar shall, on the production of the mortgage deed with a receipt for the mortgage money endorsed thereon, duly signed and attested, make an entry in the register book to the effect that the mortgage has been discharged, and on that entry being made the estate, if any, that passed to the mortgagee shall vest in the person in whom, having regard to intervening acts and circumstances, if any, it would have vested if the mortgage had not been made.

49. Where there are more mortgages than one registered in respect of the same ship or share in a ship, the mortgagees are, notwithstanding any express, implied or constructive notice, entitled in priority, one over the other, according to the date at which each mortgage is recorded in the register book, and not according to the date of each mortgage itself.

50. Except as far as may be necessary for making a mortgaged ship or share in a ship available as a security for the mortgage debt, the mortgagee shall not by reason of the mortgage be deemed the owner of the ship or share, nor shall the mortgagor be deemed to have ceased to be owner thereof.

51. Every registered mortgagee has power absolutely to dispose of the ship or any share therein in respect of which he is registered as a mortgagee, and to give effectual receipts for the purchase money, but where there are more persons than one registered as mortgagees of the same ship or share, a subsequent mortgagee shall not, except under the order of the court of competent jurisdiction, sell the ship or share without the concurrence of every prior mortgagee.

52. A registered mortgage of a ship or any share therein is not affected by any act of bankruptcy committed by the mortgagor after the date of the record of the mortgage, notwithstanding that the mortgagor at the commencement of his bankruptcy had the ship or share in his possession, order or disposition, or was reputed owner thereof, and the mortgage shall be preferred to any right, claim or interest therein of the other creditors of the bankrupt or any trustee or assignee on their behalf.

53. A registered mortgage of a ship or any share therein may be transferred to any person, and the instrument effecting the transfer shall be in the form prescribed by the Governor in Council, and on the production of that instrument the registrar shall record it by entering in the register book the name of the transferee as mortgagee of the ship or share, and shall by memorandum under his hand indicate on the instrument of transfer that it has been recorded by him, stating the date and hour of the record.

54. (1) Where the interest of a mortgagee in a ship or any share therein is transmitted on marriage, death or bankruptcy, or by any lawful means other than by a transfer under this Act, the transmission shall be authenticated by a declaration of the person to whom the interest is transmitted.

(2) The declaration described in subsection (1) shall be accompanied

    (a) if the transmission has taken place by virtue of the bankruptcy of any registered mortgagee, by such evidence as is, for the time being, admissible in courts of justice as proof of the title of persons claiming under any bankruptcy;

    (b) if the transmission has taken place by virtue of the marriage of a mortgagee, by a copy of the register of the marriage or other legal evidence of the celebration thereof; or

    (c) if the transmission has taken place by virtue of any testamentary instrument or intestacy, by such evidence as is, by the law of the province in which the declaration is made, required to establish it.

(3) In the case of a transmission of a builder's mortgage, the declaration shall be in Form 4 in Schedule IV, shall state the manner in which and the person to whom the property has been transmitted and shall be made and subscribed

    (a) in the presence of the registrar at the port at which the recorded vessel has been recorded, if the declarant resides at or within five miles of the custom-house of the port; or

    (b) if beyond that distance, in the presence of any registrar, chief officer of customs or justice of the peace.

(4) The registrar, on receipt of the declaration and the production of the required evidence, shall enter the name of the person entitled under the transmission in the register book or record book, as the case may be, as mortgagee of the ship or share or vessel, as the case may be, in respect of which the transmission has taken place.

Certificates of Mortgage and Sale

55. A registered owner, if desirous of disposing by way of mortgage or sale of the ship or any share therein in respect of which he is registered at any place outside Canada, may apply to the registrar of the ship's port of registry and the registrar shall thereupon enable him to do so by granting a certificate of mortgage or a certificate of sale.

56. Before a certificate of mortgage or a certificate of sale is granted, the applicant shall state to the registrar and the registrar shall enter in the register book the following particulars:

    (a) the name of the person by whom the power mentioned in the certificate is to be exercised, and in the case of a mortgage the maximum amount of charge to be created, if it is intended to fix any maximum, and in the case of a sale the minimum price at which a sale is to be made, if it is intended to fix any minimum;

    (b) the place where the power is to be exercised, or if no place is specified, a declaration that it may be exercised anywhere, subject to this Act; and

    (c) the limit of time within which the power may be exercised.

57. A certificate of mortgage or a certificate of sale shall not be granted so as to authorize any mortgage or sale to be made in Canada or by any person not named in the certificate.

58. A certificate of mortgage and a certificate of sale shall contain a statement of the several particulars by this Act directed to be entered in the register book on the application for the certificate, and an enumeration of any registered mortgages or certificates of mortgage or sale affecting the ship or any share therein in respect of which the certificate is given.

