46 U.S.C. § 31323 — Disclosing and incurring obligations before executing preferred mortgages
submitted 38 years ago by Pub. L. 100-710 to r/title-46-SHIPPING · 145 words · no verdicts yet
A vessel mortgagor must disclose known obligations before a preferred mortgage is executed. For a short period afterward, the mortgagor may not create another vessel lien except for four listed categories.
(a) At the mortgagee’s request and before executing a preferred mortgage, the mortgagor must disclose in writing every obligation on the vessel* known to the mortgagor. (b) After execution and before the mortgagee has had a reasonable filing time, the mortgagor may not create a contractual vessel lien without consent, except for stevedore wages when directly employed by a person listed in section 31341, crew wages, general average, or salvage including contract salvage. (c) If convicted under section 31330(a)(1)(A) or (B), the mortgagor’s mortgage debt becomes immediately payable if the mortgagee chooses.
On request of the mortgagee and before executing a preferred mortgage, the mortgagor shall disclose in writing to the mortgagee the existence of any obligation known to the mortgagor on the vessel* to be mortgaged.
After executing a preferred mortgage and before the mortgagee has had a reasonable time to file the mortgage, the mortgagor may not incur, without the consent of the mortgagee, any contractual obligation establishing a lien on the vessel except a lien for—
wages of a stevedore when employed directly by a person listed in section 31341 of this title;
wages for the crew of the vessel;
general average; or
salvage, including contract salvage.
On conviction of a mortgagor under section 31330(a)(1)(A) or (B) of this title for violating this section, the mortgage indebtedness, at the option of the mortgagee, is payable immediately.
Source credit: (Pub. L. 100–710, title I, § 102(c), Nov. 23, 1988, 102 Stat. 4744.)
- 1988Enacted · Pub. L. 100-710 · 102 Stat. 4744
A history note hasn’t been published yet. The record shows enactment by Pub. L. 100-710 on 1988-11-23.
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