Registration Of Ships, Sales and Mortgages

Ata Atun, Clelia Theodolou, Other Committee Members

 

 

 

 

Foundation Agreement

Annex III, Attachment 11, Law 1

 

 

 

 

 

 

 

Federal Law on Merchant Shipping (Registration Of Ships, Sales and Mortgages)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                  

 

It is hereby provided as follows:

 

Short title.

 

1. This Law may be cited as the Federal Law on Merchant Shipping (Registration of Ships, Sales and Mortgages), and shall be read as one with the Code, and the Federal Law on Merchant Shipping (Safety and Seamen).

 

 

 

 

 

 

Interpretation.

57 and 58 Vicr.

c. 60 to 2 and 3

Eliz. 2 c 18

 

PART I

PRELIMINARY

 

2.-(1) In this Law, unless the context otherwise requires-

 

"Code" means the Merchant Shipping Acts, 1894 to 1954, of the United Kingdom to the extent of their application to Cyprus and subject to any modifications required by virtue of the  Constitution of  Cyprus;

 

"consular officer of Cyprus" means the member of the consular service of Cyprus nominated by the Presidential Council for this purpose and includes any other person nominated by the Presidential Council to be a consular officer of Cyprus for the purposes of this Law;

 

"Court" means  a court of competent jurisdiction;

 

“Cyprus” means the United Cyprus Republic;

 

"Cyprus ship" means a ship registered in the Register;


“Department” means the department having the responsibility for maritime affairs,

;

 “Director” means the head of the Directorate;

 

"Directorate" means the Directorate of Maritime Affairs of the Department 

 

 

 

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

"flag of Cyprus" or "Cyprus flag" means the flag provided for by Article 8 of the Constitution of Cyprus;

 

"Gazette" means the federal Official Gazette;

 

“Government” means the federal government;

 

"Member" means the member of the Presidential Council heading the Department and includes any person duly authorized by the Member for any of the purposes of this Law;

 

"owner" means the natural or legal person who owns a ship or a share therein;

 

“prescribed” means prescribed by a public instrument;

 

“public instrument” includes Regulations, Orders, Instructions, Directions, Circulars, Notices and Notifications  made or issued under this Law;

 

"qualified person" means a person who under the provisions of this Law is entitled to own a share in a Cyprus ship;

 

"Registrar" means the Registrars referred to in section 3;

 

"Register" or "Cyprus Register" means the register of ships referred to in section 4;

 

"ship" includes every description of vessel used in navigation not propelled by oars;

 

"Sovereign Base Areas"  means the Akrotiri Sovereign Base Area  and the Dhekelia Sovereign Base Area 

 

     (2) Words and phrases in this Law not otherwise defined shall, unless the context otherwise requires, have the meaning assigned to them by the Code.

 

 

 

 

 

 

 

Registrar and

other officers.

 

PART II 

REGISTRAR, AND OTHER OFFICERS AND REGISTER

 

3.-(1) The Director shall be the Registrar and shall perform the functions as are entrusted to him under this Law or any other Law in force for the time being.

 

(2) The Sub Director of the Port of Limassol and the Sub Director of the Port of Famagusta shall be the Registrars for the purposes of registration of ships and shall register ships in each port according to the directions of the Director.

 

    (3) The Member may designate:

 

(a)       Any person he thinks fit to be a surveyor of ships for the purposes of this Law and of the Code, either generally or for special purposes and on special occasion.

 

(b)       Any person as an inspector of ships for the purposes of this Law and of the Code, when he thinks fit.

 

(c)        Such other officers to assist the Registrar in the performance of his functions, as he may think fit.

 

Register.

4.-(1) The Sub Directors shall keep in book and in computerized form a system to be called the Register for registration therein of ships and of any transfer or transmission or mortgage of any such ship or any share or interest therein.

 

    (2) The Director shall keep a record of the documents mentioned in subsection (1) as sent to him by the two Sub Directors and by the Overseas Marine Officers.

 

     (3) Entries in the Register shall be made in accordance with the following provisions:

 

(a)       The property in a ship shall be divided into one hundred shares.

 

(b)       Subject to the provisions of this Law with respect to joint owners or owners by transmission, not more than one hundred individuals shall be entitled to be registered at the same time as owners of any one ship; but this rule shall not affect the beneficial title of any number of persons or of any corporation represented by or claiming under or through any registered owner or joint owner.

 

(c)        A person shall not be 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 as regards the persons entitled to be registered, and shall not be entitled to dispose severally of any interest in a ship, or in any share therein in respect of which they are registered.

 

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

(4) (a) The federal register keeps the record of the document mentioned in subsection (1) in book and in computerized form,

(b) The state register may send the hard and digital copies of the document mentioned in subsection (1) to the federal register no later than one working days.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ships entitled to be  Cyprus ships.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Authorized representative.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shipmanagement services.

 

 

PART III

CYPRUS SHIPS

 

-

 

           

 

5.- (1) A ship may not be registered in the Register unless –

 

(a)       more than fifty percent (50%) of the shares in the ship are owned-

 

(i)       by Cypriots, or

(ii)      by citizens of a Member State of the European Union who, in the instance of not being permanent residents of Cyprus, will have appointed and maintained, during the whole period of the registration of the ship in the Register, an authorised representative in Cyprus in accordance with section 5A;

 

(b)       the total (100%) shares are owned by one or more corporations which have been established and operate-

 

(i)          in accordance with the Laws of either of the <constituent states> and having their registered office in Cyprus, or

(ii)         in accordance with the Laws of a Member State of the European Union and having their registered office in the European Union and which will, during the whole period of the registration of the ship in the Register, have either appointed and maintained an authorised representative in Cyprus in accordance with section 5A, or ensured that the provision of shipmanagement services of the ship in respect of safety has been entrusted in full to a Cypriot shipmanagement company or a shipmanagement company of the European Union having its place of business in Cyprus, in accordance with section 5B, or

(iii)        outside the territory of Cyprus and outside the territory of a Member State of the European Union, which are controlled by Cypriots    or   natural    persons   who   are

 citizens of a Member State of the European

 Union and who will, during the whole period of the registration of the ship in the Register, have either appointed and maintained an authorised representative in Cyprus in accordance with section 5A, or ensured that the provision of shipmanagement services of the ship in respect of safety has been entrusted in full to a Cypriot  shipmanagement company or a shipmanagement company of the European Union having its place of business in Cyprus, in accordance with section 5B:

 

Provided always that the registration of any ship may be subject to any conditions imposed under section 17.

 

(2) For the purposes of subsection (1), “Cypriot” means any person who possesses the Cypriot citizenship or is eligible for acquiring the Cypriot citizenship  pursuant to the Federal Law on Citizenship of the United Cyprus

 Republic.

 

5.A.-(1) For the purposes of section 5, an authorised representative may be –

 

(a)         a Cypriot who permanently resides in Cyprus, or

 

(b)        a partnership which has been set up and is registered in accordance with the provisions of the Laws of either of the <constituent states> regulating partnerships and business names, whose place of business is in Cyprus and which employs permanent staff in Cyprus, or 

 

(c)       a corporation which has been set up and whose place of business is in Cyprus and which employs permanent staff in Cyprus, or

(d)       a branch which has been set up and is registered in accordance with the provisions of   the  Laws  of  either  of  the   <constituent

 states> regulating companies, whose  place of business is in Cyprus.

 

(2) The requirement of the appointment of an authorised representative applies in so far as natural persons or corporations under section 5 remain registered as owners of a Cypriot ship or a share therein.

 

(3) The name/business name, address and other information of the authorised representative is notified in writing to the Registrar and is filed in the Register. Every change of the person, address or other details of the authorised representative, is notified as soon as possible to the Registrar and is filed in the Register.

 

 

(4)  Any document which is required to be served on the person who in accordance with the provisions of section 5, must have appointed and must  maintain during the whole period of the ship’s registration in the Register an authorised representative, is deemed to have been duly served on that person if –

 

(a)  it is delivered to any authorised representative at the material time, in accordance with this section, or

 

(b)  is left or is sent by post to the address which is notified or, as the case may be, at the address which was last notified to the Registrar in accordance with subsection (3) in relation to that person.

 

(5) For the purposes of this section, the term “documents” includes all writs, notices, orders or anything else which is required to be served by any legal, judicial or administrative procedure in accordance with the Federal Laws or the Laws of either of the <constituent states>.

 

(6) The authorised representative is not responsible for the acts or omissions of the person by whom he has been appointed.

 

(7) (a) The Registrar will carry out, at least once a year, an inspection to ascertain compliance with the provisions of the present section.

 

b) The authorised representative is obliged to provide the Registrar with any information requested for this purpose in connection with the ship.

 

(8) A person who contravenes the provisions of subsections (2), (3) and (7)(b) commits an offence and in case of conviction, is liable to imprisonment not exceeding two years or to a fine not exceeding one thousand five hundred pounds[1] or to both such sentences.

 

5B.-(1) For the purposes of section 5 “shipmanagement services of the ship in terms of safety” means the management by the shipmanagement company to which the relative Document of Compliance (DOC) is issued to and which is referred to in the Safety Management Certificate of the Ship (SMC), in accordance with the provisions of the International Safety Management Code for the Safety of Ships and Prevention of Pollution (International Safety Management Code) of the International Maritime Organisation.

 

(2) For the purpose of  section 5, the requirement of the management of the ship in respect of safety from the territory of Cyprus is fulfilled when it is entrusted in full to a Cypriot shipmanagement company or a shipmanagement company of the European Union, which keeps an office in Cyprus staffed  with a personnel sufficient in number and qualifications   as provided in subparagraph (iv) of paragraph (b) of subsection (3) of section 9 of the Federal Law on Merchant Shipping (Fees and Taxing Provisions).

 

 

 

 

(3) The entrusting of the management of the ship to a Cypriot shipmanagement company or a shipmanangement company of the European Union, in accordance with the provisions of this section, is proved by the shipmanagement contract which is concluded between the shipowner or the bareboat charterer of a Cyprus ship, registered in parallel in a foreign register, and the company.