59. The following rules shall be observed with respect to certificates of mortgage:

    (a) the power mentioned in the certificate shall be exercised in conformity with the directions contained in the certificate;

    (b) every mortgage made thereunder shall be registered by the endorsement of a record thereof on the certificate by a registrar or British registrar or consular officer;

    (c) a mortgage made in good faith thereunder shall not be impeached by reason of the person by whom the power mentioned in the certificate was given dying before the making of the mortgage;

    (d) whenever the certificate contains a specification of the place at which, and a limit of time not exceeding twelve months within which, the power mentioned in the certificate is to be exercised, 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;

    (e) every mortgage that is registered on the certificate pursuant to paragraph (b) has priority over all mortgages of the same ship or any share therein created subsequent to the date of the entry of the certificate in the register book, and, if there are more mortgages than one so registered, the respective mortgagees claiming thereunder are, notwithstanding any express, implied or constructive notice, entitled to priority 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;

    (f) subject to paragraphs (a) to (e), every mortgagee whose mortgage is registered on the certificate has the same rights and powers and is 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;

    (g) the discharge of any mortgage registered on the certificate may be endorsed on the certificate by any registrar or British registrar or consular officer, 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, and on that endorsement being made, the interest, if any, that 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; and

    (h) on the delivery of any certificate of mortgage to the registrar 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 the certificate and enter the fact of the cancellation in the register book, and every certificate so cancelled is void.

60. The following rules shall be observed with respect to certificates of sale:

    (a) a certificate of sale shall not be granted except for the sale of an entire ship;

    (b) the power mentioned in the certificate shall be exercised in conformity with the directions contained in the certificate;

    (c) 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 mentioned in the certificate was given dying before the making of such sale;

    (d) whenever the certificate contains a specification of the place at which, and a limit of time not exceeding twelve months within which, the power mentioned in the certificate is to be exercised, 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;

    (e) a transfer made to a person qualified to be the owner of a British ship shall be by a bill of sale in accordance with this Act;

    (f) if the ship is sold to a person qualified to be the owner of a British ship, the ship shall be registered anew, but notice of all mortgages enumerated on the certificate of sale shall be entered in the register book;

    (g) before registry anew there shall be produced to the registrar or British registrar required to make the registry the bill of sale by which the ship is transferred, the certificate of sale and the certificate of registry of such ship;

    (h) the British registrar shall retain the certificates of sale and registry, and after having endorsed 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, 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 in so far as it relates to any unsatisfied mortgages or existing certificates of mortgage entered therein;

    (i) on registry anew, the description of the ship contained in its original certificate of registry may be transferred to the new register book, without the ship being resurveyed, and the declaration to be made by the purchaser shall be the same as would be required to be made by an ordinary transferee;

    (j) if the ship is sold to a person not qualified to be the owner of a British ship, the bill of sale by which the ship is transferred, the certificate of sale and the certificate of registry shall be produced to a registrar or British registrar or consular officer, who shall retain the certificates of sale and registry, and, having endorsed thereon the fact of that ship having been sold to a person not qualified to be the owner of a British ship, 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, and that registrar shall 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 in so far as it relates to any unsatisfied mortgages or existing certificates of mortgage entered therein;

    (k) if, on a sale being made to a person not qualified to be the owner of a British ship, default is made in the production of certificates mentioned in paragraph (j), that person shall be considered not to have acquired any title to or interest in the ship, and the person on whose application the certificate of sale was granted, and the person exercising the power, are each guilty of an offence and liable to a fine not exceeding five hundred dollars; and

    (l) if no sale is made in conformity with the certificate of sale, that certificate shall be delivered to the registrar by whom it was granted, and he shall cancel it and enter the fact of the cancellation in the register book, and every certificate so cancelled is void.

61. On proof at any time to the satisfaction of the Minister that a certificate of mortgage or sale is lost or destroyed or so obliterated as to be useless, and that the powers thereby given have never been exercised, or if they have been exercised, then on proof of the several matters and things that have been done thereunder, the registrar may, with the sanction of the Minister, as circumstances require, either issue a new certificate or direct such entries to be made in the register book or such other thing to be done as might have been made or done if the loss, destruction or obliteration had not taken place.

62. (1) The registered owner of any ship or share therein in respect of which a certificate of mortgage or sale has been granted, specifying the places where the power thereby given is to be exercised, may, by an instrument under his hand, authorize the registrar by whom the certificate was granted to give notice to the registrar or British registrar or consular officer at every such place that the certificate is revoked.

(2) A notice given pursuant to subsection (1) shall be recorded by the registrar or British registrar or consular officer receiving it, and after it is recorded the certificate shall be deemed to be revoked and of no effect with respect to 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 or British registrar or consular officer on recording the notice shall state to the registrar by whom the certificate was granted whether any previous exercise of the power to which the certificate refers has taken place.

Name of Ship

63. (1) The Governor in Council may make regulations enabling the Minister to refuse the registry of any ship by the name by which it is proposed to register that ship if it is already the name of a registered British ship or a name so similar as to be calculated to deceive, and may by those regulations require notice to be given in such manner as may be directed by the regulations before the name of the ship is marked on the ship, or before the name of the ship is entered in the register.

(2) Where the registry of a ship by the name by which it is proposed to register that ship is refused by the Minister, or any requirements of the regulations are not complied with in the case of any ship that it is proposed to register, that ship shall not be registered under the name proposed or until the regulations are complied with, as the case may be.

64. (1) A ship shall not be described by any name other than that by which it is for the time being registered.

(2) A change shall not be made in the name of a ship without the previous written permission of the Minister.

(3) Application for that permission shall be in writing, and if the Minister is of opinion that the application is reasonable he may entertain it, and thereupon require notice thereof to be published in such form and manner as he thinks fit.

