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Canada Shipping Act, 2001 (S.C. 2001, c. 26)

Act current to 2022-06-20 and last amended on 2019-07-30. Previous Versions

PART 2Registration, Listing and Recording (continued)

Maintenance of Register

Marginal note:Amendments

 The Chief Registrar may amend the Register or a certificate of registry to give effect to changes of which the Chief Registrar has been notified under section 58 or to correct any clerical errors or obvious mistakes.

Suspension, Cancellation and Reinstatement of Registration

Marginal note:Suspension and cancellation

  •  (1) Subject to the regulations, the Chief Registrar may suspend or cancel the registration or listing of a Canadian vessel if

    • (a) it is not marked in accordance with subsection 57(1);

    • (b) its certificate of registry has expired;

    • (c) it does not have an authorized representative; or

    • (d) section 58 has not been complied with.

  • Marginal note:Cancellation

    (2) Subject to the regulations, the Chief Registrar must cancel the registration or listing of a Canadian vessel if

    • (a) it has been lost, wrecked or removed from service;

    • (b) it is no longer required or entitled to be registered or entitled to be listed under this Part; or

    • (c) in the case of a registered vessel, a tonnage certificate provided by a tonnage measurer indicates that the vessel should be re-registered.

  • Marginal note:Notice before cancellation

    (3) If a Canadian vessel is not required or entitled to be registered under this Part after its ownership changes, the Chief Registrar must, before cancelling its registration under paragraph (2)(b), give the owners and registered mortgagees

    • (a) notice of the change in ownership; and

    • (b) an opportunity that, in the opinion of the Chief Registrar, is sufficient to transfer the vessel or shares in the vessel to a qualified person or to make an application under section 74.

  • Marginal note:Cancellation of registration

    (4) Except in the case of a vessel described in paragraph 47(c) (a vessel subject to a financing agreement), the Chief Registrar must cancel the registration of a vessel if a person who acquires the vessel or a share in it does not, within the prescribed period, provide evidence that satisfies the Chief Registrar that the vessel is required or entitled to be registered under this Part.

Marginal note:Registration of mortgages not affected

 The cancellation of the registration of a vessel does not affect the registration of mortgages in respect of the vessel.

Marginal note:Reinstatement

 The Chief Registrar may reinstate the registration or listing of a vessel if, in the Chief Registrar’s opinion, the registration or listing of the vessel should not have been cancelled.

Custody of Certificates of Registry and Provisional Certificates

Marginal note:Carrying on board

  •  (1) Subject to subsection (3), no person shall operate a vessel in respect of which a certificate of registry or provisional certificate has been issued unless the certificate is on board.

  • Marginal note:Delivery of certificate

    (2) A person who is in possession of a vessel’s certificate of registry or provisional certificate shall deliver it to the person who is entitled to operate the vessel.

  • Marginal note:Delivery of certificate

    (3) A person who is in possession of a certificate of registry or a provisional certificate issued under this Part shall deliver it to the Chief Registrar on request.

  • Marginal note:Detention of certificate

    (4) A certificate of registry or provisional certificate is not subject to detention because of any title to, lien on, charge on or interest in the vessel that is claimed by an owner, a mortgagee, a charterer or an operator of the vessel, or by any other person.

Rights and Obligations

Marginal note:Right to fly Canadian flag

  •  (1) A Canadian vessel has the right to fly the Canadian flag.

  • Marginal note:Obligation to fly flag

    (2) The master of a Canadian vessel, other than one registered in the small vessel register, shall ensure that it flies the Canadian flag

    • (a) when signalled to do so by a government vessel or a vessel under the command of the Canadian Forces; or

    • (b) when entering or leaving, or while moored at or anchored in, a port.

  • Marginal note:Exception

    (3) The Chief Registrar may, on application, suspend the registration of a Canadian vessel in respect of the right to fly the Canadian flag while the vessel is shown on the registry of a foreign state as a bare-boat chartered vessel.

