37. Every person who contravenes section 23 (destruction of documents, fraud, obstruction, false or misleading information or statement, movement of detained vessel) commits an offence and is liable on summary conviction to a fine of not more than $1,000,000 or to imprisonment for a term of not more than 18 months, or to both.

38. (1) Every person who, or vessel or oil handling facility that, contravenes a provision of the regulations made under paragraph 35(1)(d) or (3)(a) commits an offence and is liable on summary conviction to a fine of not more than $1,000,000 or to imprisonment for a term of not more than 18 months, or to both.

(2) If a court sentencing a person, vessel or oil handling facility under subsection (1) for contravening a provision of the regulations made under paragraph 35(1)(d) or (3)(a) is of the opinion that the provision that the person, vessel or facility contravened is equivalent to a provision of the regulations made under another provision of this Act and if the punishment provided under this Act for contravening that provision of the regulations is less than the punishment provided under subsection (1), the person, vessel or oil handling facility is liable to that lesser punishment.

39. (1) Every person commits an offence who contravenes

(a) subsection 17(2) (improper possession of a Canadian maritime document); or

(b) subsection 28(7) (inform Chair without delay).

(2) Every person who commits an offence under subsection (1) is liable on summary conviction to a fine of not more than $100,000 or to imprisonment for a term of not more than one year, or to both.

40. (1) Every person who, or vessel that, contravenes any of the following commits an offence:

(a) subsection 16(3) (cheating on an exam);

(b) section 18 (failure to produce Canadian maritime document);

(c) subsection 20(7) (failure to return suspended or cancelled Canadian maritime document); and

(d) a provision of the regulations made under paragraph 35(1)(e) or (3)(b).

(2) Every person who, or vessel that, commits an offence under subsection (1) is liable on summary conviction to a fine of not more than $10,000.

41. In this Part, “Minister” means the Minister of Transport.

42. An officer, to be known as the Chief Registrar, is to be appointed or deployed under the Public Service Employment Act.

43. (1) The Chief Registrar is responsible for establishing and maintaining a register to be known as the Canadian Register of Vessels. The Chief Registrar is to divide the Register into parts, including a small vessel register, for the classes of vessels that the Chief Registrar specifies.

(2) The Register is to contain records of the information and documents specified by the Chief Registrar in respect of a Canadian vessel, including its description, its official number, the name and address of its owner and, except in the case of a vessel registered in the small vessel register, details of all mortgages registered in respect of it.

44. (1) The Chief Registrar may appoint the registrars that the Chief Registrar considers necessary.

(2) A registrar is to perform the duties and fulfil the responsibilities that the Chief Registrar assigns to the registrar.

45. The Chief Registrar and the registrars are not personally liable for anything they do or omit to do in good faith under this Act.

46. (1) A vessel must be registered under this Part if it

(a) is not a pleasure craft;

(b) is wholly owned by qualified persons; and

(c) is not registered, listed or otherwise recorded in a foreign state.

(2) Every owner of a vessel described in subsection (1) shall ensure that it is registered under this Part.

(3) Every government vessel must be registered under this Part.

47. Unless they are registered, listed or otherwise recorded in a foreign state, the following vessels may be registered under this Part:

(a) a pleasure craft that is wholly owned by qualified persons;

(b) a vessel that is owned by a corporation incorporated under the laws of a foreign state if one of the following is acting with respect to all matters relating to the vessel, namely,

(i) a subsidiary of the corporation incorporated under the laws of Canada or a province,

(ii) an employee or a director in Canada of a branch office of the corporation that is carrying on business in Canada, or

(iii) a ship management company incorporated under the laws of Canada or a province; and

(c) a vessel that is in the exclusive possession of a qualified person under a financing agreement under which the person will acquire ownership on completion of the agreement.

48. A vessel that is registered in a foreign state and that is bare-boat chartered exclusively to a qualified person may be listed under this Part as a bare-boat chartered vessel for the duration of the charter if, for the duration of the charter, the registration is suspended in respect of the right to fly the flag of that state.

49. A vessel that is about to be built or that is under construction in Canada may be temporarily recorded in the Register as a vessel being built in Canada.

50. Notwithstanding sections 46 to 48, the Minister may direct the Chief Registrar to refuse to register or list a vessel built outside Canada.

51. (1) An application for the registration, listing or recording of a vessel must be made in the form and manner, include the information and be accompanied by the documents specified by the Chief Registrar.

(2) In addition to the specified information and documents, the Chief Registrar may require an applicant to provide evidence, including declarations, that the Chief Registrar considers necessary to establish that a vessel is required or entitled to be registered or is entitled to be listed or recorded.