(4) On permission being granted to change the name, the ship's name shall forthwith be altered in the register book, in the ship's certificate of registry and on the ship's bows and stern.

(5) Where it is shown to the satisfaction of the Minister that the name of any ship has been changed without his permission, he shall direct that the ship's name be altered into that which the ship bore before the change, and the name shall be altered in the register book, in the ship's certificate of registry and on the ship's bows and stern accordingly.

(6) Where a ship having once been registered has ceased to be so registered, no person unless ignorant of the previous registry, proof whereof lies on that person, shall apply to register, and no registrar shall knowingly register, the ship, except by the name by which it was previously registered, without the previous written permission of the Minister.

(7) Where a foreign ship, not having at any previous time been registered as a British ship, becomes a British ship, no person shall apply to register, and no registrar shall knowingly register, the ship, except by the name which it bore as a foreign ship immediately before becoming a British ship, without the previous written permission of the Minister.

(8) Every person who acts, or suffers any person under his control to act, in contravention of this section, or omits to do, or suffers any person under his control to omit to do, anything required by this section, is guilty of an offence and liable to a fine not exceeding five hundred dollars, and, except in the case of an application being made under the section with respect to a foreign ship that, not having at any previous time been registered as a British ship, has become a British ship, the ship may be detained until this section is complied with.

Registry of Alterations, Registry anew and Transfer of Registry

65. (1) When a registered ship is so altered as not to correspond with the particulars relating to its tonnage or description contained in the register book, if the alteration is made at any port having a registrar, that registrar, or, if it is made elsewhere, the registrar of the first port having a registrar at which the ship arrives after the alteration, shall, on application being made to him, and on receipt of a certificate from the proper surveyor stating the particulars of the alteration, either cause the alteration to be registered or direct that the ship be registered anew.

(2) If default is made in registering anew a ship or in registering an alteration in a ship altered as described in subsection (1), the owner of the ship is guilty of an offence and liable to a fine not exceeding five hundred dollars, and in addition to a fine not exceeding twenty-five dollars for every day during which the offence continues after conviction.

66. (1) For the purpose of the registry of an alteration in a ship, the ship's certificate of registry shall be produced to the registrar and the registrar shall, in his discretion, either retain the certificate of registry and grant a new certificate of registry containing a description of the ship as altered or endorse and sign on the existing certificate a memorandum of the alteration.

(2) The particulars of the alteration in a ship, and the fact of the new certificate having been granted, or endorsement having been made, shall be entered by the registrar of the ship's port of registry in his register book, and for that purpose the registrar to whom the application for the registry of the alteration has been made, if he is not the registrar of the ship's port of registry, shall forthwith report to the registrar of the ship's port of registry those particulars and facts, accompanied, where a new certificate of registry has been granted, by the old certificate of registry.

67. (1) Where any registrar, not being the registrar of the ship's port of registry, on an application with respect to an alteration in a Canadian ship, directs the ship to be registered anew, he shall either grant a provisional certificate, describing the ship as altered, or provisionally endorse the particulars of the alteration on the existing certificate.

(2) Every such provisional certificate, or certificate provisionally endorsed, shall, within ten days after the first subsequent arrival of the ship at its port of discharge in Canada, be delivered up to the registrar thereof, who shall cause the ship to be registered anew.

(3) The registrar granting a provisional certificate under this section, or provisionally endorsing a certificate, shall add to the certificate or endorsement a statement that it is made provisionally, and shall send a report of the particulars of the case to the registrar of the ship's port of registry, containing a similar statement as the certificate or endorsement.

68. Where the ownership of any ship is changed, the registrar of the ship's port of registry may, on the application of the owners of the ship, register the ship anew, although registration anew is not required under this Act.

69. (1) Where a ship is to be registered anew, the registrar shall proceed as in the case of first registry, and on the delivery up to him of the existing certificate of registry, and on the other requirements as to registry, or in the case of a change of ownership such of them as he thinks material, being duly complied with, shall make that registry anew and grant a certificate thereof.

(2) Where a ship is registered anew, its former register shall be considered as closed, except in so far as it relates to any unsatisfied mortgage or existing certificates of sale or mortgage entered thereon, but the names of all persons appearing on the former register to be interested in the ship as owners or mortgagees shall be entered on the new register, and the registry anew does not in any way affect the rights of any of those persons.

70. (1) The registry of any ship may be transferred from one port in Canada to another or to or from any port in Canada to or from any Commonwealth country on the application to the registrar of the existing port of registry of the ship made by declaration in writing of all persons appearing on the register to be interested therein as owners or mortgagees, but that transfer shall not in any way affect the rights of those persons or any of them, and those rights shall in all respects continue in the same manner as if no such transfer had been effected.

(2) On any application under subsection (1), the registrar shall transmit notice thereof to the registrar of the intended port of registry with a copy of all particulars relating to the ship and the names of all persons appearing on the register to be interested therein as owners or mortgagees.

(3) The ship's certificate of registry shall be delivered up to the registrar either of the existing or intended port of registry, and, if delivered up to the former, shall be transmitted to the registrar of the intended port of registry.

(4) On the receipt of the documents referred to in this section, the registrar of the intended port of registry shall enter in his register book all the particulars and names so transmitted and grant a new certificate of registry, and thenceforth the ship shall be considered as registered at the new port of registry, and the name of the ship's new port of registry shall be substituted for the name of its former port of registry on the ship's stern.

