Section 61: Rules as to certificates of mortgage

(1)
The power conferred in a certificate of mortgage shall be exercised in conformity with the directions contained in the certificate.
(2)
Every mortgage made under a certificate of mortgage shall be registered by the endorsement of a record of the mortgage on the certificate by the appropriate officer at the place at which the mortgage is made.
(3)
A mortgage made in good faith under a certificate of mortgage shall not be impeached by reason of the death of the person by whom the power was given before the making of the mortgage.
(4)
Whenever a certificate of mortgage 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 registered as prescribed in subsection (2) of this section 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 registered, the respective mortgages claiming under the certificate 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 rules set out in this section, every mortgagee whose mortgage is registered on the certificate shall have the same rights and powers and be subject to the same liabilities as the mortgagee 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 registered on the certificate of mortgage may be endorsed on the certificate by a Registrar or an appropriate officer on the production of such evidence as is, by this Act required to be produced to the Registrar on the entry of the discharge of a mortgage in the register and on that endorsement being made, the interest if any which passes to the mortgagee shall vest in the same person or persons in whom it would, having regard to the 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 by whom it was granted, the Registrar shall, after recording in the register in such manner as to preserve its priority, any unsatisfied mortgage registered on the certificate cancel the certificate and enter the fact of the cancellation in the register and every certificate so
cancelled shall be void.