The following rules shall be observed as to a certificate of mortgage:

(a) the power conferred by the certificate shall be exercised in conformity with the directions contained in the certificate;

(b) every mortgage executed under the certificate shall be registered by the endorsement of a record on the certificate by the proper officer at the place where the mortgage is executed;

(c) a mortgage executed in good faith under it shall not be invalidated by reason of the person by whom the power was given dying at any time between the giving of the power and execution of the mortgage;

(d) if the certificate contains a specification of the place where and a time limit, not exceeding twelve months, within which the power is to be exercised, a mortgage executed in good faith to a mortgagee without notice shall not be invalidated by reason of the bankruptcy or insolvency of the person by whom the power was given;

(e) a mortgage which is registered on the certificate shall have priority over all mortgages of the same ship or a share created subsequent to the date of the entry of the certificate in the relevant register;

(f) where there is more than one mortgage registered in respect of a ship the respective mortgagees claiming under them shall notwithstanding any express implied or constructive notice, be entitled to priority according to the date and time that each mortgage is registered on the certificate, and not according to the date of the mortgage;

(g) subject to the preceding rules, a mortgagee whose mortgage is registered on the certificate shall have the same rights and powers, and be subject to the same liabilities, as he would have had if his mortgage had been registered in the register book instead of on the certificate.

(h) the discharge of a mortgage registered on the certificate may be endorsed on the certificate by the Registrar or a proper officer on the production of such evidence as is required by this Act to be produced to the Registrar for the entry of the discharge of a mortgage in the relevant register;

(i) on the endorsement on the certificate being made the interest which passed to the mortgagee shall vest in the same person in whom it would have vested if the mortgage had not been made having regard to the intervening acts and circumstances; and

          (j) on the delivery of any certificate of mortgage to the Registrar he shall after recording it in the register book in such manner as to preserve the priority of

          any unsatisfied mortgage registered in the register book, cancel the certificate and enter the fact of the cancellation in the register.