Section 40

A registered mortgage of a ship or share may be transferred to any person, and the instrument effecting the transfer shall be in the prescribed form or as near thereto as circumstances permit, and on the production of such instru-ment, the Registrar shall record the transfer by entering in the register book the name of the transferee as mortgagee of the ship or share, and shall endorse and sign on the instru-ment of transfer a memorandum that the transfer has been recorded by him stating the date and time of the record.