71. (1) Where any British or foreign registered ship is wrecked, and the register thereof is closed and the certificate of registry is delivered up to the proper officer and cancelled, or, where any ship, sailing under a pass from the Minister, is either actually or constructively wrecked on the voyage during the time and within the limits mentioned in the pass, the Minister may direct that the ship may be registered as a British ship in any port in Canada at and for which there is a registrar, on proof being adduced to the satisfaction of the Minister that

    (a) the ship has been thoroughly repaired and made seaworthy;

    (b) all the transactions connected with the wreck, condemnation and sale of the ship were in good faith; and

    (c) all the requirements of the law have been complied with.

(2) No registrar shall register any ship described in subsection (1) without the authority of the Minister.

Incapacitated Persons

72. Where by reason of infancy, mental disability or any other cause any person interested in any ship, or any share therein, is incapable of making any declaration or doing anything required or permitted by this Act to be made or done in connection with the registry of the ship or share, the guardian or committee of that person, or, if there is none, any person appointed on application made on behalf of the incapable person, or of any other person interested, by any court or judge having jurisdiction in respect of the property of incapable persons, may make the declaration, or a declaration as nearly corresponding thereto as circumstances permit, and do such act or thing in the name and on behalf of the incapable person, and all acts done by the substitute are as effectual as if done by the person for whom he is substituted.

Trusts and Equitable Rights

73. No notice of any trust, express, implied or constructive, shall be entered in the register book or be receivable by the registrar, and, subject to any rights and powers appearing by the register book to be vested in any other person, the registered owner of a ship or share therein has power absolutely to dispose of the ship or share in the manner provided in this Act, and to give effectual receipts for any money paid or advanced by way of consideration.

74. The expression ``beneficial interest'', where used in this Part, includes interests arising under contract and other equitable interests, and the intention of this Act is that, without prejudice to the provisions of this Act relating to the prevention of notice of trusts from being entered in the register book or received by the registrar, without prejudice to the powers of disposition and of giving receipts conferred by this Act on registered owners and mortgagees, and without prejudice to the provisions of this Act relating to the exclusion of unqualified persons from the ownership of British ships, interests arising under contract or other equitable interests may be enforced by or against owners and mortgagees of ships in respect of their interest therein in the same manner as in respect of any other personal property.

Liability of Beneficial Owner

75. Where any person is beneficially interested, otherwise than by way of mortgage, in any ship or share therein registered in the name of some other person as owner, the person so interested is, as well as the registered owner, subject to all pecuniary penalties imposed by this Act or any other Act on the owners of ships or shares therein, so that proceedings may be taken for the enforcement of any of those penalties against both or either of those parties, with or without joining the other of them.

Managing Owner

76. (1) The name and address of the managing owner for the time being of every ship registered at a port in Canada shall be registered at the custom-house of that port.

(2) Where there is no managing owner of a ship, there shall be registered under subsection (1) the name of the ship's husband or other person to whom the management of the ship is entrusted by or on behalf of the owner, and any person whose name is so registered is, for the purposes of this Act, under the same obligations and subject to the same liabilities as if he were the managing owner.

(3) If default is made in complying with this section, the owner is guilty of an offence and liable, or if there are more owners than one, each owner is guilty of an offence and liable in proportion to his interest in the ship, to a fine not exceeding in the whole five hundred dollars each time the ship leaves any port in Canada.

Declarations, Inspection of Register and Fees

77. Where, under this Part, any person is required to make a declaration on behalf of himself or of any corporation, or any evidence is required to be produced to the registrar, and it is shown to the satisfaction of the registrar that from any reasonable cause that person is unable to make the declaration, or that the evidence cannot be produced, the registrar may, with the approval of the Minister, and on the production of such other evidence, and subject to such terms as he may think fit, dispense with the declaration or evidence.

78. (1) Declarations required by this Part shall be made before a registrar, a justice of the peace, a commissioner for oaths, a consular officer or before any person authorized by law to administer oaths in the province in which the declaration is made.

(2) Declarations required by this Part may be made on behalf of a corporation by the secretary or any other officer of the corporation authorized by it for the purpose.

79. All fees authorized to be taken under this Part shall, except where otherwise in this Act provided, if taken in any part of Canada, form part of the Consolidated Revenue Fund, if taken in any other Commonwealth country, shall be disposed of in such way as the Executive Government of that country directs, and, if taken at any port of registry established by order in council under the Merchant Shipping Acts, shall be disposed of as Her Majesty in Council directs.

80. The Governor in Council may prescribe a tariff of fees for the registration, change of name, transfer, transmission or mortgage of Canadian ships and the fees shall be paid into the Consolidated Revenue Fund.

Returns, Evidence and Forms

81. (1) Every registrar in Canada shall transmit to the Minister returns in such form, and at such times as the Minister may direct, of all registries, transfers, transmissions, mortgages and other dealings with ships that have been registered by or communicated to him in his character of registrar, and of the names of the persons concerned in the same, and of such other particulars as may be directed by the Minister.

(2) Every registrar in Canada shall on or before February 1 in every year transmit to the Minister a list of all ships registered at the port where he performs his duties and of all ships whose registers have been transferred or cancelled at that port since the last preceding return.

