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46 U.S.C. § 31329 — Court sales of documented vessels

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

46 U.S.C. § 31329 — Court sales of documented vessels

**(a)** A documented vessel may be sold by order of a district court only to— (1) a person eligible to own a documented vessel under [section 12103 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title46-section12103&num=0&edition=prelim); or (2) a mortgagee of that vessel. **(b)** When a vessel is sold to a mortgagee not eligible to own a documented vessel— (1) the vessel must be held by the mortgagee for resale; (2) the vessel held by the mortgagee is subject to chapter 563 of this title; and (3) the sale of the vessel to the mortgagee is not a sale to a person not a citizen of the United States under [section 12132 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title46-section12132&num=0&edition=prelim). **(c)** Unless waived by the Secretary of Transportation, a person purchasing a vessel by court order under subsection (a)(1) of this section or from a mortgagee under subsection (a)(2) of this section must document the vessel under chapter 121 of this title. **(d)** The vessel may be operated by the mortgagee not eligible to own a documented vessel only with the approval of the Secretary of Transportation. **(e)** A sale of a vessel contrary to this section is void. **(f)** This section does not apply to a documented vessel that has been operated only for pleasure.

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Source location: Title 46, Chapter 313, § 31329; chapter-313-commercial-instruments-and-maritime-liens.md

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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. § 12103 — General eligibility requirements

**(a) In General.—** Except as otherwise provided, a certificate of documentation for a vessel may be issued under this chapter only if the vessel is— (1) wholly owned by one or more individuals or entities described in subsection (b); (2) at least 5 net tons as measured under part J of this subtitle; and (3) not documented under the laws of a foreign country. **(b) Eligible Owners.—** For purposes of subsection (a)(1), the following are eligible owners: (1) An individual who is a citizen of the United States. (2) An association, trust, joint venture, or other entity if— (A) each of its members is a citizen of the United States; and (B) it is capable of holding title to a vessel under the laws of the United States or a State. (3) A partnership if— (A) each general partner is a citizen of the United States; and (B) the controlling interest in the partnership is owned by citizens of the United States. (4) A corporation if— (A) it is incorporated under the laws of the United States or a State; (B) its chief executive officer, by whatever title, and the chairman of its board of directors are citizens of the United States; and (C) no more of its directors are noncitizens than a minority of the number necessary to constitute a quorum. (5) The United States Government. (6) The government of a State. **(c) Temporary Certificates Prior to Measurement.—** Notwithstanding subsection (a)(2), the Secretary may issue a temporary certificate of documentation for a vessel before it is measured.

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

46 U.S.C. § 12132 — Loss of coastwise trade privileges

**(a) Sold Foreign or Placed Under Foreign Registry.—** A vessel of more than 200 gross tons (as measured under chapter 143 of this title), eligible to engage in the coastwise trade, and later sold foreign in whole or in part or placed under foreign registry may not thereafter engage in the coastwise trade. **(b) Rebuilt Outside the United States.—** A vessel eligible to engage in the coastwise trade and later rebuilt outside the United States may not thereafter engage in the coastwise trade.

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

46 U.S.C. § 12102 — Vessels requiring documentation

**(a) In General.—** Except as otherwise provided, a vessel may engage in a trade only if the vessel has been issued a certificate of documentation with an endorsement for that trade under this chapter. **(b) Vessels Less Than 5 Net Tons.—** A vessel of less than 5 net tons may engage in a trade without being documented if the vessel otherwise satisfies the requirements to engage in the particular trade. **(c) Barges.—** A barge qualified to engage in the coastwise trade may engage in the coastwise trade, without being documented, on rivers, harbors, lakes (except the Great Lakes), canals, and inland waters. **(d) Aquaculture Waiver.—** (1) **Permitting of nonqualified vessels to perform certain aquaculture support operations.—** — Notwithstanding section 12113 and any other law, the Secretary of Transportation may issue a waiver allowing a documented vessel with a registry endorsement or a foreign flag vessel to be used in operations that treat aquaculture fish for or protect aquaculture fish from disease, parasitic infestation, or other threats to their health if the Secretary finds, after publishing a notice in the Federal Register, that a suitable vessel of the United States is not available that could perform those services. (2) **Prohibition.—** — Vessels operating under a waiver issued under this subsection may not engage in any coastwise transportation.

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

46 U.S.C. § 31330 — Penalties

**(a)** (1) A mortgagor shall be fined under title 18, imprisoned for not more than 2 years, or both, if the mortgagor— (A) with intent to defraud, does not disclose an obligation on a vessel as required by [section 31323(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title46-section31323/a&num=0&edition=prelim); (B) with intent to defraud, incurs a contractual obligation in violation of [section 31323(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title46-section31323/b&num=0&edition=prelim); or (C) with intent to hinder or defraud an existing or future creditor of the mortgagor or a lienor of the vessel, files a mortgage with the Secretary. (2) A mortgagor is liable to the United States Government for a civil penalty of not more than $10,000 if the mortgagor— (A) does not disclose an obligation on a vessel as required by [section 31323(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title46-section31323/a&num=0&edition=prelim); (B) incurs a contractual obligation in violation of [section 31323(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title46-section31323/b&num=0&edition=prelim); or (C) files with the Secretary a mortgage made not in good faith. **(b)** (1) A person that knowingly violates [section 31329 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title46-section31329&num=0&edition=prelim) shall be fined under title 18, imprisoned for not more than 3 years, or both. (2) A person violating [section 31329 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title46-section31329&num=0&edition=prelim) is liable to the Government for a civil penalty of not more than

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

46 U.S.C. § 31329 — Court sales of documented vessels

Page 286 TITLE 46—SHIPPING [§ 31328 [§ 31328. Repealed. Pub. L. 104–324, title XI, § 1113(b)(1), Oct. 19, 1996, 110 Stat. 3970] Section, Pub. L. 100–710, title I, § 102(c), Nov. 23, 1988, 102 Stat. 4746, related to limitations on parties serving as trustees of mortgaged vessel interests. § 31329. Court sales of documented vessels (a) A documented vessel may be sold by order of a district court only to— (1) a person eligible to own a documented vessel under section 12103 of this title; or (2) a mortgagee of that vessel. (b) When a vessel is sold to a mortgagee not el- igible to own a documented vessel— (1) the vessel must be held by the mortgagee for resale; (2) the vessel held by the mortgagee is sub- ject to chapter 563 of this title; and (3) the sale of the vessel to the mortgagee is not a sale to a person not a citizen of the United States under section 12132 of this title. (c) Unless waived by the Secretary of Trans- portation, a person purchasing a vessel by court order under subsection (a)(1) of this section or from a mortgagee under subsection (a)(2) of this section must document the vessel under chapter 121 of this title. (d) The vessel may be operated by the mort- gagee not eligible to own a documented vessel only with the approval of the Secretary of Transportation. (e) A sale of a vessel contrary to this section is void. (f) This section does not apply to a docu- mented vessel that has been operated only for pleasure. (Pub. L. 100–710, title I, § 102(c), Nov. 23, 1988, 102 Stat. 4747; Pub. L. 104–324, title XI, § 1118, Oct. 19, 1996, 110 Stat. 3973; Pub. L. 109–304, § 15(32), Oct. 6, 2006, 120 Stat. 1704; Pub. L. 111–281, title IX, § 913(c), Oct. 15, 2010, 124 Stat. 3017.) HISTORICAL AND REVISION NOTES Revised section Source se

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