Section 54: Obligation of mortgagor to disclose existing liabilities

(1)
The mortgagor shall before executing any mortgage disclose in writing to the mortgagee the existence of any maritime lien, prior mortgage, or other liability in respect of the ship to be mortgaged and of which the mortgagor is aware.
(2)
If a mortgagor under subsection (1) of this section fails to comply with this section, the mortgage debt shall, at the election of the mortgage holder, become immediately due and payable, notwithstanding anything to the contrary in the mortgage.