 

(4) (a) The Registrar will carry out, at least once a year, an inspection to ascertain the fulfilment of the provisions of the present section.

 

(b) The shipmanagement company is obliged to provide  the Registrar with any information requested for this purpose in connection with the ship.

 

(5) A person who contravenes the provisions of subsection (4)(b) commits an offence and in the case of a conviction, is liable to imprisonment for a period not exceeding two years or to a fine not exceeding one thousand five hundred pounds or to both such sentences.

 

Acquisition of Cyprus nationality by ships.

 

6.-(1), or if directions not to affect the registration thereof have been given under section 16, or if the same has been deleted from the Register under section 7, and in both such cases the same has not been subsequently transferred to persons who are qualified persons: Subject to the provisions of subsection (2), ships acquire the Cypriot nationality upon their registration in the Register.. provided that

      Provided that a   Ships under construction may be registered in the Register and, in such case, there shall be entered in the Register such particulars as may be prescribed.

 

    (2) The following ships  are not registered under this Law:

 

(a)       Ships not exceeding fifteen tons burden employed solely in navigation on the coasts of Cyprus or of the Sovereign Base Areas.

 

(b)       Ships not having a whole or fixed deck and employed solely in fishing, lightering or trading coastwise on the shore of Cyprus or of the Sovereign Base Areas or within such a radius therefrom as may be prescribed.

 

    (3) A ship shall not be recognised as a Cyprus ship, if-

 

 

(a)       the same has not been registered under this Law;

 

(b)       following directions under section 16, the same is not registered; and

           

(c)        the same is deleted from the Register under section 7.

 

 

 

Power of the Member

 to revoke the

 Cyprus nationality of ships.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7. Notwithstanding any of the provisions of this Law , the Member shall have additional power, whenever there are reasonable grounds which satisfy him that-

 

(a)       a Cyprus ship is used in a manner which may arouse contempt or cause discredit or weaken

 the  confidence in the Cyprus nationality of the ship or the Cyprus flag, or

 

(b)       the owner or the master of a Cyprus ship or any person being in charge of any Cyprus ship-

 

(i)      directly or indirectly, contravenes or omits to comply with the obligations imposed by Laws or any international treaties which are in force in Cyprus, provided that the contravention or the omission is repetitive or seriously affects the seaworthiness or the functional use of the ship or the working and living conditions of the seamen who are working on board,

(ii)      uses or permits or allows the Cyprus ship to be used in operations inconsistent with the interests of Cyprus or

(iii)  directly or indirectly contravenes or omits to comply with any Federal Law or any Law of either of the <constituent states> regulating the activities of specific types of ships  or the conditions for the issue of a special licence for the carrying out of such activities, or (c)       the owner or the master of a Cyprus ship or any person being in charge of any Cyprus ship does not comply with any condition for the registration of that ship imposed by this Law or by the Member under section 17,

 

to order, in accordance with the procedure prescribed by the Federal Regulations on  Merchant Shipping (Denial of Registration and Revocation of the Cyprus Nationality of Cyprus Ships) , the revocation of the Cyprus nationality of the ship and the deletion thereof from the Register:

 

         Provided that the deletion of the said ship from the Register, as above provided, does not affect the liability to pay taxes, fees and fines and any forfeitures and punishments for offences committed on board or by persons belonging thereto, provided that these relate to the period before the deletion of the ship from the Register:

 

       Provided further that for the purposes of the present section, the seaworthiness of a ship is seriously affected, when by reason of the defective condition of its hull, equipment or its machinery, or by reason of a deficient manning either in terms of number or quality, or of overloading or improper loading, the ship is unfit for use in navigation and endangers human life, having regard to the nature of the voyages for which she is intended.

 

 

 

 

 

 

 

 

Survey and

 measurement

 of ship.

PART IV

PROCEDURE ON REGISTRATION

 

8. Every ship shall before registration be surveyed by a surveyor of ships and her tonnage determined in accordance with the provisions of Part XIII of this Law, and the surveyor shall grant a certificate of survey 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 Member, and such certificate shall be delivered to the Registrar before registration.

 

 

Marking of ship.

9.-(1) Every ship shall before registration be marked permanently and conspicuously to the satisfaction of the Member as follows:

 

(a)       her name shall be marked on each of her bows, and her name and the name of her port of registration must be marked on her 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 10 cm, and of proportionate breadth;

 

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

 

(c)        a metric scale  denoting her draught of water shall be marked on each side of her stem and of her stern post in Roman  capital letters or in figures, not less than  15 cm in length, the lower line of such letters or figures to coincide with the draught line denoted thereby, and those letters and figures must be marked by being cut in and painted white or yellow on a dark ground, or in such other way as the Member approves.

 

     (2) The Member 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 shall be liable to a fine not exceeding two thousand  pounds.

 

     (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 Law.

 

     (5) If an owner or master of a Cyprus ship fails to cause his ship to be marked as required by this section, or to keep her so marked, or if any person conceals, removes, alters, defaces, or obliterates or suffers any person under his control to conceal, remove, alter, deface, or obliterate any of the said marks, except in the event aforesaid, or except for the purpose of escaping capture by an enemy, that owner, master, or person shall for each offence be liable to a fine not exceeding two thousand  pounds, and on the production of a certificate from a surveyor of ships or an inspector, that a ship is insufficiently or inaccurately marked the ship may be detained until the insufficiency or inaccuracy has been remedied.

 

Application for

registration.

10.  An application for registration of a ship shall be made, in the case of individuals, by the person requiring to be registered as owner or by some one or more of the persons so requiring, 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 appointors, and, if appointed by a corporation, under the common seal of that corporation.

 

 

Declaration of

ownership on

registration.

11.  A person shall not be entitled to be registered as owner of a Cyprus ship or of a share therein until he or, in the case of a corporation, the person authorized by this Law 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 qualification to own a Cyprus ship, or in the case of a corporation, of the circumstances as to the constitution and business thereof as prove it to be qualified to own a Cyprus 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 she is foreign built, and that the declarant does not know the time or place of her building; and in addition thereto, in the case of a foreign ship, a statement of her foreign name, or, in the case of a ship forfeited, a statement of the time, place and Court at and by which she was forfeited.

 

            (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.

 

 

Evidence on

 first

 registration.

12.-(1) On the first registration of a ship, the following evidence shall be produced in addition to the declaration of ownership:

 

(a)       In the case of a Cyprus-built ship, 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 she 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 registration.

 

            (b)       In the case of a foreign-built ship, the same evidence as in the case of a Cyprus-built ship, unless the declarant who makes the declaration of ownership declares that the time and place of her 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 registration.

 

            (c)        In the case of a ship forfeited by an order of the Court, an official copy of the forfeiture.

 

            (d)       In the case of the purchase of a ship, a bill of sale certified by the consular authorities of the country under whose flag the vessel is registered, which should contain a clear and responsible statement to the effect that the sale of the vessel to a foreigner and her deletion from the foreign register is unrestricted and that the said vessel is free of any encumbrances.

 

     (2) The builder shall grant the certificate required by this section, and any person recognized by the Member, 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) If the person granting a builder's certificate under this section willfully makes a false statement in that certificate he shall for each offence be liable to a fine not exceeding two thousand pounds.

 

Entry of

particulars

 in the Register.

13. As soon as the requirements of this Law preliminary to registration have been complied with, the Registrar shall enter in the Register the following particulars respecting the ship:

 

            (a)       The name of the ship and the name of the port to which she belongs.

 

(b)          The details comprised in the certificate of survey.

 

            (c)        The particulars respecting her origin stated in the declaration of ownership.

 

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

 

Documents to

 be retained

by the Registrar.

14. On the registration of a ship the Registrar shall retain in his possession the following documents, namely, the certificate of survey, the builder's certificate, any bill of sale of the ship previously made, the copy of the forfeiture (if any), and all declarations of ownership.

 

Port of

registration.

15. There shall be two ports of registration in Cyprus, one at the Port of Limassol and one at the Port of Famagusta and a Cyprus ship may be registered at either port. The port where the ship is registered will be deemed her port of registration and the port to which she belongs.

 

Power of the

Member to

give directions

for the

non-registration

of ships.

16. Notwithstanding the provisions of this Law, the Member shall have power, where the registration of a particular ship or of a particular class of ships in the Cyprus Register would be contrary to the interests of Cyprus including the general policy followed by the Government as arising out of European Community or international obligations of Cyprus, to give directions to the Registrar not to effect the registration of such ship or ships.

 

Power of the Member to impose conditions for the registration of ships.

17.  Subject to the provisions of  this Law, the Member shall have power to give directions to the Registrar for the registration of a particular ship or the registration of a particular class of ships under such conditions as he may consider appropriate for the interests of Cyprus including the general policy followed by the Government of the <common state> , in particular for the adoption of more up-to-date and improved methods and standards relating to the safety of human life at sea, the welfare of the seamen on board, the protection of the sea environment and the preservation of marine life.

 

 

 

 

 

Certificate

 of

 registration.

PART V 

CERTIFICATE OF REGISTRATION

 

18. On completion of the registration of a ship, the Registrar shall grant a certificate of registration comprising the particulars in respect of such ship entered in the Register, with the name of her master.

 

Custody of certificate.

19.-(1) The certificate of registration shall be used only for the lawful navigation of the ship, and shall not be 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 the ship or not, without any reasonable cause, refuses on request to deliver up the certificate of registration 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 the Registrar, he shall be guilty of an offence and shall on conviction be liable to a fine not exceeding two thousand pounds, unless it is proved to the Court that the certificate is lost, whereupon the Court trying the offence shall certify that the certificate of registration is lost.

 

      (3) If the person so refusing is proved to have absconded, the 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.

 

Penalty for

use of improper

certificate.

20. If the master or owner of a ship uses or attempts to use for her navigation a certificate of registration not legally granted in respect of the ship, he shall, in respect of each offence, on conviction be liable to imprisonment not exceeding two years or to a fine not exceeding five thousand  pounds, or to both such imprisonment and fine, and the ship shall be subject to forfeiture under the Law.