Mortgages

Marginal note:Mortgage of vessel or share

  •  (1) The owner of a vessel registered under this Part other than in the small vessel register, of a share in such a vessel or of a vessel recorded as being built in Canada may give the vessel or share, as the case may be, as security for a mortgage to be registered under this Part.

  • Marginal note:Filing of mortgage

    (2) A mortgage is to be filed with the Chief Registrar in the form and manner specified by the Chief Registrar.

  • Marginal note:Date and time of registration

    (3) A mortgage is to be registered in the order in which it is filed, indicating the date and time of registration.

Marginal note:Entry of discharge of mortgage

 On receipt of satisfactory evidence that a mortgage has been discharged, the Chief Registrar is to enter the discharge in the Register.

Marginal note:Priority of mortgages

  •  (1) If more than one mortgage is registered in respect of the same vessel or share in a vessel, a mortgage registered before another mortgage has priority over that other mortgage.

  • Marginal note:Consent to change in priority

    (2) The priority of mortgages may be changed if all of the mortgagees file their written consent with the Chief Registrar.

Marginal note:Mortgagee not treated as owner

 A mortgage of a vessel or a share in a vessel does not have the effect of the mortgagee becoming, or the mortgagor ceasing to be, the owner of the vessel, except to the extent necessary to make the vessel or share available as security under the mortgage.

Marginal note:Mortgagee has power of sale

  •  (1) A mortgagee of a vessel or a share in a vessel has the absolute power, subject to any limitation set out in the registered mortgage, to sell the vessel or the share.

  • Marginal note:Restriction

    (2) If there is more than one registered mortgage of the same vessel or share, a subsequent mortgagee may not, except under an order of the Federal Court or of a court of competent jurisdiction whose rules provide for in rem procedure in respect of vessels, sell the vessel or share without the agreement of every prior mortgagee.

Marginal note:Mortgage not affected by bankruptcy

 The mortgage of a vessel or a share in a vessel is not affected by the bankruptcy of the mortgagor after the date of the registration of the mortgage, and the mortgage is to be preferred to any right, claim or interest in the vessel or share of the other creditors of the bankrupt or any trustee or assignee on their behalf.

Marginal note:Transfer of mortgages

  •  (1) A registered mortgage of a vessel or a share in a vessel may be transferred to any person, in which case the instrument effecting the transfer must be filed in the form and manner specified by the Chief Registrar.

  • Marginal note:Entry of particulars

    (2) The Chief Registrar is to enter the particulars of the transfer in the Register.

Marginal note:Transmission of interest of mortgagee

  •  (1) If the interest of a mortgagee in a vessel or a share in a vessel is transmitted on death or bankruptcy, or by any lawful means other than by a transfer under section 71, the person to whom the interest is transmitted must file with the Chief Registrar the evidence of the transmission that the Chief Registrar specifies.

  • Marginal note:Entry of particulars

    (2) The Chief Registrar is to enter the particulars of the transmission in the Register.

Transfers of Vessels or Shares in Vessels

Marginal note:Transfer

 If the ownership of a Canadian vessel or a share in one changes and the vessel is still required or entitled to be registered under this Part,

  • (a) the owner must provide the Chief Registrar with the evidence, including declarations, that the Chief Registrar considers necessary to establish that the vessel is required or entitled to be so registered; and

  • (b) the Chief Registrar must amend the Register and the vessel’s certificate of registry to reflect the change.

Marginal note:Order for sale on acquisition by an unqualified person

 If an unqualified person acquires a Canadian vessel, other than a vessel described in paragraph 47(b) (a vessel owned by a foreign corporation), a vessel described in paragraph 47(c) (a vessel subject to a financing agreement) or a vessel described in section 48 (a bare-boat chartered vessel), or a share in one, any interested person may apply to the Federal Court, or any court of competent jurisdiction whose rules provide for in rem procedure in respect of vessels, for an order that the vessel or share, as the case may be, be sold to a qualified person.

Marginal note:Power of court to prohibit transfer

 On the application of an interested person, the Federal Court, or any court of competent jurisdiction whose rules provide for in rem procedure in respect of vessels, may make an order prohibiting any dealing with a Canadian vessel or a share in one for a specified period.