82. (1) On application to the registrar during the hours of his official attendance, a person may

    (a) on payment of a fee of twenty-five cents inspect the entries respecting a ship in the register book or record book; and

    (b) on payment of a fee of one dollar obtain

      (i) a copy of the entries made in the register book or record book respecting a ship, or

      (ii) a copy of any declaration or document that is by subsection (2) declared admissible in evidence,

    certified by the registrar to be a true copy of the entries, declaration or document.

(2) The following documents are admissible in evidence in any court in Canada, in the manner provided by this Act:

    (a) any register book or record book under this Part on its production from the custody of the registrar or other person having the lawful custody thereof;

    (b) a certificate of registry under this Act purporting to be signed by the registrar or other proper officer;

    (c) an endorsement on a certificate of registry purporting to be signed by the registrar or other proper officer; and

    (d) every declaration made in pursuance of this Part in respect of a British ship.

(3) A copy or transcript of the register of British ships kept by the Registrar General of Shipping and Seamen under the direction of the Board of Trade of the United Kingdom is admissible in evidence in any court in Canada and has the same effect to all intents as the original register of which it is a copy or transcript.

83. (1) Subject to this Part, the several instruments and documents mentioned in this Part shall be in the form prescribed by the Governor in Council, and the Governor in Council may make such alterations in the forms so prescribed as the Governor in Council may deem requisite.

(2) A registrar is not required without the special direction of the Minister to receive and enter in the register book any bill of sale, mortgage or other instrument for the disposal or transfer of any ship or share, or any interest therein, that is made in any form other than that for the time being required under this Part, or that contains any particulars other than those contained in such form, but the Governor in Council shall, before altering the forms, give such public notice thereof as may be necessary in order to prevent inconvenience.

(3) The Minister shall cause the forms so prescribed to be supplied to all registrars under this Act for distribution to persons requiring to use them, either free of charge or at such moderate prices as he may direct.

(4) The Minister may, for carrying into effect this Part, give such instructions to registrars and surveyors of ships respecting the manner of making entries in the register book, the execution and attestation of powers of attorney, any evidence required for identifying any person, the referring to him of any question involving doubt or difficulty, and generally respecting any act or thing to be done in pursuance of this Part, as he thinks fit.

Forgery and False Declarations

84. Every person who forges, or fraudulently alters or assists in forging or fraudulently altering, or procures to be forged or fraudulently altered, any of the following documents, namely, any register book, builder's certificate, surveyor's certificate, certificate of registry, declaration, bill of sale, instrument of mortgage, or certificate of mortgage or sale under this Part, or any entry or endorsement required by this Part to be made in or on any of those documents, is guilty of an indictable offence.

85. (1) Every person who, in the case of any declaration made in the presence of or produced to a registrar under this Part, or in any document or other evidence produced to a registrar under this Part,

    (a) wilfully makes, assists in making or procures to be made any false statement concerning the title to or ownership of or the interest existing in any ship or share therein, or

    (b) utters, produces or makes use of any declaration or document containing any false statement described in paragraph (a) knowing it to be false,

is guilty of an indictable offence.

(2) Every person who wilfully makes a false declaration concerning the qualification of himself or of any other person or of any corporation to own a British ship or any share therein is guilty of an indictable offence and that ship or share is subject to forfeiture under this Act, to the extent of the interest therein of the declarant, and, unless it is proved that the declaration was made without authority, of any person or corporation on behalf of whom the declaration is made.

National Character and Flag

86. (1) An officer of customs shall not grant a clearance or transire for any ship until the master of the ship has declared to that officer the name of the nation to which he claims the ship belongs, and that officer shall thereupon inscribe that name on the clearance or transire.

(2) If a ship attempts to proceed to sea without a clearance or transire, the ship may be detained until the declaration is made.

87. (1) If a person uses the National Flag of Canada and assumes the Canadian national character on board a ship owned in whole or in part by any persons not qualified to own a Canadian ship, for the purpose of making the ship appear to be a Canadian ship, the ship is subject to forfeiture under this Act, unless the assumption has been made for the purpose of escaping capture by an enemy or by a foreign ship of war in the exercise of some belligerent right.

(2) In any proceeding for enforcing any forfeiture, the burden of proving a title to use the National Flag of Canada and assume the Canadian national character lies on the person using and assuming them.

88. If the master or owner of a Canadian ship does anything or permits anything to be done, or carries or permits to be carried any papers or documents, with intent to conceal the British character of the ship from any person entitled by the law of Canada or of any Commonwealth country to inquire into the same, or with intent to assume a foreign character, or with intent to deceive any person so entitled, the ship is subject to forfeiture under this Act, and the master, if he commits or is privy to the commission of the offence, is guilty of an indictable offence.

89. If an unqualified person acquires as owner, otherwise than by a transmission as provided in this Part, any interest either legal or beneficial, in a ship using the National Flag of Canada and assuming the Canadian national character, that interest is subject to forfeiture under this Act.

90. Where it is declared by this Act that a British ship shall not be recognized as a British ship, that ship is not entitled to any benefits, privileges, advantages or protection usually enjoyed by British ships, to use the Canadian flag or to assume the Canadian national character, but with respect to the payment of dues, the liability to fines and forfeiture and the punishment of offences committed on board that ship, or by any persons belonging to the ship, that ship shall be dealt with in the same manner in all respects as if it were a recognized British ship.

