(2)A registering authority may refuse to register an inland [mechanically propelled vessel] [Substituted by Act 35 of 1977, Section 5, for " steam-vessel" (w.e.f. 1.5.1978)], if she is found to be mechanically defective, or if the applicant fails to furnish satisfactory evidence in support of any of the statements made in his application: Provided that where the registering authority refuses to register any inland [mechanically propelled vessel] [Substituted by Act 35 of 1977, Section 5, for " steam-vessel" (w.e.f. 1.5.1978)], it shall furnish to the applicant a statement in writing containing the reasons for such refusal.