Fleets

Marginal note:Application for fleet

  •  (1) An applicant may, instead of applying to have vessels individually registered in the small vessel register, apply to register a group of two or more vessels as a fleet in that register.

  • Marginal note:Form and manner

    (2) The application must be made in the form and manner, include the information and be accompanied by the documents specified by the Chief Registrar.

  • Marginal note:Further evidence

    (3) In addition to the specified information and documents, the Chief Registrar may require an applicant to provide evidence, including declarations, that the Chief Registrar considers necessary to establish that the group of vessels may be registered as a fleet.

  • 2011, c. 15, s. 42

Marginal note:Registration — fleet

  •  (1) The Chief Registrar may register a group of two or more vessels as a fleet if he or she is satisfied that

    • (a) all of the vessels are owned by the same owner;

    • (b) each vessel meets the requirements for registration in the small vessel register; and

    • (c) each vessel meets any other requirement — including with respect to a vessel’s dimensions, usage or propulsion — that the Chief Registrar may establish for the vessels of a fleet.

  • Marginal note:Small vessel register

    (2) A fleet that is accepted for registration must be registered in the small vessel register.

  • 2011, c. 15, s. 42

Marginal note:Certificate of registry

  •  (1) The Chief Registrar must issue a certificate of registry in respect of a fleet that he or she registers, and the certificate is valid for the period that he or she specifies.

  • Marginal note:Information

    (2) A certificate of registry in respect of a fleet must contain the information specified by the Chief Registrar, including

    • (a) a description of the fleet;

    • (b) the fleet’s official number; and

    • (c) the name and address of the owner and the authorized representative of the fleet.

  • Marginal note:Description — number of vessels

    (3) In the fleet’s description, the Chief Registrar must specify either the number of vessels that are to be part of the fleet or the minimum and maximum numbers of vessels that can be part of it.

  • Marginal note:Official number

    (4) The fleet’s official number is also the official number of each vessel of that fleet.

  • Marginal note:Authorized representative of fleet

    (5) The authorized representative of a fleet is the authorized representative, as determined under section 14, of the vessels of that fleet.

  • Marginal note:More than one owner

    (6) If subsection 14(3) applies to the vessels of a fleet, the owners must appoint, under that subsection, one of themselves to be the authorized representative of all of the fleet’s vessels.

  • Marginal note:Acts or omissions of authorized representative binding

    (7) The owner of a fleet is bound by the acts or omissions of the authorized representative of the fleet with respect to all matters assigned by this Act to that representative.

  • 2011, c. 15, s. 42

Marginal note:Addition or removal of vessels

 Subject to subsection 75.1(2), an owner of a fleet may, after the fleet is registered, add a vessel to the fleet or remove a vessel from it. However, any vessel that is to be added must

  • (a) be owned by the same owner as all of the other vessels of the fleet;

  • (b) satisfy the conditions set out in paragraphs 75.02(1)(b) and (c); and

  • (c) fit within the description or particulars set out in the fleet’s certificate of registry.

  • 2011, c. 15, s. 42

Marginal note:Vessels registered

  •  (1) Subject to subsection (2), a vessel that is or becomes part of a fleet is considered to be registered under this Part and, for greater certainty, is a Canadian vessel.

  • Marginal note:No longer registered

    (2) Unless it becomes part of another fleet, such a vessel ceases to be registered under this Part if

    • (a) there is a change in its ownership; or

    • (b) it is altered to the extent that it no longer fits within the description or particulars set out in the fleet’s certificate of registry.

  • 2011, c. 15, s. 42

Marginal note:Cancellation of individual registration

 The Chief Registrar may cancel the registration of a Canadian vessel if the vessel becomes part of a fleet.

  • 2011, c. 15, s. 42

Marginal note:Non-application of provisions

 The following provisions do not apply in respect of a fleet or a vessel of a fleet:

  • (a) subsections 57(2) and (3);

  • (b) section 58;

  • (c) section 60;

  • (d) section 62;

  • (e) subsections 63(1) and (2);

  • (f) section 73.

  • 2011, c. 15, s. 42
 
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