 

Power to grant

new certificate.

21. The Registrar may, on the delivery up to him of the certificate of registration of a ship, grant a new certificate in lieu thereof.

 

Provision for

loss of certificate.

22.-(1) In the event of the certificate of registration of a ship being mislaid, lost, or destroyed, the Registrar shall grant a new certificate of registration in lieu of her original certificate.

 

      (2) If the port (having a consular officer of Cyprus) at which the ship is at the time of the event, or first arrives after the event, is out of Cyprus, then 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 such ship to the best of the declarant's knowledge and belief, and the consular officer, shall thereupon grant a provisional certificate, containing a statement of the circumstances under which it is granted and shall forward a copy of the certificate on the first convenient opportunity to the Registrar.

 

      (3) The provisional certificate shall, within ten days after the first subsequent arrival of the ship at her port of discharge in Cyprus, be delivered up to the Registrar, and the Registrar shall thereupon grant the new certificate of registration; and if the master without reasonable cause fails to deliver up the provisional certificate within the ten days aforesaid, he shall be liable to a fine not exceeding two thousand pounds.

No endorsement of

replacement  of

master

on certificate.

23 There is no need for endorsement of the certificate in case the master from a registered Cyprus ship is replaced  

 

Endorsement of

change of

ownership

on certificate.

24.-(1) Whenever a change occurs in the registered ownership of a ship, the change of ownership shall be endorsed on her certificate of registration by the Registrar.

 

      (2) The master shall, for the purposes of such endorsement by the Registrar, deliver the certificate of registration to the Registrar, forthwith after the change if the change occurs when the ship is at a port in Cyprus, and if it occurs during her absence from such port then upon her first return to that port.

 

      (3) If the master fails to deliver to the Registrar the certificate of registration as required by this section he shall, for each offence, be liable to a fine not exceeding two thousand pounds.

 

Delivery of

certificate of

ship lost or

ceasing to

be Cyprus

owned.

25.-(1) In the event of a registered ship being either actually or constructively lost, taken by the enemy, burnt, or broken up, or ceasing by reason of a transfer to non-qualified persons or otherwise, to be a Cyprus ship, every owner of the ship or any share in the ship 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, and the Registrar shall make an entry thereof in the Register, and as from such entry the Register shall in relation to that ship be deemed to be closed except for matters relating to undischarged registered mortgages and registered certificates of mortgages.

 

      (2) In any such case, except where the ship's certificate of registration is lost or destroyed, the master of the ship shall, if the event occurs in port, immediately, but if it occurs elsewhere, then within ten days after her arrival in port, deliver the certificate to the Registrar, or if such port is outside Cyprus to the consular officer of Cyprus there, who shall forthwith forward the certificate delivered to him to the Registrar.

 

      (3) If any such owner or master fails, without reasonable cause, to comply with this section, he shall for each offence be liable to a fine not exceeding two thousand pounds.

 

     (4) Notwithstanding anything contained in this Law or in any other Law, the Registrar shall not grant a copy of the Register in respect of the deletion of the Cyprus ship from the Register nor any information or certification relevant thereto, unless the same is satisfied that all financial and other obligations towards Cyprus in relation to that ship have been settled.

 

 

 

Provisional certificate

for ship

becoming

Cyprus

owned

26.-(1) If a ship becomes the property of qualified persons, the Registrar or a  consular officer of Cyprus abroad upon instructions by the Registrar  may grant to her owner or master, on his application, a provisional certificate stating-

 

            (a)       the name of the ship,

 

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

 

           

 

            (c)        the best particulars respecting her tonnage, build, and description which he is able to obtain,

 

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

 

      (2) Such a provisional certificate shall have the effect of a certificate of registration for a period of six months, which the Member may extend for a further period of three months, on payment of a fee equal to one half of the registration fee, or until a new certificate of registration is issued, under the provisions of this Law, by the Registrar upon the ship entering a Cyprus port, if this should occur earlier, whereupon it shall cease to have effect:

 

         Provided that nothing in this subsection shall affect the validity of any mortgage recorded or deemed to be recorded and upon final registration of this ship under this Part the priority of any such mortgage shall be preserved.

 

 

 

 

Parallel registration.

PART VI

PARALLEL REGISTRATION OF SHIPS

 

27. Parallel registration is the registration of a ship in the register of a country for a certain period of time and under conditions specified in this Part, whilst the ship remains registered in the register of another country.

 

 

Bareboat chartering.

28. Bareboat chartering is a chartering by virtue of which the charterer for the agreed period of time, acquires full control and possession of the ship, has the nautical control and management of the ship, appoints and dismisses the master and the crew of the ship, is responsible towards third parties as if he was the owner and, generally, so long as the chartering continues, substitutes in all respects the owner, save that he has no right to sell or mortgage the ship.

 

Parallel registration

 in the Cyprus Register.

29.-(1) Parallel registration in the  Register of a ship registered in a foreign register shall be allowed if she is bareboat chartered by a natural person or corporation which is entitled under section 5 to register ships in the Register, so long as the prerequisite conditions specified in the following provisions of this Part apply.

 

      (2) For the parallel registration of a ship in the  Register the deletion of the registration in the foreign register shall not be required, but her status of registration in the foreign register shall be suspended, save as regards the matters specified in sections 35 and 36.

 

Registration in a Special Book of Parallel Registration and prerequisite conditions therefore.

30.-(1) The parallel registration in the Register shall be achieved by the registration of the foreign ship in the Special Book  of Parallel Registration of the  Register kept for this purpose and for the period of time which in each case the Member approves and shall be effected by the Registrar on the application of the charterer, so long as the following prerequisite conditions apply:

 

(a)       the law of the country of the foreign registry allows the parallel registration of the ships registered in its register; and

 

(b)       the following duly certified documents shall be submitted to the Registrar together with the application-

 

(i)      a copy of the charter party, in lieu of the title of ownership and the declaration of ownership;

(ii)     the written consent of the owner;

(iii)    the written consent of the appropriate maritime authorities of the country of the foreign register and a certificate of ownership and mortgages or other encumbrances;

 (iv)      the written consent of the mortgagees; and

(v)     the documents required by this Law for permanent registration, save to the extent that the relevant provisions are amended by the provisions of this Part.

 

 For the purposes of this Part,  the expression "Special Book of Parallel Registration" comprises also a special part of the computerized system .

 

       (2) No Carving and Marking Note shall be issued in respect of ships registered in the Special Book of Parallel Registration.

 

Tonnage.

31.-(1) A new measurement of the tonnage of the ship shall not be required for the parallel registration. The certificate of survey and the tonnage certificate provided for by this Law shall be issued on the basis of the corresponding documents of the foreign registry and the measurement fees provided for by this Law shall be payable for their issue.

 

       (2) A subsequent alteration of the ship which affects the tonnage or the type of the ship shall be effected in accordance with the provisions of this Law relating to ships registered in the  Register and shall be notified by the Registrar to the appropriate maritime authorities of the country of the foreign registry.

 

Name.

32-(1) The ship shall keep the name as registered in the foreign register and such name shall not be the same as with the name of a ship registered in the Register.

 

      (2) A subsequent change of the name shall be allowed and shall be effected in accordance with the provisions of this Law relating to ships registered in the  Register on the application, in this case, of the charterer and with the written consent of the owner and the mortgagee and it shall be notified to the appropriate maritime authorities of the country of the foreign registry.

 

Certificate

of parallel

registration.

33.-(1) During the period for which the status of parallel registration is in force, the ship shall be furnished by the Registrar with a certificate of parallel registration in a form similar to the certificate of registration of ships registered in the Register and in which the same particulars provided by this Law in respect of ships registered in the Register, as well as the particulars of the owner, the charterer and the foreign registry of the ship, shall be recorded.

 

      (2) The certificate of parallel registration shall set out the date of termination of its validity.

 

      (3) During the period for which the status of parallel registration is in force, the ship shall hoist the Cyprus flag, and she shall not be allowed to use the flag of the country of the foreign registry and the name of the ship and the Cyprus port of registration of the ship shall be marked on her external parts.

Re-registration

in the Special Book

of Parallel

Registration.

34. The extension of the status of parallel registration and the re-registration of the ship in the Special Book of Parallel Registration of the Register shall be allowed so long as the prerequisite conditions according to the law applicable at the time of the initial registration still apply.

 

Transfer of ownership.

35.-(1) The transfer of ownership, for any reason, of a ship which is under the status of parallel registration in the  Register shall be effected in accordance with the law of the foreign registry in which she shall be registered. Transfer of ownership of a ship under the provisions of Part VII of this Law shall not be allowed.

 

      (2) Transfer of ownership under subsection (1) shall be notified to the Registrar for entry in the Special Book of Parallel Registration and the certificate of parallel registration of the ship which is under that status.

 

Mortgages.

36.-(1) Mortgages and other encumbrances which are a charge on the ship at the time of parallel registration in the  Register, shall continue to exist and be a charge on the ship and be governed by the law governing the same at the time of their creation, without being affected by the fact of the parallel registration of the ship in the Register.

 

      (2) After the parallel registration of the ship in the Register, a mortgage or other encumbrance shall be created on the ship only by the owner and in accordance with the law of the country of the foreign register, in which they shall be recorded. Registration of a mortgage in the Register in accordance with the provisions of Part VIII of this Law shall not be allowed.

 

      (3) Mortgages and other encumbrances according to the provisions of subsections (1) and (2) shall be notified to the Registrar for entry in the Special Book of Parallel Registration.

 

Law applicable.

37. So long as the status of parallel registration continues, there shall apply to ships of a foreign registry, which are subject to such status, all the remaining provisions of this Law and of the Regulations, Orders and Instructions issued thereunder to the extent that they are not inconsistent with the provisions of this Part.

 

 

Revocation of the

 status of parallel registration.

