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46 U.S.C. § 31321 — Filing, recording, and discharge

Federal law — U.S. Code and appendices · legal_authorities

46 U.S.C. § 31321 — Filing, recording, and discharge

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Source location: Title 46, Chapter 313, § 31321; chapter-313-commercial-instruments-and-maritime-liens.md

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**(a)** (1) A bill of sale, conveyance, mortgage, assignment, or related instrument, whenever made, that includes any part of a documented vessel or a vessel for which an application for documentation is filed, must be filed with the Secretary to be valid, to the extent the vessel is involved, against any person except— (A) the grantor, mortgagor, or assignor; (B) the heir or devisee of the grantor, mortgagor, or assignor; and (C) a person having actual notice of the sale, conveyance, mortgage, assignment, or related instrument. (2) Each bill of sale, conveyance, mortgage, assignment, or related instrument that is filed in substantial compliance with this section is valid against any person from the time it is filed with the Secretary. (3) The parties to an instrument or an application for documentation shall use diligence to ensure that the parts of the instrument or application for which they are responsible are in substantial compliance with the filing and documentation requirements. (4) A bill of sale, conveyance, mortgage, assignment, or related instrument may be filed electronically under regulations prescribed by the Secretary. **(b)** To be filed, a bill of sale, conveyance, mortgage, assignment, or related instrument must— (1) identify the vessel; (2) state the name and address of each party to the instrument; (3) state, if a mortgage, the amount of the direct or contingent obligations (in one or more units of account as agreed to by the parties) that is or may become secured by the mortgage, excluding interest, expenses, and fees; (4) state the interest of the grantor, mortgagor, or assignor in the vessel; (5) state the interest sold, conveyed, mortgaged, or assigned; and (6) be signed and acknowledged. **(c)** If a bill of sale, conveyance, mortgage, assignment, or related document is filed that involves a vessel for which an application for documentation is filed, and the Secretary decides that the vessel cannot be documented by an applicant— (1) the Secretary shall send notice of the Secretary’s decision, including reasons for the decision, to each interested party to the instrument filed for recording; and (2) 90 days after sending the notice as provided under clause (1) of this subsection, the Secretary— (A) may terminate the filing; and (B) may return the instrument filed without recording it under subsection (e) of this section. **(d)** A person may withdraw an application for documentation of a vessel for which a mortgage has been filed under this section only if the mortgagee consents. **(e)** The Secretary shall— (1) record the bills of sale, conveyances, mortgages, assignments, and related instruments of a documented vessel complying with subsection (b) of this section in the order they are filed; and (2) maintain appropriate indexes, for use by the public, of instruments filed or recorded, or both. **(f)** On full and final discharge of the indebtedness under a mortgage recorded under subsection (e)(1) of this section, a mortgagee, on request of the Secretary or mortgagor, shall provide the Secretary with an acknowledged certificate of discharge of the indebtedness in a form prescribed by the Secretary. The Secretary shall record the certificate. **(g)** The mortgage or related instrument of a vessel covered by a preferred mortgage under [section 31322(d) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title46-section31322/d&num=0&edition=prelim), that is later filed under this section at the time an application for documentation is filed, is valid under this section from the time the mortgage or instrument representing financing became a preferred mortgage under section 31322(d). **(h)** On full and final discharge of the indebtedness under a mortgage deemed to be a preferred mortgage under [section 31322(d) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title46-section31322/d&num=0&edition=prelim), a mortgagee, on request of the Secretary, a State, or mortgagor, shall provide the Secretary or the State, as appropriate, with an acknowledged certificate of discharge of the indebtedness in a form prescribed by the Secretary or the State, as applicable. If filed with the Secretary, the Secretary shall enter that information in the vessel identification system under chapter 125 of this title.

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Federal law — U.S. Code and appendices · legal_authorities

46 U.S.C. § 31301 — Definitions

In this chapter— (1) “acknowledge” means making— (A) an acknowledgment or notarization before a notary public or other official authorized by a law of the United States or a State to take acknowledgments of deeds; or (B) a certificate issued under the Hague Convention Abolishing the Requirement of Legalisation for Foreign Public Documents, 1961; (2) “district court” means— (A) a district court of the United States (as defined in [section 451 of title 28](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title28-section451&num=0&edition=prelim)); (B) the District Court of Guam; (C) the District Court of the Virgin Islands; (D) the District Court for the Northern Mariana Islands; (E) the High Court of American Samoa; and (F) any other court of original jurisdiction of a territory or possession of the United States; (3) “mortgagee” means— (A) a person to whom property is mortgaged; or (B) when a mortgage on a vessel involves a trust, the trustee that is designated in the trust agreement; (4) “necessaries” includes repairs, supplies, towage, and the use of a dry dock or marine railway; (5) “preferred maritime lien” means a maritime lien on a vessel— (A) arising before a preferred mortgage was filed under [section 31321 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title46-section31321&num=0&edition=prelim); (B) for damage arising out of maritime tort; (C) for wages of a stevedore when employed directly by a person listed in [section 31341 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title46-section31341&num=0&edition=prelim); (D) for wages of the crew of the vessel; (E) for general average; or (F) for salvage, including contract salvage; (6) “preferr

