Stat/Auth

§ 11507

TITLE 46—SHIPPING

master failing to advise a seaman is liable to the
United States Government for a civil penalty of
$50.

Sec.

(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 584.)

12134.
12135.
12136.
12137.

HISTORICAL AND REVISION NOTES
Revised section
11506 ............................................

Source section (U.S. Code)
46:710

Section 11506 prohibits a merchant seaman from carrying a sheath knife without permission of the master,
and penalizes a master who does not advise a seaman of
this provision.

§ 11507. Surrender of offending officers
When an officer of a vessel of the United
States (except the master) has violated section
2191 of title 18, and the master has actual knowledge of the offense or if complaint is made within 3 days after reaching port, the master shall
surrender the offending officer to the proper authorities. If the master fails to use diligence to
comply with this section and the offender escapes, the owner, the master, and the vessel are
liable for damages to the individual unlawfully
punished.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 584.)
HISTORICAL AND REVISION NOTES
Revised section
11507 ............................................

Source section (U.S. Code)
46:712

Section 11507 requires a master of a vessel of the
United States to surrender to the proper authorities
any officer who has violated section 2191 of title 18
(which provides a penalty for cruelty to seamen by officers), and penalizes the master for noncompliance.

PART H—IDENTIFICATION OF VESSELS
CHAPTER 121—DOCUMENTATION OF
VESSELS
SUBCHAPTER I—GENERAL
Sec.

12101.
12102.
12103.
12104.
12105.
12106.
12107.

Definitions.
Vessels requiring documentation.
General eligibility requirements.
Applications for documentation.
Issuance of documentation.
Surrender of title and number.
Wrecked vessels.

SUBCHAPTER II—ENDORSEMENTS AND SPECIAL
DOCUMENTATION
12111.
12112.
12113.
12114.
12115.
12116.
12117.
12118.
12119.
12120.
12121.

Registry endorsement.
Coastwise endorsement.
Fishery endorsement.
Recreational endorsement.
Temporary endorsement for vessels procured
outside the United States.
Limited endorsements for Guam, American
Samoa, and Northern Mariana Islands.
Oil spill response vessels.
Owners engaged primarily in manufacturing
or mineral industry.
Owners engaged primarily in leasing or financing transactions.
Liquified gas tankers.
Small passenger vessels and uninspected passenger vessels.
SUBCHAPTER III—MISCELLANEOUS

12131.

Command of documented vessels.

12132.
12133.

12138.
12139.

Page 168

Loss of coastwise trade privileges.
Duty to carry certificate on vessel and allow
examination.
Evidentiary uses of documentation.
Invalidation of certificates of documentation.
Surrender of certificates of documentation.
Recording of vessels built in the United
States.
List of documented vessels.
Reports.
SUBCHAPTER IV—PENALTIES

12151.
12152.

Penalties.
Denial or revocation of endorsement for nonpayment of civil penalty.
CODIFICATION

This chapter was originally enacted by Pub. L. 98–89,
Aug. 26, 1983, 97 Stat. 584, and amended by Pub. L.
98–364, July 17, 1984, 98 Stat. 440; Pub. L. 98–454, Oct. 5,
1984, 98 Stat. 1732; Pub. L. 99–36, May 15, 1985, 99 Stat.
67; Pub. L. 99–307, May 19, 1986, 100 Stat. 444; Pub. L.
99–509, Oct. 21, 1986, 100 Stat. 1874; Pub. L. 99–570, Oct.
27, 1986, 100 Stat. 3207; Pub. L. 100–239, Jan. 11, 1988, 101
Stat. 1778; Pub. L. 100–710, Nov. 23, 1988, 102 Stat. 4735;
Pub. L. 101–225, Dec. 12, 1989, 103 Stat. 1908; Pub. L.
101–380, Aug. 18, 1990, 104 Stat. 484; Pub. L. 101–595, Nov.
16, 1990, 104 Stat. 2979; Pub. L. 102–388, Oct. 6, 1992, 106
Stat. 1520; Pub. L. 102–587, Nov. 4, 1992, 106 Stat. 5039;
Pub. L. 104–208, Sept. 30, 1996, 110 Stat. 3009; Pub. L.
104–324, Oct. 19, 1996, 110 Stat. 3901; Pub. L. 105–277, Oct.
21, 1998, 112 Stat. 2681; Pub. L. 105–383, Nov. 13, 1998, 112
Stat. 3411; Pub. L. 106–31, May 21, 1999, 113 Stat. 57; Pub.
L. 107–20, July 24, 2001, 115 Stat. 155; Pub. L. 107–206,
Aug. 2, 2002, 116 Stat. 820; Pub. L. 107–295, Nov. 25, 2002,
116 Stat. 2064; Pub. L. 108–136, Nov. 24, 2003, 117 Stat.
1392; Pub. L. 108–293, Aug. 9, 2004, 118 Stat. 1028; Pub. L.
109–241, July 11, 2006, 120 Stat. 516. This chapter is
shown here, however, as having been enacted by Pub. L.
109–304, § 5, Oct. 6, 2006, 120 Stat. 1491, without reference
to those intervening amendments because of the general amendment of this chapter by Pub. L. 109–304.

SUBCHAPTER I—GENERAL
§ 12101. Definitions
(a) REBUILT IN THE UNITED STATES.—In this
chapter, a vessel is deemed to have been rebuilt
in the United States only if the entire rebuilding, including the construction of any major
component of the hull or superstructure, was
done in the United States.
(b) RELATED TERMS IN OTHER LAWS.—When the
following terms are used in a law, regulation,
document, ruling, or other official act referring
to the documentation of a vessel, the following
definitions apply:
(1) REGISTRY ENDORSEMENT.—The terms
‘‘certificate of registry’’, ‘‘register’’, and ‘‘registry’’ mean a certificate of documentation
with a registry endorsement issued under this
chapter.
(2) COASTWISE ENDORSEMENT.—The terms ‘‘license’’, ‘‘enrollment and license’’, ‘‘license for
the coastwise (or coasting) trade’’, and ‘‘enrollment and license for the coastwise (or
coasting) trade’’ mean a certificate of documentation with a coastwise endorsement issued under this chapter.
(3) YACHT.—The term ‘‘yacht’’ means a recreational vessel even if not documented.
(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1491.)

Page 169
HISTORICAL AND REVISION NOTES
Revised
Section
12101(a) ......

12101(b) ......

§ 12103

TITLE 46—SHIPPING

Source (U.S. Code)
46:12101(a)(2).
46 App.:883 (2d proviso related to
meaning of ‘‘rebuilt’’).

Source (Statutes at Large)

HISTORICAL AND REVISION NOTES
Revised
Section
12102(a) ......

June 5, 1920, ch. 250, § 27 (2d
proviso related to meaning of ‘‘rebuilt’’), 41 Stat.
999; July 2, 1935, ch. 355, 49
Stat. 442; July 14, 1956, ch.
600, § 1, 70 Stat. 544; Pub.
L. 86–583, § 1, July 5, 1960,
74 Stat. 321; Pub. L.
100–239, § 6(c)(1), Jan. 11,
1988, 101 Stat. 1782.

46:12101(b).

In subsection (a), the words ‘‘its territories’’ and ‘‘or
its possessions’’ are omitted because of the definition of
‘‘United States’’ in chapter 1 of the revised title. The
words ‘‘(not including trust territories)’’ are omitted
because the Trust Territory of the Pacific Islands has
terminated. See 48 U.S.C. 1681 note prec.
PRIOR PROVISIONS
A prior section 12101, Pub. L. 98–89, Aug. 26, 1983, 97
Stat. 585; Pub. L. 98–364, title IV, § 402(16), July 17, 1984,
98 Stat. 450; Pub. L. 99–36, § 1(a)(7)(B), May 15, 1985, 99
Stat. 67; Pub. L. 100–239, § 3(2), (3), Jan. 11, 1988, 101 Stat.
1778; Pub. L. 101–225, title III, § 301(a)(1), Dec. 12, 1989,
103 Stat. 1920; Pub. L. 104–324, title XI, § 1115(b)(2), Oct.
19, 1996, 110 Stat. 3972, originally derived from section
65w of former Title 46, Shipping, related to definitions
and related terms in other laws, prior to the general
amendment of this chapter by Pub. L. 109–304. See this
section and section 108 of this title.

§ 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.
(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1492;
Pub. L. 111–281, title IX, § 901(c)(1), Oct. 15, 2010,
124 Stat. 3008.)

12102(b) ......
12102(c) ......

Source (U.S. Code)

Source (Statutes at Large)

46:12106(b).
46:12108(b).
46:12110(a).
46:12102(a) (related
to tonnage).
46:12110(b).

PRIOR PROVISIONS
A prior section 12102, Pub. L. 98–89, Aug. 26, 1983, 97
Stat. 585; Pub. L. 99–509, title V, § 5102(b)(6), Oct. 21,
1986, 100 Stat. 1927; Pub. L. 100–239, § 7(a), Jan. 11, 1988,
101 Stat. 1782; Pub. L. 100–710, title I, § 104(a)(4), (5), Nov.
23, 1988, 102 Stat. 4750; Pub. L. 101–225, title III,
§ 301(a)(2), Dec. 12, 1989, 103 Stat. 1920; Pub. L. 104–324,
title XI, § 1136(a), Oct. 19, 1996, 110 Stat. 3986; Pub. L.
105–277, div. C, title II, § 202(a), Oct. 21, 1998, 112 Stat.
2681–617; Pub. L. 105–383, title IV, §§ 401(a)(1), 421, Nov.
13, 1998, 112 Stat. 3424, 3439; Pub. L. 107–20, title II,
§ 2202(a), July 24, 2001, 115 Stat. 168; Pub. L. 107–206, title
I, § 1103, Aug. 2, 2002, 116 Stat. 884; Pub. L. 108–136, div.
C, title XXXV, § 3534(b)(1), Nov. 24, 2003, 117 Stat. 1818,
originally derived from section 65b of former Title 46,
Shipping, related to vessels eligible for documentation,
prior to the general amendment of this chapter by Pub.
L. 109–304. See this section and sections 12103, 12111, and
12113 of this title.
AMENDMENTS
2010—Subsec. (d). Pub. L. 111–281 added subsec. (d).
REGULATIONS
Pub. L. 111–281, title IX, § 901(c)(2), Oct. 15, 2010, 124
Stat. 3008, provided that: ‘‘The Secretary of the department in which the Coast Guard is operating shall, in
accordance with section 553 of title 5, United States
Code, and after public notice and comment, promulgate
regulations necessary and appropriate to implement
this subsection [amending this section]. The Secretary
may grant interim permits pending the issuance of
such regulations upon receipt of applications containing the required information.’’

§ 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—

§ 12104

TITLE 46—SHIPPING

(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
UREMENT.—Notwithstanding subsection

MEAS(a)(2),
the Secretary may issue a temporary certificate
of documentation for a vessel before it is measured.
(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1492.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

12103(a) ......

46:12102(a) (less
ownership), (b)
(1st sentence).
46:12102(a) (related
to ownership)
46:12102(b) (last sentence).

12103(b) ......
12103(c) ......

Source (Statutes at Large)

PRIOR PROVISIONS
A prior section 12103, Pub. L. 98–89, Aug. 26, 1983, 97
Stat. 585; Pub. L. 100–710, title I, § 104(a)(4), (6), Nov. 23,
1988, 102 Stat. 4750; Pub. L. 101–225, title III, § 301(a)(3),
Dec. 12, 1989, 103 Stat. 1920; Pub. L. 102–388, title III,
§ 348(c)(1), Oct. 6, 1992, 106 Stat. 1554; Pub. L. 102–587,
title V, § 5213(a)(1), Nov. 4, 1992, 106 Stat. 5077; Pub. L.
107–295, title IV, § 422(a), Nov. 25, 2002, 116 Stat. 2125,
originally derived from section 65e of former Title 46,
Shipping, related to certificates of documentation,
prior to the general amendment of this chapter by Pub.
L. 109–304. See sections 12104, 12105, and 12133 of this
title.
A prior section 12103a, added Pub. L. 107–295, title IV,
§ 422(b)(1), Nov. 25, 2002, 116 Stat. 2125, related to issuance of temporary certificate of documentation by
third parties, prior to the general amendment of this
chapter by Pub. L. 109–304. See section 12105 of this
title.

§ 12104. Applications for documentation
(a) IN GENERAL.—An application for a certificate of documentation or endorsement under
this chapter must be filed by the owner of the
vessel. The application must be filed in the manner, be in the form, and contain the information
prescribed by the Secretary.
(b) APPLICANT’S IDENTIFYING INFORMATION.—
The Secretary shall require the applicant to provide—
(1) if the applicant is an individual, the individual’s social security number; or
(2) if the applicant is an entity—
(A) the entity’s taxpayer identification
number; or
(B) if the entity 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 entity and who signs the application.
(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1493.)

Page 170
HISTORICAL AND REVISION NOTES

Revised
Section
12104(a) ......
12104(b) ......

Source (U.S. Code)

Source (Statutes at Large)

46:12103(a) (related
to filing by
owner), (b)(1).
46:12103(b)(2).

PRIOR PROVISIONS
A prior section 12104, Pub. L. 98–89, Aug. 26, 1983, 97
Stat. 586; Pub. L. 99–36, § 1(a)(7)(B), May 15, 1985, 99 Stat.
67; Pub. L. 101–225, title III, § 301(a)(4), Dec. 12, 1989, 103
Stat. 1920, originally derived from section 65g of former
Title 46, Shipping, related to effect of documentation,
prior to the general amendment of this chapter by Pub.
L. 109–304. See section 12134 of this title.

§ 12105. Issuance of documentation
(a) IN GENERAL.—Except as provided in section
12152 of this title, the Secretary, on receipt of a
proper application, shall issue a certificate of
documentation or a temporary certificate of
documentation for a vessel satisfying the requirements of section 12103 of this title. The certificate shall contain each endorsement under
subchapter II of this chapter for which the
owner applies and the vessel is eligible.
(b) TEMPORARY CERTIFICATES FOR RECREATIONAL VESSELS.—The Secretary may delegate, subject to the supervision and control of
the Secretary and under terms prescribed by
regulation, to private entities determined and
certified by the Secretary to be qualified, the
authority to issue a temporary certificate of
documentation for a recreational vessel eligible
under section 12103 of this title. A temporary
certificate issued under this subsection is valid
for not more than 30 days.
(c) INFORMATION TO BE INCLUDED IN CERTIFICATE.—A certificate of documentation shall—
(1) identify and describe the vessel;
(2) identify the owner of the vessel; and
(3) contain additional information prescribed
by the Secretary.
(d) PROCEDURES TO ENSURE INTEGRITY AND ACCURACY.—The Secretary shall prescribe procedures to ensure the integrity of, and the accuracy of information contained in, certificates of
documentation.
(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1493.)
HISTORICAL AND REVISION NOTES
Revised
Section
12105(a) ......
12105(b) ......
12105(c) ......
12105(d) ......

Source (U.S. Code)

Source (Statutes at Large)

46:12103(a) (less filing by owner).
46:12103a.
46:12103(c).
46:12103(d).

In subsection (b), the words ‘‘eligible under’’ are substituted for ‘‘if the applicant for the certificate of documentation meets the requirements set out in’’ for consistency in the chapter and to eliminate unnecessary
words.
PRIOR PROVISIONS
A prior section 12105, Pub. L. 98–89, Aug. 26, 1983, 97
Stat. 586; Pub. L. 100–710, title I, § 104(a)(4), Nov. 23, 1988,
102 Stat. 4750; Pub. L. 101–225, title III, § 301(a)(5), Dec.
12, 1989, 103 Stat. 1920; Pub. L. 109–241, title III, § 310,
July 11, 2006, 120 Stat. 529, originally derived from section 65h of former Title 46, Shipping, related to registry

Page 171

endorsements, prior to the general amendment of this
chapter by Pub. L. 109–304. See section 12111 of this
title.

§ 12106. Surrender of title and number
(a) IN GENERAL.—A documented vessel may
not be titled by a State or required to display
numbers under chapter 123 of this title, and any
certificate of title issued by a State for a documented vessel shall be surrendered as provided
by regulations prescribed by the Secretary.
(b) VESSELS COVERED BY PREFERRED MORTGAGE.—The Secretary may approve the surrender under subsection (a) of a certificate of title
for a vessel covered by a preferred mortgage
under section 31322(d) of this title only if the
mortgagee consents.
(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1494.)
HISTORICAL AND REVISION NOTES
Revised
Section
12106 ..........

§ 12111

TITLE 46—SHIPPING

Source (U.S. Code)

Source (Statutes at Large)

46:12124.

PRIOR PROVISIONS
A prior section 12106, Pub. L. 98–89, Aug. 26, 1983, 97
Stat. 586; Pub. L. 98–454, title III, § 301(b), Oct. 5, 1984, 98
Stat. 1734; Pub. L. 100–239, § 6(a)(2), (3), Jan. 11, 1988, 101
Stat. 1781; Pub. L. 101–225, title III, § 301(a)(6), Dec. 12,
1989, 103 Stat. 1921; Pub. L. 101–380, title IV, § 4205, Aug.
18, 1990, 104 Stat. 533; Pub. L. 104–324, title VII, § 743,
title XI, § 1113(d), Oct. 19, 1996, 110 Stat. 3942, 3971; Pub.
L. 108–293, title VI, § 608(a), Aug. 9, 2004, 118 Stat. 1054,
originally derived from section 65i of former Title 46,
Shipping, related to coastwise endorsements, prior to
the general amendment of this chapter by Pub. L.
109–304. See sections 12102, 12112, 12116, 12117, and 12119
of this title.

§ 12107. Wrecked vessels
(a) REQUIREMENTS.—A vessel is a wrecked vessel under this chapter if it—
(1) was wrecked on a coast of the United
States or adjacent waters; and
(2) has undergone repairs in a shipyard in
the United States equal to at least 3 times the
appraised salvage value of the vessel.
(b) APPRAISALS.—The Secretary may appoint a
board of three appraisers to determine whether
a vessel satisfies subsection (a)(2). The costs of
the appraisal shall be paid by the owner of the
vessel.
(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1494.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

Source (Statutes at Large)

12107 ..........

46 App.:14 (words before last proviso).

R.S. § 4136 (words before last
proviso); Feb. 24, 1915, ch.
57, 38 Stat. 812; Pub. L.
103–182, title VI, § 686(a)(4),
Dec. 8, 1993, 107 Stat. 2220.

The words ‘‘The Secretary of Transportation may
issue a certificate of documentation with a coastwise
endorsement’’ and ‘‘when purchased by a citizen or citizens of the United States’’ are omitted as unnecessary
because section 12112, as revised by the bill, provides
the requirements for a wrecked vessel to obtain a
coastwise endorsement.
In subsection (c)(1), the words ‘‘or her possessions’’
are omitted as unnecessary because of the definition of
‘‘United States’’ in chapter 1 of the revised title.

PRIOR PROVISIONS
A prior section 12107, Pub. L. 98–89, Aug. 26, 1983, 97
Stat. 587; Pub. L. 100–239, § 6(a)(4), (5), Jan. 11, 1988, 101
Stat. 1782; Pub. L. 101–225, title III, § 301(a)(7), Dec. 12,
1989, 103 Stat. 1921, originally derived from section 65j
of former Title 46, Shipping, related to Great Lakes endorsements, prior to being repealed by Pub. L. 104–324,
title XI, § 1115(a), Oct. 19, 1996, 110 Stat. 3972.
A prior section 12108, Pub. L. 98–89, Aug. 26, 1983, 97
Stat. 587; Pub. L. 98–454, title III, § 301(c), Oct. 5, 1984, 98
Stat. 1734; Pub. L. 100–239, §§ 3(4), (5), 6(a)(6), Jan. 11,
1988, 101 Stat. 1779, 1782; Pub. L. 101–225, title III,
§ 301(a)(8), Dec. 12, 1989, 103 Stat. 1921; Pub. L. 104–208,
div. A, title I, § 101(a) [title II, § 211(b)], Sept. 30, 1996, 110
Stat. 3009, 3009–41; Pub. L. 104–324, title III, § 301(e), title
VII, § 744, Oct. 19, 1996, 110 Stat. 3917, 3942; Pub. L.
107–295, title IV, § 409, Nov. 25, 2002, 116 Stat. 2117, originally derived from section 65k of former Title 46, Shipping, related to fishery endorsements, prior to being
omitted in the general amendment of this chapter by
Pub. L. 109–304. See sections 12102, 12113, and 12116 of
this title.
A prior section 12109, Pub. L. 98–89, Aug. 26, 1983, 97
Stat. 587; Pub. L. 99–36, § 1(a)(7)(C), May 15, 1985, 99 Stat.
67; Pub. L. 99–570, title III, § 3151, Oct. 27, 1986, 100 Stat.
3207–94; Pub. L. 100–710, title I, § 106(b)(5), Nov. 23, 1988,
102 Stat. 4752; Pub. L. 101–225, title III, § 301(a)(9), Dec.
12, 1989, 103 Stat. 1921; Pub. L. 101–595, title VI, § 603(9),
Nov. 16, 1990, 104 Stat. 2993, originally derived from section 65l of former Title 46, Shipping, related to recreational endorsements, prior to being omitted in the
general amendment of this chapter by Pub. L. 109–304.
See section 12114 of this title.
A prior section 12110, Pub. L. 98–89, Aug. 26, 1983, 97
Stat. 588; Pub. L. 99–36, § 1(a)(7)(D), May 15, 1985, 99 Stat.
67; Pub. L. 100–710, title I, § 104(a)(4), Nov. 23, 1988, 102
Stat. 4750; Pub. L. 101–225, title III, § 301(a)(10), Dec. 12,
1989, 103 Stat. 1922; Pub. L. 102–388, title III, § 348(b), Oct.
6, 1992, 106 Stat. 1554; Pub. L. 102–587, title V, § 5213(a)(2),
Nov. 4, 1992, 106 Stat. 5077; Pub. L. 104–324, title III,
§ 301(c), (d)(1), Oct. 19, 1996, 110 Stat. 3916; Pub. L.
108–293, title IV, § 404(a), Aug. 9, 2004, 118 Stat. 1043,
originally derived from section 65m of former Title 46,
Shipping, related to limitations on operations authorized by certificates, prior to being omitted in the general amendment of this chapter by Pub. L. 109–304. See
sections 12102, 12114, and 12131 of this title.

SUBCHAPTER II—ENDORSEMENTS AND
SPECIAL DOCUMENTATION
§ 12111. Registry endorsement
(a) REQUIREMENTS.—A registry endorsement
may be issued for a vessel that satisfies the requirements of section 12103 of this title.
(b) AUTHORIZED ACTIVITY.—A vessel for which
a registry endorsement is issued may engage in
foreign trade or trade with Guam, American
Samoa, Wake, Midway, or Kingman Reef.
(c) CERTAIN VESSELS OWNED BY TRUSTS.—
(1) NONAPPLICATION OF BENEFICIARY CITIZENSHIP REQUIREMENT.—For the issuance of a certificate of documentation with only a registry
endorsement, the beneficiaries of a trust are
not required to be citizens of the United
States if the trust qualifies under paragraph
(2) and the vessel is subject to a charter to a
citizen of the United States.
(2) REQUIREMENTS FOR TRUST TO QUALIFY.—
(A) IN GENERAL.—Subject to subparagraph
(B), a trust qualifies under this paragraph
with respect to a vessel only if—
(i) each trustee is a citizen of the United
States; and
(ii) the application for documentation of
the vessel includes the affidavit of each

§ 12112

TITLE 46—SHIPPING

trustee stating that the trustee is not
aware of any reason involving a beneficiary of the trust that is not a citizen of
the United States, or involving any other
person that is not a citizen of the United
States, as a result of which the beneficiary
or other person would hold more than 25
percent of the aggregate power to influence or limit the exercise of the authority
of the trustee with respect to matters involving any ownership or operation of the
vessel that may adversely affect the interests of the United States.
(B) AUTHORITY OF NON-CITIZENS.—If any
person that is not a citizen of the United
States has authority to direct or participate
in directing a trustee for a trust in matters
involving any ownership or operation of the
vessel that may adversely affect the interests of the United States or in removing a
trustee for a trust without cause, either directly or indirectly through the control of
another person, the trust is not qualified
under this paragraph unless the trust instrument provides that persons who are not citizens of the United States may not hold more
than 25 percent of the aggregate authority
to so direct or remove a trustee.
(C) OWNERSHIP BY NON-CITIZENS.—Subparagraphs (A) and (B) do not prohibit a person
that is not a citizen of the United States
from holding more than 25 percent of the
beneficial interest in a trust.
(3) CITIZENSHIP OF PERSON CHARTERING VESSEL.—If a person chartering a vessel from a
trust that qualifies under paragraph (2) is a
citizen of the United States under section
50501 of this title, the vessel is deemed to be
owned by a citizen of the United States for
purposes of that section and related laws, except chapter 531 of this title.
(d) ACTIVITIES INVOLVING MOBILE OFFSHORE
DRILLING UNITS.—
(1) IN GENERAL.—Only a vessel for which a
certificate of documentation with a registry
endorsement is issued may engage in—
(A) the setting, relocation, or recovery of
the anchors or other mooring equipment of a
mobile offshore drilling unit that is located
over the outer Continental Shelf (as defined
in section 2(a) of the Outer Continental
Shelf Lands Act (43 U.S.C. 1331(a))); or
(B) the transportation of merchandise or
personnel to or from a point in the United
States from or to a mobile offshore drilling
unit located over the outer Continental
Shelf that is not attached to the seabed.

