A registered ship, or share in a registered ship, may be made a security for the repayment of a loan or the discharge of any other obligation.

The instrument creating any such security (referred to in the following provisions of this Schedule as a “mortgage”) shall be in the form prescribed by or approved under registration regulations.

Where a mortgage executed in accordance with sub-paragraph (2) above is produced to the registrar, he shall register the mortgage in the prescribed manner.

Mortgages shall be registered in the order in which they are produced to the registrar for the purposes of registration.