52. (1) Every vessel, other than one to be registered in the small vessel register, must be named in the form and manner specified by the Chief Registrar before it is registered or listed.

(2) The Chief Registrar may, on application, approve the name of a vessel before it is registered or listed and approve a change in the name of a Canadian vessel.

(3) The Chief Registrar must disallow a name if

(a) it is the same as the name of a Canadian vessel;

(b) it is likely, in the opinion of the Chief Registrar, to be confused with the name of a Canadian vessel or with a distress signal;

(c) it is likely, in the opinion of the Chief Registrar, to be offensive to members of the public; or

(d) its use is prohibited under an Act of Parliament.

(4) The Minister may order that a Canadian vessel be renamed if the Minister considers that its name would prejudice the international reputation of Canada.

53. (1) For the purposes of registration, the property in a vessel is divided into 64 shares.

(2) Subject to subsections (3) and (4), only owners or joint owners of a vessel or of one or more shares in a vessel may be registered in the Register as owners of the vessel or shares, as the case may be.

(3) In the case of a vessel described in paragraph 47(c) (a vessel subject to a financing agreement), the persons referred to in that paragraph are to be registered in the Register as the owners of the vessel.

(4) In the case of a vessel described in section 48 (a bare-boat chartered vessel), no person may be registered in the Register as an owner of the vessel.

(5) No more than five persons may be registered in the Register as joint owners of a vessel or a share in a vessel.

(6) A registered jointly owned interest in a vessel or a share in a vessel may be disposed of only by the joint owners acting together.

(7) No person may be registered as the owner of a fractional part of a share in a vessel.

(8) This section does not affect the beneficial interests of a person represented by or claiming through an owner of a vessel or a share in a vessel.

(9) No notice of a trust may be entered in the Register.

54. (1) If the Chief Registrar is satisfied that all of the requirements of registration or listing have been met with respect to a vessel, the Chief Registrar must register or list the vessel, as the case may be, in the Register and issue a certificate of registry.

(2) Every certificate of registry in respect of a vessel must contain the information specified by the Chief Registrar, including

(a) its description;

(b) its official number; and

(c) the name and address of

(i) in the case of a vessel described in paragraph 47(b) (a vessel owned by a foreign corporation), the authorized representative,

(ii) in the case of a vessel described in section 48 (a bare-boat chartered vessel), the bare-boat charterer, and

(iii) in any other case, its owner and the authorized representative.

(3) Every certificate of registry is valid for the period specified by the Chief Registrar.

55. (1) The Chief Registrar may, on application, issue a provisional certificate in respect of a vessel that is required or entitled to be registered under this Part if

(a) the vessel is in a foreign port and a person intends to register it under this Part; or

(b) the vessel is in a port in Canada and the Chief Registrar is satisfied that permission to operate the vessel should be granted before a certificate of registry can be issued.

(2) The Chief Registrar may, on application, issue a provisional certificate in respect of a vessel that is not required or entitled to be registered under this Part if the Chief Registrar is satisfied that the vessel needs to undergo sea trials.

(3) A provisional certificate is valid for the purpose and the period specified by the Chief Registrar.

(4) An application for a provisional certificate must be made in the form and manner, include the information and be accompanied by the documents specified by the Chief Registrar.

56. If a certificate of registry or provisional certificate is mislaid, lost or destroyed, the Chief Registrar must issue a replacement certificate of registry or provisional certificate, as the case may be, on application made by the authorized representative in the form and manner and including the information and accompanied by the documents specified by the Chief Registrar.

57. (1) The authorized representative of a Canadian vessel shall, in the form and manner specified by the Chief Registrar, mark the vessel with its official number and any other information that the Chief Registrar specifies.

(2) A vessel’s certificate of registry is not valid until the vessel has been marked in accordance with subsection (1).

(3) The authorized representative shall ensure that the vessel is kept marked.

(4) No person shall wilfully deface, alter, conceal or remove the markings of a Canadian vessel.

58. (1) The authorized representative of a Canadian vessel shall notify the Chief Registrar within 30 days after any of the following occurs:

(a) the vessel is lost, wrecked or removed from service;

(b) there has been a change in the owner’s, the authorized representative’s or a registered mortgagee’s name or address;

(c) the information provided with the application under section 51 has changed; or

(d) in the case of a vessel described in section 48 (a bare-boat chartered vessel),

(i) the right to fly the flag of the foreign state is reinstated, or

(ii) the charterer ceases to have complete control and possession of the vessel.