Page 172
HISTORICAL AND REVISION NOTES

Revised
Section
12111(a) ......
12111(b) ......
12111(c) ......

Source (U.S. Code)

Source (Statutes at Large)

46:12105(a).
46:12105(b).
46:12102(d).

PRIOR PROVISIONS
A prior section 12111, Pub. L. 98–89, Aug. 26, 1983, 97
Stat. 588; Pub. L. 100–710, title I, § 103(a), Nov. 23, 1988,
102 Stat. 4749; Pub. L. 104–324, title III, § 301(d)(2)(A),
Oct. 19, 1996, 110 Stat. 3916; Pub. L. 107–295, title II,
§ 205(c), Nov. 25, 2002, 116 Stat. 2096, originally derived
from section 65o of former Title 46, Shipping, related to
surrender and invalidation of certificates of documentation, prior to the general amendment of this
chapter by Pub. L. 109–304. See sections 12135 and 12136
of this title.
AMENDMENTS
2008—Pub. L. 110–181, § 3525(b), repealed Pub. L.
109–241, § 310. See 2006 Amendment note below.
Subsec. (d). Pub. L. 110–181, § 3525(a)(1), incorporated
the substance of the amendment by Pub. L. 109–241,
§ 310, into this section by adding subsec. (d). See 2006
Amendment note below and section 18(a) of Pub. L.
109–304, set out as a Legislative Purpose and Construction note preceding section 101 of this title.
2006—Pub. L. 109–241, § 310, which directed the amendment of former section 12105 of this title from which
this section was derived in part, was repealed by Pub.
L. 110–181, § 3525(b). See 2008 Amendment note for subsec. (d) and Historical and Revision notes above.

§ 12112. Coastwise endorsement
(a) REQUIREMENTS.—A coastwise endorsement
may be issued for a vessel that—
(1) satisfies the requirements of section 12103
of this title;
(2)(A) was built in the United States; or
(B) if not built in the United States—
(i) was captured in war by citizens of the
United States and lawfully condemned as
prize;
(ii) was adjudged to be forfeited for a
breach of the laws of the United States; or
(iii) qualifies as a wrecked vessel under
section 12107 of this title; and
(3) otherwise qualifies under the laws of the
United States to engage in the coastwise
trade.
(b) AUTHORIZED ACTIVITY.—Subject to the laws
of the United States regulating the coastwise
trade, a vessel for which a coastwise endorsement is issued may engage in the coastwise
trade.
(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1495.)
HISTORICAL AND REVISION NOTES
Revised
Section
12112(a) ......
12112(b) ......

Source (U.S. Code)

Source (Statutes at Large)

46:12106(a).
46:12106(b).

(2) COASTWISE TRADE NOT AUTHORIZED.—Nothing in paragraph (1) authorizes the employment in the coastwise trade of a vessel that
does not meet the requirements of section
12112 of this title.

In subsection (b), the word ‘‘only’’ is omitted because
section 12102(a), as revised by the bill, contains a general requirement for appropriate documentation to engage in any trade.

(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1494;
Pub. L. 109–241, title III, § 310, July 11, 2006, 120
Stat. 529; Pub. L. 110–181, div. C, title XXXV,
§ 3525(a)(1), (b), Jan. 28, 2008, 122 Stat. 600, 601.)

A prior section 12112, Pub. L. 98–89, Aug. 26, 1983, 97
Stat. 588; Pub. L. 100–710, title I, § 104(a)(4), Nov. 23, 1988,
102 Stat. 4750; Pub. L. 101–225, title III, § 301(a)(11), Dec.

PRIOR PROVISIONS

Page 173

TITLE 46—SHIPPING

12, 1989, 103 Stat. 1922, originally derived from section
65p of former Title 46, Shipping, related to vessels procured outside the United States, prior to the general
amendment of this chapter by Pub. L. 109–304. See section 12115 of this title.
CERTAIN VESSELS ENGAGED IN ALASKA COASTWISE
TRADE
Pub. L. 108–293, title VI, § 608(b), Aug. 9, 2004, 118 Stat.
1056, provided that:
‘‘(1) IN GENERAL.—Notwithstanding any other provision of law, a person shall be treated as a citizen of the
United States under section 12102(a) [now section
12103(a), (b)] of title 46, United States Code, section 2 of
the Shipping Act, 1916 ([former] 46 U.S.C. App. 802) [see
46 U.S.C. 50501], and section 27 of the Merchant Marine
Act, 1920 ([former] 46 U.S.C. App. 883) [see Disposition
Table preceding section 101 of this title], for purposes of
issuance of a coastwise endorsement under section
12106(e) of title 46, United States Code (as that section
was in effect on the day before the date of enactment
of this Act [Aug. 9, 2004]), for a vessel owned by the person on the date of enactment of this Act, or any replacement vessel of a similar size and function, if the
person—
‘‘(A) owned a vessel before January 1, 2001, that had
a coastwise endorsement under [former] section
12106(e) of title 46, United States Code; and
‘‘(B) as of the date of the enactment of this Act
[Aug. 9, 2004], derives substantially all of its revenue
from leasing vessels engaged in the transportation or
distribution of petroleum products and other cargo in
Alaska.
‘‘(2) LIMITATION ON COASTWISE TRADE.—A vessel owned
by a person described in paragraph (1) for which a
coastwise endorsement is issued under [former] section
12106(e) of title 46, United States Code, may be employed in the coastwise trade only within Alaska and in
the coastwise trade to and from Alaska.
‘‘(3) TERMINATION.—The application of this subsection
to a person described in paragraph (1) shall terminate
if all of that person’s vessels described in paragraph (1)
are sold to a person eligible to document vessels under
section 12106(a) [now section 12112(a)] of title 46, United
States Code.’’

§ 12113. Fishery endorsement
(a) REQUIREMENTS.—A fishery endorsement
may be issued for a vessel that—
(1) satisfies the requirements of section 12103
of this title and, if owned by an entity, the entity satisfies the ownership requirements in
subsection (c);
(2) was built in the United States;
(3) if rebuilt, was rebuilt in the United
States;
(4) was not forfeited to the United States
Government after July 1, 2001, for a breach of
the laws of the United States; and
(5) otherwise qualifies under the laws of the
United States to engage in the fisheries.
(b) AUTHORIZED ACTIVITY.—
(1) IN GENERAL.—Subject to the laws of the
United States regulating the fisheries, a vessel
for which a fishery endorsement is issued may
engage in the fisheries.
(2) USE BY PROHIBITED PERSONS.—A fishery
endorsement is invalid immediately if the vessel for which it is issued is used as a fishing
vessel while it is chartered or leased to an individual who is not a citizen of the United
States or to an entity that is not eligible to
own a vessel with a fishery endorsement.
(c) OWNERSHIP REQUIREMENTS FOR ENTITIES.—
(1) IN GENERAL.—A vessel owned by an entity
is eligible for a fishery endorsement only if at

§ 12113

least 75 percent of the interest in the entity,
at each tier of ownership and in the aggregate,
is owned and controlled by citizens of the
United States.
(2) DETERMINING 75 PERCENT INTEREST.—In determining whether at least 75 percent of the
interest in the entity is owned and controlled
by citizens of the United States under paragraph (1), the Secretary shall apply section
50501(d) of this title, except that for this purpose the terms ‘‘control’’ or ‘‘controlled’’—
(A) include the right to—
(i) direct the business of the entity;
(ii) limit the actions of or replace the
chief executive officer, a majority of the
board of directors, any general partner, or
any person serving in a management capacity of the entity; or
(iii) direct the transfer, operation, or
manning of a vessel with a fishery endorsement; but
(B) do not include the right to simply participate in the activities under subparagraph
(A), or the exercise of rights under loan or
mortgage covenants by a mortgagee eligible
to be a preferred mortgagee under section
31322(a) of this title, except that a mortgagee not eligible to own a vessel with a fishery endorsement may only operate such a
vessel to the extent necessary for the immediate safety of the vessel or for repairs, drydocking, or berthing changes.
(3) EXCEPTIONS.—This subsection does not
apply to a vessel when it is engaged in the
fisheries in the exclusive economic zone under
the authority of the Western Pacific Fishery
Management Council established under section 302(a)(1)(H) of the Magnuson-Stevens
Fishery Conservation and Management Act (16
U.S.C. 1852(a)(1)(H)) or to a purse seine vessel
when it is engaged in tuna fishing in the Pacific Ocean outside the exclusive economic
zone or pursuant to the South Pacific Regional Fisheries Treaty, provided that the
owner of the vessel continues to comply with
the eligibility requirements for a fishery endorsement under the Federal law that was in
effect on October 1, 1998. A fishery endorsement issued pursuant to this paragraph is
valid for engaging only in the activities described in this paragraph.
(d) REQUIREMENTS BASED ON LENGTH, TONNAGE,
HORSEPOWER.—
(1) APPLICATION.—This subsection applies to
a vessel that—
(A) is greater than 165 feet in registered
length;
(B) is more than 750 gross registered tons
as measured under chapter 145 of this title or
1,900 gross registered tons as measured under
chapter 143 of this title; or
(C) has an engine or engines capable of
producing a total of more than 3,000 shaft
horsepower.

OR

(2) REQUIREMENTS.—A vessel subject to this
subsection is not eligible for a fishery endorsement unless—
(A)(i) a certificate of documentation was
issued for the vessel and endorsed with a

§ 12113

TITLE 46—SHIPPING

fishery endorsement that was effective on
September 25, 1997; and
(ii) the vessel is not placed under foreign
registry after October 21, 1998;
(B) the owner of the vessel demonstrates
to the Secretary that the regional fishery
management council of jurisdiction established under section 302(a)(1) of the Magnuson-Stevens Fishery Conservation and Management Act (16 U.S.C. 1852(a)(1)) has recommended after October 21, 1998, and the
Secretary of Commerce has approved, conservation and management measures in accordance with the American Fisheries Act
(Public Law 105–277, div. C, title II) (16 U.S.C.
1851 note) 1 to allow the vessel to be used in
fisheries under the council’s authority;
(C) the vessel is either a rebuilt vessel or
a replacement vessel under section 208(g) of
the American Fisheries Act (title II of division C of Public Law 105–277; 112 Stat.
2681–627) and is eligible for a fishery endorsement under this section; or
(D) the vessel is a fish tender vessel that is
not engaged in the harvesting or processing
of fish.
(e) VESSELS MEASURING 100 FEET OR GREATER.—

(1) IN GENERAL.—The Administrator of the
Maritime Administration shall administer
subsections (c) and (d) with respect to vessels
100 feet or greater in registered length. The
owner of each such vessel shall file a statement of citizenship setting forth all relevant
facts regarding vessel ownership and control
with the Administrator on an annual basis to
demonstrate compliance with those provisions.
(2) REGULATIONS.—Regulations to implement
this subsection shall conform to the extent
practicable with the regulations establishing
the form of citizenship affidavit set forth in
part 355 of title 46, Code of Federal Regulations, as in effect on September 25, 1997, except
that the form of the statement shall be written in a manner to allow the owner of the vessel to satisfy any annual renewal requirements
for a certificate of documentation for the vessel and to comply with this subsection and
subsections (c) and (d), and shall not be required to be notarized.
(3) TRANSFER OF OWNERSHIP.—Transfers of
ownership and control of vessels subject to
subsection (c) or (d), which are 100 feet or
greater in registered length, shall be rigorously scrutinized for violations of those provisions, with particular attention given to—
(A) leases, charters, mortgages, financing,
and similar arrangements;
(B) the control of persons not eligible to
own a vessel with a fishery endorsement
under subsection (c) or (d), over the management, sales, financing, or other operations of
an entity; and
(C) contracts involving the purchase over
extended periods of time of all, or substantially all, of the living marine resources harvested by a fishing vessel.
1 See

References in Text note below.

Page 174

(f) VESSELS MEASURING LESS THAN 100 FEET.—
The Secretary shall establish reasonable and
necessary requirements to demonstrate compliance with subsections (c) and (d), with respect to
vessels measuring less than 100 feet in registered
length, and shall seek to minimize the administrative burden on individuals who own and operate those vessels.
(g) VESSELS PURCHASED THROUGH FISHING CAPACITY REDUCTION PROGRAM.—A vessel purchased by the Secretary of Commerce through a
fishing capacity reduction program under the
Magnuson-Stevens Fishery Conservation and
Management Act (16 U.S.C. 1801 et seq.) or section 308 of the Interjurisdictional Fisheries Act
of 1986 (16 U.S.C. 4107) is not eligible for a fishery
endorsement, and any fishery endorsement issued for that vessel is invalid.
(h) REVOCATION OF ENDORSEMENTS.—The Secretary shall revoke the fishery endorsement of
any vessel subject to subsection (c) or (d) whose
owner does not comply with those provisions.
(i) REGULATIONS.—Regulations to implement
subsections (c) and (d) and sections 12151(c) and
31322(b) of this title shall prohibit impermissible
transfers of ownership or control, specify any
transactions that require prior approval of an
implementing agency, identify transactions that
do not require prior agency approval, and to the
extent practicable, minimize disruptions to the
commercial fishing industry, to the traditional
financing arrangements of that industry, and to
the opportunity to form fishery cooperatives.
(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1495;
Pub. L. 110–181, div. C, title XXXV, § 3529(a)(2),
Jan. 28, 2008, 122 Stat. 603; Pub. L. 111–281, title
VI, § 602(a), Oct. 15, 2010, 124 Stat. 2959.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

12113(a) ......
12113(b)(1) ..
12113(b)(2) ..
12113(c)(1) ..
12113(c)(2) ..
12113(c)(3) ..
12113(d) ......
12113(e) ......

46:12108(a).
46:12108(b).
46:12102(c)(3).
46:12102(c)(1).
46:12102(c)(2).
46:12102(c)(4).
46:12102(c)(5).
46:12102 note.

12113(f) .......

46:12102 note.

12113(g) ......
12113(h) ......

46:12108(d).
46:12102 note.

12113(i) .......

46:12102 note.

Source (Statutes at Large)

Pub. L. 105–277, div. C, title
II, § 203(c), Oct. 21, 1998, 112
Stat. 2681–619.
Pub. L. 105–277, div. C, title
II, § 203(d), Oct. 21, 1998, 112
Stat. 2681–619.
Pub. L. 105–277, div. C, title
II, § 203(e), Oct. 21, 1998, 112
Stat. 2681–619.
Pub. L. 105–277, div. C, title
II, § 203(b), Oct. 21, 1998, 112
Stat. 2681–619.

In subsection (b)(1), the word ‘‘only’’ is omitted because section 12102(a), as revised by the bill, contains a
general requirement for appropriate documentation to
engage in any trade.
In subsection (c)(1), the word ‘‘entity’’ is substituted
for ‘‘corporation, partnership, association, trust, joint
venture, limited liability company, limited liability
partnership, or any other entity’’ to eliminate unnecessary words.
In subsection (e)(3), the words ‘‘After October 1, 2001’’
are omitted as obsolete.
In subsection (i), the first two sentences of section
203(b) of Public Law 105–277 are omitted as obsolete.
REFERENCES IN TEXT
The American Fisheries Act (Public Law 105–277, div.
C, title II) (16 U.S.C. 1851 note), referred to in subsec.

Page 175

§ 12114

TITLE 46—SHIPPING

(d)(2)(B), probably should be a reference to the Magnuson-Stevens Fishery Conservation and Management
Act (see note below). Subsec. (d)(2)(B) of this section
was derived from former section 12102(c)(5)(B) of this
title in the general amendment of this chapter by Pub.
L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1491. As part of that
amendment, the reference to the American Fisheries
Act was substituted for a reference to ‘‘such Act’’
which had been preceded by references to both of the
above named Acts. See the Historical and Revision
Notes above and section 2 of Pub. L. 109–304, set out as
a Legislative Purpose and Construction note preceding
section 101 of this title.
Section 208(g) of the American Fisheries Act, referred
to in subsec. (d)(2)(C), is section 208(g) of title II of div.
C of Pub. L. 105–277, Oct. 21, 1998, 112 Stat. 2681–627,
which is set out in a note under section 1851 of Title 16,
Conservation.
The Magnuson-Stevens Fishery Conservation and
Management Act, referred to in subsec. (g), is Pub. L.
94–265, Apr. 13, 1976, 90 Stat. 331, which is classified
principally to chapter 38 (§ 1801 et seq.) of Title 16, Conservation. For complete classification of this Act to
the Code, see Short Title note set out under section
1801 of Title 16 and Tables.
PRIOR PROVISIONS
A prior section 12113, Pub. L. 98–89, Aug. 26, 1983, 97
Stat. 588, originally derived from section 65a of former
Title 46, Shipping, related to ports of documentation,
prior to being repealed by Pub. L. 100–710, title I,
§§ 106(b)(5), 107(a), Nov. 23, 1988, 102 Stat. 4752, effective
Jan. 1, 1989.
AMENDMENTS
2010—Subsec. (d)(2)(A)(i). Pub. L. 111–281, § 602(a)(1),
inserted ‘‘and’’ at the end.
Subsec. (d)(2)(A)(ii). Pub. L. 111–281, § 602(a)(2), struck
out ‘‘and’’ at the end.
Subsec. (d)(2)(A)(iii). Pub. L. 111–281, § 602(a)(3), struck
out cl. (iii) which read as follows: ‘‘if the fishery endorsement is invalidated after October 21, 1998, application is made for a new fishery endorsement within 15
business days of the invalidation; or’’.
Subsec. (d)(2)(C), (D). Pub. L. 111–281, § 602(a)(4), (5),
added subpars. (C) and (D).
2008—Subsec. (g). Pub. L. 110–181 inserted ‘‘and’’ after
‘‘Conservation’’.
INAPPLICABILITY OF SUBSECTION (d) TO CERTAIN
MENHADEN FISHERIES
Pub. L. 106–31, title III, § 3027(c), May 21, 1999, 113
Stat. 102, provided that: ‘‘The limitation on registered
length contained in section 12102(c)(6) [now section
12113(d)] of title 46, United States Code, shall not apply
to a vessel used solely in any menhaden fishery which
is located in the Gulf of Mexico or along the Atlantic
coast south of the area under the authority of the New
England Fishery Management Council for so long as
such vessel is used in such fishery.’’
EXCEPTION TO BUILD REQUIREMENT FOR PRIOR VESSELS
Pub. L. 100–239, § 4, Jan. 11, 1988, 101 Stat. 1779, as
amended by Pub. L. 101–225, title III, § 310, Dec. 12, 1989,
103 Stat. 1926, provided that:
‘‘(a) Notwithstanding the requirements of section
12108(a)(2) and (3) [now section 12113(a)(2) and (3)] of
title 46, United States Code, a fishery license may be issued to a vessel that before July 28, 1987—
‘‘(1)(A) was documented under chapter 121 of that
title; and
‘‘(B) was operated as a fish processing or fish tender
vessel in the navigable waters of the United States or
the exclusive economic zone;
‘‘(2) was a fish tender or fish processing vessel contracted to be purchased by a citizen of the United
States, if the purchase is shown by contract or similarly reliable evidence acceptable to the Secretary to
have been made for the purpose of using the vessel as
a fish tender or fish processing vessel in the fisheries;

‘‘(3) was documented under chapter 121 of that title
and—
‘‘(A) was rebuilt in a foreign country; or
‘‘(B) is subsequently rebuilt in the United States
for use as a fish processing vessel; or
‘‘(4) was built in the United States and—
‘‘(A) is rebuilt in a foreign country under a contract entered into before 6 months after the date of
enactment of this Act [Jan. 11, 1988], and was purchased or contracted to be purchased before July 28,
1987 with the intent that the vessel be used in the
fisheries, if that intent is evidenced by—
‘‘(i) the contract itself; or
‘‘(ii) a ruling letter by the Coast Guard before
July 29, 1987 under 46 C.F.R. § 67.21–1 or § 67.27–3
pursuant to a ruling request evidencing that intent; or
‘‘(B) is purchased for use as a fish processing vessel under a contract entered into after July 27, 1987,
if—
‘‘(i) a contract to rebuild the vessel for use as a
fish processing vessel was entered into before September 1, 1987; and
‘‘(ii) that vessel is part of a specific business
plan involving the conversion in foreign shipyards
of a series of three vessels and rebuilding work on
at least one of the vessels had begun before July
28, 1987.
‘‘(b) A vessel rebuilt under subsection (a)(3)(B) or (4)
of this section must be redelivered to the owner before
July 28, 1990. However, the Secretary may, on proof of
circumstances beyond the control of the owner of a vessel affected by this section, extend the period for rebuilding in a foreign country permitted by this section.
‘‘(c)(1) Any fishery license or registry issued to a vessel built in a foreign country under this section shall be
endorsed to restrict the vessel from catching, taking,
or harvesting.
‘‘(2) Before being issued a fishery license, any vessel
described in subsection (a)(2) of this section must be
documented under an application for documentation
acceptable to the Secretary filed before July 28, 1987,
except that an alternative vessel of no greater tonnage
than the vessel in the application may be substituted,
if that substitution is made by the original applicant.’’
DEFINITIONS
Pub. L. 100–239, § 6(d), Jan. 11, 1988, 101 Stat. 1782, provided that: ‘‘The terms in this Act [see Tables for classification] have the same meaning as in subtitle II [now
also sections 114 and 115] of title 46, United States Code
(as amended by this Act).’’

§ 12114. Recreational endorsement
(a) REQUIREMENTS.—A recreational endorsement may be issued for a vessel that satisfies
the requirements of section 12103 of this title.
(b) AUTHORIZED ACTIVITY.—A vessel operating
under a recreational endorsement may be operated only for pleasure.
(c) APPLICATION OF CUSTOMS LAWS.—A vessel
for which a recreational endorsement is issued
may proceed between a port of the United States
and a port of a foreign country without entering
or clearing with the Secretary of Homeland Security. However, a recreational vessel is subject
to the requirements for reporting arrivals under
section 433 of the Tariff Act of 1930 (19 U.S.C.
1433), and individuals on the vessel are subject
to applicable customs regulations.
(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1498.)
HISTORICAL AND REVISION NOTES
Revised
Section
12114(a) ......

Source (U.S. Code)
46:12109(a).

Source (Statutes at Large)

§ 12115

TITLE 46—SHIPPING

HISTORICAL AND REVISION NOTES—CONTINUED
Revised
Section
12114(b) ......
12114(c) ......

Source (U.S. Code)

Source (Statutes at Large)

46:12109(c).
46:12110(c).
46:12109(b).

In subsection (c), the words ‘‘Secretary of Homeland
Security’’ are substituted for ‘‘Customs Service’’ because the functions of the Customs Service and of the
Secretary of the Treasury relating thereto were transferred to the Secretary of Homeland Security by section 403(1) of the Homeland Security Act of 2002 (Pub.
L. 107–296, 116 Stat. 2178).
PRIOR PROVISIONS
A prior section 12114, Pub. L. 98–89, Aug. 26, 1983, 97
Stat. 589; Pub. L. 99–36, § 1(a)(8), May 15, 1985, 99 Stat. 67,
originally derived from section 65c of former Title 46,
Shipping, related to home ports, prior to being repealed
by Pub. L. 100–710, title I, §§ 106(b)(5), 107(a), Nov. 23,
1988, 102 Stat. 4752, effective Jan. 1, 1989.

§ 12115. Temporary endorsement for vessels procured outside the United States
(a) GENERAL AUTHORITY.—The Secretary and
the Secretary of State, acting jointly, may provide for the issuance of a certificate of documentation with an appropriate endorsement for
a vessel procured outside the United States and
meeting the ownership requirements of section
12103 of this title.
(b) AUTHORIZED ACTIVITY.—Subject to limitations the Secretary may prescribe, a vessel documented under this section may proceed to the
United States and engage en route in foreign
trade or trade with Guam, American Samoa,
Wake, Midway, or Kingman Reef.
(c) APPLICATION OF UNITED STATES JURISDICTION AND LAWS.—A vessel documented under this
section is subject to the jurisdiction and laws of
the United States. However, if the Secretary
considers it to be in the public interest, the Secretary may suspend for a period of not more
than 6 months the application of a vessel inspection law carried out by the Secretary or regulations prescribed under that law.
(d) SURRENDER OF CERTIFICATE.—On the vessel’s arrival in the United States, the certificate
of documentation shall be surrendered as provided by regulations prescribed by the Secretary.
(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1498.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

12115(a) ......
12115(b) ......