91. (1) The National Flag of Canada is hereby declared to be the proper national colours for all Canadian ships and all ships and boats that would be registered in Canada if they were required to be registered, belonging to any British subject resident in Canada, except in the case of any ship or boat for the time being allowed to wear any other national colours in pursuance of a warrant from Her Majesty or under regulations that may be made by the Governor in Council.

(2) Where a ship or boat described in subsection (1) flies

    (a) any distinctive national colours other than the National Flag of Canada, or

    (b) the colours or pendant usually carried by Her Majesty's ships or any colours or pendant resembling the colours or pendant of Her Majesty, without a warrant from Her Majesty or pursuant to regulations made by the Governor in Council,

the master of that ship or boat, or the owner thereof if he is on board, is guilty of an offence and liable on summary conviction to a fine not exceeding five hundred dollars or to imprisonment for a term not exceeding six months or to both.

(3) Any commissioned officer on full pay in the Canadian Forces or in the armed forces of Her Majesty other than the Canadian Forces or any officer of customs in a Commonwealth country, or any consular officer, may board any ship or boat registered in Canada or owned by any resident of Canada on which any colours or pendant are hoisted contrary to this Act, and seize and take away the colours or pendant, and the colours or pendant shall be forfeited to Her Majesty.

(4) A fine under this section may be recovered with costs in the Admiralty Court.

(5) Any offence mentioned in this section may also be prosecuted and the fine for it recovered, summarily, but where any offence is prosecuted summarily under this subsection, the court imposing the fine shall not impose a fine that exceeds five hundred dollars.

(6) Nothing in this section authorizes the imposition of more than one fine in respect of the same offence.

92. (1) A Canadian ship or a ship belonging to a British subject resident in Canada shall hoist the proper national colours

    (a) on a signal being made to it by one of Her Majesty's ships or any ship in the service of and belonging to the Government of Canada;

    (b) on entering or leaving any foreign port; and

    (c) if of fifty tons gross tonnage or more, on entering or leaving any port in a Commonwealth country.

(2) If default is made on board any ship in complying with this section, the master of the ship is guilty of an offence and liable to a fine not exceeding five hundred dollars.

Forfeiture of Ship

93. (1) Where any Canadian ship has either wholly or with respect to any share therein become subject to forfeiture under this Part,

    (a) any commissioned officer on full pay in the Canadian Forces or in the armed forces of Her Majesty other than the Canadian Forces,

    (b) any officer of customs in a Commonwealth country, or

    (c) any consular officer,

may seize and detain the ship, and bring it for adjudication before the Admiralty Court or before any court having Admiralty jurisdiction in a Commonwealth country or any British court having jurisdiction outside Canada and the Commonwealth in pursuance of an order of Her Majesty in Council, and the court may adjudge the ship with its tackle, apparel and furniture to be forfeited to Her Majesty, and make such order in the case as to the court seems just, and may award to the officer bringing in the ship for adjudication such portion of the proceeds of the sale of the ship or any share therein as the court thinks fit.

(2) An officer described in subsection (1) is not responsible either civilly or criminally to any person in respect of any seizure or detention thereunder, notwithstanding that the ship has not been brought in for adjudication, or if so brought in is declared not liable to forfeiture, if it is shown to the satisfaction of the court before whom any trial relating to the ship or seizure or detention is held that there were reasonable grounds for the seizure or detention, but if no such grounds are shown, the court may award costs and damages to any party aggrieved and make such other order in the premises as the court thinks just.

Measurement of Ship and Tonnage

94. The Governor in Council may make regulations

    (a) to implement the International Convention on Tonnage Measurement of Ships, 1969, signed at London on June 23, 1969, including any amendments, whenever made, to the Annexes or Appendix to that Convention;

    (b) respecting the manner of determining the measurements of ships that are required to be registered under this Act;

    (c) respecting the method of calculating the tonnage of ships that are required to be registered under this Act;

    (d) providing for the issue of tonnage certificates by the Chairman;

    (e) providing for the issue of certificates of survey in respect of ships that are required to be registered under this Act; and

    (f) respecting the form and content of certificates referred to in paragraphs (d) and (e).

95. (1) Subject to subsection (2), a copy of each regulation that the Governor in Council proposes to make under paragraph 94(a) shall be published in the Canada Gazette at least ninety days before the proposed effective date thereof, and a reasonable opportunity within those ninety days shall be afforded to ship owners, masters, seamen and other interested persons to make representations to the Minister with respect thereto.

(2) Subsection (1) does not apply in respect of a proposed regulation that

    (a) has previously been published pursuant to that subsection, whether or not it has been changed as a result of representations made pursuant to that subsection, or

    (b) makes no substantive change to an existing regulation,

nor does subsection (1) apply where the Governor in Council is satisfied that an emergency situation exists and that compliance with subsection (1) would therefore be prejudicial to the public interest.

100. Whenever the tonnage of any ship has been ascertained and registered in accordance with the tonnage regulations of this Act, that tonnage shall henceforth be deemed to be the tonnage of the ship and shall be repeated in every subsequent registry thereof, unless any alteration is made in the form or capacity of the ship, or unless it is discovered that the tonnage of the ship has been erroneously computed, and in either of those cases the ship shall be re-measured, and its tonnage determined and registered according to the tonnage regulations of this Act.

