2014 US Code
Title 46 - Shipping (Sections 101 - 80509)
Subtitle III - Maritime Liability (Sections 30101 - 31343)
Chapter 313 - Commercial Instruments and Maritime Liens (Sections 31301 - 31343)
Subchapter II - Commercial Instruments (Sections 31321 - 31330)
Sec. 31323 - Disclosing and incurring obligations before executing preferred mortgages
| Publication Title | United States Code, 2012 Edition, Supplement 2, Title 46 - SHIPPING |
| Category | Bills and Statutes |
| Collection | United States Code |
| SuDoc Class Number | Y 1.2/5: |
| Contained Within | Title 46 - SHIPPING Subtitle III - Maritime Liability CHAPTER 313 - COMMERCIAL INSTRUMENTS AND MARITIME LIENS SUBCHAPTER II - COMMERCIAL INSTRUMENTS Sec. 31323 - Disclosing and incurring obligations before executing preferred mortgages |
| Contains | section 31323 |
| Date | 2014 |
| Laws In Effect As Of Date | January 5, 2015 |
| Positive Law | Yes |
| Disposition | standard |
| Source Credit | Pub. L. 100-710, title I, §102(c), Nov. 23, 1988, 102 Stat. 4744. |
| Statutes at Large Reference | 102 Stat. 4744 |
| Public and Private Law | Public Law 100-710 |
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(a) 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.
(b) 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—
(1) wages of a stevedore when employed directly by a person listed in section 31341 of this title;
(2) wages for the crew of the vessel;
(3) general average; or
(4) salvage, including contract salvage.
(c) 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.
(Pub. L. 100–710, title I, §102(c), Nov. 23, 1988, 102 Stat. 4744.)
| Revised section | Source section (U.S. Code) |
|---|---|
| 31323(a) | 46:924(1) |
| 31323(b) | 46:924(2) |
| 31323(c) | 46:941(b) (last sentence) |
Section 31323(a) requires the mortgagor to disclose any obligations on the vessel before executing a preferred mortgage. This subsection makes no substantive change to law.
Section 31323(b) provides that, after executing a preferred mortgage, the mortgagor may not incur, without consent of the mortgagee, any contractual obligations establishing a lien on the vessel—except a lien for stevedore wages, crew wages, general average, and salvage. The only substantive change to law made by this subsection is that the reasonable time to record a mortgage is changed to a reasonable time to file the mortgage, and the elimination of the reference to endorsements. These changes are in keeping with the changes made in section 31322.
Section 31323(c) provides that if a mortgagor is convicted of a violation of this section, then the mortgage indebtedness, at the option of the mortgagee, is payable immediately. This subsection makes no substantive change to law.
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