46:12112(a).
46:12112(b) (1st sentence).
46:12112(c).
46:12112(b) (last sentence).

12115(c) ......
12115(d) ......

Source (Statutes at Large)

PRIOR PROVISIONS
A prior section 12115, Pub. L. 98–89, Aug. 26, 1983, 97
Stat. 589, originally derived from section 65d of former
Title 46, Shipping, related to names of vessels, prior to
being repealed by Pub. L. 100–710, title I, §§ 106(b)(5),
107(a), Nov. 23, 1988, 102 Stat. 4752, effective Jan. 1, 1989.

§ 12116. Limited endorsements for Guam, American Samoa, and Northern Mariana Islands
(a) ENDORSEMENTS.—A vessel satisfying the requirements of subsection (b) may be issued—

Page 176

(1) a coastwise endorsement to engage in the
coastwise trade of fisheries products between
places in Guam, American Samoa, and the
Northern Mariana Islands; or
(2) a fishery endorsement to engage in fishing in the territorial sea and fishery conservation zone adjacent to Guam, American Samoa,
and the Northern Mariana Islands.
(b) REQUIREMENTS.—An endorsement may be
issued under subsection (a) for a vessel that—
(1) satisfies the requirements of section 12103
of this title;
(2) was not built in the United States, except
that for an endorsement under subsection
(a)(2), the vessel must not have been built or
rebuilt in the United States;
(3) is less than 200 gross tons as measured
under section 14502 of this title, or an alternate tonnage as measured under section 14302
of this title as prescribed by the Secretary
under section 14104 of this title; and
(4) otherwise qualifies under the laws of the
United States to engage in the coastwise trade
or the fisheries, as the case may be.
(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1499.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

12116 ..........

Source (Statutes at Large)

46:12106(c).
46:12108(c).

PRIOR PROVISIONS
A prior section 12116, Pub. L. 98–89, Aug. 26, 1983, 97
Stat. 589, originally derived from section 65f of former
Title 46, Shipping, related to numbers, signal letters,
and identification markings, prior to being repealed by
Pub. L. 100–710, title I, §§ 106(b)(5), 107(a), Nov. 23, 1988,
102 Stat. 4752, effective Jan. 1, 1989.
TERRITORIAL SEA OF UNITED STATES
For extension of territorial sea of United States, see
Proc. No. 5928, set out as a note under section 1331 of
Title 43, Public Lands.

§ 12117. Oil spill response vessels
(a) REQUIREMENTS.—A coastwise endorsement
may be issued for a vessel that—
(1) satisfies the requirements for a coastwise
endorsement, except for the ownership requirement otherwise applicable without regard to this section;
(2) is owned by a not-for-profit oil spill response cooperative or by members of such a
cooperative that dedicate the vessel to use by
the cooperative;
(3) is at least 50 percent owned by individuals or entities described in section 12103(b) of
this title; and
(4) is to be used only for—
(i) deploying equipment, supplies, and personnel to recover, contain, or transport oil
discharged into the navigable waters of the
United States or the exclusive economic
zone; or
(ii) training exercises to prepare to respond to such a discharge.
(b) DEEMED OWNED BY CITIZENS.—A vessel satisfying subsection (a) is deemed to be owned
only by citizens of the United States under sections 12103, 12132, and 50501 of this title.

Page 177

TITLE 46—SHIPPING

(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1499.)
HISTORICAL AND REVISION NOTES
Revised
Section
12117 ..........

Source (U.S. Code)

Source (Statutes at Large)

46:12106(d).

PRIOR PROVISIONS
A prior section 12117, Pub. L. 98–89, Aug. 26, 1983, 97
Stat. 589; Pub. L. 100–710, title I, § 104(a)(4), Nov. 23, 1988,
102 Stat. 4750, originally derived from section 65q of
former Title 46, Shipping, related to recording of
United States built vessels, prior to the general amendment of this chapter by Pub. L. 109–304. See section
12137 of this title.

§ 12118. Owners engaged primarily in manufacturing or mineral industry
(a) DEFINITIONS.—In this section:
CORPORATION.—The
term
(1)
BOWATERS
‘‘Bowaters corporation’’ means a corporation
that has filed a certificate under oath with the
Secretary, in the form and at the times prescribed by the Secretary, establishing that—
(A) the corporation is incorporated under
the laws of the United States or a State;
(B) a majority of the officers and directors
of the corporation are individuals who are
citizens of the United States;
(C) at least 90 percent of the employees of
the corporation are residents of the United
States;
(D) the corporation is engaged primarily in
a manufacturing or mineral industry in the
United States;
(E) the total book value of the vessels
owned by the corporation is not more than
10 percent of the total book value of the assets of the corporation; and
(F) the corporation buys or produces in the
United States at least 75 percent of the raw
materials used or sold in its operations.
(2) PARENT.—The term ‘‘parent’’ means a
corporation that has filed a certificate under
oath with the Secretary, in the form and at
the times prescribed by the Secretary, establishing that the corporation—
(A) is incorporated under the laws of the
United States or a State; and
(B) controls, directly or indirectly, at least
50 percent of the voting stock of a Bowaters
corporation.
(3) SUBSIDIARY.—The term ‘‘subsidiary’’
means a corporation that has filed a certificate under oath with the Secretary, in the
form and at the times prescribed by the Secretary, establishing that the corporation—
(A) is incorporated under the laws of the
United States or a State; and
(B) has at least 50 percent of its voting
stock controlled, directly or indirectly, by a
Bowaters corporation or its parent.
(b) DEEMED CITIZEN.—A Bowaters corporation
is deemed to be a citizen of the United States for
purposes of chapters 121, 551, and 561 and section
80104 of this title.
(c) ISSUANCE OF DOCUMENTATION.—A certificate
of documentation and appropriate endorsement
may be issued for a vessel that—
(1) is owned by a Bowaters corporation;

§ 12118

(2) was built in the United States; and
(3)(A) is self-propelled and less than 500 gross
tons as measured under section 14502 of this
title, or an alternate tonnage as measured
under section 14302 of this title as prescribed
by the Secretary under section 14104 of this
title; or
(B) is not self-propelled.
(d) EFFECTS OF DOCUMENTATION.—
(1) IN GENERAL.—Subject to paragraph (2)—
(A) a vessel documented under this section
may engage in the coastwise trade; and
(B) the vessel and its owner and master are
entitled to the same benefits and are subject
to the same requirements and penalties as if
the vessel were otherwise documented or exempt from documentation under this chapter.
(2) TRANSPORTATION OF PASSENGERS OR MERCHANDISE.—A vessel documented under this
section may transport passengers or merchandise for hire in the coastwise trade only—
(A) as a service for a parent or subsidiary
of the corporation owning the vessel; or
(B) when under a demise or bareboat charter, at prevailing rates for use not in the domestic noncontiguous trades, from the corporation owning the vessel to a carrier
that—
(i) is subject to jurisdiction under subchapter II of chapter 135 of title 49;
(ii) otherwise qualifies as a citizen of the
United States under section 50501 of this
title; and
(iii) is not owned or controlled, directly
or indirectly, by the corporation owning
the vessel.
(e) VALIDITY OF CORPORATE CERTIFICATE.—A
certificate filed by a corporation under this section remains valid only as long as the corporation continues to satisfy the conditions required
of the corporation by this section. When a corporation no longer satisfies those conditions,
the corporation loses its status under this section and immediately shall surrender to the Secretary any documents issued to it based on that
status.
(f) PENALTIES.—
(1) FALSIFYING MATERIAL FACT.—If a corporation knowingly falsifies a material fact in a
certificate filed under subsection (a), the vessel (or its value) documented or operated
under this section shall be forfeited.
(2) TRANSPORTING MERCHANDISE.—If a vessel
transports merchandise for hire in violation of
this section, the merchandise shall be forfeited
to the United States Government.
(3) TRANSPORTING PASSENGERS.—If a vessel
transports passengers for hire in violation of
this section, the vessel is liable for a penalty
of $200 for each passenger so transported.
(4) REMISSION OR MITIGATION.—A penalty or
forfeiture incurred under this subsection may
be remitted or mitigated under section 2107(b)
of this title.
(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1500.)

§ 12119

TITLE 46—SHIPPING
HISTORICAL AND REVISION NOTES

Revised
Section
12118(a)(1) ..

12118(a)(2),
(3).
12118(b) ......
12118(c) ......
12118(d)(1) ..
12118(d)(2) ..
12118(e) ......
12118(f) .......

Source (U.S. Code)
46 App.:883–1 (1st
par. words
through cl. (e)
less citizenship,
4th par. 1st sentence).

Source (Statutes at Large)
June 5, 1920, ch. 250, § 27A, as
added Pub. L. 85–902, Sept.
2, 1958, 72 Stat. 1736; Pub.
L. 104–88, title III, § 321(2),
Dec. 29, 1995, 109 Stat. 950;
Pub. L. 104–324, title VII,
§ 706, Oct. 19, 1996, 110
Stat. 3934.

46 App.:883–1 (2d
par., 4th par. 2d
sentence).
46 App.:883–1 (1st
par. related to
citizenship).
46 App.:883–1 (3d
par. words before
5th comma).
46 App.:883–1 (3d
par. words after
5th comma).
46 App.:883–1 (1st
par. words after
cl. (e)).
46 App.:883–1 (last
par.).
46 App.:883–1 (4th
par. 3d–6th sentences).

In this section, the word ‘‘Secretary’’ is substituted
for ‘‘Secretary of the Treasury’’, thereby incorporating
the definition of ‘‘Secretary’’ in section 2101 of title 46.
The functions of the Secretary of the Treasury relating
to the Coast Guard previously were transferred to the
Secretary of Transportation by section 6(b) of the Department of Transportation Act (Pub. L. 89–670, Oct. 15,
1966, 80 Stat. 938). The Coast Guard and the functions of
the Secretary of Transportation relating to the Coast
Guard were again transferred to the Department of
Homeland Security by section 888(b) of the Homeland
Security Act of 2002 (Pub. L. 107–296, Nov. 25, 2002, 116
Stat. 2135).
In subsection (a)(1), the words ‘‘seeking hereunder to
document a vessel under the laws of the United States
or to operate a vessel exempt from documentation
under the laws of the United States’’ are omitted as unnecessary because of the reorganization of the section.
Subsection (d)(1)(B) is substituted for ‘‘together with
their owners or masters, shall be entitled to all the
other benefits and privileges and shall be subject to the
same requirements, penalties, and forfeitures as may
be applicable in the case of vessels built in the United
States and otherwise documented or exempt from documentation under the laws of the United States’’ to
eliminate unnecessary words.
In subsection (d)(2), the words before subparagraph
(A) are substituted for ‘‘no vessel owned by any such
corporation shall engage in the fisheries or in the
transportation of merchandise or passengers for hire
between points in the United States, including Territories, Districts, and possessions thereof, embraced
within the coastwise laws, except’’ to eliminate unnecessary words. See the definition of ‘‘United States’’ in
chapter 1 of the revised title.
PRIOR PROVISIONS
A prior section 12118, Pub. L. 98–89, Aug. 26, 1983, 97
Stat. 589, originally derived from section 65r of former
Title 46, Shipping, related to registration of funnel
marks and house flags, prior to being repealed by Pub.
L. 100–710, title I, §§ 106(b)(5), 107(a), Nov. 23, 1988, 102
Stat. 4752, effective Jan. 1, 1989.

§ 12119. Owners engaged primarily in leasing or
financing transactions
(a) DEFINITIONS.—In this section:
(1) AFFILIATE.—The term ‘‘affiliate’’ means,
with respect to any person, any other person
that is—
(i) directly or indirectly controlled by,
under common control with, or controlling
that person; or

Page 178

(ii) named as being part of the same consolidated group in any report or other document submitted to the United States Securities and Exchange Commission or the Internal Revenue Service.
(2) CARGO.—The term ‘‘cargo’’ does not include cargo to which title is held for non-commercial reasons and primarily for the purpose
of evading the requirements of subsection
(c)(3).
(3) OIL.—The term ‘‘oil’’ has the meaning
given that term in section 2101(20) of this title.
(4) PASSIVE INVESTMENT.—The term ‘‘passive
investment’’ means an investment in which
neither the investor nor any affiliate of the investor is involved in, or has the power to be involved in, the formulation, determination, or
direction of any activity or function concerning the management, use, or operation of the
asset that is the subject of the investment.
(5) QUALIFIED PROPRIETARY CARGO.—The
term ‘‘qualified proprietary cargo’’ means—
(A) oil, petroleum products, petrochemicals, or liquefied natural gas cargo that is
beneficially owned by the person that submits to the Secretary an application or annual certification under subsection (c)(3), or
by an affiliate of that person, immediately
before, during, or immediately after the
cargo is carried in coastwise trade on a vessel owned by that person;
(B) oil, petroleum products, petrochemicals, or liquefied natural gas cargo not beneficially owned by the person that submits to
the Secretary an application or an annual
certification under subsection (c)(3), or by
an affiliate of that person, but which is carried in coastwise trade by a vessel owned by
that person and which is part of an arrangement in which vessels owned by that person
and at least one other person are operated
collectively as one fleet, to the extent that
an equal amount of oil, petroleum products,
petrochemicals, or liquefied natural gas
cargo beneficially owned by that person, or
by an affiliate of that person, is carried in
coastwise trade on one or more other vessels, not owned by that person, or by an affiliate of that person, if the other vessel or
vessels are also part of the same arrangement;
(C) in the case of a towing vessel associated with a non-self-propelled tank vessel
where both vessels function as a single selfpropelled vessel, oil, petroleum products, petrochemicals, or liquefied natural gas cargo
that is beneficially owned by the person that
owns both the towing vessel and the nonself-propelled tank vessel, or any United
States affiliate of that person, immediately
before, during, or immediately after the
cargo is carried in coastwise trade on either
of those vessels; or
(D) any oil, petroleum products, petrochemicals, or liquefied natural gas cargo
carried on any vessel that is either a selfpropelled tank vessel having a length of at
least 210 meters or a tank vessel that is a
liquefied natural gas carrier that—
(i) was delivered by the builder of the
vessel to the owner of the vessel after December 31, 1999; and

Page 179

§ 12119

TITLE 46—SHIPPING

(ii) was purchased by a person for the
purpose, and with the reasonable expectation, of transporting on the vessel liquefied natural gas or unrefined petroleum
beneficially owned by the owner of the vessel, or an affiliate of the owner, from Alaska to the continental United States.
(6) UNITED STATES AFFILIATE.—The term
‘‘United States affiliate’’ means, with respect
to any person, an affiliate the principal place
of business of which is located in the United
States.
(b) REQUIREMENTS.—A coastwise endorsement
may be issued for a vessel if—
(1) the vessel satisfies the requirements for a
coastwise endorsement, except for the ownership requirement otherwise applicable without
regard to this section;
(2) the person that owns the vessel (or, if the
vessel is owned by a trust or similar arrangement, the beneficiary of the trust or similar
arrangement) meets the requirements of subsection (c);
(3) the vessel is under a demise charter to a
person that certifies to the Secretary that the
person is a citizen of the United States under
section 50501 of this title for engaging in the
coastwise trade; and
(4) the demise charter is for a period of at
least 3 years or a shorter period as may be prescribed by the Secretary.
(c) OWNERSHIP CERTIFICATION.—
(1) IN GENERAL.—A person meets the requirements of this subsection if the person transmits to the Secretary each year the certification required by paragraph (2) or (3) with respect to a vessel.
(2) INVESTMENT CERTIFICATION.—To meet the
certification requirement of this paragraph, a
person shall certify that it—
(A) is a leasing company, bank, or financial institution;
(B) owns, or holds the beneficial interest
in, the vessel solely as a passive investment;
(C) does not operate any vessel for hire and
is not an affiliate of any person that operates any vessel for hire; and
(D) is independent from, and not an affiliate of, any charterer of the vessel or any
other person that has the right, directly or
indirectly, to control or direct the movement or use of the vessel.
(3) CERTAIN TANK VESSELS.—
(A) IN GENERAL.—To meet the certification
requirement of this paragraph, a person
shall certify that—
(i) the aggregate book value of the vessels owned by the person and United
States affiliates of the person does not exceed 10 percent of the aggregate book
value of all assets owned by the person and
its United States affiliates;
(ii) not more than 10 percent of the aggregate revenues of the person and its
United States affiliates is derived from the
ownership, operation, or management of
vessels;
(iii) at least 70 percent of the aggregate
tonnage of all cargo carried by all vessels

owned by the person and its United States
affiliates and documented with a coastwise
endorsement is qualified proprietary
cargo;
(iv) any cargo other than qualified proprietary cargo carried by all vessels owned
by the person and its United States affiliates and documented with a coastwise endorsement consists of oil, petroleum products, petrochemicals, or liquified natural
gas;
(v) no vessel owned by the person or any
of its United States affiliates and documented with a coastwise endorsement carries molten sulphur; and
(vi) the person owned one or more vessels documented under this section as of
August 9, 2004.
CERTAIN VESa certification
under this paragraph only with respect to—
(i) a tank vessel having a tonnage of at
least 6,000 gross tons, as measured under
section 14502 of this title (or an alternative
tonnage measured under section 14302 of
this title as prescribed by the Secretary
under section 14104 of this title); or
(ii) a towing vessel associated with a
non-self-propelled tank vessel that meets
the requirements of clause (i), where both
vessels function as a single self-propelled
vessel.

(B) APPLICATION ONLY TO
SELS.—A person may make

(d) FILING OF DEMISE CHARTER.—The demise
charter and any amendments to the charter
shall be filed with the certification required by
subsection (b)(3) or within 10 days after filing an
amendment to the charter. The charter and
amendments shall be made available to the public.
(e) CONTINUATION OF ENDORSEMENT AFTER TERMINATION OF CHARTER.—When a charter required
by subsection (b)(3) is terminated for default by
the charterer, the Secretary may continue the
coastwise endorsement for not more than 6
months on terms and conditions the Secretary
may prescribe.
(f) DEEMED OWNED BY CITIZENS.—A vessel satisfying the requirements of this section is
deemed to be owned only by citizens of the
United States under sections 12103 and 50501 of
this title.
(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1501.)
HISTORICAL AND REVISION NOTES
Revised
Section
12119(a) ......
12119(b) ......
12119(c) ......
12119(d) ......
12119(e) ......
12119(f) .......

Source (U.S. Code)

Source (Statutes at Large)

46:12106(f)(4).
46:12106(e)(1).
46:12106(f)(1)–(3).
46:12106(e)(2).
46:12106(e)(3).
46:12106(e)(4).

In subsection (b), in paragraph (1), the words ‘‘satisfies the requirements for a coastwise endorsement, except for the ownership requirement otherwise applicable without regard to this section’’ are substituted for
‘‘otherwise eligible for documentation under this section’’ in 46 U.S.C. 12106(e)(1)(E) for clarity. Subparagraph (A) of 46 U.S.C. 12106(e)(1) is omitted as redundant to the general requirements in revised section
12112 on coastwise endorsements.

§ 12120

TITLE 46—SHIPPING

In subsection (c)(3), the words ‘‘documented with a
coastwise endorsement’’ are substituted for ‘‘documented under this section’’ because former section
12106 is being divided into multiple sections.
Subsection (e) is substituted for ‘‘(3) Upon termination by a demise charterer required under paragraph
(1)(C), the coastwise endorsement of the vessel may, in
the sole discretion of the Secretary, be continued after
the termination for default of the demise charter for a
period not to exceed 6 months on such terms and conditions as the Secretary may prescribe’’ for clarity and
to eliminate unnecessary words.
PRIOR PROVISIONS
A prior section 12119, Pub. L. 98–89, Aug. 26, 1983, 97
Stat. 589; Pub. L. 100–710, title I, § 104(a)(4), Nov. 23, 1988,
102 Stat. 4750, originally derived from sections 65s and
881 of former Title 46, Shipping, related to list of documented vessels, prior to the general amendment of this
chapter by Pub. L. 109–304. See section 12138 of this
title.
APPLICATION TO CERTAIN CERTIFICATES
Pub. L. 108–293, title VI, § 608(c), Aug. 9, 2004, 118 Stat.
1057, provided that:
‘‘(1) IN GENERAL.—The amendments made by this section [amending provisions from which this section was
derived], and any regulations published after February
4, 2004, with respect to coastwise endorsements, shall
not apply to a certificate of documentation, or renewal
thereof, endorsed with a coastwise endorsement for a
vessel under section 12106(e) [now section 12119(b),
(d)–(f)] of title 46, United States Code, or a replacement
vessel of a similar size and function, that was issued
prior to the date of enactment of this Act [Aug. 9, 2004]
as long as the vessel is owned by the person named
therein, or by a subsidiary or affiliate of that person,
and the controlling interest in such owner has not been
transferred to a person that was not an affiliate of such
owner as of the date of enactment of this Act. Notwithstanding the preceding sentence, however, the amendments made by this section shall apply, beginning 3
years after the date of enactment of this Act, with respect to offshore supply vessels (as defined in section
2101(19) of title 46, United States Code, as that section
was in effect on the date of enactment of this Act) with
a certificate of documentation endorsed with a coastwise endorsement as of the date of enactment of this
Act, and the Secretary of the Department in which the
Coast Guard is operating shall revoke any such certificate if the vessel does not by then meet the requirements of section 12106(e) of title 46, United States Code,
as amended by this section.
‘‘(2) REPLACEMENT VESSEL.—For the purposes of this
subsection, ‘replacement vessel’ means—
‘‘(A) a temporary replacement vessel for a period of
not to exceed 180 days if the vessel described in paragraph (1) is unavailable due to an act of God or a marine casualty; or
‘‘(B) a permanent replacement vessel if—
‘‘(i) the vessel described in paragraph (1) is unavailable for more than 180 days due to an act of
God or a marine casualty; or
‘‘(ii) a contract to purchase or construct such replacement vessel is executed not later than December 31, 2004.’’
WAIVER OF QUALIFIED PROPRIETARY CARGO
REQUIREMENT
Pub. L. 108–293, title VI, § 608(d), Aug. 9, 2004, 118 Stat.
1057, provided that: ‘‘The Secretary of Transportation
shall waive or reduce the qualified proprietary cargo
requirement of section 12106(f)(3)(A)(iii) [now section
12119(c)(3)(A)(iii)] of title 46, United States Code, for a
vessel if the person that owns the vessel (or, if the vessel is owned by a trust or similar arrangement, the beneficiary of the trust or similar arrangement) notifies
the Secretary that circumstances beyond the direct
control of such person or its affiliates prevent, or rea-

Page 180

sonably threaten to prevent, such person from satisfying such requirement, and the Secretary does not, with
good cause, determine otherwise. The waiver or reduction shall apply during the period of time that such circumstances exist.’’

§ 12120. Liquified gas tankers
Notwithstanding any agreement with the
United States Government, the Secretary may
issue a certificate of documentation with a
coastwise endorsement for a vessel to transport
liquified natural gas or liquified petroleum gas
to Puerto Rico from other ports in the United
States, if the vessel—
(1) is a foreign built vessel that was built before October 19, 1996; or
(2) was documented under this chapter before that date, even if the vessel is placed
under a foreign registry and subsequently redocumented under this chapter for operation
under this section.
(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1504.)
HISTORICAL AND REVISION NOTES
Revised
Section
12120 ..........

Source (U.S. Code)
46 App.:883 note.

Source (Statutes at Large)
Pub. L. 104–324, title VII,
§ 1120(f), Oct. 19, 1996, 110
Stat. 3978.

The words ‘‘Notwithstanding section 27 of the Merchant Marine Act, 1920 (46 App. U.S.C. 883), section 12106
of title 46, United States Code, section 506 of the Merchant Marine Act, 1936 (46 App. U.S.C. 1156)’’ are omitted as unnecessary. The words ‘‘the Commonwealth of’’
are omitted as unnecessary and for consistency in the
revised title.
PRIOR PROVISIONS
A prior section 12120, Pub. L. 98–89, Aug. 26, 1983, 97
Stat. 589; Pub. L. 100–710, title I, § 104(a)(4), Nov. 23, 1988,
102 Stat. 4750; Pub. L. 108–293, title IV, § 401, Aug. 9, 2004,
118 Stat. 1042; Pub. L. 109–241, title III, § 308, July 11,
2006, 120 Stat. 528, originally derived from section 65t of
former Title 46, Shipping, related to reports, prior to
the general amendment of this chapter by Pub. L.
109–304. See section 12139 of this title.