(2) If a Canadian vessel is altered to the extent that it no longer corresponds with its description or particulars set out on the certificate of registry, the authorized representative shall, within 30 days after the alteration, notify the Chief Registrar and provide the Chief Registrar with the relevant information and documents.

(3) If for any reason a Canadian vessel does not have an authorized representative, its owner shall

(a) notify the Chief Registrar of that fact as soon as possible in the circumstances; and

(b) notify the Chief Registrar within 30 days after any event referred to in subsection (1) or (2) occurs.

(4) Within 30 days after completion of the construction of a vessel that is recorded as being built in Canada, the person in whose name the vessel is recorded shall notify the Chief Registrar of that fact and of the name and address of its owner.

59. The Chief Registrar may amend the Register or a certificate of registry to give effect to changes of which the Chief Registrar has been notified under section 58 or to correct any clerical errors or obvious mistakes.

60. (1) Subject to the regulations, the Chief Registrar may suspend or cancel the registration or listing of a Canadian vessel if

(a) it is not marked in accordance with subsection 57(1);

(b) its certificate of registry has expired;

(c) it does not have an authorized representative; or

(d) section 58 has not been complied with.

(2) Subject to the regulations, the Chief Registrar must cancel the registration or listing of a Canadian vessel if

(a) it has been lost, wrecked or removed from service;

(b) it is no longer required or entitled to be registered or entitled to be listed under this Part; or

(c) in the case of a registered vessel, a tonnage certificate provided by a tonnage measurer indicates that the vessel should be re-registered.

(3) If a Canadian vessel is not required or entitled to be registered under this Part after its ownership changes, the Chief Registrar must, before cancelling its registration under paragraph (2)(b), give the owners and registered mortgagees

(a) notice of the change in ownership; and

(b) an opportunity that, in the opinion of the Chief Registrar, is sufficient to transfer the vessel or shares in the vessel to a qualified person or to make an application under section 74.

(4) Except in the case of a vessel described in paragraph 47(c) (a vessel subject to a financing agreement), the Chief Registrar must cancel the registration of a vessel if a person who acquires the vessel or a share in it does not, within the prescribed period, provide evidence that satisfies the Chief Registrar that the vessel is required or entitled to be registered under this Part.

61. The cancellation of the registration of a vessel does not affect the registration of mortgages in respect of the vessel.

62. The Chief Registrar may reinstate the registration or listing of a vessel if, in the Chief Registrar’s opinion, the registration or listing of the vessel should not have been cancelled.

63. (1) Subject to subsection (3), no person shall operate a vessel in respect of which a certificate of registry or provisional certificate has been issued unless the certificate is on board.

(2) A person who is in possession of a vessel’s certificate of registry or provisional certificate shall deliver it to the person who is entitled to operate the vessel.

(3) A person who is in possession of a certificate of registry or a provisional certificate issued under this Part shall deliver it to the Chief Registrar on request.

(4) A certificate of registry or provisional certificate is not subject to detention because of any title to, lien on, charge on or interest in the vessel that is claimed by an owner, a mortgagee, a charterer or an operator of the vessel, or by any other person.

64. (1) A Canadian vessel has the right to fly the Canadian flag.

(2) The master of a Canadian vessel, other than one registered in the small vessel register, shall ensure that it flies the Canadian flag

(a) when signalled to do so by a government vessel or a vessel under the command of the Canadian Forces; or

(b) when entering or leaving, or while moored at or anchored in, a port.

(3) The Chief Registrar may, on application, suspend the registration of a Canadian vessel in respect of the right to fly the Canadian flag while the vessel is shown on the registry of a foreign state as a bare-boat chartered vessel.

65. (1) The owner of a vessel registered under this Part other than in the small vessel register, of a share in such a vessel or of a vessel recorded as being built in Canada may give the vessel or share, as the case may be, as security for a mortgage to be registered under this Part.

(2) A mortgage is to be filed with the Chief Registrar in the form and manner specified by the Chief Registrar.

(3) A mortgage is to be registered in the order in which it is filed, indicating the date and time of registration.

66. On receipt of satisfactory evidence that a mortgage has been discharged, the Chief Registrar is to enter the discharge in the Register.

67. (1) If more than one mortgage is registered in respect of the same vessel or share in a vessel, a mortgage registered before another mortgage has priority over that other mortgage.

(2) The priority of mortgages may be changed if all of the mortgagees file their written consent with the Chief Registrar.

68. A mortgage of a vessel or a share in a vessel does not have the effect of the mortgagee becoming, or the mortgagor ceasing to be, the owner of the vessel, except to the extent necessary to make the vessel or share available as security under the mortgage.

