(1) Where insurable property, whether ship or goods, is expressly warranted neutral, there is an implied condition that the property shall have a neutral character at the commencement of the risk, and that, so far as the assured can control the matter, its neutral character shall be preserved during the risk.
(2) Where a ship is expressly warranted neutral there is also an
implied condition that, so far as the assured can control the matter, she
shall be properly documented, that is to say, that she shall carry the
necessary papers to establish her neutrality, and that she shall not falsify
or suppress her papers, or use simulated papers. If any loss occurs through
breach of this condition, the insurer may avoid the contract.