§ 12121. Small passenger vessels and uninspected
passenger vessels
(a) DEFINITIONS.—In this section:
(1) ELIGIBLE VESSEL.—The term ‘‘eligible
vessel’’ means a vessel that—
(A) was not built in the United States and
is at least 3 years old; or
(B) if rebuilt, was rebuilt outside the
United States at least 3 years before the certificate requested under subsection (b) would
take effect.
(2) SMALL PASSENGER VESSEL; UNINSPECTED
PASSENGER VESSEL; PASSENGER FOR HIRE.—The
terms ‘‘small passenger vessel’’, ‘‘uninspected
passenger vessel’’, and ‘‘passenger for hire’’
have the meaning given those terms in section
2101 of this title.
(b) ISSUANCE OF CERTIFICATE AND ENDORSEMENT.—Notwithstanding sections 12112, 12113,
55102, and 55103 of this title, the Secretary may
issue a certificate of documentation with an appropriate endorsement for employment in the
coastwise trade as a small passenger vessel or an
uninspected passenger vessel in the case of an

Page 181

eligible vessel authorized to carry no more than
12 passengers for hire if the Secretary of Transportation, after notice and an opportunity for
public comment, determines that the employment of the vessel in the coastwise trade will
not adversely affect—
(1) United States vessel builders; or
(2) the coastwise trade business of any person that employs vessels built in the United
States in that business.
(c) REVOCATION.—
(1) FOR FRAUD.—The Secretary shall revoke
a certificate or endorsement issued under subsection (b) if the Secretary of Transportation,
after notice and an opportunity for a hearing,
determines that the certificate or endorsement was obtained by fraud.
(2) OTHER PROVISIONS NOT AFFECTED.—Paragraph (1) does not affect—
(A) the criminal prohibition on fraud and
false statements in section 1001 of title 18; or
(B) any other authority of the Secretary to
revoke a certificate or endorsement issued
under subsection (b).
(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1504.)
HISTORICAL AND REVISION NOTES
Revised
Section
12121 ..........

§ 12132

TITLE 46—SHIPPING

Source (U.S. Code)
46:12106 note.

Guard Authorization Act of 1998 [Pub. L. 105–383] ([formerly] 46 U.S.C. 12106 note) is repealed. The repeal of
section 505 shall have no effect on the validity of any
certificate or endorsement issued under section 502 of
that Act [now 46 U.S.C. 12121(b)].’’

SUBCHAPTER III—MISCELLANEOUS
§ 12131. Command of documented vessels
(a) IN GENERAL.—Except as provided in subsection (b), a documented vessel may be placed
under the command only of a citizen of the
United States.
(b) EXCEPTIONS.—Subsection (a) does not apply
to—
(1) a vessel with only a recreational endorsement; or
(2) an unmanned barge operating outside of
the territorial waters of the United States.
(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1505;
Pub. L. 110–181, div. C, title XXXV, § 3529(a)(3),
Jan. 28, 2008, 122 Stat. 603.)
HISTORICAL AND REVISION NOTES
Revised
Section
12131 ..........

Source (Statutes at Large)
Pub. L. 105–383, title V,
§§ 502–504, Nov. 13, 1998, 112
Stat. 3445; Pub. L. 107–295,
title II, § 207(c)(2), Nov. 25,
2002, 116 Stat. 2097.

The definition of ‘‘Secretary’’ is omitted for consistency in the chapter.
PRIOR PROVISIONS
A prior section 12121, Pub. L. 98–89, Aug. 26, 1983, 97
Stat. 589, originally derived from section 65v(2) of
former Title 46, Shipping, related to the authority of
the Secretary to prescribe regulations to carry out this
chapter, prior to being repealed by Pub. L. 100–710, title
I, §§ 106(b)(5), 107(a), Nov. 23, 1988, 102 Stat. 4752, effective Jan. 1, 1989.
A prior section 12122, Pub. L. 98–89, Aug. 26, 1983, 97
Stat. 590; Pub. L. 99–307, § 1(16), May 19, 1986, 100 Stat.
446; Pub. L. 104–324, title III, § 301(a), (b), Oct. 19, 1996,
110 Stat. 3916; Pub. L. 105–277, div. C, title II, § 203(f),
Oct. 21, 1998, 112 Stat. 2681–620; Pub. L. 106–31, title III,
§ 3027(b), May 21, 1999, 113 Stat. 101; Pub. L. 108–293, title
IV, § 404(b), Aug. 9, 2004, 118 Stat. 1043, originally derived from sections 65n and 65u(a) of former Title 46,
Shipping, related to penalties, prior to the general
amendment of this chapter by Pub. L. 109–304. See section 12151 of this title.
A prior section 12123, added Pub. L. 102–587, title V,
§ 5213(a)(3), Nov. 4, 1992, 106 Stat. 5077, related to denial
and revocation of endorsements, prior to the general
amendment of this chapter by Pub. L. 109–304. See section 12152 of this title.
Another prior section 12123, added Pub. L. 102–388,
title III, § 348(a), Oct. 6, 1992, 106 Stat. 1554, related to
the denial and revocation of trade or recreational endorsement upon failure of vessel’s owner to pay assessment of civil penalty for violation of law, prior to repeal by Pub. L. 104–324, title VII, § 746(a)(1), Oct. 19, 1996,
110 Stat. 3943.
A prior section 12124, added Pub. L. 105–383, title IV,
§ 401(a)(2), Nov. 13, 1998, 112 Stat. 3424, related to surrender of title and number, prior to the general amendment of this chapter by Pub. L. 109–304. See section
12106 of this title.
EFFECT OF REPEAL
Pub. L. 107–295, title II, § 207(c)(1), Nov. 25, 2002, 116
Stat. 2097, provided that: ‘‘Section 505 of the Coast

Source (U.S. Code)

Source (Statutes at Large)

46:12110(d).

AMENDMENTS
2008—Subsec. (a). Pub. L. 110–181 substituted ‘‘command’’ for ‘‘commmand’’.

§ 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.
(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1505.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

Source (Statutes at Large)

12132(a) ......

46 App.:883 (1st proviso).

June 5, 1920, ch. 250, § 27 (1st
proviso, 2d proviso less
meaning of ‘‘rebuilt’’), 41
Stat. 999; July 2, 1935, ch.
355, 49 Stat. 442; July 14,
1956, ch. 600, § 1, 70 Stat.
544; Pub. L. 86–583, § 1,
July 5, 1960, 74 Stat. 321;
Pub. L. 100–239, § 6(c)(1),
Jan. 11, 1988, 101 Stat.
1782; Pub. L. 104–324, title
XI, § 1120(e), Oct. 19, 1996,
110 Stat. 3978.

12132(b) ......

46 App.:883 (2d proviso less meaning
of ‘‘rebuilt’’).

In subsection (a), the words ‘‘eligible to engage in the
coastwise trade’’ are substituted for ‘‘having at any
time acquired the lawful right to engage in the coastwise trade, either by virtue of having been built in, or
documented under the laws of the United States’’, and
the words ‘‘thereafter engage’’ are substituted for
‘‘hereafter acquire the right to engage’’, to eliminate
unnecessary words.
In subsection (b), the words ‘‘eligible to engage in the
coastwise trade’’ are substituted for ‘‘which has ac-

§ 12133

TITLE 46—SHIPPING

Page 182

quired the lawful right to engage in the coastwise
trade, by virtue of having been built in or documented
under the laws of the United States’’, and the words
‘‘thereafter engage’’ are substituted for ‘‘have the right
thereafter to engage’’, to eliminate unnecessary words.
See section 12101 for the meaning of ‘‘rebuilt in the
United States’’.

(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1506.)

§ 12133. Duty to carry certificate on vessel and
allow examination

In paragraph (2), the words ‘‘except for a recreational
endorsement’’ are omitted as unnecessary because a
recreational endorsement does not permit a vessel to
engage in a trade.

(a) DUTY TO CARRY.—The certificate of documentation of a vessel shall be carried on the vessel unless the vessel is exempt by regulation
from carrying the certificate.
(b) AVAILABILITY.—The owner or individual in
charge of a vessel required to carry its certificate of documentation shall make the certificate available for examination at the request of
an officer enforcing the revenue laws or as
otherwise required by law or regulation.
(c) CRIMINAL PENALTY.—A person willfully violating subsection (b) shall be fined under title
18, imprisoned for not more than one year, or
both.
(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1505.)
HISTORICAL AND REVISION NOTES
Revised
Section
12133 ..........

Source (U.S. Code)
46:12103(e).
46 App.:277.

Source (Statutes at Large)

R.S. § 4336; Aug. 5, 1935, ch.
438, title III, § 312, 49 Stat.
528; Pub. L. 85–237, § 2,
Aug. 30, 1957, 71 Stat. 518;
Pub. L. 103–182, title VI,
§ 686(a)(5), Dec. 8, 1993, 107
Stat. 2220.

This section consolidates and clarifies the requirements contained in the source provisions. The specific
civil penalties are omitted as unnecessary because of
the general civil penalty in section 12151(a) of the revised title. See also 19 U.S.C. 1581.

§ 12134. Evidentiary uses of documentation
A certificate of documentation is—
(1) conclusive evidence of nationality for
international purposes, but not in a proceeding conducted under the laws of the United
States;
(2) conclusive evidence of qualification to
engage in a specified trade; and
(3) not conclusive evidence of ownership in a
proceeding in which ownership is in issue.
(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1506.)
HISTORICAL AND REVISION NOTES
Revised
Section
12134 ..........

Source (U.S. Code)

Source (Statutes at Large)

HISTORICAL AND REVISION NOTES
Revised
Section
12135 ..........

Source (U.S. Code)

Source (Statutes at Large)

46:12111(a).

§ 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 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.
(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 forfeited or sold by
order of a district court of the United States.
(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1506.)

46:12104.

HISTORICAL AND REVISION NOTES

§ 12135. Invalidation of certificates of documentation

Revised
Section

A certificate of documentation or an endorsement on the certificate is invalid if the vessel
for which it is issued—
(1) no longer meets the requirements of this
chapter and regulations prescribed under this
chapter applicable to the certificate or endorsement; or
(2) is placed under the command of an individual not a citizen of the United States in
violation of section 12131 of this title.

12136(a) ......
12136(b)(1) ..
12136(b)(2) ..
12136(b)(3) ..
12136(c)(1) ..
12136(c)(2) ..

Source (U.S. Code)

Source (Statutes at Large)

46:12111(b).
46:12111(d)(2).
46:12111(c)(3).
46:12111(d)(1).
46:12111(c)(1).
46:12111(c)(2).

In subsection (a), the words ‘‘or a certificate with an
invalid endorsement’’ are added for clarity.
DOCUMENTATION SURRENDER AND INVALIDATION
Pub. L. 101–225, title III, § 301(b), Dec. 12, 1989, 103
Stat. 1922, provided that: ‘‘Section 12111(c)(3) [now sec-

Page 183

tion 12136(b)(2)] of title 46, United States Code, does not
apply to a mortgage that—
‘‘(1) was filed or recorded before January 1, 1989;
and
‘‘(2) was not a preferred mortgage (as that term is
defined in section 31301(6) of that title) on that date.’’

§ 12137. Recording of vessels built in the United
States
The Secretary may provide for recording and
certifying information about vessels built in the
United States that the Secretary considers to be
in the public interest.
(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1507.)
HISTORICAL AND REVISION NOTES
Revised
Section
12137 ..........

Source (U.S. Code)

Source (Statutes at Large)

46:12117.

§ 12138. List of documented vessels
(a) IN GENERAL.—The Secretary shall publish
periodically a list of all documented vessels and
information about those vessels that the Secretary considers pertinent or useful. The list
shall contain a notation clearly indicating all
vessels classed by the American Bureau of Shipping.
(b) VESSELS FOR CABLE LAYING, MAINTENANCE,
AND REPAIR.—
(1) IN GENERAL.—The Secretary of Transportation shall develop, maintain, and periodically update an inventory of vessels that are
documented under this chapter, are at least
200 feet in length, and have the capability to
lay, maintain, or repair a submarine cable,
without regard to whether a particular vessel
is classed as a cable ship or cable vessel.
(2) INFORMATION TO BE INCLUDED.—For each
vessel listed in the inventory, the Secretary of
Transportation shall include in the inventory—
(A) the name, length, beam, depth, and
other distinguishing characteristics of the
vessel;
(B) the abilities and limitations of the vessel with respect to laying, maintaining, and
repairing a submarine cable; and
(C) the name and address of the person to
whom inquiries regarding the vessel may be
made.
(3) PUBLICATION.—The Secretary of Transportation shall publish in the Federal Register
an updated inventory every 6 months.
(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1507.)
HISTORICAL AND REVISION NOTES
Revised
Section
12138(a) ......
12138(b) ......

§ 12139

TITLE 46—SHIPPING

Source (U.S. Code)
46:12119.
46:12119 note.

Source (Statutes at Large)

Pub. L. 107–295, title IV,
§ 403, Nov. 25, 2002, 116
Stat. 2114.

In subsection (b), the word ‘‘Secretary’’ is substituted
for ‘‘Secretary of Transportation’’ for consistency in
the chapter.

§ 12139. Reports
(a) IN GENERAL.—To ensure compliance with
this chapter and laws governing the qualifica-

tions of vessels to engage in the coastwise trade
and the fisheries, the Secretary may require
owners, masters, charterers, and mortgagees of
documented vessels to submit reports in any
reasonable form and manner the Secretary may
prescribe.
REBUILT
OUTSIDE
UNITED
(b)
VESSELS
STATES.—
(1) IN GENERAL.—Under regulations prescribed by the Secretary, if a vessel exceeding
the tonnage specified in paragraph (2) and documented or last documented under the laws of
the United States is rebuilt outside the United
States, the owner or master shall submit a report of the rebuilding to the Secretary.
(2) TONNAGE.—The tonnage referred to in
paragraph (1) is—
(A) 500 gross tons as measured under section 14502 of this title; or
(B) an alternate tonnage as measured
under section 14302 of this title as prescribed
by the Secretary under section 14104 of this
title.
(3) TIMING OF SUBMISSION.—If the rebuilding
is completed in the United States, the report
shall be submitted when the rebuilding is completed. If the rebuilding is completed outside
the United States, the report shall be submitted when the vessel first arrives at a port in
the customs territory of the United States.
(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1507;
Pub. L. 109–241, title III, § 308, July 11, 2006, 120
Stat. 528; Pub. L. 110–181, div. C, title XXXV,
§ 3525(a)(2), (b), Jan. 28, 2008, 122 Stat. 600, 601.)
HISTORICAL AND REVISION NOTES
Revised
Section
12139(a) ......
12139(b) ......

Source (U.S. Code)
46:12120.
46 App.:883a (1st
sentence).

Source (Statutes at Large)

July 14, 1956, ch. 600, § 2 (1st
sentence), 70 Stat. 544;
Pub. L. 86–583, § 2, July 5,
1960, 74 Stat. 321; Pub. L.
104–324, title VII, § 707,
Oct. 19, 1996, 110 Stat. 3934.

In subsection (b)(1), the word ‘‘Secretary’’ is substituted for ‘‘Secretary of the Treasury’’, thereby incorporating the definition of ‘‘Secretary’’ in section
2101 of title 46. The functions of the Secretary of the
Treasury relating to the Coast Guard previously were
transferred to the Secretary of Transportation by section 6(b) of the Department of Transportation Act
(Pub. L. 89–670, Oct. 15, 1966, 80 Stat. 938). The Coast
Guard and the functions of the Secretary of Transportation relating to the Coast Guard were again transferred to the Department of Homeland Security by section 888(b) of the Homeland Security Act of 2002 (Pub.
L. 107–296, Nov. 25, 2002, 116 Stat. 2135). The words ‘‘rebuilt outside the United States’’ are substituted for
‘‘and any part of the rebuilding, including the construction of major components of the hull and superstructure of the vessel, is not effected within the
United States, its Territories (not including trust territories) or its possessions’’ because of the definition of
‘‘rebuilt’’ in section 12101, and the definition of ‘‘United
States’’ in chapter 1, of the revised title.
AMENDMENTS
2008—Pub. L. 110–181, § 3525(b), repealed Pub. L.
109–241, § 308. See 2006 Amendment note below.
Subsec. (a). Pub. L. 110–181, § 3525(a)(2), incorporated
the substance of the amendment by Pub. L. 109–241,
§ 308, into this section by substituting ‘‘charterers, and
mortgagees’’ for ‘‘and charterers’’. See 2006 Amendment

§ 12151

TITLE 46—SHIPPING

note below and section 18(a) of Pub. L. 109–304, set out
as a Legislative Purpose and Construction note preceding section 101 of this title.
2006—Pub. L. 109–241, § 308, which directed the amendment of former section 12120 of this title from which
subsec. (a) of this section was derived, was repealed by
Pub. L. 110–181, § 3525(b). See 2008 Amendment note for
subsec. (a) and Historical and Revision notes above.

SUBCHAPTER IV—PENALTIES
§ 12151. Penalties
(a) IN GENERAL.—A person that violates this
chapter or a regulation prescribed under this
chapter is liable to the United States Government for a civil penalty of not more than $10,000.
Each day of a continuing violation is a separate
violation.
(b) SEIZURE AND FORFEITURE OF VESSELS.—A
vessel and its equipment are liable to seizure by
and forfeiture to the Government if—
(1) the owner of the vessel or the representative or agent of the owner knowingly falsifies
or conceals a material fact, or knowingly
makes a false statement or representation,
about the documentation of the vessel or in
applying for documentation of the vessel;
(2) a certificate of documentation is knowingly and fraudulently used for the vessel;
(3) the vessel is operated after its endorsement has been denied or revoked under section
12152 of this title;
(4) the vessel is employed in a trade without
an appropriate endorsement;
(5) the vessel has only a recreational endorsement and is operated other than for
pleasure;
(6) the vessel is a documented vessel and is
placed under the command of a person not a
citizen of the United States, except as authorized by section 12131(b) of this title; or
(7) the vessel is rebuilt outside the United
States and a report of the rebuilding is not
submitted as required by section 12139(b) of
this title.
(c) ENGAGING IN FISHING AFTER FALSIFYING
ELIGIBILITY.—In addition to other penalties
under this section, the owner of a documented
vessel for which a fishery endorsement has been
issued is liable to the Government for a civil
penalty of not more than $100,000 for each day
the vessel engages in fishing (as defined in section 3 of the Magnuson-Stevens Fishery Conservation and Management Act (16 U.S.C. 1802))
within the exclusive economic zone, if the owner
or the representative or agent of the owner
knowingly falsified or concealed a material fact,
or knowingly made a false statement or representation, about the eligibility of the vessel
under section 12113(c) or (d) of this title in applying for or applying to renew the fishery endorsement.
(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1508.)

Page 184

HISTORICAL AND REVISION NOTES—CONTINUED
Revised
Section

12151(c) ......

Source (U.S. Code)

Source (Statutes at Large)

46 App.:883a (2d, last
sentences).

July 14, 1956, ch. 600, § 2 (2d,
last sentences), 70 Stat.
544; Pub. L. 86–583, § 2,
July 5, 1960, 74 Stat. 321.

46:12122(c).

In subsection (b), in restating 46 App. U.S.C. 883a (2d,
last sentences), the penalty of $200 for the owner and
master of the vessel is omitted because subsection (a)
provides a general civil penalty for violation of this
chapter. The authority to remit or mitigate a penalty
under section 2107(b) is omitted because section 2107(b)
applies to subtitle II and this section is in subtitle II.

§ 12152. Denial or revocation of endorsement for
non-payment of civil penalty
If the owner of a vessel fails to pay a civil penalty imposed by the Secretary, the Secretary
may deny the issuance or renewal of an endorsement, or revoke the endorsement, on a certificate of documentation issued for the vessel
under this chapter.
(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1508.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

12152 ..........

Source (Statutes at Large)

46:12123.

CHAPTER 123—NUMBERING
UNDOCUMENTED VESSELS
Sec.

12301.
12302.
12303.
12304.
12305.
12306.
12307.
12308.
12309.

Numbering vessels.
Standard numbering system.
Exemption from numbering requirements.
Certificates of numbers.
Displaying numbers.
Safety certificates.
Regulations on numbering and fees.
Providing vessel numbering and registration
information.
Penalties.

§ 12301. Numbering vessels
(a) An undocumented vessel equipped with
propulsion machinery of any kind shall have a
number issued by the proper issuing authority
in the State in which the vessel principally is
operated.
(b) The Secretary shall require an undocumented barge more than 100 gross tons operating
on the navigable waters of the United States to
be numbered.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 590; Pub. L.
102–587, title V, § 5305, Nov. 4, 1992, 106 Stat. 5083.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

12301 ............................................

46:1466

HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

12151(a) ......
12151(b) ......

46:12122(a).
46:12122(b).
46 App.:14 (last proviso).

Source (Statutes at Large)

R.S. § 4136 (last proviso);
Feb. 24, 1915, ch. 57, 38
Stat. 812; Pub. L. 103–182,
title VI, § 686(a)(4), Dec. 8,
1993, 107 Stat. 2220.

Section 12301 requires that undocumented vessels
that are propelled by machinery be issued an identification number by the proper issuing authority in the
State in which the vessel is primarily operated.
AMENDMENTS
1992—Pub. L. 102–587 designated existing provisions as
subsec. (a) and added subsec. (b).

§ 12151

TITLE 46—SHIPPING

note below and section 18(a) of Pub. L. 109–304, set out
as a Legislative Purpose and Construction note preceding section 101 of this title.
2006—Pub. L. 109–241, § 308, which directed the amendment of former section 12120 of this title from which
subsec. (a) of this section was derived, was repealed by
Pub. L. 110–181, § 3525(b). See 2008 Amendment note for
subsec. (a) and Historical and Revision notes above.

SUBCHAPTER IV—PENALTIES
§ 12151. Penalties
(a) IN GENERAL.—A person that violates this
chapter or a regulation prescribed under this
chapter is liable to the United States Government for a civil penalty of not more than $10,000.
Each day of a continuing violation is a separate
violation.
(b) SEIZURE AND FORFEITURE OF VESSELS.—A
vessel and its equipment are liable to seizure by
and forfeiture to the Government if—
(1) the owner of the vessel or the representative or agent of the owner knowingly falsifies
or conceals a material fact, or knowingly
makes a false statement or representation,
about the documentation of the vessel or in
applying for documentation of the vessel;
(2) a certificate of documentation is knowingly and fraudulently used for the vessel;
(3) the vessel is operated after its endorsement has been denied or revoked under section
12152 of this title;
(4) the vessel is employed in a trade without
an appropriate endorsement;
(5) the vessel has only a recreational endorsement and is operated other than for
pleasure;
(6) the vessel is a documented vessel and is
placed under the command of a person not a
citizen of the United States, except as authorized by section 12131(b) of this title; or
(7) the vessel is rebuilt outside the United
States and a report of the rebuilding is not
submitted as required by section 12139(b) of
this title.
(c) ENGAGING IN FISHING AFTER FALSIFYING
ELIGIBILITY.—In addition to other penalties
under this section, the owner of a documented
vessel for which a fishery endorsement has been
issued is liable to the Government for a civil
penalty of not more than $100,000 for each day
the vessel engages in fishing (as defined in section 3 of the Magnuson-Stevens Fishery Conservation and Management Act (16 U.S.C. 1802))
within the exclusive economic zone, if the owner
or the representative or agent of the owner
knowingly falsified or concealed a material fact,
or knowingly made a false statement or representation, about the eligibility of the vessel
under section 12113(c) or (d) of this title in applying for or applying to renew the fishery endorsement.
(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1508.)

Page 184

HISTORICAL AND REVISION NOTES—CONTINUED
Revised
Section

12151(c) ......

Source (U.S. Code)

Source (Statutes at Large)

46 App.:883a (2d, last
sentences).

July 14, 1956, ch. 600, § 2 (2d,
last sentences), 70 Stat.
544; Pub. L. 86–583, § 2,
July 5, 1960, 74 Stat. 321.

46:12122(c).

In subsection (b), in restating 46 App. U.S.C. 883a (2d,
last sentences), the penalty of $200 for the owner and
master of the vessel is omitted because subsection (a)
provides a general civil penalty for violation of this
chapter. The authority to remit or mitigate a penalty
under section 2107(b) is omitted because section 2107(b)
applies to subtitle II and this section is in subtitle II.

§ 12152. Denial or revocation of endorsement for
non-payment of civil penalty
If the owner of a vessel fails to pay a civil penalty imposed by the Secretary, the Secretary
may deny the issuance or renewal of an endorsement, or revoke the endorsement, on a certificate of documentation issued for the vessel
under this chapter.
(Pub. L. 109–304, § 5, Oct. 6, 2006, 120 Stat. 1508.)
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

12152 ..........

Source (Statutes at Large)

46:12123.

CHAPTER 123—NUMBERING
UNDOCUMENTED VESSELS
Sec.

12301.
12302.
12303.
12304.
12305.
12306.
12307.
12308.
12309.

Numbering vessels.
Standard numbering system.
Exemption from numbering requirements.
Certificates of numbers.
Displaying numbers.
Safety certificates.
Regulations on numbering and fees.
Providing vessel numbering and registration
information.
Penalties.