38.-(1) The status of parallel registration of a ship of a foreign registry shall be revoked and the name of such ship shall be deleted from the Special Book of Parallel Registration of the Register in the following cases:

 

            (a)       where the appropriate maritime authorities of the foreign registry revoke their consent for the parallel registration of the ship in the  Register;

 

            (b)       in case of termination of the chartering;

 

            (c)        upon the lapse of the period of time for which the Member has approved the parallel registration of the ship in the  Register;

 

            (d)       if there exists any reason for deletion which under this Law applies in the case of ships registered in the  Register.

 

      (2) Upon such deletion, the Registrar issues the relevant deletion certificate.

 

      (3) The fact of the deletion shall be notified by the Registrar to the appropriate maritime authorities of the foreign registry of the ship.

 

Parallel registration

of Cyprus ships

in a foreign

register.

39. The parallel registration of a Cyprus ship in a foreign register shall be allowed if the ship is bareboat chartered to a foreign individual or corporation and the law of the country of the foreign registry allows the parallel registration of ships of another registry, under prerequisite conditions similar to those set out in this Part in the case of parallel registration of foreign ships in the  Register.

 

Conditions for

the parallel

registration of

Cyprus ships

in a foreign

register.

40.-(1) The approval of the Minister shall be required for the parallel registration of a Cyprus ship in a foreign register.

 

      (2) The parallel registration in a foreign register shall be allowed only for ships which are permanently registered in the Register. By way of exception the Member shall have power to approve the parallel registration of a Cyprus ship which is provisionally registered under conditions which he may deem reasonable to impose in each case.

 

      (3) The approval of the parallel registration of a Cyprus ship in a foreign register shall be granted on the application of the owner. The following documents shall be submitted together with the application:

 

            (a)       copy of the charter party;

 

            (b)       written consent of the charterer;

 

            (c)        written consent of the appropriate maritime authorities of the country of the foreign registry and a confirmation that the law of the country allows the parallel registration of the Cyprus ship in its register;

 

            (d)       written consent of the mortgagees;

 

            (e)       common declaration by the owner and charterer that they undertake to produce to the Registrar within one month, a certified copy of the foreign certificate of parallel registration and to notify every alteration which takes place regarding the name or other particulars of the ship, during the period the status of parallel registration of the ship in the foreign register is in force.

 

Duration of

parallel

registration

of Cyprus ships.

41.-(1) The status of parallel registration of Cyprus ships shall continue to be in force for the duration of the charter party, if the approval of the Member and the consent of the appropriate maritime authorities of the foreign register are in force, but in any case for a period not greater than three years.

 

      (2) The Minister shall have power, on the application of the owner and with the consent of the mortgagees, to approve an extension of the status of parallel registration provided the remaining prerequisite conditions according to the law in this respect are met.

 

 

Certificate of

registration.

42.-(1) During the period the status of parallel registration of a Cyprus ship is in force, the ship shall hoist the flag of the foreign registry and she cannot use the Cyprus flag.

 

      (2) The Cyprus certificate of registration shall be delivered to the Registrar and shall be returned to the owner as soon as the status of parallel registration of the ship in the foreign register is terminated.

 

      (3) Subject to the following provisions of this Part, the registration in the Register shall be suspended during the period the parallel registration of the ship in the foreign register is in force.

 

Transfer of ownership. Mortgages.

43.-(1) The transfer of ownership for any reason, the creation, registration, transfer and discharge of a mortgage on a Cyprus ship which is under the status of parallel registration in a foreign registry shall be effected according to the relevant provisions of this Law and shall be registered in the Register.

 

      (2) Mortgages which are a charge on the Cyprus ship at the time of the parallel registration thereof in the foreign register, shall continue to exist and be a charge on the ship and be governed by the relevant provisions of this Law without being affected by the fact of the parallel registration of the ship in the foreign register.

 

      (3) No action which refers to the ownership, registration, transfer or discharge of a mortgage or other encumbrance on a Cyprus ship which is under the status of parallel registration in a foreign register shall be made in the foreign registry. Registration of title of ownership or registration, transfer or discharge of a mortgage or other encumbrance in the foreign register in contravention of this prohibition shall be null and void according to Cyprus law and shall be a ground for revoking the Cyprus character by a decision of the Member according to the provisions of section 7 of this Law.

 

      (4) Entries made in the Register regarding the transfer of ownership, the registration, transfer or discharge of a mortgage on a ship shall be notified to the appropriate maritime authorities of the foreign registry for entry in the register and other relevant documents.

 

 

 

 

 

 

Transfer of

ships or shares.

PART VII

TRANSFERS AND TRANSMISSIONS

 

44.-(1) A registered ship or a share therein (when disposed of to a qualified person) shall be transferred by a bill of sale.

 

      (2) The bill of sale shall contain such description of the ship as is contained in the certificate of survey, or some other description sufficient to identify the ship to the satisfaction of the Registrar and shall be executed by the transferor in the presence of and be attested by a witness or witnesses.

 

      (3) Without prejudice to anything contained in Part VIII, a bill of sale for the transfer of a registered ship executed outside Cyprus may be produced together with the declaration of transfer to a consular officer of Cyprus who shall, if satisfied that the bill of sale and the declaration of transfer appear to be in proper order and fully executed, on payment of the appropriate fee, forthwith notify the Registrar of the deposit of the bill of sale and the declaration of transfer giving all necessary particulars and he shall forward at the first convenient opportunity the bill of sale and the declaration of transfer to the Registrar.

 

On receipt of notice of such deposit by the Registrar the transfer shall be deemed to have been registered, subject to any previous mortgage, as from the date of the deposit with the consular officer of Cyprus and the Registrar shall make the necessary entries in the Register accordingly.

 

Declaration

of transfer.

45. Where a registered ship or a share therein is transferred, to a qualified person, the transferee shall not be entitled to be registered as owner thereof until he, or, in the case of a corporation, the person authorized by this Law to make declarations on behalf of the corporation, has made and signed a declaration (in this Law referred to as "declaration of transfer") referring to the ship, and containing:

 

            (a)       A statement of the qualification of the transferee to own a Cyprus 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 Cyprus 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.

Registration

 of transfer.

46.-(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 with the declaration of transfer, and the Registrar shall thereupon enter in the Register 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 of a share therein shall be entered in the Register in the order of their production to the Registrar.

 

 

Transmission of

 property in

 ship on death,

 bankruptcy,

marriage, etc.

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

 

            (a)       that person shall authenticate the transmission by making and signing a declaration (in this Law referred to as "declaration of transmission") identifying the ship and containing the several statements herein before required 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 certificate of marriage, or other legal evidence of the celebration thereof, and shall declare the identity of the spouse to whom there has been transmission;

 

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

 

            (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 the name of the person entitled under the transmission as owner of the ship or share, in which the property 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 purposes of this Law with respect to the number of persons entitled to be registered as owners, be considered as one person.

 

 

Order for

sale on

transmission

to unqualified

person.

48.-(1) Where the property in a registered ship or share therein is transmitted on marriage, death, bankruptcy, or otherwise to an unqualified person then the Court may, on application by or on behalf of the unqualified person, order the 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 such transmission or otherwise as the Court may direct.

 

      (2) The Court may require any evidence in support of the application it may think 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 such 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 may allow.

 

      (4) If such an application is not made within the time aforesaid, or if the Court refuses an order for sale, the ship or share transmitted shall thereupon be subject to forfeiture under this Law.

 

Transfer of ship

or sale

by order of Court.

49. Where any Court, whether under the preceding sections of this Law or otherwise, order 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 shall thereupon be 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 the Registrar shall obey the requisition of the person so named in respect of any transfer to the same extent as if such person were the registered owner.

 

Power of Court

to prohibit

transfer.

50. The Court may, if it thinks fit (without prejudice to the exercise of any other of its powers), 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 it may make the order on any terms or conditions it may think just, or 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 the Registrar shall, without being made a party to the proceedings on being served with an official copy thereof obey the same.

 

 

 

 

Mortgages of

ship or share. 

 Schedule,

Part I,

Form B

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PART VIII 

MORTGAGES

 

51.-(1) A registered ship or a share therein may be made a security for a loan or other valuable consideration, and the instrument creating the security (in this Law referred to as “mortgage”) shall be in the Form B in Part I of the Schedule, or as near thereto as circumstances permit, and on the production of such instrument the Registrar shall record it in the Register.

 

      (2) There shall be attached to any such instrument of mortgage a deed of covenants agreed between the parties and dealing with any matter relating to the mortgage, which after being endorsed by the Registrar or any consular officer of Cyprus abroad upon instructions of the Registrar, shall be returned to the parties,

 

            

 

             

provided that with regard to powers exercisable by the mortgagee

a)      no power to take possession of the ship

 and assume her management or sell it by private deal shall be exercised by a mortgagee unless the entire ship is mortgaged;

(b)    the assumption of the management of the ship by the mortgagee shall entitle him to do all acts necessary thereof; any amount collected by the mortgagee during the management and operation of the ship after deduction of all relative expenses, shall be appropriated against the amount of the mortgaged debt and on its final payment such management shall come to an end;

(c)     notice of such assumption of management of the ship shall be given to the Registrar.

           

          

 

 

      (3) 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 notify on each mortgage that it has been recorded by him, stating the day and hour of that record.

 

      (4) Notwithstanding anything contained in Part IX any mortgage executed outside Cyprus may be deposited with a consular officer of Cyprus who shall, if satisfied that the mortgage appears to be in proper order and fully executed, on payment of the appropriate fee, forthwith notify the Registrar of the deposit of the mortgage giving all necessary particulars and shall forward at the first convenient opportunity the mortgage deed to the Registrar.

 

On receipt of notice of such deposit by the Registrar the mortgage shall be deemed to be recorded as from its date and the Registrar shall make the necessary entries accordingly.

 

      (5) The provisions of this section are in addition to, and not in derogation of, any provisions relating to registration of mortgages or company property contained in any Law of either of the < constituent states> regulating companies.

 

 

Entry of discharge

of mortgage.

52. 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 to the effect that the mortgage has been discharged, and on that entry being made the interest (if any) which 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.

