(1) Where the Authority has reason to suspect that a registered ship is not entitled to be registered, it may, by notice in writing served on the registered agent of the ship, require him or her to furnish to the Authority within a specified period (not being less than 30 days) after the date of service of the notice, evidence of the ownership of the ship.
(2) If the registered agent of a ship on whom a notice is served under subsection (1) fails to furnish to the Authority, within the period specified in the notice, evidence to the satisfaction of the Authority that the ship is entitled to be registered, the Authority may, by notice in writing given to the Registrar, direct that the registration relating to the ship be closed and, upon receipt of such a notice by the Registrar, section 66 applies as if the ship had ceased to be entitled to be registered and the notice were a notice under subsection 66(1) stating that fact.