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Federal law — U.S. Code and appendices · legal_authorities

46 U.S.C. § 12136 — Surrender of certificates of documentation

**(a) Surrender.—** An invalid certificate of documentation, or a certificate with an invalid endorsement, shall be surrendered as provided by regulations prescribed by the Secretary. **(b) Conditions for Surrender.—** (1) **Vessels over 1,000 tons.—** — The Secretary may condition approval of the surrender of the certificate of documentation for a vessel over 1,000 gross tons. (2) **Vessels covered by mortgage.—** — The Secretary may approve the surrender of the certificate of documentation of a vessel covered by a mortgage filed or recorded under [section 31321 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title46-section31321&num=0&edition=prelim) only if the mortgagee consents. (3) **Notice of lien.—** — The Secretary may not refuse to approve the surrender of the certificate of documentation for a vessel solely on the basis that a notice of a claim of a lien on the vessel has been recorded under [section 31343(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title46-section31343/a&num=0&edition=prelim). **(c) Continued Application of Certain Laws.—** (1) **In general.—** — Notwithstanding subsection (a), until the certificate of documentation is surrendered with the approval of the Secretary, a documented vessel is deemed to continue to be documented under this chapter for purposes of— (A) chapter 313 of this title for an instrument filed or recorded before the date of invalidation and an assignment after that date; (B) sections 56101 and 56102(a)(2) and chapter 563 of this title; and (C) any other law of the United States identified by the Secretary by regulation as a law to which the Secretary applies this subsection. (2) **Exception.—** — This subsection does not apply when a vessel is f

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Federal law — U.S. Code and appendices · legal_authorities

46 U.S.C. § 12503 — Information available to the system

**(a)** Except as provided in subsections (b) and (c) of this section, a State or a State’s delegate approved by the Secretary of Transportation may make information available to the Secretary if, in a manner and form prescribed by the Secretary, the State— (1) identifies the vessel; (2) identifies the owner of the vessel, including by— (A) the owner’s social security number or, if that number is not available, other means of identification acceptable to the Secretary; or (B) for an owner other than an individual— (i) the owner’s taxpayer identification number; or (ii) if the owner does not have a taxpayer identification number, the social security number of an individual who is a corporate officer, general partner, or individual trustee of the owner and who signed the application for documentation or numbering for the vessel; (3) identifies the State in which it is titled or numbered; (4) indicates whether the vessel is numbered or titled, or both; (5) if titled in a State, indicates where evidence of a lien or other security interest may be found against the vessel in that State; (6) includes information to assist law enforcement; and (7) includes other information agreed to by the Secretary and the State. **(b)** Except as provided in subsection (c) of this section, the Secretary also may accept information under conditions and in a manner and form prescribed by the Secretary. **(c)** The Secretary shall— (1) retain information on a vessel with a preferred mortgage under [section 31322(d) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title46-section31322/d&num=0&edition=prelim) that is no longer titled in a State making information available to the Secretary under this chapter until the mortgage is discharged or

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Federal law — U.S. Code and appendices · legal_authorities

46 U.S.C. § 31322 — Preferred mortgages

**(a)** A preferred mortgage is a mortgage, whenever made, that— (1) includes the whole of the vessel; (2) is filed in substantial compliance with [section 31321 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title46-section31321&num=0&edition=prelim); (3) (A) covers a documented vessel; or (B) covers a vessel for which an application for documentation is filed that is in substantial compliance with the requirements of chapter 121 of this title and the regulations prescribed under that chapter; and (4) with respect to a vessel with a fishery endorsement that is 100 feet or greater in registered length, has as the mortgagee— (A) a person eligible to own a vessel with a fishery endorsement under [section 12113(c) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title46-section12113/c&num=0&edition=prelim); (B) a State or federally chartered financial institution that is insured by the Federal Deposit Insurance Corporation; (C) a farm credit lender established under title 12, chapter 23 of the United States Code; (D) a commercial fishing and agriculture bank established pursuant to State law; (E) a commercial lender organized under the laws of the United States or of a State and eligible to own a vessel for purposes of documentation under [section 12103 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title46-section12103&num=0&edition=prelim); or (F) a mortgage trustee under subsection (f) of this section. **(b)** Any indebtedness secured by a preferred mortgage that is filed or recorded under this chapter, or that is subject to a mortgage, security agreement, or instruments granting a security interest that is deemed to be a preferred mortgage under subsection

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Federal law — U.S. Code and appendices · legal_authorities

