213. Mortgage of freight.

213.     Mortgage of freight.

Frequently a statutory mortgage of a ship is accompanied by an independent collateral mortgage by the statutory owner of the freight earnings and the policies of insurance on the ship1. With regard to those interests, it is not necessary to comply with the statutory provisions to make a valid security, but the mortgagee should complete his security by giving notice to the persons by whom the freight is payable2.

The rights of a statutory mortgagee of a ship to freight, and priorities between such a mortgagee and an assignee of freight,