§ 12301. Numbering vessels
(a) An undocumented vessel equipped with
propulsion machinery of any kind shall have a
number issued by the proper issuing authority
in the State in which the vessel principally is
operated.
(b) The Secretary shall require an undocumented barge more than 100 gross tons operating
on the navigable waters of the United States to
be numbered.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 590; Pub. L.
102–587, title V, § 5305, Nov. 4, 1992, 106 Stat. 5083.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

12301 ............................................

46:1466

HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

12151(a) ......
12151(b) ......

46:12122(a).
46:12122(b).
46 App.:14 (last proviso).

Source (Statutes at Large)

R.S. § 4136 (last proviso);
Feb. 24, 1915, ch. 57, 38
Stat. 812; Pub. L. 103–182,
title VI, § 686(a)(4), Dec. 8,
1993, 107 Stat. 2220.

Section 12301 requires that undocumented vessels
that are propelled by machinery be issued an identification number by the proper issuing authority in the
State in which the vessel is primarily operated.
AMENDMENTS
1992—Pub. L. 102–587 designated existing provisions as
subsec. (a) and added subsec. (b).

Page 185

§ 12306

TITLE 46—SHIPPING

§ 12302. Standard numbering system
(a) The Secretary shall prescribe by regulation
a standard numbering system for vessels to
which this chapter applies. On application by a
State, the Secretary shall approve a State numbering system that is consistent with the standard numbering system. In carrying out its numbering system, a State shall adopt any definitions of relevant terms prescribed by regulations of the Secretary.
(b) A State with an approved numbering system is the issuing authority within the meaning
of this chapter. The Secretary is the issuing authority in a State in which a State numbering
system has not been approved.
(c) When a vessel is numbered in a State, it is
deemed in compliance with the numbering system of a State in which it temporarily is operated.
(d) When a vessel is removed to a new State of
principal operation, the issuing authority of
that State shall recognize the validity of the
number issued by the original State for 60 days.
(e) If a State has a numbering system approved after the Secretary issues a number, the
State shall recognize the validity of the number
issued by the Secretary for one year.
(f) When the Secretary decides that a State
numbering system is not being carried out consistent with the standard numbering system or
the State has changed the system without the
Secretary’s approval, the Secretary may withdraw approval after giving notice to the State,
in writing, stating the reasons for the withdrawal.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 590.)
HISTORICAL AND REVISION NOTES
Revised section
12302 ............................................

Source section (U.S. Code)
46:1467

Section 12302 provides for a standard numbering system for undocumented vessels and for approval of State
numbering systems by the Secretary. It also requires
that a State, when implementing its numbering system, adopt any relevant terms required by the Secretary. In States without approved numbering systems,
the Federal Government issues the numbers. This section also provides for the operation of a vessel in a
State other than the one in which it was numbered.

§ 12303. Exemption from numbering requirements
(a) When the Secretary is the authority issuing a number under this chapter, the Secretary
may exempt a vessel or class of vessels from the
numbering requirements of this chapter under
conditions the Secretary may prescribe.
(b) When a State is the issuing authority, it
may exempt from the numbering requirements
of this chapter a vessel or class of vessels exempted under subsection (a) of this section or
otherwise as permitted by the Secretary.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 591.)
HISTORICAL AND REVISION NOTES
Revised section
12303 ............................................

Source section (U.S. Code)
46:1468

Section 12303 permits the Secretary and any State,
when it is the issuing authority, to exempt vessels from
the numbering requirements.

§ 12304. Certificates of numbers
(a) A certificate of number is granted for a
number issued under this chapter. The certificate shall be pocketsized, shall be at all times
available for inspection on the vessel for which
issued when the vessel is in operation, and may
be valid for not more than 3 years. The certificate of number for a vessel less than 26 feet in
length and leased or rented to another for the
latter’s noncommercial operation of less than 7
days may be retained on shore by the vessel’s
owner or representative at the place from which
the vessel departs or returns to the possession of
the owner or the owner’s representative. A vessel that does not have the certificate of number
on board shall be identified when in operation,
and comply with requirements, as the issuing
authority prescribes.
(b) The owner of a vessel numbered under this
chapter shall provide—
(1) the issuing authority notice of the transfer of any part of the owner’s interest in the
vessel or of the destruction or abandonment of
the vessel, within a reasonable time after the
transfer, destruction, or abandonment; and
(2) notice of a change of address within a
reasonable time of the change, as prescribed
by regulation.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 591.)
HISTORICAL AND REVISION NOTES
Revised section
12304 ............................................

Source section (U.S. Code)
46:1469

Section 12304 describes a certificate of number and
stipulates when it must be carried on board a vessel. It
also requires that the number issuing authority be notified when a boat is sold, transferred, destroyed, or
abandoned, or when the owner’s address changes.

§ 12305. Displaying numbers
A number required by this chapter shall be
painted on, or attached to, each side of the forward half of the vessel for which it was issued,
and shall be the size, color, and type as may be
prescribed by the Secretary. No other number
may be carried on the forward half of the vessel.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 591.)
HISTORICAL AND REVISION NOTES
Revised section
12305 ............................................

Source section (U.S. Code)
46:1470

Section 12305 describes the manner in which a number
must be displayed on a vessel, and prohibits the display
of other numbers on the forward half of the vessel.

§ 12306. Safety certificates
When a State is the authority issuing a number under this chapter, it may require that the
individual in charge of a numbered vessel have a
valid safety certificate issued under conditions
set by the issuing authority, except when the
vessel is subject to manning requirements under
part F of this subtitle.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 591.)

§ 12307

TITLE 46—SHIPPING
HISTORICAL AND REVISION NOTES
Revised section

12306 ............................................

Source section (U.S. Code)
46:1471

Section 12306 authorizes a State that is an issuing authority to require a numbered vessel operator to hold
a valid safety certificate, unless the vessel is subject to
manning requirements under part F of this subtitle.

§ 12307. Regulations on numbering and fees
The authority issuing a number under this
chapter may prescribe regulations and establish
fees to carry out the intent of this chapter. The
fees shall apply equally to residents and nonresidents of the State. A State issuing authority
may impose only conditions for vessel numbering that are—
(1) prescribed by this chapter or regulations
of the Secretary about the standard numbering system; or
(2) related to proof of payment of State or
local taxes.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 591.)
HISTORICAL AND REVISION NOTES
Revised section
12307 ............................................

Source section (U.S. Code)
46:1472

Section 12307 provides the States or the Secretary
with the authority to prescribe regulations and establish fees for carrying out the requirements of this chapter. The fee must apply equally to residents and nonresidents of the State in which the vessel is numbered.

§ 12308. Providing vessel numbering and registration information
A person may request from an authority issuing a number under this chapter the numbering
and registration information of a vessel that is
retrievable from vessel numbering system
records of the issuing authority. When the issuing authority is satisfied that the request is reasonable and related to a boating safety purpose,
the information shall be provided on paying the
cost of retrieving and providing the information
requested.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 592.)
HISTORICAL AND REVISION NOTES
Revised section
12308 ............................................

Source section (U.S. Code)
46:1473

Section 12308 requires the number issuing authority
to supply for a fee, numbering and registration information to any person, upon request, if the request is
reasonable and related to boating safety.

§ 12309. Penalties
(a) A person willfully violating this chapter or
a regulation prescribed under this chapter shall
be fined not more than $5,000, imprisoned for not
more than one year, or both.
(b) A person violating this chapter or a regulation prescribed under this chapter is liable to
the United States Government for a civil penalty of not more than $1,000. If the violation involves the operation of a vessel, the vessel also
is liable in rem for the penalty.
(c) When a civil penalty of not more than $200
has been assessed under this chapter, the Sec-

Page 186

retary may refer the matter of collection of the
penalty directly to the United States magistrate
judge of the jurisdiction in which the person liable may be found for collection procedures under
supervision of the district court and under an
order issued by the court delegating this authority under section 636(b) of title 28.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 592; Pub. L.
101–650, title III, § 321, Dec. 1, 1990, 104 Stat. 5117.)
HISTORICAL AND REVISION NOTES
Revised section
12309(a) ........................................
12309(b) ........................................
12309(c) ........................................

Source section (U.S. Code)
46:1483
46:1484(b)
46:1484(d)

Section 12309 provides for civil and criminal penalties
for violation of the vessel numbering provisions in this
title.
CHANGE OF NAME
‘‘United States magistrate judge’’ substituted for
‘‘United States magistrate’’ in subsec. (c) pursuant to
section 321 of Pub. L. 101–650, set out as a note under
section 631 of Title 28, Judiciary and Judicial Procedure.

CHAPTER 125—VESSEL IDENTIFICATION
SYSTEM
Sec.

12501.
12502.
12503.
12504.
12505.
12506.
12507.

Establishment of a vessel identification system.
Identification numbers, signal letters, and
markings.
Information available to the system.
Information available from the system.
Fees.
Delegation of authority.
Penalties.
HISTORICAL AND REVISION NOTES

Section 101 of H.R. 3105, as amended, adds a new chapter 125 to title 46, United States Code, to establish a
vessel identification system for all vessels of the
United States. This would include vessels documented
under chapter 121 of title 46, numbered under chapter
123 of that title, or titled under the law of a State. This
new chapter consists of new sections 12501–12507 as follows.

§ 12501. Establishment of a vessel identification
system
(a) The Secretary of Transportation shall establish a vessel identification system to make
available information under section 12503 of this
title for use by the public for law enforcement
and other purposes relating to—
(1) the ownership of documented vessels;
(2) the ownership of vessels numbered under
chapter 123 of this title; and
(3) the ownership of vessels titled under the
law of a State.
(b) The vessel identification system shall include information prescribed by the Secretary
including—
(1) identifying a vessel;
(2) identifying the owner of the vessel, including—
(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—

§ 12307

TITLE 46—SHIPPING
HISTORICAL AND REVISION NOTES
Revised section

12306 ............................................

Source section (U.S. Code)
46:1471

Section 12306 authorizes a State that is an issuing authority to require a numbered vessel operator to hold
a valid safety certificate, unless the vessel is subject to
manning requirements under part F of this subtitle.

§ 12307. Regulations on numbering and fees
The authority issuing a number under this
chapter may prescribe regulations and establish
fees to carry out the intent of this chapter. The
fees shall apply equally to residents and nonresidents of the State. A State issuing authority
may impose only conditions for vessel numbering that are—
(1) prescribed by this chapter or regulations
of the Secretary about the standard numbering system; or
(2) related to proof of payment of State or
local taxes.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 591.)
HISTORICAL AND REVISION NOTES
Revised section
12307 ............................................

Source section (U.S. Code)
46:1472

Section 12307 provides the States or the Secretary
with the authority to prescribe regulations and establish fees for carrying out the requirements of this chapter. The fee must apply equally to residents and nonresidents of the State in which the vessel is numbered.

§ 12308. Providing vessel numbering and registration information
A person may request from an authority issuing a number under this chapter the numbering
and registration information of a vessel that is
retrievable from vessel numbering system
records of the issuing authority. When the issuing authority is satisfied that the request is reasonable and related to a boating safety purpose,
the information shall be provided on paying the
cost of retrieving and providing the information
requested.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 592.)
HISTORICAL AND REVISION NOTES
Revised section
12308 ............................................

Source section (U.S. Code)
46:1473

Section 12308 requires the number issuing authority
to supply for a fee, numbering and registration information to any person, upon request, if the request is
reasonable and related to boating safety.

§ 12309. Penalties
(a) A person willfully violating this chapter or
a regulation prescribed under this chapter shall
be fined not more than $5,000, imprisoned for not
more than one year, or both.
(b) A person violating this chapter or a regulation prescribed under this chapter is liable to
the United States Government for a civil penalty of not more than $1,000. If the violation involves the operation of a vessel, the vessel also
is liable in rem for the penalty.
(c) When a civil penalty of not more than $200
has been assessed under this chapter, the Sec-

Page 186

retary may refer the matter of collection of the
penalty directly to the United States magistrate
judge of the jurisdiction in which the person liable may be found for collection procedures under
supervision of the district court and under an
order issued by the court delegating this authority under section 636(b) of title 28.
(Pub. L. 98–89, Aug. 26, 1983, 97 Stat. 592; Pub. L.
101–650, title III, § 321, Dec. 1, 1990, 104 Stat. 5117.)
HISTORICAL AND REVISION NOTES
Revised section
12309(a) ........................................
12309(b) ........................................
12309(c) ........................................

Source section (U.S. Code)
46:1483
46:1484(b)
46:1484(d)

Section 12309 provides for civil and criminal penalties
for violation of the vessel numbering provisions in this
title.
CHANGE OF NAME
‘‘United States magistrate judge’’ substituted for
‘‘United States magistrate’’ in subsec. (c) pursuant to
section 321 of Pub. L. 101–650, set out as a note under
section 631 of Title 28, Judiciary and Judicial Procedure.

CHAPTER 125—VESSEL IDENTIFICATION
SYSTEM
Sec.

12501.
12502.
12503.
12504.
12505.
12506.
12507.

Establishment of a vessel identification system.
Identification numbers, signal letters, and
markings.
Information available to the system.
Information available from the system.
Fees.
Delegation of authority.
Penalties.
HISTORICAL AND REVISION NOTES

Section 101 of H.R. 3105, as amended, adds a new chapter 125 to title 46, United States Code, to establish a
vessel identification system for all vessels of the
United States. This would include vessels documented
under chapter 121 of title 46, numbered under chapter
123 of that title, or titled under the law of a State. This
new chapter consists of new sections 12501–12507 as follows.

§ 12501. Establishment of a vessel identification
system
(a) The Secretary of Transportation shall establish a vessel identification system to make
available information under section 12503 of this
title for use by the public for law enforcement
and other purposes relating to—
(1) the ownership of documented vessels;
(2) the ownership of vessels numbered under
chapter 123 of this title; and
(3) the ownership of vessels titled under the
law of a State.
(b) The vessel identification system shall include information prescribed by the Secretary
including—
(1) identifying a vessel;
(2) identifying the owner of the vessel, including—
(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—

Page 187

TITLE 46—SHIPPING

(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) identifying the State in which it is titled
or numbered;
(4) indicating whether the vessel is numbered or titled, or both;
(5) if titled in a State, indicating where evidence of a lien or other security interest may
be found against the vessel in that State; and
(6) information assisting law enforcement officials.
(c) The Secretary may maintain information
under this chapter in connection with any other
information system maintained by the Secretary.
(Added Pub. L. 100–710, title I, § 101(a), Nov. 23,
1988, 102 Stat. 4735; amended Pub. L. 101–225, title
III, § 302(1), Dec. 12, 1989, 103 Stat. 1922; Pub. L.
101–595, title VI, § 603(10), Nov. 16, 1990, 104 Stat.
2993.)
HISTORICAL AND REVISION NOTES
Revised section 12501
Subsection (a) of section 12501 requires the Secretary
of Transportation to establish a system of information
concerning vessels of the United States for law enforcement and other purposes. The Secretary is required to
make available information from the system relating
to the ownership of vessels documented under chapter
121 of title 46, numbered under chapter 123 of that title,
and titled under the law of a State. The information is
available under section 12503 for use by the public,
similarly under the Ship Mortgage Act, 1920.
Subsection (b) lists the vessel identification information which is required to be maintained by the Secretary. The Secretary has the authority to prescribe
other information to be maintained in addition to the
items listed. For example, the Secretary may identify
vessels issued fisheries permits by the Department of
Commerce. The Secretary may also monitor transactions involving vessels that require approval by the
Secretary under section 9 of the Shipping Act, 1916 (46
App. U.S.C. 808) before interest or control in the vessel
may be transferred to a noncitizen.
Subsection (c) clarifies that the Secretary has the
flexibility to maintain this system in connection with
any other information system maintained by the Secretary, including the Federal Aviation Administration
system containing aircraft ownership information. This
would also permit the Secretary to combine various
systems and data bases maintained by the Secretary
such as documentation and numbering of vessels, and
safety, casualty, and law enforcement statistics.
AMENDMENTS
1990—Subsec. (b)(2)(A). Pub. L. 101–595 amended subpar. (A) generally. Prior to amendment, subpar. (A)
read as follows: ‘‘the owner’s social security number;
or’’.
1989—Subsec. (b)(2). Pub. L. 101–225 amended par. (2)
generally, adding subpars. (A) and (B).
EFFECTIVE DATE
Chapter 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.

§ 12502

RECORDS AND OTHER INFORMATION; ESTABLISHMENT,
CENTRALIZATION AND COMPUTERIZATION
Pub. L. 100–710, title I, § 104(e)(2), Nov. 23, 1988, 102
Stat. 4751, provided that: ‘‘To establish, centralize, and
computerize records and other information maintained
under chapters 121, 125, and 313 of title 46, United States
Code, from the effective date of this title [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] through September 30, 1993, the Secretary of Transportation shall spend (out of amounts
appropriated for the Department of Transportation
under an appropriations law) not less than an amount
that is equal to the amounts estimated to be—
‘‘(A) collected under section 9701 of title 31, United
States Code, for fees paid for services and things of
value provided under chapter 313 of title 46, United
States Code (as enacted by section 101 of this Act),
and for documenting vessels under chapter 121 of title
46; and
‘‘(B) transferred to or collected by the Secretary
under chapter 125 of title 46, United States Code (as
enacted by section 101 of this Act).’’
PERSONNEL AND EQUIPMENT; RECRUITMENT, COMPENSATION, TRAINING, PURCHASING, OR DEPLOYMENT
Pub. L. 100–710, title I, § 104(g), Nov. 23, 1988, 102 Stat.
4751, provided that: ‘‘Nothing in this section [amending
sections 2101, 2110, 12102, 12103, 12105, 12110, 12112, 12117,
12119, and 12120 of this title and sections 808, 1242, and
1271 of the Appendix to this title, and enacting provisions set out as notes under sections 12501, 12502, and
12505 of this title] requires the Coast Guard to recruit,
compensate, train, purchase, or deploy any personnel
or equipment to carry out chapter 125 of title 46, United
States Code (as enacted by section 101 of this Act), except to the extent that appropriations are made available in an appropriations law for the Department of
Transportation.’’
[For transfer of authorities, functions, personnel, and
assets of the Coast Guard, including the authorities
and functions of the Secretary of Transportation relating thereto, to the Department of Homeland Security,
and for treatment of related references, see sections
468(b), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.]

§ 12502. Identification numbers, signal letters,
and markings
(a) For the identification of a vessel of the
United States, the Secretary of Transportation—
(1) shall maintain a unique numbering system and assign a number to each vessel of the
United States;
(2) may maintain a system of signal letters
for a documented vessel;
(3) shall record a name selected by the owner
of a documented vessel approved by the Secretary as the vessel’s name of record; and
(4) may establish other identification markings.
(b) The manufacturer or owner of a vessel
shall affix to the vessel and maintain in the
manner prescribed by the Secretary the number
assigned and any other markings the Secretary
may require.
(c) Once a number is assigned under this section, it may not be used by another vessel.
(d) Once a documented vessel’s name is established, the name may not be changed without
the approval of the Secretary.
(e) A person may not tamper with or falsify a
number or other marking required under this
section.

§ 12503

TITLE 46—SHIPPING

(Added Pub. L. 100–710, title I, § 101(a), Nov. 23,
1988, 102 Stat. 4736.)
HISTORICAL AND REVISION NOTES
Revised section 12502
Subsection (a) of this section requires the Secretary
to maintain a unique numbering system for vessels of
the United States. The Secretary may use existing vessel numbering systems such as the hull identification
number for this purpose, but must ensure that no two
existing vessels of the United States have the same
number. The Secretary should consider and propose the
use of a 17-digit number to implement this requirement. This subsection also requires the Secretary to
maintain a system of signal letters and to record vessel
names for documented vessels. The Secretary is authorized to establish other vessel identification markings
for vessels of the United States, such as hailing ports.
Subsections (b), (c), (d), and (e) contain other requirements and restrictions concerning vessel identification
markings.
This section consolidates the requirements of sections 12114, 12115, 12116, and 12118 of title 46. For this
reason, section 106 of this bill repeals those sections.
VESSELS NOT HAVING UNIQUE NUMBER; APPLICABILITY
OF PROVISIONS FOR NUMBER ASSIGNMENT
Pub. L. 100–710, title I, § 104(f), Nov. 23, 1988, 102 Stat.
4751, provided that: ‘‘Section 12502(a)(1) of title 46,
United States Code (as enacted by section 101 of this
Act), applies to a vessel of the United States that does
not have a unique number as prescribed by the Secretary of Transportation under that section until the
earlier of the following:
‘‘(1) the next time the vessel is documented, numbered, or titled.
‘‘(2) January 1, 1995.’’

§ 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 informa-

Page 188

tion 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 that is no longer titled in a State making
information available to the Secretary under
this chapter until the mortgage is discharged
or the vessel is sold; and
(2) accept information under section 31321(h)
of this title only if that information cannot be
provided to a State.
(Added Pub. L. 100–710, title I, § 101(a), Nov. 23,
1988, 102 Stat. 4736; amended Pub. L. 101–225, title
III, § 302(2), Dec. 12, 1989, 103 Stat. 1922; Pub. L.
101–595, title VI, § 603(10), Nov. 16, 1990, 104 Stat.
2993; Pub. L. 109–304, § 15(24), Oct. 6, 2006, 120
Stat. 1704.)
HISTORICAL AND REVISION NOTES
Revised section 12503
Subsection (a) of section 12503 allows a State or approved State delegee to make vessel identification information available to the Secretary. Participation in
the system is voluntary on the part of a State. A benefit to boat purchasers and financiers in States with approved titling systems participating in this system is
that vessel mortgages or financing instruments made
in those States are deemed to be preferred mortgages
under chapter 313 of title 46, United States Code (as
codified and enacted by this Act).
Under subsection (a), the Secretary may prescribe the
manner and form in which the information is made
available by the States. In this regard, the Committee
intends that the Secretary employ the most efficient,
up-to-date computer technology in maintaining information made available from the States to avoid duplication of effort in maintaining information and to reduce the costs of the system. In addition to the vessel
identification information made available by States
under paragraphs (1)–(6), the Secretary and a State may
agree that the State make available other information.
For example, the purpose for which a vessel is routinely used would be valuable information for the system.
The Committee intends that most of the information
in the system will become available directly and exclusively from the States to the greatest extent possible.
However, under subsection (b), the Secretary may accept information from others under conditions and in a
manner and form prescribed by the Secretary. Thus, if
the Secretary discovers a valuable and reliable source
of data that can be conveniently made available to the
system, the Secretary can approve it.
Under paragraph (c)(1), the Secretary must maintain
information on a State-titled vessel with a preferred
mortgage that moves to a nonparticipating, nontitle
State, until the mortgage is discharged or the vessel is
sold. Under paragraph (c)(2), the Secretary must accept
information submitted under section 31321 of title 46 (as
enacted by this Act) concerning a discharge of a preferred mortgage on a vessel title under State law. This
would be necessary if the vessel moves to a nonparticipating State, and information on that vessel would not
be provided to the system by that State. This subsection will allow the Secretary to keep the vessel information system current on these matters and purge
files no longer required to be maintained.
AMENDMENTS
2006—Subsec. (a). Pub. L. 109–304 substituted ‘‘delegate’’ for ‘‘delegee’’ in introductory provisions.
1990—Subsec. (a)(2)(A). Pub. L. 101–595 amended subpar. (A) generally. Prior to amendment, subpar. (A)
read as follows: ‘‘the owner’s social security number;
or’’.

Page 189

§ 12506

TITLE 46—SHIPPING

1989—Subsec. (a)(2). Pub. L. 101–225 amended par. (2)
generally, adding subpars. (A) and (B).

§ 12504. Information available from the system
For law enforcement or other purposes and
under conditions prescribed by the Secretary of
Transportation, the Secretary—
(1) shall make available information in the
vessel identification system to a State making
information available under section 12503(a) of
this title; and
(2) may make available information in the
vessel identification system to others.
(Added Pub. L. 100–710, title I, § 101(a), Nov. 23,
1988, 102 Stat. 4736; amended Pub. L. 101–225, title
III, § 302(3), Dec. 12, 1989, 103 Stat. 1923.)
HISTORICAL AND REVISION NOTES
Revised section 12504
This section requires that the Secretary make available information maintained in the vessel identification system to a State participating in the system for
law enforcement or other purposes. The Secretary may
make available information in the system to others,
under conditions the Secretary may prescribe. At first,
the Secretary may elect to deal only with the States.
However, the Committee firmly expects that information will be made available through computer terminals in satellite offices or direct computer access by
modem. In this manner, boating organizations or financial or documentation services could retrieve data
without paper transactions for a fee.
AMENDMENTS
1989—Pub. L. 101–225 substituted ‘‘Secretary of Transportation, the Secretary’’ for ‘‘Secretary, the Secretary
of Transportation’’.