46 U.S.C. § 31325 — Preferred mortgage liens and enforcement

**(a)** A preferred mortgage is a lien on the mortgaged vessel in the amount of the outstanding mortgage indebtedness secured by the vessel. **(b)** On default of any term of the preferred mortgage, the mortgagee may— (1) enforce the preferred mortgage lien in a civil action in rem for a documented vessel, a vessel to be documented under chapter 121 of this title, a vessel titled in a State, or a foreign vessel; (2) enforce a claim for the outstanding indebtedness secured by the mortgaged vessel in— (A) a civil action in personam in admiralty against the mortgagor, maker, comaker, or guarantor for the amount of the outstanding indebtedness or any deficiency in full payment of that indebtedness; and (B) a civil action against the mortgagor, maker, comaker, or guarantor for the amount of the outstanding indebtedness or any deficiency in full payment of that indebtedness; and (3) enforce the preferred mortgage lien or a claim for the outstanding indebtedness secured by the mortgaged vessel, or both, by exercising any other remedy (including an extrajudicial remedy) against a documented vessel, a vessel for which an application for documentation is filed under chapter 121 of this title, a vessel titled in a State, a foreign vessel, or a mortgagor, maker, comaker, or guarantor for the amount of the outstanding indebtedness or any deficiency in full payment of that indebtedness, if— (A) the remedy is allowed under applicable law; and (B) the exercise of the remedy will not result in a violation of section 56101 or 56102 of this title. **(c)** The district courts have original jurisdiction of a civil action brought under subsection (b)(1) or (2) of this section. However, for a documented vessel, a vessel to be documented under chapter 121 of this title, a vess

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Federal law — U.S. Code and appendices · legal_authorities

46 U.S.C. § 31343 — Recording and discharging notices of claim of maritime lien

**(a)** Except as provided under subsection (d) of this section, a person claiming a lien on a vessel documented, or for which an application for documentation has been filed, under chapter 121 may record with the Secretary a notice of that person’s lien claim on the vessel. To be recordable, the notice must— (1) state the nature of the lien; (2) state the date the lien was established; (3) state the amount of the lien; (4) state the name and address of the person; and (5) be signed and acknowledged. **(b)** (1) The Secretary shall record a notice complying with subsection (a) of this section if, when the notice is presented to the Secretary for recording, the person having the claim files with the notice a declaration stating the following: (A) The information in the notice is true and correct to the best of the knowledge, information, and belief of the individual who signed it. (B) A copy of the notice, as presented for recordation, has been sent to each of the following: (i) The owner of the vessel. (ii) Each person that recorded under subsection (a) of this section an unexpired notice of a claim of an undischarged lien on the vessel. (iii) The mortgagee of each mortgage filed or recorded under [section 31321 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title46-section31321&num=0&edition=prelim) that is an undischarged mortgage on the vessel. (2) A declaration under this subsection filed by a person that is not an individual must be signed by the president, member, partner, trustee, or other individual authorized to execute the declaration on behalf of the person. **(c)** (1) On full and final discharge of the indebtedness that is the basis for a notice of claim of lien recorded under subsection (b) of thi

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Federal law — U.S. Code and appendices · legal_authorities

46 U.S.C. § 31321 — Filing, recording, and discharge

Page 277 TITLE 46—SHIPPING § 31321 Section 31307 provides for preemption of State laws to the extent a claim for necessaries is enforced by a civil action in rem in admiralty against the vessel. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective Jan. 1, 1989, with certain exceptions and qualifications, see section 107 of Pub. L. 100–710, set out as a note under section 31301 of this title. § 31308. Secretary of Commerce or Transpor- tation as mortgagee The Secretary of Commerce or Transpor- tation, as a mortgagee under this chapter, may foreclose on a lien arising from a right estab- lished under a mortgage under chapter 537 of this title, subject to section 362(b) of title 11. (Pub. L. 100–710, title I, § 102(c), Nov. 23, 1988, 102 Stat. 4741; Pub. L. 101–595, title VI, § 603(13), Nov. 16, 1990, 104 Stat. 2993; Pub. L. 109–304, § 15(28), Oct. 6, 2006, 120 Stat. 1704; Pub. L. 111–281, title IX, § 913(b), Oct. 15, 2010, 124 Stat. 3017.) HISTORICAL AND REVISION NOTES Revised section Source section (U.S. Code) 31308 ............................................ 46:952 (last sentence) Section 31308 allows the Secretary of Commerce or Transportation to foreclose on a lien arising from a right established under a mortgage under title XI of the Merchant Marine Act, 1936. This section makes no substantive change to law. Editorial Notes AMENDMENTS 2010—Pub. L. 111–281 substituted ‘‘The Secretary of Commerce or Transportation, as a mortgagee under this chapter,’’ for ‘‘When the Secretary of Commerce or Transportation is a mortgagee under this chapter, the Secretary’’. 2006—Pub. L. 109–304 substituted ‘‘chapter 537 of this title’’ for ‘‘title XI of the Merchant Marine Act, 1936 (46 App. U.S.C. 1271 et seq.)’’. 1990—Pub. L. 101

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