69. (1) A mortgagee of a vessel or a share in a vessel has the absolute power, subject to any limitation set out in the registered mortgage, to sell the vessel or the share.

(2) If there is more than one registered mortgage of the same vessel or share, a subsequent mortgagee may not, except under an order of the Federal Court or of a court of competent jurisdiction whose rules provide for in rem procedure in respect of vessels, sell the vessel or share without the agreement of every prior mortgagee.

70. The mortgage of a vessel or a share in a vessel is not affected by the bankruptcy of the mortgagor after the date of the registration of the mortgage, and the mortgage is to be preferred to any right, claim or interest in the vessel or share of the other creditors of the bankrupt or any trustee or assignee on their behalf.

71. (1) A registered mortgage of a vessel or a share in a vessel may be transferred to any person, in which case the instrument effecting the transfer must be filed in the form and manner specified by the Chief Registrar.

(2) The Chief Registrar is to enter the particulars of the transfer in the Register.

72. (1) If the interest of a mortgagee in a vessel or a share in a vessel is transmitted on death or bankruptcy, or by any lawful means other than by a transfer under section 71, the person to whom the interest is transmitted must file with the Chief Registrar the evidence of the transmission that the Chief Registrar specifies.

(2) The Chief Registrar is to enter the particulars of the transmission in the Register.

73. If the ownership of a Canadian vessel or a share in one changes and the vessel is still required or entitled to be registered under this Part,

(a) the owner must provide the Chief Registrar with the evidence, including declarations, that the Chief Registrar considers necessary to establish that the vessel is required or entitled to be so registered; and

(b) the Chief Registrar must amend the Register and the vessel’s certificate of registry to reflect the change.

74. If an unqualified person acquires a Canadian vessel, other than a vessel described in paragraph 47(b) (a vessel owned by a foreign corporation), a vessel described in paragraph 47(c) (a vessel subject to a financing agreement) or a vessel described in section 48 (a bare-boat chartered vessel), or a share in one, any interested person may apply to the Federal Court, or any court of competent jurisdiction whose rules provide for in rem procedure in respect of vessels, for an order that the vessel or share, as the case may be, be sold to a qualified person.

75. On the application of an interested person, the Federal Court, or any court of competent jurisdiction whose rules provide for in rem procedure in respect of vessels, may make an order prohibiting any dealing with a Canadian vessel or a share in one for a specified period.

76. A person may examine or obtain copies of any entries in the Register with respect to a vessel.

77. The Governor in Council may, on the recommendation of the Minister, make regulations for carrying out the purposes and provisions of this Part, including regulations

(a) respecting the registration, listing and recording of vessels;

(b) respecting the issuance and renewal of certificates of registry;

(c) respecting the suspension and cancellation of the registration or listing of a Canadian vessel;

(d) respecting the naming and marking of vessels;

(e) respecting the port of registration;

(f) respecting the form and manner of notifying the Chief Registrar under section 58;

(g) respecting the evidence that owners of vessels previously registered in a foreign state must provide to prove that the vessels are no longer registered in the foreign state;

(h) respecting the calculation of the tonnage of vessels and the issuance of certificates of tonnage; and

(i) prescribing anything that may be prescribed under this Part.

78. (1) Every person commits an offence who contravenes

(a) subsection 57(4) (wilfully defacing, altering, concealing or removing markings); or

(b) a provision of the regulations made under paragraph 77(h).

(2) Every person who commits an offence under subsection (1) is liable on summary conviction to a fine of not more than $100,000 or to imprisonment for a term of not more than one year, or to both.

79. (1) Every person commits an offence who contravenes

(a) subsection 46(2) (register vessel);

(b) an order made under subsection 52(4) (renaming of vessel);

(c) subsection 57(1) (mark vessel);

(d) subsection 57(3) (maintenance of markings);

(e) subsection 58(1) (notify of changes — authorized representative);

(f) subsection 58(2) (notify of alteration — authorized representative);

(g) subsection 58(3) (notify if no authorized representative — owner);

(h) subsection 58(4) (notify of completion of construction);

(i) subsection 63(1) (operation of vessel without a certificate on board);

(j) subsection 63(2) (deliver certificate to person entitled to operate vessel);

(k) subsection 63(3) (deliver certificate to Chief Registrar);

(l) subsection 64(2) (fly Canadian flag); or

(m) a provision of the regulations made under any of paragraphs 77(a) to (g).

(2) Every person who commits an offence under subsection (1) is liable on summary conviction to a fine of not more than $10,000.

(3) If an offence under paragraph (1)(a) or (c) is committed or continued on more than one day, the person who committed it is liable to be convicted for a separate offence for each day on which it is committed or continued.