Clause 31

A registered mortgage of a ship or any share therein may be transferred to any person and the instrument effecting the transfer shall be in the prescribed form or as near thereto as circumstances permit, and on production of such instrument, the Registrar shall record the transfer by entering in the register the name of the transferee as mortgagee of the ship or share and shall endorse and sign on the instrument of transfer a memorandum that the transfer has been recorded by him stating the date and time of that record.

The person to whom any registered mortgage has been transferred shall enjoy the same right of preference as was enjoyed by the transferor.