Rule 35 Mortgaged ships
Where the entered ship is mortgaged to a third party, the Association may allow that third party mortgagee to be covered by the Member’s insurance as a Joint Member or Co-assured as per Rule 30. Where the cover afforded by the Association is extended to the mortgagee in this way, that extension does not provide the mortgagee with better rights than those of the Assured.
Where the mortgagee has notified the Association in writing of his interest in the entered ship, the Association may not without the written consent of the mortgagee
(a) allow the Member to terminate the insurance,
(b) allow a substantial reduction of the cover afforded by the Association.
The Association may not terminate the insurance without at the same time giving notice thereof to the mortgagee.