 

Priority of

mortgages.

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

 

Mortgagee

not treated as owner.

54.-(1) Subject to subsection (2) except as far as may be necessary for making a mortgaged ship or share 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.

 

      (2) Where under a deed of covenant the mortgagee is entitled to take possession of a ship or where the mortgagor allows the ship to remain burdened with a maritime lien which impairs the security of the mortgage, the mortgagee may take possession of the ship in the prescribed manner and thereupon he shall have all the rights and powers of any owner in possession of the ship.

 

Mortgagee to

have power

of sale.

55.  Every registered mortgagee shall have power absolutely to dispose of the ship or share in respect of which he is registered, 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 a Court, sell the ship or share without the concurrence of every prior mortgagee.

 

Mortgage not

affected by

bankruptcy.

56. 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 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.

 

Transfer of mortgages.

Schedule

Part I,

Form C

57. A registered mortgage of a ship or share may be transferred to any person, and the instrument effecting the transfer shall be in the Form C in Part I of the  Schedule, or as near thereto as circumstances permit, and on the production of such instrument the Registrar shall record it by entering in the Register the name of the transferee as mortgagee of the ship or share, and shall by memorandum under his hand notify on the instrument of transfer that it has been recorded by him, stating the day and hour of the record.

 

Transmission of

interest

in mortgage

by death,

bankruptcy,

marriage, etc.

58.-(1) Where the interest of a mortgagee in a ship or share is transmitted on marriage, death, or bankruptcy, or by any lawful means, other than by a transfer under this Law, the transmission shall be authenticated by a declaration of the person to whom the interest is transmitted, containing a statement of the manner in which and the person to whom the property has been transmitted, and shall be accompanied by the like evidence as is by this Law required in case of a corresponding transmission of the ownership of a ship or share.

 

     (2) The Registrar on the receipt of the declaration, and the production of the evidence aforesaid, shall enter the name of the person entitled under the transmission in the Register as mortgagee of the ship or share.

 

 

 

Powers of mortgage

and sale may

be conferred

by certificate.

PART IX  CERTIFICATES OF MORTGAGE AND SALE

 

59. A registered owner, if desirous of disposing by way of mortgage or sale of the ship or share in respect of which he is registered at any place out of Cyprus, may apply to the Registrar, and the Registrar shall thereupon enable him to do so by granting a certificate of mortgage or a certificate of sale.

 

Requisites for certificates of mortgage and sale.

60. Before a certificate of mortgage or sale is granted, the applicant shall state to the Registrar, and the Registrar shall enter in the Register the following particulars, that is to say:

 

            (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 such 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 such 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 the provisions of this Law.

 

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

 

 

Restrictions on

certificates

of mortgage and sale.

61. A certificate of mortgage or sale shall not be granted so as to authorize any mortgage or sale to be made within Cyprus or by any person not named in the certificate.

 

 

Contents of certificates of mortgage and sale.

62. A certificate of mortgage and a certificate of sale shall contain a statement of the several particulars by this Law directed to be entered in the Register on the application for the certificate and, in addition thereto, an enumeration of any registered mortgages or certificate of mortgage or sale affecting the ship or share in respect of which the certificate is given.

 

Rules as to

certificates of

mortgage.

63. The following rules shall be observed as to certificates of mortgage:

 

            (1) The power shall be exercised in conformity with the directions contained in the certificate.

 

            (2) Every mortgage thereunder shall be registered by the endorsement of a record thereof on the certificate by the Registrar or a consular officer of Cyprus.

 

            (3) A mortgage made in good faith thereunder shall not be impeached by reason of the person by whom the power was given dying before the making of the mortgage.

 

            (4) Whenever the certificate contains a specification of the place at which, and a limit of time not exceeding twelve months within which, the power 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.

 

            (5) Every mortgage which is so registered as aforesaid on the certificate shall have priority over all mortgages of the same ship or share created subsequently to the date of the entry of the certificate in the Register; and, if there are more mortgages than one so registered, the respective mortgagees claiming thereunder shall, notwithstanding any express, implied, or constructive notice, be entitled 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.

 

            (6) Subject to the foregoing rules, every mortgagee whose mortgage is registered on the certificate shall have the same rights and powers and be subject to the same liabilities as he would have had and been subject to if his mortgage had been registered in the Register instead of on the certificate.

 

            (7) The discharge of any mortgage so registered on the certificate may be endorsed on the certificate by the Registrar or a consular officer of Cyprus, on the production of such evidence as is by this Law required to be produced to the Registrar on the entry of the discharge of a mortgagee in the Register and on that endorsement being made, the interest, if any, which 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.

 

            (8) On the delivery of any certificate of mortgage to the Registrar he shall, after recording in the Register, 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; and every certificate so cancelled shall be void to all intents.

 

Rules as to

certificates

of sale.

64. The following rules shall be observed as to certificates of sale:

 

            (1) A certificate of sale shall not be granted except for the sale of an entire ship.

 

            (2) The power shall be exercised in conformity with the directions contained in the certificate.

 

            (3) 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 was given dying before the making of such sale.

 

            (4) Whenever the certificate contains a specification of the place at which, and a limit of time not exceeding twelve months within which, the power 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.

 

            (5) A transfer made to a person qualified to be the owner of a Cyprus ship shall be by a bill of sale in accordance with this Law.

 

            (6) If the ship is sold to a person qualified to be the owner of a Cyprus ship the ship shall be registered anew; but notice of all mortgages enumerated on the certificate of sale shall be entered in the Register.

 

            (7) Before registration anew there shall be produced to the Registrar the bill of sale by which the ship is transferred, the certificate of sale, and the certificate of registration of such ship.

 

            (8) The Registrar shall retain the certificates of sale and registration, and shall thereupon make a memorandum of the sale in the Register and the registration of the ship therein shall be considered as closed, except as far as relates to any unsatisfied mortgages or existing certificates of mortgage entered therein.

 

            (9) On such registration anew the description of the ship contained in her original certificate of registration may be transferred to the Register without her 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.

 

            (10)  If the ship is sold to a non-qualified person the bill of sale by which the ship is transferred, the certificate of sale, and the certificate of registration shall be produced to the Registrar or a consular officer of Cyprus, who shall retain the certificates of sale and registration, and that consular officer having endorsed thereon the fact of that ship having been sold to a person not qualified to be the owner of Cyprus ship, shall forward the certificates to the Registrar; the Registrar shall on retention of or on receiving such certificates, as the case may be, make a memorandum of the sale in the Register and the registration of the ship in the Register shall be considered as closed, except so far as relates to any unsatisfied mortgages or existing certificates of mortgage entered therein.

 

            (11) If, on a sale being made to a person not qualified to be the owner of a Cyprus ship, default is made in the production of such certificates as are mentioned in the last rule, that person shall be considered by the law of Cyprus as having acquired no title to or interest in the ship; and further, the person upon whose application the certificate of sale was granted, and the person exercising the power, shall each be liable to a fine not exceeding two thousand pounds.

 

            (12) If no sale is made in conformity with the certificate of sale, that certificate shall be delivered to the Registrar and he shall thereupon cancel it and enter the fact of the cancellation in the Register; and every certificate so cancelled shall be void for all intents and purposes.

 

Power of Registrar

in case of

loss of certificate

of mortgage

or sale.

65. On proof at any time to the satisfaction of the Registrar 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, as circumstances require, either issue a new certificate, or direct such entries to be made in the Register, or such other things to be done, as might have been made or done if the loss, destruction, or obliteration had not taken place.

 

Revocation of

certificates of

mortgage and sale.

66.-(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 given is to be exercised, may, by an instrument under his hand, give notice to the Registrar that the certificate is revoked.

 

      (2) The Registrar shall on its receipt record such notice and thereupon the certificate shall be deemed to be revoked and of no effect so far as respects any mortgage or sale to be thereafter made.

 

      (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.

 

 

 

 

Rules as to

name of ship.

PART X 

NAME OF SHIP

 

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

 

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

 

      (3) (a)        Applications for approval under this section shall be made in writing at least three days prior to the date on which the registration of a ship or the proposed change in the name shall take place.

 

(b)       The Registrar may refuse the registration of a ship under any proposed name or the change of the name of any registered ship by any other name if such name is already the name of a registered Cyprus ship or a name resembling the name of a registered Cyprus ship to such an extent so as to create the possibility that the two names be taken as the same name, or if he considers that the application is not justified.

 

(c)        Before the granting of any approval under this section, the Registrar may require the applicant-

 

(i)        to publish a notice either in Cyprus or in Cyprus and abroad regarding the proposed change in the name of the ship, in such manner as the Registrar may think fit and the possibility of submission of an objection by any interested person within the period specified in the notice;

(ii)      to produce such evidence, as the Registrar may think fit, regarding the necessity of the change in the name of the ship;

(iii)  to produce, in case where the ship is mortgaged, the written consent of the mortgagees; and

(iv)     to produce in case where the ship at the time of submission of the application is loaded during a voyage or in a port or is due to load in the port where the change in the name is intended to take place, the written consent of the insurer of the cargo.

 

            (d)       On permission being granted under this section the Registrar may require the owner to publish a notice in such manner, time and place as he may think appropriate.

 

      (4) On approval being granted to change the name, the ship's name shall forthwith be altered in the Register, in the ship's certificate of registration, and on her bows and stern.

 

      (5) If it is shown to the satisfaction of the Registrar that the name of any ship has been changed without his approval he shall direct that her name be altered into that which she bore before the change, and the name shall be altered in the Register, in the ship's certificate of registration, and on her 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 registration (proof whereof shall lie on him) shall apply to register, and the Registrar shall not knowingly register the ship, except by the name by which she was previously registered, unless with the previous written approval of the Registrar.

 

      (7) Where a foreign ship, not having at any previous time been registered as a Cyprus ship, becomes a Cyprus ship, no person shall apply to register, and the Registrar shall not knowingly register, the ship, except by the name which she bore as a foreign ship immediately before becoming a Cyprus ship, unless with the previous written approval of the Registrar.