§ 12505. Fees
(a) The Secretary of Transportation may
charge a fee under section 9701 of title 31 for providing information to or requesting information
from the vessel identification system, except
to—
(1) an agency; or
(2) a State making information available to
the Secretary under section 12503(a) of this
title.
(b) The Secretary shall deposit amounts transferred or collected under this section in the general fund of the Treasury as proprietary receipts
of the Secretary and ascribed to the vessel identification system.
(Added Pub. L. 100–710, title I, § 101(a), Nov. 23,
1988, 102 Stat. 4737; amended Pub. L. 101–595, title
VI, § 603(11), Nov. 16, 1990, 104 Stat. 2993.)
HISTORICAL AND REVISION NOTES
Revised section 12505
This section contains the authority for the Secretary
to charge a fee under the user charge law, 31 U.S.C.
9701, for providing information to or requesting information from the vessel identification system. Fees may
not be charged under this subsection to an agency or a
State that is participating in the vessel identification
system maintained by the Secretary.
Under subsection (b) of this section, the Secretary
may collect an annual fee of not more than $1.00 from
the owner of a vessel of the United States under 31
U.S.C. 9701 for the vessel identification system. Since
vessel owners will benefit from the vessel identification
system, such as from documentation of ownership data

and stolen vessel tracking, this fee is designed as a
maintenance charge to owners for this service. The collection of the annual fee may be delayed by the Secretary, and an agency, State, or person may be employed to collect the fee under subsection (c). The Committee expects that the Secretary will make agreements with States to collect this fee at the time of vessel registrations. The term of these registrations varies
from one to three years as permitted by chapter 123 of
title 46.
Under subsection (d) of this section, if a State is employed to collect the fee, the State may retain one-half
of the amounts collected, and must transfer the remainder to the Secretary. The amounts retained by a
State may be used to cover the costs of making vessel
identification information available to the Secretary.
This includes upgrading or establishing titling systems
as well as making improvements and other changes to
vessel numbering systems to make information available. Because States are allowed to make improvements to their vessel titling and numbering systems
with the amounts retained under this section, the costs
of those programs may decrease. This could result in a
corresponding decrease in State numbering fees and
offset vessel identification system fees paid by vessel
owners.
AMENDMENTS
1990—Subsec. (b). Pub. L. 101–595 redesignated subsec.
(e) as (b) and struck out former subsec. (b) which read
as follows: ‘‘In addition to any fee under subsection (a)
of this section, the Secretary may collect an annual fee
of not more than $1.00 from the owner of each vessel of
the United States under section 9701 of title 31 for
maintaining the vessel identification system. However,
the collection of that fee may be delayed under conditions prescribed by the Secretary.’’
Subsecs. (c), (d). Pub. L. 101–595 struck out subsecs.
(c) and (d) which read as follows:
‘‘(c) The Secretary may employ any agency, State, or
person to collect the fee established under subsection
(b) of this section.
‘‘(d) If a State is employed to collect a fee under subsection (c) of this section, the State may retain onehalf of the amounts collected. A State shall transfer
one-half of the amounts collected under subsection (b)
of this section to the Secretary.’’
Subsec. (e). Pub. L. 101–595 redesignated subsec. (e) as
(b).
Subsec. (f). Pub. L. 101–595 struck out subsec. (f)
which read as follows: ‘‘The amounts retained by a
State under this section may be used to make information available to the Secretary and to pay incremental
administrative costs.’’
ANNUAL FEE PRIOR TO JAN. 1, 1992
Pub. L. 100–710, title I, § 104(e)(1), Nov. 23, 1988, 102
Stat. 4751, provided that: ‘‘Before January 1, 1992, the
annual fee under section 12505 of title 46, United States
Code (as enacted by section 101 of this Act), is $1.00.’’

§ 12506. Delegation of authority
The Secretary of Transportation may delegate
to an agency, a State, or a qualified person the
authority to—
(1) establish and maintain the vessel identification system; and
(2) charge fees under section 12505 of this
title to a person making information available
to or requesting information from the vessel
identification system.
(Added Pub. L. 100–710, title I, § 101(a), Nov. 23,
1988, 102 Stat. 4737.)
HISTORICAL AND REVISION NOTES
Revised section 12506
This section allows the Secretary to delegate the authority to establish and maintain the vessel identifica-

§ 12507

TITLE 46—SHIPPING

tion system to an agency, a State, or a qualified person. The Secretary may also delegate the authority to
charge fees under section 12505 for requesting information from or making information available to the vessel identification system.

§ 12507. Penalties
(a) A person shall be fined under title 18, imprisoned for not more than 2 years, or both, if
the person with the intent to defraud—
(1) provides false information to the Secretary of Transportation or a State issuing authority regarding the identification of a vessel
under this chapter; or
(2) tampers with, removes, or falsifies the
unique vessel identification number assigned
to a vessel under section 12502 of this title.
(b) A person is liable to the United States Government for a civil penalty of not more than
$10,000 if the person—
(1) provides false information to the Secretary or a State issuing authority regarding
the identification of a vessel under this chapter;
(2) violates section 12502 of this title; or
(3) fails to comply with requirements prescribed by the Secretary under section 12505 of
this title.
(c) A vessel involved in a violation of this
chapter, or regulation under this chapter, and
its equipment, may be seized by, and forfeited
to, the Government.
(d) If a person, not an individual, is involved in
a violation of this chapter, the president or chief
executive of the person also is subject to any
penalty provided under this section.
(Added Pub. L. 100–710, title I, § 101(a), Nov. 23,
1988, 102 Stat. 4737.)
HISTORICAL AND REVISION NOTES
Revised section 12507
This section establishes criminal and civil penalties
for certain violations of chapter 125 of title 46 (as enacted by this Act).

PART I—STATE BOATING SAFETY PROGRAMS
CHAPTER 131—RECREATIONAL BOATING
SAFETY
Sec.

13101.
13102.
13103.
13104.
13105.
13106.
13107.
13108.
13109.
13110.

Definitions.
State recreational boating safety programs.
Program acceptance.
Allocations.
Availability of allocations.
Computation decisions about State amounts
expended.
Authorization of appropriations.
Computing amounts allocated to States and
State records requirements.
Consultation, cooperation, and regulation.
National Boating Safety Advisory Council.
HISTORICAL AND REVISION NOTES

This Chapter establishes the recreational boating
safety and facility program administered by the Coast
Guard. The general purpose is to encourage State participation in boating safety education and enforcement
activities.
AMENDMENTS
2006—Pub. L. 109–304, § 16(b)(3), Oct. 6, 2006, 120 Stat.
1705, added item 13101 and redesignated former items
13101 to 13106 as 13102 to 13107, respectively.

Page 190

1998—Pub. L. 105–178, title VII, § 7405(c)(2), June 9,
1998, 112 Stat. 488, substituted ‘‘appropriations’’ for
‘‘contract spending’’ in item 13106.
1984—Pub. L. 98–369, div. A, title X, § 1016(c)(2), July
18, 1984, 98 Stat. 1020, struck out item 13107 ‘‘National
Recreational Boating Safety and Facilities Improvement Fund’’.

§ 13101. Definitions
In this chapter:
(1) ELIGIBLE STATE.—The term ‘‘eligible
State’’ means a State that has a State recreational boating safety program accepted by
the Secretary.
(2) STATE RECREATIONAL BOATING SAFETY
PROGRAM.—The term ‘‘State recreational
boating safety program’’ means education, assistance, and enforcement activities conducted
for maritime casualty prevention, reduction,
and reporting for recreational boating.
(Pub. L. 109–304, § 16(b)(2), Oct. 6, 2006, 120 Stat.
1705.)
HISTORICAL AND REVISION NOTES
Section 16 of the bill [H.R. 1442, which became Pub. L.
109–304] moves the definitions relating to the recreational boating safety program from section
2102(a)(1) and (3) to chapter 131 because the terms only
appear in chapter 131.
Section 16 of the bill also eliminates the special definitions of ‘‘State’’ and ‘‘United States’’ in section
2102(a)(2) as including the Trust Territory of the Pacific
Islands because the Trust Territory has been terminated. See the definitions of ‘‘State’’ and ‘‘United
States’’ in section 2101, which are being moved to chapter 1 and being made applicable title-wide. Those definitions already include the Northern Mariana Islands,
the only component of the former Trust Territory still
under United States sovereignty.
PRIOR PROVISIONS
A prior section 13101 was renumbered section 13102 of
this title.

§ 13102. State recreational boating safety programs
(a) To encourage greater State participation
and uniformity in boating safety efforts, and
particularly to permit the States to assume the
greater share of boating safety education, assistance, and enforcement activities, the Secretary shall carry out a national recreational
boating safety program. Under this program, the
Secretary shall make contracts with, and allocate and distribute amounts to, eligible States
to assist them in developing, carrying out, and
financing State recreational boating safety programs.
(b) The Secretary shall establish guidelines
and standards for the program. In doing so, the
Secretary—
(1) shall consider, among other things, factors affecting recreational boating safety by
contributing to overcrowding and congestion
of waterways, such as the increasing number
of recreational vessels operating on those
waterways and their geographic distribution,
the availability and geographic distribution of
recreational boating facilities in and among
applying States, and State marine casualty
and fatality statistics for recreational vessels;
(2) shall consult with the Secretary of the
Interior to minimize duplication with the pur-

Page 227
HISTORICAL AND REVISION NOTES
Revised
Section

Source (U.S. Code)

31113 ..........

46 App.:790.

Source (Statutes at Large)
Mar. 3, 1925, ch. 428, § 10, 43
Stat. 1113; Aug. 30, 1954,
ch. 1076, § 1(26), 68 Stat.
968.

CHAPTER 313—COMMERCIAL INSTRUMENTS
AND MARITIME LIENS
SUBCHAPTER I—GENERAL
Sec.

31301.
31302.

Definitions.
Availability of instruments, copies, and information.
31303.
Certain civil actions not authorized.
31304.
Liability for noncompliance.
31305.
Waiver of lien rights.
31306.
Declaration of citizenship.
31307.
State statutes superseded.
31308.
Secretary of Commerce or Transportation as
mortgagee.
31309.
General civil penalty.
SUBCHAPTER II—COMMERCIAL INSTRUMENTS
31321.
31322.
31323.
31324.
31325.
31326.
31327.
[31328.
31329.
31330.
31341.
31342.
31343.

§ 31301

TITLE 46—SHIPPING

Filing, recording, and discharge.
Preferred mortgages.
Disclosing and incurring obligations before
executing preferred mortgages.
Retention and examination of mortgages of
vessels covered by preferred mortgages.
Preferred mortgage liens and enforcement.
Court sales to enforce preferred mortgage
liens and maritime liens and priority of
claims.
Forfeiture of mortgagee interest.
Repealed.]
Court sales of documented vessels.
Penalties.
SUBCHAPTER III—MARITIME LIENS
Persons presumed to have authority to procure necessaries.
Establishing maritime liens.
Recording and discharging notices of claim of
maritime lien.
HISTORICAL AND REVISION NOTES

Section 101 [102] of H.R. 3105 [became Pub. L. 100–710]
revises, consolidates, and enacts certain general and
permanent laws of the United States related to commercial instruments and liens and public vessels and
goods. It amends subtitle III of title 46, United States
Code by striking at the end ‘‘Chapters 313, 315—Reserved’’ and substituting ‘‘Chapter 313—Commercial Instruments and Maritime Liens’’. Chapter 313 is essentially a codification of the Ship Mortgage Act, 1920 (46
App. U.S.C. 911–984). H.R. 3105 is the second step in the
process of enacting laws compiled in title 46 of the Code
into positive law. The first step in the codification
process began in 1983 when certain general and permanent laws related to vessels and seamen were enacted
as subtitle II of the title 46, United States Code.
HOUSE FLOOR STATEMENT

Section 102 of this bill adds a new subtitle III to title
46, which contains a codification of the Ship Mortgage
Act, 1920 and other related provisions. A previous version of this codification and the remaining sections of
the bill were recently reported by the Merchant Marine
and Fisheries Committee in H.R. 3105 (H. Rept. 100–918).
The significant additions or changes by this provision
to the version of H.R. 3105 reported by the Merchant
Marine and Fisheries Committee are explained as follows: [see sections 31305, 31321, 31322, 31325, 31329, 31330,
31343 of this title].
AMENDMENTS
2002—Pub. L. 107–295, title II, § 205(a)(2), Nov. 25, 2002,
116 Stat. 2096, substituted ‘‘notices of claim of mari-

time lien’’ for ‘‘liens on preferred mortgage vessels’’ in
item 31343.
1996—Pub. L. 104–324, title XI, § 1113(b)(3), Oct. 19, 1996,
110 Stat. 3970, struck out item 31328 ‘‘Limitations on
parties serving as trustees of mortgaged vessel interests’’.

SUBCHAPTER I—GENERAL
§ 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);
(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;
(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;
(D) for wages of the crew of the vessel;
(E) for general average; or
(F) for salvage, including contract salvage;
(6) ‘‘preferred mortgage’’—
(A) means a mortgage that is a preferred
mortgage under section 31322 of this title;
and
(B) also means in sections 31325 and 31326
of this title, a mortgage, hypothecation, or
similar charge that is established as a security on a foreign vessel if the mortgage,
hypothecation, or similar charge was executed under the laws of the foreign country
under whose laws the ownership of the vessel
is documented and has been registered under
those laws in a public register at the port of
registry of the vessel or at a central office;
and
(7) ‘‘Secretary’’ means the Secretary of the
Department of Homeland Security, unless
otherwise noted.

§ 31302

TITLE 46—SHIPPING

(Pub. L. 100–710, title I, § 102(c), Nov. 23, 1988, 102
Stat. 4739; Pub. L. 111–281, title IX, § 913(a)(2)–(4),
Oct. 15, 2010, 124 Stat. 3017.)
HISTORICAL AND REVISION NOTES
Revised section
31301(1), (2) ..................................
31301(3) ........................................
31301(4) ........................................
31301(5) ........................................
31301(6)(A) ...................................
31301(6)(B) ...................................

Source section (U.S. Code)
New
46:911(5)
Derived from 46:971–974
46:953(a)
46:922(b)
46:951 (2d par. less proviso)

Section 31301(1) defines the term ‘‘acknowledge’’.
This paragraph makes a substantive change to law to
expand the current law by allowing a notarization
under State law, a form prescribed by the Secretary, as
well as a certificate issued under the Hague Convention
Abolishing the Requirement of Legalisation for Foreign Public Documents, 1961.
Section 31301(2) defines ‘‘district court’’. This paragraph makes a substantive change to law by including
the District Court of Guam, the District Court of the
Virgin Islands, the District Court of the Northern Mariana Islands, the High Court of American Samoa, and
other Federal territorial courts as they are established.
Under current law, only the district courts of the
United States have jurisdiction under the Ship Mortgage Act, 1920.
Section 31301(3) defines ‘‘mortgagee’’ as a person to
whom property is mortgaged and the trustee authorized under section 31328 that is designated in the trust
agreement.
Section 31301(4) defines ‘‘necessaries’’ to include repairs, supplies, towage, and the use of a drydock and
marine railway for a vessel. As in all codifications, the
term ‘‘includes’’ means ‘‘includes but is not limited to’’
and, therefore, is not intended to be an exclusive listing
of those items that a court has determined or may determine as falling within the meaning of the term
‘‘other necessaries’’ as contained in current law. The
definition is new, is based on 46 App. U.S.C. 971–974, and
makes no substantive change to law.
Section 31301(5) defines ‘‘preferred maritime lien’’ to
mean a lien on a vessel that arises before a preferred
mortgage was filed under section 31321 of this title for
damages arising out of maritime tort, stevedore wages,
crew wages, general average, and salvage. The definition is new and is based on 46 App. U.S.C. 953(a). The
only substantive change to law made by this paragraph
is to change the effective date from the day the preferred mortgage is recorded and endorsed to when it is
filed. This change is in keeping with other changes
with regard to filing. The term ‘‘duly and validly’’ that
is in existing law is not used because it is unnecessary.
An instrument that is not ‘‘duly and validly’’ executed
is not executed under the laws of the foreign country.
This makes no substantive change to law.
Section 31301(6)(A) defines ‘‘preferred mortgage’’ to
mean a mortgage that meets the requirements of section 31322. This clause makes no substantive change to
law.
Section 31301(6)(B) defines ‘‘preferred mortgage’’ to
also mean a mortgage on a documented foreign vessel
that is preferred under sections 31325 and 31326 for purposes of enforcement of the outstanding mortgage indebtedness. Preference is only granted if the mortgage
is executed under the laws of a foreign country, registered under those laws in a public register at the port
of registry or at a central office. The use of the word
‘‘established’’ in place of ‘‘created’’ in the current law
or ‘‘effective’’ as used in the treaties is not intended to
make any substantive change to law. The only substantive changes to law made by this clause are the
elimination of the exemption of foreign vessels of less
than 200 gross tons, and clarification of the rule of interpretation that if a vessel is registered in one country, but is permitted to fly temporarily the flag of another country (such as through a demise charter), it is
the law of the country in which the ownership of the

Page 228

vessel is documented that is used to determine when a
mortgage attains preferred status.
AMENDMENTS
2010—Par. (7). Pub. L. 111–281 added par. (7).
EFFECTIVE DATE
Pub. L. 100–710, title I, § 107, Nov. 23, 1988, 102 Stat.
4752, provided that:
‘‘(a) This title [see Tables for classification] and
amendments made by this title take effect on January
1, 1989. However, sections 31321 and 31322 of title 46 (as
enacted by section 102 of this Act), United States Code
(as sections 31321 and 32322 [probably should be 31322]
apply to vessels for which an application for documentation has been filed), take effect on January 1,
1990.
‘‘(b) An instrument filed before January 1, 1989, but
not recorded before that date, is deemed to comply
with section 31321 of title 46, United States Code, if it
is in substantial compliance with the provisions in that
section that had corresponding requirements under the
law on December 31, 1988. However, the mortgage may
not become a preferred mortgage until the vessel is
documented.
‘‘(c) This title and the amendments made by this title
do not affect the validity of any instrument filed or recorded before January 1, 1989, if there was a corresponding requirement under the law on December 31, 1988.
‘‘(d) An instrument filed or recorded before January
1, 1989, is deemed to comply with any new requirement
under chapter 313 of title 46, United States Code (as enacted by section 102 of this Act), affecting the validity
of that instrument.
‘‘(e) Section 102 of this Act and amendments made by
that section [enacting former section 30101 and sections
31301 to 31309, 31321 to 31330, and 31341 to 31343 of this
title and provisions set out as a note preceding section
2101 of this title] do not affect any civil action filed before January 1, 1989.
‘‘(f) Section 104(b) of this Act and the amendments
made by section 104(b) of this Act [amending section 808
of the former Appendix to this title] do not apply to
any change in control resulting from, or which may at
any time result from, any proposed plan of reorganization filed under the United States bankruptcy laws
prior to the date of enactment of this Act [Nov. 23,
1988], except that transactions undertaken as a result
of such a plan shall continue to be governed by section
9 of the Shipping Act, 1916 ([former] 46 App. U.S.C. 808)
[see 46 U.S.C. 56101, 57109], as it existed prior to the date
of enactment of this Act, to the extent that such section 9 would have governed such transactions.’’

§ 31302. Availability of instruments, copies, and
information
The Secretary shall—
(1) make any instrument filed or recorded
with the Secretary under this chapter available for public inspection;
(2) on request, provide a copy, including a
certified copy, of any instrument made available for public inspection under this chapter;
and
(3) on request, provide a certificate containing information included in an instrument
filed or recorded under this chapter.
(Pub. L. 100–710, title I, § 102(c), Nov. 23, 1988, 102
Stat. 4740; Pub. L. 111–281, title IX, § 913(a)(1),
Oct. 15, 2010, 124 Stat. 3017.)
HISTORICAL AND REVISION NOTES
Revised section
31302(1) ........................................
31302(2) ........................................

Source section (U.S. Code)
46:927 (1st sentence)
46:927 (2d sentence)

Page 229

§ 31306

TITLE 46—SHIPPING

HISTORICAL AND REVISION NOTES—CONTINUED
Revised section

Source section (U.S. Code)

31302(3) ........................................

New

Section 31302(1) makes all instruments filed for recording or recorded with the Secretary of Transportation available for public inspection. The only substantive change to law made by this subsection is the
inclusion of instruments filed for recording, which is in
keeping with the new requirements on filing of instruments made in section 31321.
Section 31302(2) requires the Secretary to provide the
public with a certified copy of the material made available to the public under subsection (a). This subsection
makes no substantive change to law.
Section 31302(3) requires the Secretary, on request, to
issue a certificate containing the information included
in instruments on file, such as certificates of ownership.
AMENDMENTS
2010—Pub. L. 111–281 struck out ‘‘of Transportation’’
after ‘‘Secretary’’ in introductory provisions.

§ 31303. Certain civil actions not authorized
If a mortgage covers a vessel and additional
property that is not a vessel, this chapter does
not authorize a civil action in rem to enforce
the rights of the mortgagee under the mortgage
against the additional property.
(Pub. L. 100–710, title I, § 102(c), Nov. 23, 1988, 102
Stat. 4740.)
HISTORICAL AND REVISION NOTES
Revised section
31303 ............................................

Source section (U.S. Code)
46:954(b)

prevails, the court shall award costs and attorneys fees
to the plaintiff. This section makes two substantive
changes to law. First, is the broadening of its coverage
from documented vessels covered by a preferred mortgage to any vessel covered by a mortgage that is filed
or recorded under the chapter. The second substantive
change repeals the liability on the United States Government for losses caused because the Secretary did
not comply with statutory requirements. This is covered by the Federal Tort Claims Act due to the nondiscretionary responsibility of the Secretary.

§ 31305. Waiver of lien rights
This chapter does not prevent a mortgagee or
other lien holder from waiving or subordinating
at any time by agreement or otherwise the lien
holder’s right to a lien, the priority or, if a preferred mortgage lien, the preferred status of the
lien.
(Pub. L. 100–710, title I, § 102(c), Nov. 23, 1988, 102
Stat. 4741.)
HISTORICAL AND REVISION NOTES
Revised section
31305 ............................................

Source section (U.S. Code)
46:974

Section 31305 provides for the waiver of lien rights by
the mortgagee or a person performing or supplying necessaries. This section makes no substantive change to
law and is included only because of a like provision in
current law. Without this provision the Committee believes these waivers would be permissible as a matter
of law as they do not violate any public policy and on
their face reflect an arms length transaction between
the parties. The inclusion of this provision should not
raise the implication that a similar provision is required for other matters that may be waivable as a
matter of law.

Section 31303 makes it clear that, if a mortgage covers a vessel and additional property that is not a vessel,
this chapter does not authorize a civil action in rem in
admiralty to enforce rights against the additional property. This section makes no substantive change to law.

Section 31305 has been changed to clarify that the
chapter does not prevent a mortgagee or other lien
holder from waiving by contract the right to a lien, or
the priority of that lien.

§ 31304. Liability for noncompliance

§ 31306. Declaration of citizenship

(a) If a person makes a contract secured by, or
on the credit of, a vessel covered by a mortgage
filed or recorded under this chapter and sustains
a monetary loss because the mortgagor or the
master or other individual in charge of the vessel does not comply with a requirement imposed
on the mortgagor, master, or individual under
this chapter, the mortgagor is liable for the loss.
(b) A civil action may be brought to recover
for losses referred to in subsection (a) of this
section. The district courts have original jurisdiction of the action, regardless of the amount
in controversy or the citizenship of the parties.
If the plaintiff prevails, the court shall award
costs and attorney fees to the plaintiff.

(a) Except as provided by the Secretary, when
an instrument transferring an interest in a vessel is presented to the Secretary for filing or recording, the transferee shall file with the instrument a declaration, in the form the Secretary
may prescribe by regulation, stating information about citizenship and other information the
Secretary may require to show the transaction
involved does not violate section 56102 or 56103 of
this title.
(b) A declaration under this section filed by a
corporation must be signed by its president, secretary, treasurer, or other official authorized by
the corporation to execute the declaration.
(c) Except as provided by the Secretary, an instrument transferring an interest in a vessel is
not valid against any person until the declaration required by this section has been filed.
(d) A person knowingly making a false statement of a material fact in a declaration filed
under this section shall be fined under title 18,
imprisoned for not more than 5 years, or both.

(Pub. L. 100–710, title I, § 102(c), Nov. 23, 1988, 102
Stat. 4740.)
HISTORICAL AND REVISION NOTES
Revised section
31304 ............................................

Source section (U.S. Code)
46:941(c)

Section 31304 imposes liability on the mortgagor if
the mortgagor, master, or other individual in charge of
the vessel does not comply with the statutory requirements. A civil action may be brought in a district court
of the United States for losses incurred. If the plaintiff

HOUSE FLOOR STATEMENT

(Pub. L. 100–710, title I, § 102(c), Nov. 23, 1988, 102
Stat. 4741; Pub. L. 101–225, title III, § 303(1), Dec.
12, 1989, 103 Stat. 1923; Pub. L. 109–304, § 15(27),
Oct. 6, 2006, 120 Stat. 1704; Pub. L. 111–281, title
IX, § 913(a)(1), Oct. 15, 2010, 124 Stat. 3017.)

