Merchant Shipping (Registration of Ships) Act 2014

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Mortgage not affected by bankruptcy

59. (1) A registered mortgage of a ship or share shall not be affected by any act of bankruptcy committed by the mortgagor after the date of registration notwithstanding that the mortgagor at the commencement of his or her bankruptcy had the ship or share in his or her possession, order, or was reputed owner thereof.

(2) A mortgage referred to in subsection (1) 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.