 

      (8) If any person acts, or suffers any person under his control to act, in contravention of this section, or omits to do so, or suffers any person under his control to omit to do anything required by this section, he shall for each offence be liable to a fine not exceeding one thousand pounds, and (except in the case of an application being made under this section with respect to a foreign ship which not having at any previous time been registered as a Cyprus ship has become a Cyprus ship) the ship may be prohibited from sailing until this section is complied with.

 

 

 

 

 

 

 

 

 

 

 

 

 

Flag state to be

declared

before clearance.

PART XI 

CYPRUS NATIONALITY AND FLAG OF SHIPS

 

68.-(1) An officer, having competence for this matter under the relevant law, shall not grant a clearance for any ship until the master of such ship has declared to that officer the name of the  country to which he claims that she belongs, and that officer shall thereupon inscribe that name on the clearance.

 

      (2) If a ship attempts to proceed to sea without such clearance, she may be prohibited from sailing until the declaration is made.

 

Penalty for

unduly

assuming

Cyprus nationality.

69.-(1) If a person uses the Cyprus flag and assumes the Cyprus nationality on board a ship of which half or more than half of the shares are owned by an unqualified person, for the purpose of making the ship appear to be a Cyprus ship, the ship shall be subject to forfeiture under this Law, 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 such forfeiture the burden of proving a title to use the Cyprus flag and assume the Cyprus nationality shall lie upon the person using and assuming the same.

 

Penalty for concealment

of Cyprus or

assumption of

foreign

nationality.

70.  If the master or owner of a Cyprus 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 Cyprus nationality of the ship from any person entitled by law to inquire into the same, or with intent to assume a foreign nationality, or with intent to deceive any person so entitled as aforesaid, the ship shall be subject to forfeiture under this Law; and the master, if he commits or is privy to the commission of the offence, shall in respect of each offence, on conviction be liable to imprisonment not exceeding two years or to a fine not exceeding five thousand pounds, or to both such imprisonment and fine.

 

Penalty for

acquiring

ownership

by an

unqualified

person.

71. If an unqualified person acquires as owner, otherwise than by such transmission as hereinbefore provided for, any

 interest, either legal or beneficial, in a ship using a Cyprus

 flag and assuming the Cyprus nationality that interest shall be subject to forfeiture under this Law.

 

Liabilities of ships

not recognized

 as Cyprus ships.

72.  Where the conditions for the registration of a ship in the Register no longer prevail, the ship ceases to be recognized as Cypriot and shall not be entitled to any benefits, privileges, advantages, or protection usually enjoyed by Cyprus ships nor to use the Cyprus flag or assume the Cyprus nationality, but so far as regards the payment of dues, the liability to fines and forfeiture, and the punishment of offences committed on board such ship, or by any persons belonging to her, such ship shall, except in the cases of ships deleted from the Register under section 7 or ships not registered following directions under section 16 of this Law, provided that in both cases the same have not been subsequently transferred to persons who are capable of owning a Cyprus ship, be dealt with in the same manner in all respects as if she were a recognised Cyprus ship.

 

Cyprus colours

for ships.

73.-(1) The flag of  Cyprus without any defacement or modification whatsoever, is hereby declared to be the proper Cyprus colours for all Cyprus ships.

 

      (2) If any distinctive Cyprus colours, except those on the flag of Cyprus are hoisted on board any ship, the master of the ship, or of the owner thereof, if on board the same, and any other person hoisting the colours shall for each offence incur a fine not exceeding one thousand pounds.

 

      (3) Any surveyor may board any ship on which any colours are hoisted contrary to this Law, and seize and take away the colours, and the colours shall be forfeited.

 

Penalty on ship

not showing colours.

74.-(1) A Cyprus ship shall hoist the proper Cyprus colours-

 

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

 

            (b)       if of fifty tons gross tonnage or upwards on entering or leaving any port of Cyprus.

 

      (2) If default is made on board any ship in complying with this section, the master of the ship shall for each offence be liable to a fine not exceeding one thousand pounds.

 

      (3) This section shall not apply to a fishing boat not required to be registered in the Register.

 

 

 

 

 

Registration of

alterations.

PART XII 

REGISTRATION OF ALTERATIONS

AND REGISTRATION ANEW

 

75.-(1) When a registered ship is so altered as not to correspond with the particulars relating to her tonnage or description contained in the Register then, the Registrar 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 such ship, or in registering an alteration of such ship so altered as aforesaid, the owner of the ship shall be liable on conviction to a fine not exceeding one thousand pounds, and, in addition to a fine not exceeding fifty pounds for every day during which the offence continues after conviction.

 

Regulations for

registration

of alteration.

76.-(1) For the purpose of the registration of an alteration in a ship, the ship's certificate of registration shall be produced to the Registrar, and the Registrar shall, in his discretion, either retain the certificate of registration and grant a new certificate of registration 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 so made and the fact of the new certificate having been granted, or endorsement having been made, shall be entered by the Registrar in the Register.

 

 

Registration anew

on change of

ownership.

77. Where the ownership of any ship is changed, the Registrar may, on the application of the owners of the ship register the ship anew, although registration anew is not required under this Law.

 

Procedure for

registration anew.

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

 

      (2) When a ship is registered anew, her former registration shall be considered as closed, except so far as 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 registration anew shall not in any way affect the rights of any of those persons.

 

Restrictions on

registration of

abandoned ships.

79. Where a ship has ceased to be registered as a Cyprus ship by reason of having been wrecked or abandoned or for any reason other than capture by the enemy, or transferred to a non-qualified person, the ship shall not be re-registered until she has, at the expense of the applicant for registration, been surveyed by a surveyor of ships and certified by him to be seaworthy.

 

 

 

 

Determination

of the tonnage

of ships.

 

PART XIII 

MEASUREMENT OF THE TONNAGE OF SHIPS

 

80.-(1) The tonnage of ships of total length of 24 metres and above is determined in accordance with the provisions of the International Convention on Tonnage Measurement of Ships of 1969, the Federal Regulations on Tonnage Measurement of Ships  issued under the Federal Law on the Implementation of the  International Convention on Tonnage Measurement of Ships of 1969  and any other regulations made thereunder.

 

      (2) The tonnage of ships of total length less than 24 metres is determined in accordance with the provisions of the Federal Regulations on Measurement of the Tonnage of Ships Smaller than Twenty Four Metres in Length.

 

Ship’s tonnage

by law or tonnage determined by law.

81. Whenever the tonnage of a ship is determined in accordance with the provisions of the preceding section and entered in the Register, the same shall henceforth be deemed to be the ship's tonnage by law and shall be repeated in every subsequent registration thereof, unless any change in the type or the tonnage of the ship is effected, or unless an error in its determination is identified, in which events the tonnage of the ship shall be determined anew in accordance with the provisions of section 80 and shall be entered in the Register.

 

 

 

 

 

 

Provision for cases of infancy or

other incapacity.

 

PART XIV

MISCELLANEOUS

INCAPACITATED PERSONS

 

82. Where by reason of infancy, mental incapacity, or any other cause any person interested in any ship or any share therein, is incapable of making any declaration or doing any thing required or permitted by this Law to be made or done in connection with the registration of the ship or share, the guardian or committee, if any, 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 having jurisdiction in respect of the property of persons unable to manage their affairs, may make such 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 shall be as effectual as if done by the person for whom he is substituted.

 

 

 

Notice of trusts not received.

TRUSTS AND EQUITABLE RIGHTS

 

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

 

Equities not

excluded by

Law.

84. The expression "beneficial interest", where used in this Law includes interests arising under contract and other equitable interests; and the intention of this Law is, without prejudice to the provisions of this Law for preventing notice of trusts from being entered in the Register or received by the Registrar, and without prejudice to the powers of disposition and of giving receipts conferred by this Law on registered owners and mortgagees, and without prejudice to the provisions of this Law relating to the exclusion of unqualified persons from the ownership of Cyprus ships, that 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

owners.

LIABILITY OF BENEFICIAL OWNER

 

85. 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, as well as the registered owner, shall be subject to all pecuniary penalties provided for in this or in any other Law, and proceedings may be brought for the enforcement of any such penalties, against the aforesaid parties, whether separately or jointly.

 

Special provisions

as to co-ownership

of ships.

86.-(1) A ship owned by more than one owner-

 

            (a)       shall not be sold unless co-owners holding four-fifths of the shares in the ship consent in writing thereto. In such a case the sale shall be completed upon deposit with the Accountant-General of the Government of an amount representing the share in the purchase price of the non-consenting co-owners;

 

(b)       shall not be mortgaged unless co-owners holding two-thirds of the shares in the ship consent in writing thereto and the Court approves such mortgage;

 

            (c)        may be sold by public auction under an order of the Court made on the application of co-owners holding at least the one-third of the shares in the ship.

 

      (2) Any co-owner may sell his share in the ship after notification of his intention to do so to the other co-owners or to the managing owner or husband of the ship:

 

       Provided that where such sale results in the loss of the Cyprus nationality of the ship, such sale shall not be effected without the written consent of the co-owners holding more than one-third of the shares in the ship.

 

      (3) When co-owners of a ship operate the ship in common, any matter relating thereto shall be determined by the majority of all the co-owners and, if such operation is in any way hindered or delayed by reason of failure to secure such majority, the matter shall be referred to by any aggrieved person to the Court for determination.

 

      (4) Every co-owner shall contribute to the expenses of the operation of the ship and shall be liable towards third persons in proportion to his interest in the ship. The profits realized from the operation of a ship owned by co-owners shall be distributed amongst such co-owners in proportion to their interest in the ship.

 

 

Managing owner,

etc.

 

87.-(1) The management of the ship may be entrusted to a co-owner of the ship (hereinafter referred to as "the managing owner") or to a third person not being a co-owner (hereinafter referred to as the "husband of the ship"). Any such managing owner or husband of the ship shall be entitled to do all acts and enter, on behalf of the co-owners, into any contract necessary for the management of the ship.