§ 31307

TITLE 46—SHIPPING
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

31306 ............................................

46:838

Section 31306(a) requires that a person submitting an
instrument transferring interest in a vessel to the Secretary for recording is also to file a declaration stating
information about citizenship and other information to
show that the transfer is not in violation of section 9
of the Shipping Act, or section 37 of that Act in a national emergency. This section makes no substantive
change to law.
Section 31306(b) requires that a declaration filed by a
corporation must be signed by the president, secretary,
treasurer, or other official authorized by the corporation to execute the declaration. This section makes no
substantive change to law.
Section 31306(c) invalidates any instrument transferring an interest until the declaration is filed. This section makes no substantive change to law.
Section 31306(d) provides for a criminal penalty for a
violation of this section. The amount of the fine is prescribed under title 18, United States Code, and may include imprisonment for not more than 5 years, or both.
This section makes no substantive change to law.
AMENDMENTS
2010—Subsec. (a). Pub. L. 111–281 struck out ‘‘of
Transportation’’ after ‘‘provided by the Secretary’’.
2006—Subsec. (a). Pub. L. 109–304 substituted ‘‘section
56102 or 56103 of this title’’ for ‘‘section 9 or 37 of the
Shipping Act, 1916 (46 App. U.S.C. 808, 835)’’.
1989—Subsec. (a). Pub. L. 101–225, § 303(1)(A), substituted ‘‘Except as provided by the Secretary of Transportation, when’’ for ‘‘When’’ and ‘‘Secretary for filing’’ for ‘‘Secretary of Transportation for filing’’.
Subsec. (c). Pub. L. 101–225, § 303(1)(B), substituted
‘‘Except as provided by the Secretary, an’’ for ‘‘An’’.

§ 31307. State statutes superseded
This chapter supersedes any State statute conferring a lien on a vessel to the extent the statute establishes a claim to be enforced by a civil
action in rem against the vessel for necessaries.
(Pub. L. 100–710, title I, § 102(c), Nov. 23, 1988, 102
Stat. 4741.)
HISTORICAL AND REVISION NOTES
Revised section
31307 ............................................

Source section (U.S. Code)
46:975

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.

§ 31308. Secretary of Commerce or Transportation as mortgagee
The Secretary of Commerce or Transportation, as a mortgagee under this chapter, may
foreclose on a lien arising from a right established 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
31308 ............................................

Source section (U.S. Code)
46:952 (last sentence)

Page 230

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.
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. 101–595 substituted ‘‘(46 App. U.S.C. 1271
et seq.)’’ for ‘‘(46 App. U.S.C. 1241 et seq.)’’.

§ 31309. General civil penalty
Except as otherwise provided in this chapter, a
person violating this chapter or a regulation
prescribed under this chapter is liable to the
United States Government for a civil penalty of
not more than $10,000.
(Pub. L. 100–710, title I, § 102(c), Nov. 23, 1988, 102
Stat. 4741.)
HISTORICAL AND REVISION NOTES
Revised section
31309 ............................................

Source section (U.S. Code)
New

Section 31309 provides for a civil penalty of not more
than $10,000 for a violation of this chapter or a regulation prescribed under this chapter.

SUBCHAPTER II—COMMERCIAL
INSTRUMENTS
§ 31321. Filing, recording, and discharge
(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;

Page 231

§ 31321

TITLE 46—SHIPPING

(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, 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, 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.

(Pub. L. 100–710, title I, § 102(c), Nov. 23, 1988, 102
Stat. 4741; Pub. L. 101–225, title III, § 303(2), Dec.
12, 1989, 103 Stat. 1923; Pub. L. 104–324, title III,
§ 305, Oct. 19, 1996, 110 Stat. 3918; Pub. L. 107–295,
title IV, § 420, Nov. 25, 2002, 116 Stat. 2124; Pub. L.
111–281, title IX, § 913(a)(1), Oct. 15, 2010, 124 Stat.
3017.)
HISTORICAL AND REVISION NOTES
Revised section
31321(a)(1) ....................................
31321(a)(2) ....................................
31321(a)(3) ....................................
31321(b) ........................................
31321(c), (d) ..................................
31321(e) ........................................
31321(f) ........................................
31321(g) ........................................
31321(h) ........................................

Source section (U.S. Code)
46:921(a)
46:1012
New
46:926(a), (b)
New
46:921(b)
46:925(b)
New
46:925(b)

Section 31321(a)(1) provides for the filing of a bill of
sale, conveyance, mortgage, assignment, or related instrument of a vessel. This subsection makes substantive changes to law. The bill would allow a bill of
sale, conveyance, mortgage, assignment, or related instrument to be filed at the same time an application
for documentation under chapter 121 is filed. The Committee intends that the types of related instruments
required to be filed be defined by regulations prescribed
by the Secretary of Transportation. A major change
the bill makes is that the instrument needs only be
filed with the Secretary of Transportation to be valid.
It is not necessary that it be recorded. This change is
being made to eliminate a problem under existing law
that prevents a person from recording an instrument
when the vessel has not been yet documented. When
filed with the Secretary, it is valid (to the extent the
vessel is involved) against any person except the grantor, mortgagor, or assignor, their heirs or devisees, and
a person having actual notice of that instrument.
Clauses (A)–(C) make no substantive change to law.
Paragraph (2) provides that each bill of sale, conveyance, mortgage, assignment, or related instrument that
is filed in substantial compliance with the requirements of this section is valid against any person from
the time it is filed with the Secretary.
Paragraph (3) provides that it is the responsibility of
the parties to an instrument to use diligence to ensure
that the particulars of a filed instrument for which
they are responsible are in substantial compliance. It is
not the responsibility of the Secretary to validate the
information in the instrument. If an instrument is
later found to be invalid because it is not in substantial
compliance, and the parties lose the benefits of a preferred mortgage, it is their fault, not the Secretary’s.
Section 31321(b) sets out the requirements that an instrument must meet to be properly filed. To be filed
the instruments 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; (5) state the interest sold, conveyed,
mortgaged, or assigned; and (6) be signed and acknowledged. While most of these items are required under
current law to be included in the index, and therefore
required to be submitted to the Secretary to be recorded, this subsection makes a number of substantive
changes to law. First, while vessel names are currently
required to be submitted, this requirement has been
broadened so that hull identification numbers and official numbers can be used to more specifically identify
a vessel (since many vessels have the same name). Second, it requires the mortgage to state the maximum
amount of the obligation, including principal, interest,
fees, etc., that are secured by the mortgage. It also
clarifies that the mortgage obligation may be payable
in more than one unit of account, such as yen, franc, or

§ 31322

TITLE 46—SHIPPING

special drawing right. Third, it recognizes that under
some modern financing practices an instrument may
not have a date of maturity. The requirement for supplying the date of maturity has been eliminated.
Section 31321(c) provides that if an instrument filed
involves a vessel that has not yet been documented,
and the Secretary decides that the vessel cannot be
documented by the applicant, then the Secretary shall
send notice of that denial to the parties, including the
reasons for the Secretary’s decision. If the parties have
not corrected the deficiencies within 90 days, the Secretary may terminate the filing and return the instruments. This invalidates the instruments.
Section 31321(d) prohibits a person from withdrawing
an application for documentation of a vessel for which
a mortgage has been filed unless the mortgagee consents. Since the withdrawal will invalidate the mortgage, the mortgagee should be allowed to prohibit the
withdrawal.
Section 31321(e) makes a substantive change to law.
It requires the Secretary to record instruments in the
order they are received for filing, not in the order in
which they were received for recording. It also makes
a substantive change by eliminating the specific indexes required under the law and substituting a general
requirement for the Secretary to maintain indexes of
instruments filed or recorded, or both, for use by the
public. These indexes, prescribed by regulations, must
be in keeping with U.S. obligations under treaties to
which the United States is a party. Since section 104
[105] of this Act makes the existing rules and regulations applicable under this subsection, the current indexing system will be maintained that includes the
names of the vessels; names of the parties to the instruments; time and date each instrument was received; the interest in the vessel that was sold, conveyed, mortgaged, or assigned; and the date of the maturity of the mortgage, if any. However, it allows the
Secretary by regulation to automate the system with
computers, as long as the new system provides the public with an adequate method of finding and examining
these public records.
Section 31321(f) makes a substantive change to law by
eliminating the requirement that a partial discharge of
indebtedness be filed with the Secretary. The bill requires that on the full and final discharge of indebtedness the mortgagee, on request of the Secretary or
mortgagor, shall provide the Secretary with a written,
acknowledged certificate of discharge of the indebtedness. This subsection also makes a substantive change
by requiring that the mortgagee, not the mortgagor,
provide the certificate of discharge. The Secretary
shall then record the certificate. However, this does not
prohibit a person from submitting a certificate of discharge under subsection (a) since it is a related instrument. This subsection also makes a substantive change
to law by eliminating the requirement that the discharge be endorsed on the vessel’s certificate of documentation, and that the Customs Service only may
clear a vessel after an endorsement has been made.
This change is made because of the elimination of endorsements under section 31322.
HOUSE FLOOR STATEMENT

Section 31321 has been changed to clarify that a mortgage, whenever made, must be filed to be valid against
third parties. This clarification allows mortgage closings to occur previous to filing of an instrument, and
to eliminate the need for a fictional simultaneous closing and filing.
Subsection (g) clarifies that if an application for documentation is filed for a vessel covered by a preferred
mortgage under section 31322(d) (as enacted by this
Act), the preferred mortgage must be filed with the
Secretary at the same time the application for documentation is filed to be valid against third parties. If
the preferred mortgage is filed with the Secretary at
the time the documentation application is filed, it is
valid from the time it became a preferred mortgage
under section 31322(d).

Page 232

When a State preferred mortgage under section
31322(d) is finally discharged, subsection (h) of this section requires the mortgagee to provide upon request to
the Secretary or a State, whichever is more appropriate, an acknowledged certificate of discharge of indebtedness. This is necessary when a vessel in the system moves from a participating titling State and is not
retitled in another participating State. In this case,
there is no way to update the status of the indebtedness
through the original titling State. The Secretary is required to accept this information to be maintained in
the vessel identification system under section 12503(c)
of title 46 (as enacted by this Act).
AMENDMENTS
2010—Subsec. (a)(1). Pub. L. 111–281 struck out ‘‘of
Transportation’’ after ‘‘Secretary’’ in introductory provisions.
2002—Subsec. (a)(4) Pub. L. 107–295 struck out subpar.
(A) designation before ‘‘A bill of sale’’ and subpar. (B)
which read as follows: ‘‘A filing made electronically
under subparagraph (A) shall not be effective after the
10-day period beginning on the date of the filing unless
the original instrument is provided to the Secretary
within that 10-day period.’’
1996—Subsec. (a). Pub. L. 104–324 added par. (4).
1989—Subsec. (c). Pub. L. 101–225 substituted ‘‘for
which an application for documentation is filed’’ for
‘‘that has not yet been documented’’ in introductory
provisions and ‘‘interested party to’’ for ‘‘party whose
name and address is stated on’’ in par. (1).
EFFECTIVE DATE
Section effective Jan. 1, 1989, not to affect any civil
action filed before that date, and, insofar as applicable
to vessels for which an application for documentation
has been filed, effective Jan. 1, 1990, with further provision for an instrument filed before Jan. 1, 1989, but not
recorded before that date, and with other qualifications, see section 107 of Pub. L. 100–710, set out as a
note under section 31301 of this title.

§ 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;
(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;
(B) a state 1 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; or
1 So

in original. Probably should be capitalized.

Page 233

TITLE 46—SHIPPING

(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 (d) of this section,
may have any rate of interest to which the parties agree.
(c)(1) If a preferred mortgage includes more
than one vessel or property that is not a vessel,
the mortgage may provide for the separate discharge of each vessel and all property not a vessel by the payment of a part of the mortgage indebtedness.
(2) If a vessel covered by a preferred mortgage
that includes more than one vessel or property
that is not a vessel is to be sold on the order of
a district court in a civil action in rem, and the
mortgage does not provide for separate discharge as provided under paragraph (1) of this
subsection—
(A) the mortgage constitutes a lien on that
vessel in the full amount of the outstanding
mortgage indebtedness; and
(B) an allocation of mortgage indebtedness
for purposes of separate discharge may not be
made among the vessel and other property
covered by the mortgage.
(d)(1) A mortgage, security agreement, or instrument granting a security interest perfected
under State law covering the whole of a vessel
titled in a State is deemed to be a preferred
mortgage if—
(A) the Secretary certifies that the State titling system complies with the Secretary’s
guidelines for a titling system under section
13107(b)(8) of this title; and
(B) information on the vessel covered by the
mortgage, security agreement, or instrument
is made available to the Secretary under chapter 125 of this title.
(2) This subsection applies to mortgages, security agreements, or instruments covering vessels titled in a State after—
(A) the Secretary’s certification under paragraph (1)(A) of this subsection; and
(B) the State begins making information
available to the Secretary under chapter 125 of
this title.
(3) A preferred mortgage under this subsection
continues to be a preferred mortgage even if the
vessel is no longer titled in the State where the
mortgage, security agreement, or instrument
granting a security interest became a preferred
mortgage under this subsection.
(e) If a vessel is already covered by a preferred
mortgage when an application for titling or documentation is filed—
(1) the status of the preferred mortgage covering the vessel to be titled in the State is determined by the law of the jurisdiction where
the vessel is currently titled or documented;
and
(2) the status of the preferred mortgage covering the vessel to be documented under chapter 121 is determined by subsection (a) of this
section.

§ 31322

(f)(1) A mortgage trustee may hold in trust,
for an individual or entity, an instrument or
evidence of indebtedness, secured by a mortgage
of the vessel to the mortgage trustee, provided
that the mortgage trustee—
(A) is eligible to be a preferred mortgagee
under subsection (a)(4), subparagraphs (A)–(E)
of this section;
(B) is organized as a corporation, and is
doing business, under the laws of the United
States or of a State;
(C) is authorized under those laws to exercise corporate trust powers;
(D) is subject to supervision or examination
by an official of the United States Government or a State;
(E) has a combined capital and surplus (as
stated in its most recent published report of
condition) of at least $3,000,000; and
(F) meets any other requirements prescribed
by the Secretary.
(2) If the beneficiary under the trust arrangement is not a commercial lender, a lender syndicate or eligible to be a preferred mortgagee
under subsection (a)(4), subparagraphs (A)–(E) of
this section, the Secretary must determine that
the issuance, assignment, transfer, or trust arrangement does not result in an impermissible
transfer of control of the vessel to a person not
eligible to own a vessel with a fishery endorsement under section 12113(c) of this title.
(3) A vessel with a fishery endorsement may be
operated by a mortgage trustee only with the
approval of the Secretary.
(4) A right under a mortgage of a vessel with
a fishery endorsement may be issued, assigned,
or transferred to a person not eligible to be a
mortgagee of that vessel under this section only
with the approval of the Secretary.
(5) The issuance, assignment, or transfer of an
instrument or evidence of indebtedness contrary
to this subsection is voidable by the Secretary.
(g) For purposes of this section a ‘‘commercial
lender’’ means an entity primarily engaged in
the business of lending and other financing
transactions with a loan portfolio in excess of
$100,000,000, of which not more than 50 per centum in dollar amount consists of loans to borrowers in the commercial fishing industry, as
certified to the Secretary by such lender.
(h) For purposes of this section a ‘‘lender syndicate’’ means an arrangement established for
the combined extension of credit of not less than
$20,000,000 made up of four or more entities that
each have a beneficial interest, held through an
agent, under a trust arrangement established
pursuant to subsection (f), no one of which may
exercise powers thereunder without the concurrence of at least one other unaffiliated beneficiary.
(Pub. L. 100–710, title I, § 102(c), Nov. 23, 1988, 102
Stat. 4743; Pub. L. 101–225, title III, § 303(3), Dec.
12, 1989, 103 Stat. 1923; Pub. L. 104–324, title XI,
§ 1113(a), Oct. 19, 1996, 110 Stat. 3970; Pub. L.
105–277, div. C, title II, § 202(b), Oct. 21, 1998, 112
Stat. 2681–618; Pub. L. 105–383, title IV,
§ 401(c)(1)–(4), Nov. 13, 1998, 112 Stat. 3425; Pub. L.
106–31, title III, § 3027(a)(1), May 21, 1999, 113 Stat.
101; Pub. L. 107–20, title II, § 2202(b), (c), July 24,
2001, 115 Stat. 168, 169; Pub. L. 109–304, §§ 15(29),
16(c)(7), Oct. 6, 2006, 120 Stat. 1704, 1706.)

§ 31322

TITLE 46—SHIPPING
HISTORICAL AND REVISION NOTES
Revised section

31322(a)(1) ....................................
31322(a)(2) ....................................
31322(b) ........................................
31322(c)(1) ....................................
31322(c)(2) ....................................
31322(d), (e) ..................................

Source section (U.S. Code)
46:922(a), (b)
New
46:926(d)
46:922(e)
46:922(f)
New

Section 31322 sets out the conditions that must be
met for a mortgage to be considered a preferred mortgage, and the types of endorsements that the Secretary
must make on any certificate of documentation of a
vessel that is to be covered by a preferred mortgage.
Subsection (a)(1) makes many substantive changes to
law. While a preferred mortgage must still include the
whole of a vessel, this subsection eliminates the exception of certain vessels under 25 gross tons. It allows a
vessel for which an application for documentation has
been filed to have a preferred mortgage. It allows a
mortgage to be a preferred mortgage from the time all
four conditions are met, rather than from when the
vessel is finally documented. Therefore, a mortgage
will usually attain its preferred status when the application for documentation and the instrument have
been filed. This subsection changes the requirement
that all documented vessels have as a mortgagee a person that is a citizen of the United States, as defined in
section 2 of the Shipping Act, 1916, and allows a State,
the United States Government, a federally insured depository institution, or any other person approved by
the Secretary to be a mortgagee.
Subsection (a)(2) makes a substantive change to law
exempting fishing, fish processing, and fish tender vessels, and vessels operated only for pleasure from the
mortgagee restrictions, since these vessels do not have
significant national defense use.
Subsection (b) permits a preferred mortgage to have
any rate of interest that is agreeable to the parties to
the mortgage. This subsection makes no substantive
change to law.
Subsection (c)(1) applies to a mortgage that covers
more than one vessel or additional property that is not
a vessel. This subsection allows a preferred mortgage to
include a separate discharge of the additional vessels
and property.
Subsection (c)(2) applies when a preferred mortgage
covers more than one vessel, does not provide for the
separate discharge of a vessel, and is to be sold by court
order. The amount of the mortgage indebtedness attributable to a vessel is that part of the indebtedness, increased by 20 percent, that the court determines approximates the value that the particular vessel bears to
the value of all the vessels and property covered by the
mortgage. In other words, the amount to be set by the
court is the estimated value of the one vessel plus 20
percent of that value to assure sufficiency of collateral.
This section also makes a substantive change by
eliminating the requirement that a vessel’s certificate
of documentation be endorsed with information from
the mortgage. This change is made since most of the
information is out of date when examined, and since a
mortgage must be carried on self-propelled vessels
under section 31324(b). This section also eliminates the
requirement for the inclusion of an affidavit of good
faith. However, both criminal and civil penalties have
been added [in section 31330] to help ensure that there
is not fraud. This section also eliminates the requirement that a preferred mortgage include a separate discharge for additional property that is not a vessel, the
requirement that the mortgage does not stipulate that
the mortgagee waives the mortgage’s preferred status;
and the requirement for clearing vessels with endorsed
documents through Customs.
HOUSE FLOOR STATEMENT

Under section 31322(a)(2) a ‘‘vessel operated only for
pleasure’’ is exempt from any restrictions on who can
be a mortgagee. This standard is the same as used for
the documentation of a recreational vessel under sec-

Page 234

tion 12109 of title 46. The Committee intends that vessels that have a recreational vessel license, or combined fisheries and recreational license, fall under this
exemption. However, if the vessel has a Coastwise License, Great Lakes License, or Registry combined with
a Recreational License, the vessel would not fall under
this exemption.
Under subsection (c)(2), if a vessel covered by a preferred mortgage that includes more than one vessel or
property that is not a vessel is to be sold on the order
of a district court in rem, and there is not a separate
discharge, then the mortgage constitutes a lien on that
vessel in the full amount of the outstanding mortgage
indebtedness, and an allocation of mortgage indebtedness for purposes of a separate discharge may not be
made. This change is made to eliminate the formula
that did not work and to allow the vessel to be sold free
and clear, regardless of the amount of the sale.
Under subsection (d) of section 31322, a mortgage or
other instrument representing financing of a vessel
under State law that is made under applicable State
law and covers the whole of a vessel titled in a State
is deemed to be a preferred mortgage if two conditions
are fulfilled. The first condition is that the Secretary
must certify that the State in which the vessel is titled
has a titling system that complies with the Secretary’s
vessel titling guidelines established under section
13106(b)(8) of title 46. Congress mandated the promulgation of these guidelines in the Recreational Boating
Safety Act of 1986, Public Law 99–626. The second condition is that the State in which the vessel is titled must
make information available to the Secretary for the
vessel identification system established under chapter
125 of title 46 (as enacted by this Act) on the vessel covered by the mortgage or other instrument. This status
only applies to vessels titled in the State after those
two conditions are met. The phrase ‘‘instrument representing financing of a vessel under State law’’ is used
in addition to ‘‘mortgage’’ because State laws do not
always use the term mortgage when referring to financing. It is intended, however, that the financing covered
by this phrase would be the same as that covered by the
concept of a mortgage under other Federal law.
Paragraph (2) of subsection (d) clarifies that mortgages or other financing instruments may obtain preferred status under subsection (d) if they cover vessels
titled in a State after the Secretary certifies the compliance of the State’s titling system, and the State begins making vessel identification information available
to the Secretary. Preferred mortgage status can only
be attained when these two conditions are in effect.
Mortgages or financing instruments made prior to that
are not preferred and, if these two conditions cease to
exist, new mortgages or forecasting instruments made
after that time cannot attain preferred status.
The law of the titling State controls the making of
the preferred mortgage or financing instrument under
this subsection. No additional Federal recording requirements may be imposed for the mortgage or instrument to obtain preferred status under this subsection.
Paragraph (3) of this subsection ensures that a preferred mortgage under this subsection retains that
status if the vessel covered by the mortgage later relinquishes its title. If the vessel is subsequently documented, the continuing validity of the mortgage is determined by section 31321(g) (as enacted by this Act).
Subsection (e) of section 31322 clarifies the validity of
preferred mortgages made under subsection (d). In the
case of a State titled vessel covered by a preferred
mortgage for which a new titling application is filed,
the validity of the mortgage is governed by the law of
the titling State in which the mortgage became preferred. In the case of a documented vessel covered by a
preferred mortgage for which an application for a State
title is filed, or a State titled vessel covered by a preferred mortgage for which an application for documentation is filed, the validity of the preferred mortgage is governed by section 31322(a) of title 46 (as enacted by this Act).
Information on vessels with preferred mortgages
made under State law will be available to creditors

Page 235

§ 31323

TITLE 46—SHIPPING

from the vessel identification system under chapter 125
of title 46 (as enacted by this Act).
AMENDMENTS
2006—Subsec. (a)(4)(A). Pub. L. 109–304, § 15(29)(A), substituted ‘‘section 12113(c)’’ for ‘‘section 12102(c)’’.
Subsec. (a)(4)(E). Pub. L. 109–304, § 15(29)(B), substituted ‘‘for purposes of documentation under section
12103’’ for ‘‘under section 12102(a)’’.
Subsec. (d)(1)(A). Pub. L. 109–304, § 16(c)(7), substituted
‘‘section 13107(b)(8)’’ for ‘‘section 13106(b)(8)’’.
Subsec. (f)(2). Pub. L. 109–304, § 15(29)(C), substituted
‘‘section 12113(c)’’ for ‘‘section 12102(c)’’.
2001—Subsec. (a)(4)(B) to (F). Pub. L. 107–20, § 2202(b),
added subpars. (B) to (F) and struck out former subpars. (B) and (C) which read as follows:
‘‘(B) a state or federally chartered financial institution that satisfies the controlling interest criteria of
section 2(b) of the Shipping Act, 1916 (46 U.S.C. 802(b));
‘‘(C) a person that complies with the provisions of
section 12102(c)(4) of this title.’’
Subsecs. (f) to (h). Pub. L. 107–20, § 2202(c), added subsecs. (f) to (h).
1999—Subsec. (a)(4). Pub. L. 106–31 made technical
amendment to directory language of Pub. L. 105–277,
§ 202(b). See 1998 Amendment note below.
1998—Subsec. (a)(4). Pub. L. 105–277, § 202(b), as amended by Pub. L. 106–31, added par. (4).
Subsec. (b). Pub. L. 105–383, § 401(c)(1), added subsec.
(b) and struck out former subsec. (b) which read as follows: ‘‘A preferred mortgage filed or recorded under
this chapter may have any rate of interest that the
parties to the mortgage agree to.’’
Subsec. (d)(1). Pub. L. 105–383, § 401(c)(2), substituted
‘‘mortgage, security agreement, or instrument’’ for
‘‘mortgage or instrument’’ in introductory provisions
and subpar. (B).
Subsec. (d)(2). Pub. L. 105–383, § 401(c)(4), substituted
‘‘mortgages, security agreements, or instruments’’ for
‘‘mortgages or instruments’’ in introductory provisions.
Subsec. (d)(3). Pub. L. 105–383, § 401(c)(3), added par. (3)
and struck out former par. (3) which read as follows: ‘‘A
preferred mortgage under this subsection continues to
be a preferred mortgage if the vessel is no longer titled
in the State where the mortgage was made.’’
1996—Subsec. (a). Pub. L. 104–324 amended subsec. (a)
generally. Prior to amendment, subsec. (a) consisted of
2 pars. with substantially similar provisions defining a
preferred mortgage except that it included a mortgage
with a State, the United States Government, a federally insured depository institution, or specified individual as mortgagee.
1989—Subsec. (a)(2). Pub. L. 101–225, § 303(3)(A), amended par. (2) generally. Prior to amendment, par. (2) read
as follows: ‘‘Paragraph (1)(D) of this subsection does
not apply to a vessel operated only as a fishing vessel,
fish processing vessel, or a fish tender vessel (as defined
in section 2101 of this title) or to a vessel operated only
for pleasure.’’
Subsec. (d)(1). Pub. L. 101–225, § 303(3)(B), substituted
‘‘granting a security interest perfected under State
law’’ for ‘‘representing financing of a vessel under
State law that is made under applicable State law’’.
Subsec. (e). Pub. L. 101–225, § 303(3)(C), substituted
‘‘the status of the preferred mortgage’’ for ‘‘the validity of the preferred mortgage’’ in pars. (1) and (2).
EFFECTIVE DATE OF 2001 AMENDMENT
Pub. L. 107–20, title II, § 2202(d), July 24, 2001, 115 Stat.
170, provided that: ‘‘Section 31322 of title 46, United
States Code as amended in this section, and as amended
by section 202(b) of the American Fisheries Act (Public
Law 105–277, division C, title II) shall not take effect
until April 1, 2003, nor shall the Secretary of Transportation, in determining whether a vessel owner complies
with the requirements of section 12102(c) of title 46,
United States Code [now 46 U.S.C. 12113(b)(2) to (d)],
consider the citizenship status of a lender, in its capac-

ity as a lender with respect to that vessel owner, until
after April 1, 2003.’’
EFFECTIVE DATE OF 1998 AMENDMENT
Pub. L. 105–277, div. C, title II, § 203(a), Oct. 21, 1998,
112 Stat. 2681–619, provided that: ‘‘The amendments
made by section 202 [amending this section and former
section 12102 of this title] shall take effect on October
1, 2001.’’
EFFECTIVE DATE
Section effective Jan. 1, 1989, not to affect any civil
action filed before that date, and, insofar as applicable
to vessels for which an application for documentation
has been filed, effective Jan. 1, 1990, with other exceptions and qualifications, see section 107 of Pub. L.
100–710, set out as a note under section 31301 of this
title.

