Contents of record

A sale, conveyance, hypothecation, mortgage or assignment of mortgage of any vessel shall not be valid in respect of such vessel, against any person other than the grantor or mortgagor, his heirs or devisees and persons having actual notice thereof, until the instrument evidencing such transaction is recorded in the office of the Deputy Commissioner. A vessel which is the subject of a preferred mortgage may not be cancelled from the Register for so long as the indebtedness secured by the preferred mortgage remains unsatisfied or the mortgage is not otherwise discharged. The interest of the mortgagee in a vessel registered in Vanuatu shall not be terminated by a forfeiture of the vessel for a violation of any law of Vanuatu, unless the mortgagee authorized, consented, or conspired to effect the illegal act, failure, or omission which constituted such violation.