 

      (2) The name and address of a managing owner or a husband of a ship shall be registered with the Registrar in the prescribed manner and  likewise  any change regarding such managing owner or husband of a ship shall be registered with the Registrar.

 

If default is made in complying with this subsection any co-owner who is in default shall be liable to a fine not exceeding fifty pounds for each day the default continues.

 

 

 

 

Power of Registrar

to dispense

with declarations

and other evidence.

 

DECLARATIONS, INSPECTION OF REGISTER AND FEES

88. When, under this Law, 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 due to 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 Member and on the production of such other evidence, and subject to such terms as he thinks fit, dispense with the declaration or evidence.

 

Mode of making declarations.

 

89.-(1) Declarations required by this Law shall be made before the Registrar, or a judge or other person entitled to administer oaths, or a consular officer of Cyprus.

 

 

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

 

Evidence of Register, certificate

of registration,

and other

documents.

90.-(1) A person, on payment of the appropriate fee as provided by the Federal Law on Merchant Shipping (Fees and Taxing Provisions) , may, on application to the Registrar at a reasonable time during office hours, inspect the Register.

 

      (2) The following documents shall be admissible in evidence in the manner provided for in this Law, namely:

 

            (a)       The Register on its production from the custody of the Registrar or other person having the lawful custody thereof.

 

            (b)       A certificate of registration under this Law purporting to be signed by the Registrar or other proper officer.

 

            (c)        An endorsement on a certificate of registration purporting to be signed by the Registrar or other proper officer.

 

            (d)       Every declaration made in pursuance of this Law in respect of a Cyprus ship.

 

      (3) A copy or transcript of the Register shall be admissible in evidence in the manner provided for in this Law and shall have the same effect to all intents as the original Register of which it is a copy or transcript.

 

 

 

 

Forms of

documents

and instructions

as to registration.

Schedule,

Part II.

Schedule,

Part I.

EVIDENCE AND FORMS

 

91.-(1) The several instruments and documents specified in Part II of the Schedule shall be in the form specified by the Registrar with the consent of the Member, or as near thereto as circumstances permit; and the Registrar may, with the consent of the Member, make such alterations in the forms so specified, and also in the forms set out in Part I of the said Schedule, as they may deem requisite.

 

      (2) The Registrar shall not be required without the special direction of the Member to receive and enter in the Register any bill of sale, mortgage, or other instrument for the disposal or transfer of any ship or share, or any interest therein, which is made in any form other than that for the time being required under this Law, or which contains any particulars other than those contained in such form; but the said Registrar shall, before altering the forms, give such public notice thereof as may be necessary in order to prevent inconvenience.

 

      (3) The Registrar shall cause the said forms to be supplied to all consular officers of Cyprus for distribution to persons requiring to use the same, either free of charge, or at such moderate prices as they may direct.

 

      (4) The Registrar may, for the purpose of bringing this Law into effect, with the consent of the Member, give also such instructions to his officers as to the execution and attestation of powers of attorney, as to any evidence required for identifying any person, as to the referring to himself of any question involving doubt or difficulty, and generally as to any act or thing to be done in pursuance of this Law, as they think fit.

 

 

 

Forgery of documents.

FORGERY AND FALSE DECLARATIONS

 

92.  A 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, builder's certificate, certificate of survey, certificate of registration, declaration, bill of sale, instrument of mortgage, or certificate of mortgage or sale under this Law, or any entry or endorsement required by this Law to be made in or on any of those documents, commits an offence and, in case of conviction,  shall be liable, in respect of each offence,  to imprisonment not exceeding five years or to a fine not exceeding fifteen thousand pounds or to both such  sentences.

 

False declarations.

 

93.-(1)  A person who, in the case of any declaration made in the presence of, or produced to, the Registrar under this Law, or in the case of any document or other evidence produced to such Registrar-

 

 

 

          (a)         willfully makes, or 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 any share  therein, or

 

          (b)         utters, produces, or makes use of any declaration or document containing any such false statement knowing the same to be false,

 

commits an offence and, in case of conviction, shall be liable, in respect of each offence, to imprisonment not exceeding two years or to a fine not exceeding five thousand pounds or to both such sentences.

 

 

      (2)  A person who willfully makes a false declaration touching the qualification of himself or of any other person or of any corporation to own a Cyprus ship or any share therein,  commits an offence and on conviction shall be liable to imprisonment not exceeding two years or to a fine not exceeding five thousand pounds or to both such sentences, and such ship or share shall be subject to forfeiture under this Law, to the extent of the interest therein of the declarant, as also, unless it is proved that the declaration was made without authority, shall any share of any person or corporation on behalf of whom the declaration is made.

 

 

 

Proceedings on

forfeiture

on ships.

 

FORFEITURE OF SHIPS

 

94.-(1) Where any ship has either wholly, or as to any share therein, become subject to forfeiture by virtue of this Law-

 

            (a)       a  surveyor, or

(b)          a consular officer of Cyprus,

 

may seize and detain the ship, and bring her or cause her to be brought for adjudication before the Court and the Court may thereupon adjudge the ship with her tackle, apparel, and furniture to be forfeited, and make such order in the case as  the Court thinks just, and may award to the officer bringing in the ship or causing it to be brought for adjudication such portion of the proceeds of the sale of the ship, or of any share therein, as the Court thinks fit.

 

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

 

 

 

Regulations.

 

REGULATIONS

 

95.-(1) The Presidential Council may make Regulations to be published in the Gazette for the better carrying into effect of the provisions of this Law.

 

      (2) Without prejudice to the generality of subsection (1) any such Regulations may provide for all or any of the following matters:

 

            (a)       Prescribing anything which under the provisions of this Law may or is required to be prescribed.

 

            (b)       The books and documents which shall always be carried on board a Cyprus ship.

 

            (c)        The fees to be paid in respect of any matter for which provision is made in this Law or payable fees not otherwise fixed.

 

(d)  The revocation of the Cyprus nationality of Cyprus ships.

 

(e)  The measurement of tonnage of ships smaller than twenty four metres in length.

 

(f)   The identity cards of the surveyors of ships and inspectors of ships.

 

Regulations set out in

the Annexes.

96.-(1)  The Regulations set out in Annexes I, II and III shall be deemed to be Regulations made under section 95 of this Law.

 

      (2) The Presidential Council may amend, repeal or substitute, in whole or in part, the Regulations set out in the Annexes hereto.

 

 

 

 

 

Savings.

 

 

 

 

 

 

 

PART XV

SAVINGS

 

97.-(1) Any ship  registered  by any  authority in Cyprus[2] prior to the entry into force of this Law shall be deemed to be registered in the Register under this Law, if the registration of any such ship is recognized as valid under Article 12 of the Foundation Agreement, and any such ship shall, as from the entry into force of this Law, fly the Cyprus flag.

 

(2) Any certificate granted by any authority in Cyprus[3] prior to the entry into force of this Law continues to be valid under this Law until its expiry or replacement, if the said certificate is recognised as valid under Article 12 of the Foundation Agreement.    

 

 

 

     (3) Any mortgage, together with any supporting documentation (deed of covenants), recorded in a register by any authority in Cyprus[4] prior to the entry in to force of this Law, with regard to any ship which prior to the entry into force of this Law was registered in Cyprus and whose recording is recognized as valid under Article 12 of the Foundation Agreement shall, as from the entry into force of this Law, be deemed to be a mortgage validly constituted under this Law, maintaining the date of recording and priority thereof in the Register.

 

 

 

     (4) Any reference in any certificate or mortgage, referred to in subsections (2) and (3), to any legislative act or to any authority whatsoever under which it was constituted, shall be read as a reference to the present Law and to the respective authority of the United Cyprus Republic.

 

 

 

     (5) In case any instrument relating to any mortgage referred to in subsection (3) is discharged before or after the date of the entry into force of this Law, but the deed of covenants thereof is maintained by private agreement between the contracting parties, the relevant deed of covenants shall be deemed valid between the contracting parties under the present Law, and any reference in the deed of covenants shall be read as a reference to the present Law and to the respective authority of the United Cyprus Republic.

 

 

 

     (6) Any Court orders issued by any Court of Cyprus[5] prohibiting, for a time specified any dealing with a ship or share therein recorded in a register by any authority in Cyprus[6] prior to the entry  into force of this Law, with regard to any ship which prior to the entry into force of this Law was registered in Cyprus by any authority in Cyprus[7] and whose registration is recognized as valid under Article 12 of the Foundation Agreement shall, as from the entry into force of this Law, be deemed as Court orders validly issued under section 50 of this Law maintaining the date of recording thereof in the Register.

 

 

Effect of the Code.

 

 

98. Part IV of the Code (dealing with fishing boats) shall have effect subject to the provisions of this Law and of any Law of either of the  <constituent states> regulating fisheries.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SCHEDULE

(Sections, 51, 57 and91)

 

PART I

 

(The Forms in this Part of the Schedule are subject to alteration from time to time by the Registrar, with the consent of the Member)

 

FORM A - BILL OF SALE

(no specific form required currently)

 

FORM B  -  MORTGAGE

(Insert description of ship and particulars as in Bill of Sale)

 

 (I)  TO SECURE PRINCIPAL SUM AND INTEREST

 

(a)..........the undersigned ........in consideration of... this day lent to (b)........ by .............., do hereby for (c) ................ and (d) .........heirs, covenant with the said .........firstly that (a) ................ or (d) ...............heirs, executors, or administrators, will pay to the said ................ the said sum of .......... together with interest thereon at the rate of ............. per cent per annum on the ..........day of ........ next; and secondly, that if the said principal sum is not paid on the said day (a) ..............or (d) .................... heirs, executors, or administrators, will during such time as the same or any part thereof remains unpaid, pay to the said ................ interest on whole or such part thereof as may for the time being remain unpaid, at the rate of ............... per cent per annum, by equal half-yearly payments on the (f) ............... day of ............... and ............... day of ......... in every year; and for better securing to the said .................. the repayment in manner aforesaid of the said principal sum and interest (a) ...................... hereby mortgage to the said ................... shares, of which (e) ........... the owner .............. in the ship above particularly described, and in her boats, guns, ammunition, small arms, and appurtenances. Lastly (a) ................ for (c) ......... and (d) ........... heirs, covenant with the said ............ and ............ assigns that (a) .... have .............. power to mortgage in manner aforesaid the above-mentioned shares, and that the same are free from encumbrances (g) .................... .

In witness whereof (a) ...... have .......... hereto subscribed (d) ........ name ........... and affixed (d) ................. seal .............. this ................ day of ............. Two thousand and ........

Executed by the above-named ........ in the presence of ....................... .

 

----------------------------------------

 (a)      "I" or "we"

            (b)       "me" or "us"

            (c)       "myself" or "ourselves"

            (d)       "my" or "our"

            (e)       "I am" or "we are"

            (f)        Insert the day fixed for payment or principal as above.

            (g)       If any prior encumbrance add, "save as appears by the registration of the said ship".

 

Note. The prompt registration of a mortgage deed at the port of registration of the ship is essential to the security of the mortgagee, as a mortgage takes its priority from the date of production for registration, not from the date of the instrument.

 

 

(II)  TO SECURE ACCOUNT CURRENT, ETC.

 

Whereas (a) ........................................

Now (b) ............. the undersigned .......... in consideration of the premises for (c) ................. and (d) ............ heirs, covenant with the said ............ and (e) ........... assigns, to pay to him or them the sums for the time being due on this security whether by way of principal or interest, at the times and manner aforesaid. And for the purpose of better securing to the said ................ the payment of such sums as last aforesaid (b) ................, do hereby mortgage to the said ............ shares, of which (f) ........ the owner .............. in the ship above particularly described, and in her boats, guns, ammunitions, small arms, and appurtenances.

Lastly, (b) ............ for (c) ............. and (d) .............. heirs, covenant with the said ............... and (e) ................ assigns that (b) ................. have ............ power to mortgage in manner aforesaid the above-mentioned shares, and that the same are free from encumbrances (g) ...................... .

In witness whereof (a) ............. have ............ hereto subscribed (b) ............. name ............ and affixed (b) .............. seal .......... this ........... day of ............. Two thousand and ........

Executed by the above-named ....... in the presence of .................. .

 

-------------------------------------

 (a) Here state by way of recital that there is an account current between the mortgagor (describing him) and the mortgagee (describing him); and describe the nature of the transaction so as to show how the amount of principal and interest due at any given time is to be ascertained, and the manner and time of payment.

(b) "I" or "we"

(c) "myself" or "ourselves"

(d) "my" or "our"

(e) "his" or "their"

(f) "I am" or "we are"

(g) If any prior encumbrance add, "save as appears by the registration of the said ship".

 

Note.  The prompt registration of a mortgage deed at the port of registration of the ship is essential to the security of the mortgagee, as a mortgage takes its priority from the date of production for registration, not from the date of the instrument.

 

                                                ___________________

FORM C  TRANSFER OF MORTGAGE

 

(To be endorsed on the original mortgage)

 

(a) ............. the within-mentioned ........... in consideration of ............ this day paid to (b) ......... by ...................... hereby transfer to (c) ........... the benefit of the within written security. In witness whereof (a) ............... have .............. hereunto subscribed (d) ................ name ............. and affixed (d) ...... seal ..........., this ............... day of ............. two thousand and ................. .

Executed by the above-named ......... in the presence of ................. .

------------------------------------------

 (a) "I" or "we"

 (b) "me" or "us"

 (c) "him" or "them"

 (d) "my" or "our"

 

PART II

 

Documents which are written on forms prescribed by the Registrar with the consent of the Member:

 

Certificate of survey.

Declaration of ownership by individual owner.

Declaration of ownership on behalf of a corporation as owner.

Certificate of registration.

Provisional certificate.

Declaration of ownership by individual transferee.

Declaration of ownership on behalf of a corporation as transferee.

Declaration of owner taking by transmission.

Declaration by mortgagee taking by transmission.

Certificate of mortgage.

Certificate of sale.

Revocation of certificate of sale or mortgage.

Bill of sale.

 

 

 

 

 

 

ANNEX I

FEDERAL LAW ON MERCHANT SHIPPING (REGISTRATION OF SHIPS, SALES AND MORTGAGES)

Regulations made under sections 95 and 96

 

 

It is hereby provided as follows:

 

 

Short title.

1. These Regulations may be cited as the Federal Regulations on Merchant Shipping (Denial of Registration and Revocation of the Cyprus Nationality of Cyprus Ships).

 

 

Notification to

the owner.

2.-(1) Whenever the Member, on the basis of the particulars placed before him by the Registrar, reaches the conclusion that a Cyprus ship is persistently used in a manner [which may arouse contempt or cause discredit or weaken the confidence] in the Cyprus  nationality of the ship or the flag of Cyprus or if the owner or the master of a Cyprus ship, directly or indirectly, regularly contravenes or omits to comply with the obligations imposed by laws or by any international treaties which are in force in Cyprus or for any other reason mentioned in Section 7 of the Law, he shall, before he orders the revocation of the Cyprus  nationality of the ship and the  deletion  thereof from the Register, cause a notice to be given to the registered owner of the fact that he intends to order the revocation of the nationality of the ship and the deletion  thereof from the Register for the reasons stated in the notice, unless the owner produces, within fifteen days from the date the notice was given, reasons against the issue of the said order.

 

 

 

     (2) Notice under paragraph (1) of this Regulation shall be deemed to be duly given, if a copy thereof is delivered to the registered office of the owner of the ship in Cyprus.

 

 

Objection by the owner.

3. Whenever notice has been given in accordance with Regulation 2, the owner of the ship or his agent in Cyprus may, within the time limit prescribed by the notice, give reasons in writing for which an order for the revocation of the nationality of the ship and the deletion thereof from the Register must not be issued.

 

 

 

 

Carrying out of investigation.

4. If from the given reasons becomes necessary to investigate further for the purpose of verifying the same, the Member shall order the carrying out of such an investigation as soon as possible, in any manner he may deem expedient and shall notify the matter to the owner of the ship or his agent in Cyprus, who may during such investigation make any representations he may deem expedient.

 

 

Order.

5.    If, after the carrying out of the investigation referred to in Regulation 4, the Member considers that the Order for the revocation of the Cyprus nationality of the ship and the deletion  thereof from the Register must be issued, he shall forthwith cause the issue of such Order and the publication thereof in the Gazette,  and as from such publication the Register shall, in relation to the said ship, be deemed to be closed except only with regard to matters concerning subsisting registered mortgages and registered certificates of mortgages.

 

 

 

 

 

 

 

 

ANNEX II

 

FEDERAL LAW ON MERCHANT SHIPPING (REGISTRATION OF SHIPS, SALES AND MORTGAGES)

 

Regulations made under sections 95 and 96

 

 

It is hereby provided as follows:

 

 

Short title.

1. These Regulations may be cited as the Federal Regulations on Measurement of Tonnage of Ships Smaller Than Twenty Four Metres in Length.

 

 

Interpretation.

2.-(1) In these Regulations, unless the context otherwise requires -

 

 

 

«breadth» means the maximum breadth in metres of the ship, measured amidships to the moulded line of the frame in a ship with a metal shell and to the outer surface of the hull in a ship with a shell of any other material;

 

 

 

«depth» means the vertical distance in metres measured from the top of the keel to the underside of the upper deck at side.  In wood and composite ships the distance is measured from the lower edge of the keel rabbet.  Where the form at the lower part of the midship section is of a hollow character, or where thick garboards are fitted, the distance is measured from the point where the line of the flat of the bottom continued inwards cuts the side of the keel.  In ships having rounded gunwales, the depth shall be measured to the point of intersection of the moulded lines of the deck and side shell plating, the lines extending as though the gunwales were of regular design.  Where the upper deck is stepped and the raised part of the deck extends over the point at which the depth is to be determined, the moulded depth shall be measured to a line of reference extending form the lower part of the deck along aline parallel with the raised part;

 

 

 

«enclosed spaces» are those spaces which are bounded by the ship’s hull, by fixed or portable partitions or bulkheads, by decks or coverings other than permanent or movable awnings.  No break in deck, nor any opening in the ship’s hull, in a deck or in a covering of a space, or in the partitions or bulkheads of a space, nor the absence of a partition or bulkhead, shall preclude a space from being included in the enclosed space;

 

 

 

«gross tonnage» means the measure of the overall size of a ship determined in accordance with the provisions of these Regulations;

 

 

 

«length» means 96% of the total length in metres on a waterline at 85% of the least, moulded depth measured from the top of the keel, or the length from the fore-side of the stem to the axis of the rudder stock on that waterline, if that be greater.  In ships designed with a rake of keel the waterline on which this length is measured shall be parallel to the designed waterline;

 

 

 

«net tonnage» means the measure of the useful capacity of a ship determined in accordance with the provisions of these Regulations;

 

 

 

 

Figure 3,

Appendix.

«overall breadth» means the extreme breadth in metres over the  outside  plating  no  account  being  taken  of  rubbers of

fenders.  (Figure 3 of the attached to these Regulations Appendix);

 

 

 

«overall depth» means the distance to be measured vertically midway between the foremost and aftermost points of measurement of overall length.  The upper terminal point for depth of decked ships is the underside of deck on the middle line or, if there is no deck at the middle line at the point of measurement, the underside of the deck at side of the ship plus the full deck camber.  The upper terminal point for depth of open ships is the top of the upper strake or gunwale.  The lower terminal point for depth of ships is the upper side of planking at side of keel on wooden ships, top of plating at side of keel on metal ships or inside of hull on glass reinforced plastic ships.  Where a break exists in way of the point of measurement for depth the height of the break is not to be included in the depth measurement;

 

 

 

«overall length» means the distance in metres between the foreside  of  the foremost fixed permanent structure  and  the

Figures 1 and 2, Appendix.

aftside  of  the aftermost fixed permanent structure (Figures I

and 2 of the attached to these Regulations Appendix);

 

 

Application.