§ 31323. Disclosing and incurring obligations before executing preferred mortgages
(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.)
HISTORICAL AND REVISION NOTES
Revised section
31323(a) ........................................
31323(b) ........................................
31323(c) ........................................

Source section (U.S. Code)
46:924(1)
46:924(2)
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.

§ 31324

TITLE 46—SHIPPING

§ 31324. Retention and examination of mortgages
of vessels covered by preferred mortgages
(a) On request, the owner, master, or individual in charge of a vessel covered by a preferred
mortgage shall permit a person to examine the
mortgage if the person has business with the
vessel that may give rise to a maritime lien or
the sale, conveyance, mortgage, or assignment
of a mortgage of the vessel.
(b) A mortgagor of a preferred mortgage covering a self-propelled vessel shall use diligence in
keeping a certified copy of the mortgage on the
vessel.
(Pub. L. 100–710, title I, § 102(c), Nov. 23, 1988, 102
Stat. 4744.)
HISTORICAL AND REVISION NOTES
Revised section
31324 ............................................

Source section (U.S. Code)
46:923

Section 31324(a) provides for examination of mortgages of a vessel that is covered by a preferred mortgage by persons that have business with the vessel that
may give rise to a maritime lien or the sale, conveyance, mortgage, or assignment of the mortgage. This
subsection makes no substantive change to law.
Section 31324(b) requires that a certified copy of the
mortgage must be on board a self-propelled vessel. This
subsection makes no substantive change to law.

§ 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

Page 236

(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 vessel titled in a
State, or a foreign vessel, this jurisdiction is exclusive of the courts of the States for a civil action brought under subsection (b)(1) of this section.
(d)(1) Actual notice of a civil action brought
under subsection (b)(1) of this section, or to enforce a maritime lien, must be given in the manner directed by the court to—
(A) the master or individual in charge of the
vessel;
(B) any person that recorded under section
31343(a) or (d) of this title an unexpired notice
of a claim of an undischarged lien on the vessel; and
(C) a mortgagee of a mortgage filed or recorded under section 31321 of this title that is
an undischarged mortgage on the vessel.
(2) Notice under paragraph (1) of this subsection is not required if, after search satisfactory to the court, the person entitled to the notice has not been found in the United States.
(3) Failure to give notice required by this subsection does not affect the jurisdiction of the
court in which the civil action is brought. However, unless notice is not required under paragraph (2) of this subsection, the party required
to give notice is liable to the person not notified
for damages in the amount of that person’s interest in the vessel terminated by the action
brought under subsection (b)(1) of this section. A
civil action may be brought to recover the
amount of the terminated interest. The district
courts have original jurisdiction of the action,
regardless of the amount in controversy or the
citizenship of the parties. If the plaintiff prevails, the court may award costs and attorney
fees to the plaintiff.
(e) In a civil action brought under subsection
(b)(1) of this section—
(1) the court may appoint a receiver and authorize the receiver to operate the mortgaged
vessel and shall retain in rem jurisdiction over
the vessel even if the receiver operates the
vessel outside the district in which the court
is located; and
(2) when directed by the court, a United
States marshal may take possession of a mortgaged vessel even if the vessel is in the possession or under the control of a person claiming
a possessory common law lien.
(f)(1) Before title to the documented vessel or
vessel for which an application for documentation is filed under chapter 121 is transferred by
an extrajudicial remedy, the person exercising
the remedy shall give notice of the proposed
transfer to the Secretary, to the mortgagee of
any mortgage on the vessel filed in substantial
compliance with section 31321 of this title before
notice of the proposed transfer is given to the
Secretary, and to any person that recorded an
unexpired notice of a claim of an undischarged
lien on the vessel under section 31343(a) or (d) of

Page 237

§ 31325

TITLE 46—SHIPPING

this title before notice of the proposed transfer
is given to the Secretary.
(2) Failure to give notice as required by this
subsection shall not affect the transfer of title
to a vessel. However, the rights of any holder of
a maritime lien or a preferred mortgage on the
vessel shall not be affected by a transfer of title
by an extrajudicial remedy exercised under this
section, regardless of whether notice is required
by this subsection or given.
(3) The Secretary shall prescribe regulations
establishing the time and manner for providing
notice under this subsection.
(Pub. L. 100–710, title I, § 102(c), Nov. 23, 1988, 102
Stat. 4745; Pub. L. 101–225, title III, § 303(4), Dec.
12, 1989, 103 Stat. 1923; Pub. L. 104–324, title XI,
§ 1124(a), (b), Oct. 19, 1996, 110 Stat. 3980; Pub. L.
105–383, title IV, § 401(c)(5)–(7), Nov. 13, 1998, 112
Stat. 3425; Pub. L. 107–295, title II, § 205(b), Nov.
25, 2002, 116 Stat. 2096; Pub. L. 109–304, § 15(30),
Oct. 6, 2006, 120 Stat. 1704; Pub. L. 110–181, div. C,
title XXXV, § 3529(b)(1)(B), Jan. 28, 2008, 122 Stat.
603.)
HISTORICAL AND REVISION NOTES
Revised section
31325(a) ........................................
31325(b)(1) ....................................
31325(b)(2) ....................................
31325(b)(3) ....................................
31325(c) ........................................
31325(d) ........................................
31325(e) ........................................

Source section (U.S. Code)
46:951 (1st sentence)
46:951 (2d sentence)
46:954(a)
New
46:951 (3d sentence)
46:951 (4th to 6th sentences)
46:952 (1st, 2d sentences)

Section 31325 provides for the enforcement of a preferred mortgage lien.
Section 31325(a) makes a ‘‘preferred mortgage’’ a lien
on the vessel in the amount of the mortgage indebtedness secured by the vessel outstanding at foreclosure.
This subsection makes no substantive change to law.
Section 31325(b) provides that, on default of any term,
the mortgagee may enforce the preferred mortgage lien
in a civil action in rem, or in personam in admiralty
against the mortgagor, comaker, or guarantor for the
amount of the outstanding indebtedness secured by the
vessel or any deficiency in paying off that indebtedness. This subsection makes a substantive change to
law by allowing a nonadmiralty civil action to be
brought against the mortgagor, comaker, or guarantor
for the amount of the outstanding indebtedness secured
by the vessel or any deficiency in paying off that indebtedness. This change allows an action to be brought
even when the vessel is outside U.S. jurisdiction. This
section will also allow the action to be brought against
the comaker or guarantor of the mortgage.
Section 31325(c) provides for original and exclusive jurisdiction by a district court, to the exclusion of the
courts of a State for civil actions brought in rem. It
also provides for original jurisdiction for civil actions
brought in personam in admiralty and civil actions
brought under subsection (b)(3). This subsection makes
a substantive change to law by broadening the jurisdiction to courts in the territories, as defined in section
31301, as well as giving original jurisdiction to the district courts in nonadmiralty civil actions brought to
enforce the preferred mortgage lien.
Subsection (d) provides that actual notice of a civil
action in rem to enforce a maritime lien must be given
in a manner directed by the court to the master, individual in charge of the vessel, to any person that recorded a notice of a claim of an undischarged lien, and,
for the first time, to the mortgagee of a mortgage filed
with the Secretary. This notice is not required if, after
a search is made that is satisfactory to the court, the
person entitled to notice is not found in the United
States. Failure to give notice does not affect the
court’s jurisdiction. However, the mortgagor is still lia-

ble to the person not notified for damages in the
amount of that person’s interest in the vessel that was
terminated by the civil action in rem, and a civil action
may still be brought to recover the amount of the terminated interest. The district courts have original jurisdiction of the action, regardless of the amount in
controversy or the citizenship of the parties. If plaintiff
prevails, the court shall award costs and attorneys fees
to the plaintiff.
Subsection (e) provides that, in a civil action in rem,
the court may appoint a receiver and authorize operation of the vessel. When directed by the court, a
United States marshal may take possession—even if
the vessel is in the possession of or under the control
of a person claiming a possessory common law lien.
This subsection makes a substantive change to law by
allowing the court to retain in rem jurisdiction over the
vessel even if the receiver operates the vessel outside
the district in which the court is located.
HOUSE FLOOR STATEMENT

Subsection (c) of this section clarifies that the district courts have original jurisdiction for a civil action
under subsection (b) of this section, and exclusive jurisdiction in the case of vessels documented or to be documented under chapter 121 of title 46.
AMENDMENTS
2008—Subsec. (b)(3)(B). Pub. L. 110–181 amended Pub.
L. 109–304, § 15(30). See 2006 Amendment note below.
2006—Subsec. (b)(3)(B). Pub. L. 109–304, § 15(30), as
amended by Pub. L. 110–181, substituted ‘‘section 56101
or 56102 of this title’’ for ‘‘section 9 or 37 of the Shipping Act, 1916 (46 App. U.S.C. 808, 835)’’.
2002—Subsec. (d)(1)(B). Pub. L. 107–295, § 205(b)(1), substituted ‘‘an unexpired notice of a claim’’ for ‘‘a notice
of a claim’’.
Subsec. (f)(1). Pub. L. 107–295, § 205(b)(2), substituted
‘‘an unexpired notice of a claim’’ for ‘‘a notice of a
claim’’.
1998—Subsecs. (b)(1), (3), (c). Pub. L. 105–383 inserted
‘‘a vessel titled in a State,’’ after ‘‘chapter 121 of this
title,’’.
1996—Subsec. (b). Pub. L. 104–324, § 1124(a)(1), substituted ‘‘mortgagee may’’ for ‘‘mortgage may’’ in introductory provisions.
Subsec. (b)(1). Pub. L. 104–324, § 1124(a)(2)(A), substituted ‘‘preferred’’ for ‘‘perferred’’.
Subsec. (b)(3). Pub. L. 104–324, § 1124(a)(2)(B), (3), added
par. (3).
Subsec. (f). Pub. L. 104–324, § 1124(b), added subsec. (f).
1989—Subsecs. (b), (c). Pub. L. 101–225 amended subsecs. (b) and (c) generally. Prior to amendment, subsecs. (b) and (c) read as follows:
‘‘(b) On default of any term of the preferred mortgage, the mortgagee may enforce the preferred mortgage lien in—
‘‘(1) a civil action in rem for a documented vessel or
a vessel to be documented under chapter 121 of this
title;
‘‘(2) a civil action in personam in admiralty against
the mortgagor, comaker, or guarantor for the
amount of the outstanding indebtedness secured by
the mortgaged vessel or any deficiency in full payment of that indebtedness; and
‘‘(3) a civil action against the mortgagor, comaker,
or guarantor for the amount of the outstanding indebtedness secured by the mortgaged vessel or any
deficiency in full payment of that indebtedness.
‘‘(c) The district courts have original jurisdiction of
a civil action brought under subsection (b) of this section. However, for documented vessels or vessels to be
documented under chapter 121 of this title, this jurisdiction is exclusive of the courts of the States for a
civil action under subsection (b)(1) of this section.’’
EFFECTIVE DATE OF 2008 AMENDMENT
Amendment by Pub. L. 110–181 effective as if included
in the enactment of Pub. L. 109–304, see section

§ 31326

TITLE 46—SHIPPING

3529(b)(2) of Pub. L. 110–181, set out as a note under section 3205 of this title.
EFFECTIVE DATE OF 2002 AMENDMENT
Pub. L. 107–295, title II, § 205(e), Nov. 25, 2002, 116 Stat.
2096, provided that: ‘‘This section [see Tables for classification] shall take effect January 1, 2003.’’
CONSTRUCTION OF 1996 AMENDMENTS
Section 1124(c) of Pub. L. 104–324 provided that: ‘‘The
amendments made by subsections (a) and (b) [amending
this section] may not be construed to imply that remedies other than judicial remedies were not available
before the date of enactment of this section [Oct. 19,
1996] to enforce claims for outstanding indebtedness secured by mortgaged vessels.’’

§ 31326. Court sales to enforce preferred mortgage liens and maritime liens and priority of
claims
(a) When a vessel is sold by order of a district
court in a civil action in rem brought to enforce
a preferred mortgage lien or a maritime lien,
any claim in the vessel existing on the date of
sale is terminated, including a possessory common law lien of which a person is deprived under
section 31325(e)(2) of this title, and the vessel is
sold free of all those claims.
(b) Each of the claims terminated under subsection (a) of this section attaches, in the same
amount and in accordance with their priorities
to the proceeds of the sale, except that—
(1) the preferred mortgage lien, including a
preferred mortgage lien on a foreign vessel
whose mortgage has been guaranteed under
chapter 537 of this title, has priority over all
claims against the vessel (except for expenses
and fees allowed by the court, costs imposed
by the court, and preferred maritime liens);
and
(2) for a foreign vessel whose mortgage has
not been guaranteed under chapter 537 of this
title, the preferred mortgage lien is subordinate to a maritime lien for necessaries provided in the United States.
(Pub. L. 100–710, title I, § 102(c), Nov. 23, 1988, 102
Stat. 4746; Pub. L. 103–160, div. A, title XIII,
§ 1360, Nov. 30, 1993, 107 Stat. 1816; Pub. L. 109–304,
§ 15(31), Oct. 6, 2006, 120 Stat. 1704.)
HISTORICAL AND REVISION NOTES
Revised section
31326(a) ........................................
31326(b)(1) ....................................
31326(b)(2) ....................................

Source section (U.S. Code)
46:953(b), 961(c)
46:953(b)
46:951 (2d par. proviso)

Section 31326(a) provides for a court-ordered sale to
enforce a preferred mortgage lien or a maritime lien
and the priority of claims. When a mortgaged vessel is
sold by court order in a civil action in rem, any prior
claim in the vessel is terminated—including any possessory common law lien. This subsection makes a substantive change to law by making the process the same
for maritime liens as was provided for preferred mortgage liens. This eliminates the requirement for making
a new mortgagee for a court sale to enforce a maritime
lien. This section also broadens the jurisdiction to
courts in the territories, as defined in section 31301.
Section 31326(b)(1) provides that each of these terminated claims attaches, in the same amount and priority, to the proceeds of sale—except that the preferred
mortgage lien always has priority over these other
claims. However, the preferred mortgage lien is still
subordinated to expenses and fees allowed by the court,

Page 238

costs imposed by the court, and any preferred maritime
liens. This may include statutory fees such as the fee
of the United States Marshal under 28 U.S.C. 1921. Except for broadening its coverage under subsection (a),
this makes no substantive change to law.
Section 31326(b)(2) provides in the case of a foreign
vessel, the preferred mortgage lien is also subordinated
to a maritime lien for necessaries performed or supplied for the vessel in the United States. ‘‘Provided’’
has been substituted for ‘‘provided or supplied’’ for consistency in usage. Except for broadening its coverage
under subsection (a), this paragraph makes no substantive change to law.
AMENDMENTS
2006—Subsec. (b)(1). Pub. L. 109–304, § 15(31)(A), substituted ‘‘chapter 537 of this title,’’ for ‘‘title XI of the
Merchant Marine Act, 1936 (46 App. U.S.C. 1101 et seq.)’’.
Subsec. (b)(2). Pub. L. 109–304, § 15(31)(B), substituted
‘‘chapter 537 of this title’’ for ‘‘title XI of that Act’’.
1993—Subsec. (b)(1). Pub. L. 103–160, § 1260(1), inserted
‘‘, including a preferred mortgage lien on a foreign vessel whose mortgage has been guaranteed under title XI
of the Merchant Marine Act, 1936 (46 App. U.S.C. 1101 et
seq.)’’ after ‘‘preferred mortgage lien’’.
Subsec. (b)(2). Pub. L. 103–160, § 1360(2), inserted
‘‘whose mortgage has not been guaranteed under title
XI of that Act’’ after ‘‘foreign vessel’’.

§ 31327. Forfeiture of mortgagee interest
The interest of a mortgagee in a documented
vessel or a vessel covered by a preferred mortgage under section 31322(d) of this title may be
terminated by a forfeiture of the vessel for a
violation of a law of the United States only if
the mortgagee authorized, consented, or conspired to do the act, failure, or omission that is
the basis of the violation.
(Pub. L. 100–710, title I, § 102(c), Nov. 23, 1988, 102
Stat. 4746.)
HISTORICAL AND REVISION NOTES
Revised section
31327 ............................................

Source section (U.S. Code)
46:961(b)

Section 31327 provides for forfeiture of the mortgagee’s interest if the mortgagee authorized, consented,
or conspired to do the act, failure, or omission that is
the basis of the violation that caused forfeiture of the
vessel. This section makes no substantive change to
law.

[§ 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 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.

Page 239

§ 31330

TITLE 46—SHIPPING

(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.
(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 section (U.S. Code)

31329 ............................................

46:961(f)

Section 31329 sets out certain restrictions on the
court sale of a documented vessel.
Section 31329(a) restricts the sale only to a person eligible to own a documented vessel under section 12102 of
title 46 or to the mortgagee, which may be a trustee
acting as a holder of a preferred mortgage on a documented vessel for the benefit of a person not eligible to
be the holder of a preferred mortgage on that vessel.
Section 31329(b) sets out conditions on the sale to a
trustee acting as a holder of a preferred mortgage on a
documented vessel for the benefit of a person not eligible to be the holder of a preferred mortgage on that
vessel. First, the vessel must be held by the trustee for
resale. Second, while being held for resale, the vessel is
subject to requisition or purchase during a national
emergency under section 902 of the Merchant Marine
Act, 1936 (46 App. U.S.C. 1242). And third, the sale of the
vessel to the trustee is not a sale foreign within the
terms of the First Proviso of section 27 of the Merchant
Marine Act, 1920 (46 App. U.S.C. 883).
Section 31329(c) requires a person that is eligible to
document the vessel that purchases a vessel from the
court to document the vessel. This subsection also requires the person purchasing the vessel from the trustee to document it, thereby restricting to whom the
trustee can sell the vessel. Many documented vessels
have no national defense utility, such as recreational
vessels and fishing vessels. Therefore, both of these restrictions can be waived by the Secretary. As previously discussed, these waivers can be on a case-bycase basis or with a blanket waiver.
Section 31329(d) prohibits a trustee from operating
the vessel without the approval of the Secretary.
Section 31329(e) voids any sale that is done contrary
to this section.
HOUSE FLOOR STATEMENT

Under section 31329(d) a vessel may be operated by
the trustee only with the approval of the Secretary.
Under current law a vessel may be documented by a
trust if all of the members of the trust are citizens of
the United States. If the trust buying the vessel at the
court sale includes foreign investors, the vessel cannot
be documented. The Committee intends in this section
that the vessel will only be ‘‘operated’’ in a maintenance manner, but not in a commercial service.
AMENDMENTS
2010—Subsec. (d). Pub. L. 111–281 substituted ‘‘Secretary of Transportation’’ for ‘‘Secretary’’.

2006—Subsec. (a)(1). Pub. L. 109–304, § 15(32)(A), substituted ‘‘section 12103’’ for ‘‘section 12102’’.
Subsec. (b)(2). Pub. L. 109–304, § 15(32)(B)(i), substituted ‘‘chapter 563 of this title’’ for ‘‘section 902 of
the Merchant Marine Act, 1936 (46 App. U.S.C. 1242)’’.
Subsec. (b)(3). Pub. L. 109–304, § 15(32)(B)(ii), substituted ‘‘sale to a person not a citizen of the United
States under section 12132 of this title’’ for ‘‘sale foreign within the terms of the first proviso of section 27
of the Merchant Marine Act, 1920 (46 App. U.S.C. 883)’’.
1996—Subsec. (f). Pub. L. 104–324 added subsec. (f).

§ 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;
(B) with intent to defraud, incurs a contractual obligation in violation of section 31323(b)
of this title; 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;
(B) incurs a contractual obligation in violation of section 31323(b) of this title; 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 shall be fined under title 18,
imprisoned for not more than 3 years, or both.
(2) A person violating section 31329 of this title
is liable to the Government for a civil penalty of
not more than $25,000.
(3) A vessel involved in a violation under section 31329 of this title and its equipment may be
seized by, and forfeited to, the Government.
(c) If a person not an individual violates this
section, the president or chief executive of the
person also is subject to any penalty provided
under this section.
(Pub. L. 100–710, title I, § 102(c), Nov. 23, 1988, 102
Stat. 4747; Pub. L. 104–324, title XI, § 1113(b)(2),
Oct. 19, 1996, 110 Stat. 3970; Pub. L. 111–281, title
IX, § 913(a)(1), (d), Oct. 15, 2010, 124 Stat. 3017.)
HISTORICAL AND REVISION NOTES
Revised section
31330(a) ........................................
31330(b) ........................................
31330(c) ........................................

Source section (U.S. Code)
46:941(b) (1st sentence)
New
46:941(b) (1st sentence)

Section 31330(a) provides for criminal penalties for
not disclosing obligations, incurring contractual obligations in violation of section 31323(b), and filing a
mortgage made not in good faith. This subsection
makes a substantive change to law by adding civil penalties and by making it a crime to record with the Secretary of Transportation a mortgage made not in good
faith with the intent to hinder an existing or future
creditor of the mortgagor or a lienor of the vessel. This
is done since the affidavit of good faith has been eliminated from the elements of a preferred mortgage.
Section 31330(b) adds criminal and civil penalties for
violating the sale and trust requirements under sec-

§ 31341

TITLE 46—SHIPPING

tions 31328 and 31329. It also makes a vessel and its
equipment involved in those violations subject to seizure by the Government.
Section 31330(c) makes the president or chief executive officer of a corporation or association liable as a
mortgagor for the penalties under this section.
HOUSE FLOOR STATEMENT

Subsection (a) of this section adds criminal and civil
penalties for a preferred mortgagor’s failure to carry
out certain requirements under chapter 313 of title 46
(as enacted by this Act).
AMENDMENTS
2010—Subsec. (a)(1)(B). Pub. L. 111–281, § 913(d)(1)(A),
inserted ