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

Marginal note:Mortgagee not treated as owner

68 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

• 69 (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

70 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

• 71 (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

• 72 (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

73 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

74 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

75 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

• 75.01 (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.

Marginal note:Registration — fleet

• 75.02 (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.

Marginal note:Certificate of registry

• 75.03 (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 and must be the same authorized representative for all of the fleet’s vessels.

• (6) [Repealed, 2023, c. 26, s. 367]

• 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.

Marginal note:Refusal to issue, renew or amend certificate

75.031 Despite any other provision of this Act, the Chief Registrar may refuse to issue or renew a certificate of registry in respect of a fleet, or to amend one under paragraph 75.14(b), if the applicant for, or holder of, the certificate is in default of payment of a required fee, charge, cost or expense in respect of that fleet or a vessel of that fleet under this Act or the Wrecked, Abandoned or Hazardous Vessels Act.

Marginal note:Addition or removal of vessels

75.04 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.

Marginal note:Vessels registered

• 75.05 (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.

Marginal note:Cancellation of individual registration

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

Marginal note:Non-application of provisions

75.07 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.

Marginal note:For greater certainty

• 75.08 (1) For greater certainty, the following provisions apply in respect of a fleet or a vessel of a fleet:

  • (a) section 56;

  • (b) subsections 57(1) and (4);

  • (c) subsections 63(3) and (4).

• Marginal note:Section 59

  (2) Section 59 applies in respect of a fleet, except that the reference to “section 58” is to be read as a reference to “section 75.1”.

Marginal note:Marking — validity of fleet’s certificate of registry

• 75.09 (1) A fleet’s certificate of registry is not valid unless each of the fleet’s vessels has been marked in accordance with subsection 57(1).

• Marginal note:Maintenance of markings

  (2) The authorized representative of a fleet shall ensure that each of the fleet’s vessels is kept marked.

Marginal note:Notification of changes — name and address

• 75.1 (1) The authorized representative of a fleet shall notify the Chief Registrar within 30 days after there has been a change in the owner’s or authorized representative’s name or address.

• Marginal note:Notification of changes — number of vessels

  (2) If the number of vessels in a fleet changes to the extent that the fleet no longer corresponds with its description set out on the certificate of registry, its authorized representative shall, within 30 days after the change in number, notify the Chief Registrar and provide him or her with the relevant information and documents.

• Marginal note:Notification of changes — owner

  (3) If for any reason a fleet does not have an authorized representative, its owner shall

  • (a) notify the Chief Registrar of that fact as soon as possible in the circumstances; and

  • (b) notify the Chief Registrar within 30 days after any event referred to in subsection (1) or (2) occurs.