101. (1) Where the Board is satisfied that a foreign country has in force tonnage rules having substantially the same effect as the tonnage regulations of this Act, the Board may declare, subject to any conditions or qualifications it deems appropriate, that the ships registered in that country shall, without being re-measured or having their tonnage recalculated in Canada in accordance with the tonnage regulations of this Act, be deemed to be of the tonnage denoted in their certificates of registry or other national papers.

(2) Where it is made to appear to the Minister that the tonnage of any foreign ship, as calculated by the rules of the country in which the ship is registered, materially differs from that which would be the ship's tonnage if calculated in accordance with the tonnage regulations of this Act, the Minister may order that, notwithstanding any declaration of the Board under subsection (1), any of the ships registered in that country must, for any or all of the purposes of this Act, be re-measured or have their tonnage recalculated in Canada in accordance with the tonnage regulations of this Act.

103. The Minister may appoint

    (a) in any port in Canada, and

    (b) at any place outside Canada,

an officer, in this Act called a ``surveyor of ships'', to superintend the survey and measurement of ships in conformity with this Act.

104. All duties in relation to the survey and measurement of ships shall be performed by surveyors of ships under this Act in accordance with regulations made by the Minister.

105. (1) Such fees as the Governor in Council may determine and such travel expenses as the Minister may establish shall be paid in respect of the survey and the measurement of a ship's tonnage.

(2) The fees and travel expenses determined and established under subsection (1) shall, where the Minister directs, be paid to the surveyor of ships by the person requiring his services, and any surveyor of ships may, in any case, withhold his certificate or any other documents required of him until the fees and travel expenses are paid.

(3) The Minister may direct that the fees and travel expenses paid to a surveyor of ships shall be retained by him in lieu of salary or other remuneration for his services.

106. A person having power to levy tonnage rates on ships may, if that person thinks fit, with the consent of the Minister, levy those tonnage rates on the register tonnage of the ships as determined by the tonnage regulations of this Act, notwithstanding that any Act of merely local application or regulations under which those rates are levied provide for levying those rates on some different system of tonnage measurement.

Licensing of Small Vessels

108. The Governor in Council may, notwithstanding anything in this Part, make regulations

    (a) providing for the licensing of vessels that are exempted from registry under this Act;

    (b) providing for the marking of licensed vessels;

    (c) prescribing forms for licences and the forms for applications for licences;

    (d) providing for the designation of persons to be issuers of licences;

    (e) prescribing the fees to be paid for licences;

    (f) providing for the disposition, notwithstanding the Financial Administration Act, of licence fees collected by licence issuers;

    (g) prescribing the records to be kept and returns to be made by licence issuers; and

    (h) prescribing a fine not exceeding five hundred dollars or imprisonment for a term not exceeding six months or both to be imposed on summary conviction as punishment for contravention of a regulation made under this section.

Clause 4: New.

Clause 5: Section 314.1 reads as follows:

314.1 (1) Subject to subsection (2), a copy of each regulation that the Governor in Council proposes to make under section 314 shall be published in the Canada Gazette at least ninety days before the proposed effective date thereof, and a reasonable opportunity within those ninety days shall be afforded to ship owners, masters, seamen and other interested persons to make representations to the Minister with respect thereto.

(2) Subsection (1) does not apply in respect of a proposed regulation that

    (a) has previously been published pursuant to that subsection, whether or not it has been changed as a result of representations made pursuant to that subsection, or

    (b) makes no substantive change to an existing regulation,

nor does subsection (1) apply where the Governor in Council is satisfied that an emergency situation exists and that compliance with subsection (1) would therefore be prejudicial to the public interest.

Clause 6: New.

Clause 7: Section 319.1 reads as follows:

319.1 (1) Subject to subsection (2), a copy of each regulation that the Governor in Council proposes to make under subsection 319(4) shall be published in the Canada Gazette at least ninety days before the proposed effective date thereof, and a reasonable opportunity within those ninety days shall be afforded to ship owners, masters, seamen and other interested persons to make representations to the Minister with respect thereto.

(2) Subsection (1) does not apply in respect of a proposed regulation that

    (a) has previously been published pursuant to that subsection, whether or not it has been changed as a result of representations made pursuant to that subsection, or

    (b) makes no substantive change to an existing regulation,

nor does subsection (1) apply where the Governor in Council is satisfied that an emergency situation exists and that compliance with subsection (1) would therefore be prejudicial to the public interest.

Clause 8: New. The relevant portion of subsection 338(1) reads as follows:

338. (1) The Governor in Council may make regulations respecting

Clause 9: New.

Clause 10: Subsection 391(5) reads as follows:

(5) For the purposes of subsection (3), the court shall require any surveyor of ships appointed under this Act, or any person appointed for the purpose by the Minister, or, if such a surveyor or person cannot be obtained without unreasonable expense or delay, or is not, in the opinion of the court, competent to deal with the special circumstances of the case, any other impartial surveyor appointed by the court, and having no interest in the ship, its freight or cargo, to survey the ship and to answer any question concerning it that the court may think fit to put.

Clause 11: The relevant portion of section 406 reads as follows:

406. Steamships not in excess of five tons gross tonnage that do not carry more than twelve passengers and that are not pleasure yachts are exempt from annual inspection and from the regulations made under section 338 other than those respecting

Clause 12: New.

