s.32Dispensations for ships chartered by demise and registered outside the Islands
32
Section 32Part 2 — REGISTRATION OF SHIPS

Dispensations for ships chartered by demise and registered outside the Islands

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32. (1) Where the Chief Executive Officer is satisfied that it is proper for the Chief Executive Officer to do so, the Chief Executive Officer may grant to the owner of a ship of twenty-four metres or more in length registered in the Islands under this Act a dispensation under this section.
The Chief Executive Officer shall not grant a dispensation under subsection (1) unless the Chief Executive Officer is satisfied —
that the ship is subject to a charter by demise pursuant to which the registered owner of the ship is not responsible for the management, operation or control of the ship for the period of the charter;
that a registered mortgagee of the ship has consented to the dispensation being granted;
that, in substitution of the registration of the ship in the Islands, the ship is intended to be registered under the law of a country outside the Islands; and
that upon registration under the law of a country outside the Islands, the ship will become subject to laws which implement and apply to the ship Merchant Shipping Act, 2024 Section 33 c Act 1 of 2024 Page 41 such provisions of generally accepted international regulations to those which apply to a Cayman Islands ship of its description.
Where the Chief Executive Officer has granted to the owner of a ship a dispensation under subsection (1), with effect from the date upon which the conditions set out in subsection (4) have been complied with, sections 62(4) and 64 shall not apply to the ship, and section 62(1) shall apply to the ship as though the ship was not a Cayman Islands ship.
The conditions referred to in subsection (3) are that —
the owner has delivered to the Registrar of Shipping —
a certified copy of the charter by demise referred to in subsection (2)(a); section 21; and
in exchange for a receipt, the certificate of registry issued under
any certificate issued in respect of the ship under this Act;
the owner, or in the case of a body corporate the person authorised by this Act to make declarations on behalf of the body corporate, has delivered to the Registrar of Shipping a declaration referring to the ship and containing a statement that —
the ship is lawfully registered in a named country outside the Islands; and enforcement of such provisions referred to in subsection (2)(d) as apply in respect of the ship by virtue of its registration in the Islands; and
the ship is subject to the jurisdiction of that country in respect of the
the Registrar of Shipping has received confirmation from the administration of the country outside the Islands in which the ship is registered that the ship is so registered and is subject to the jurisdiction of that country.
The port of registry in the Cayman Islands shall no longer be the port of registry for a ship in respect of which a dispensation has been granted under this section, and the marking of the name of such port on its stern as provided in section 14(2) shall be removed.

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