Cap. 234 Art. 28AClosure of registry on sale of ship pursuant to court sale or sale by mortgagee in possession. 

Where the purchaser of a ship is not a person who is qualified to own a Maltese ship in accordance with this Act, the registrar upon obtaining knowledge or on being given notice of such a fact, the registrar shall:

(a) in the case of a sale pursuant to an order or with the approval of a competent court, upon receiving copies

 of the proceedings of the sale certified to his satisfaction, make an entry thereof in the register and the register of the ship shall be considered as closed, including in so far as relates to any mortgage or encumbrance or finance charter instrument registered over that ship; or

(b) in the case of a sale by a mortgagee in possession pursuant to article 42(1)(b), upon the production of a copy of the bill of sale certified to his satisfaction, make an entry thereof in the register and the register of the ship shall be considered as closed except in so far as relates to any unsatisfied mortgages entered therein.