4Hire purchase agreements deemed purchases etc.

4 Hire purchase agreements deemed purchases etc.

Where: (a) a shipowner enters into an agreement with the owner of a ship to lease the ship; and (b) the agreement provides that, if certain payments under the agreement are made, the shipowner will become the owner of the ship; then, for the purposes of this Act: (c) the shipowner shall be deemed to purchase the ship on entering into the agreement; and (d) if the shipowner loses the right under the agreement to become the owner of the ship—the shipowner shall be deemed to cease to be its owner on losing that right.