2714. A movable hypothec that charges a ship is effective only if at the time of publication the ship is not registered under the Canada Shipping Act or under an equivalent foreign law.
A movable hypothec may also be granted on the cargo of a registered ship or on the freight, whether or not the property is on board, but in that case it is subject to any rights in the property which other persons may have under such legislation.
1991, c. 64, a. 2714; I.N. 2014-05-01.