Clause 13: Section 440 reads as follows:

440. Every receiver of wrecks shall, within forty-eight hours after taking possession of any wreck, cause to be posted up in the custom-house nearest to the place where the wreck was found or was seized by or delivered to him, a description of the wreck and of any marks by which it is distinguished, and shall also transmit a similar description to the Minister, who may give such publicity to that description as he thinks fit.

Clause 14: Section 445 reads as follows:

445. (1) Where no owner establishes a claim to a wreck before the expiration of a year from the date at which it has come into the possession of the receiver of wrecks, the wreck, if unsold, shall be sold by such persons and in such manner as the Minister directs.

(2) The proceeds of the sale shall, after payment of expenses, costs, fees and salvage, be paid over to the Receiver General, to form part of the Consolidated Revenue Fund.

Clause 15: Section 447.1 is new. Section 448 reads as follows:

448. Every person who wilfully impedes a receiver of wrecks in the execution of his duty, or defaults in appearing or giving evidence before him, is guilty of an offence and liable to a fine not exceeding four hundred dollars.

Clause 16: Section 641 reads as follows:

641. This Act does not, except where specially provided, apply to ships belonging to Her Majesty.

Clause 17: Section 649 reads as follows:

649. Not more than one action lies for and in respect of the same subject-matter of complaint, and every action shall be commenced not later than twelve months after the death of a deceased.

Clause 18: New. The relevant portion of subsection 657(1) reads as follows:

657. (1) The Governor in Council may make regulations

Clause 19: (1) New. The relevant portion of subsection 660.2(4) reads as follows:

(4) The operator of an oil handling facility that is designated pursuant to subsection (8) shall

(2) Subsection 660.2(7) reads as follows:

(7) Subject to any terms and conditions that the Minister considers appropriate, the Minister may exempt any ship or class of ships or any operator of an oil handling facility from the application of any provision of this section in case of an emergency and where the exemption is in the interest of preventing damage to property or the environment or is in the interest of public health or safety, and every such exemption shall be published in the Canada Gazette.

Clause 20: New.

Coastal Fisheries Protection Act

Clause 29: The definition ``Canadian fishing vessel'' in section 2 reads as follows:

``Canadian fishing vessel'' means a fishing vessel

      (a) that is registered or licensed in Canada under the Canada Shipping Act and is owned by one or more persons each of whom is a Canadian citizen, a person resident and domiciled in Canada or a corporation incorporated under the laws of Canada or of a province, having its principal place of business in Canada, or

      (b) that is not required by the Canada Shipping Act to be registered or licensed in Canada and is not registered or licensed elsewhere but is owned as described in paragraph (a);

Coasting Trade Act

Clause 30: The definition ``Canadian ship'' in subsection 2(1) reads as follows:

``Canadian ship'' means a ship

      (a) registered in Canada in respect of which all duties and taxes under the Customs Tariff and the Excise Tax Act have been paid, or

      (b) built in Canada and exempted from registration pursuant to section 8 of the Canada Shipping Act;

Clause 31: The relevant portion of subsection 16(10) reads as follows:

(10) Forthwith on making an application under subsection (8) or (9), the Minister of Transport shall, by registered mail, give notice of the application to

    (a) the registrar of the register in which the ship to which the application relates is recorded;

Crown Liability and Proceedings Act

Clause 32: Subsection 6(2) reads as follows:

(2) Where, for the purposes of any proceedings under this Act, it is necessary to ascertain the tonnage of a ship that has no register tonnage within the meaning of the Canada Shipping Act, the tonnage of the ship shall be ascertained in accordance with section 94 of that Act.

Customs and Excise Offshore Application Act

Clause 33: The definition ``British ship'' in subsection 2(1) reads as follows:

``British ship'' has the same meaning as in the Canada Shipping Act;

Canada Shipping Act

Clause 34: Sections 360 and 361 read as follows:

360. (1) The administration of the fund created by chapter 114 of the Statutes of the former Province of Canada, 1848-49 (12 Vict. c. 114), and other Acts relating thereto, shall be vested in the Quebec's Pilots' Corporation, which has the same rights and powers that the Trinity House of Quebec possessed on the 8th day of April 1875 in relation to that fund, and shall administer the fund in conformity with those Acts.

(2) The Quebec's Pilots' Corporation shall not invest any moneys belonging to the Pilots' Fund otherwise than in such securities as are by law approved for the investments of moneys by trustees.

(3) The Quebec's Pilots' Corporation shall, within seven days after the 1st day of February in each year, make a report to the Minister of its administration of the Pilots' Fund, with an account of the assets and liabilities of that Fund, and showing in detail the receipts and expenditures with respect to the fund, and the investments of any moneys belonging thereto, with such further information and in such manner and form as the Minister from time to time directs.

361. Every pilot fund shall be applied as follows and in the following order:

    (a) in payment of expenses properly incurred in the administration of such fund;

    (b) in payment of superannuation allowances, or other relief, for the benefit of such pilots licensed by the pilotage authority of the district as are incapacitated by reason of age or infirmity, and of the widows and children of pilots so licensed, or of such incapacitated pilots only; and

    (c) in payment of such allowances as the pilotage authority may decide to make to any pilot who has had his licence cancelled by commissioners after their investigation of a marine casualty, pursuant to this Act.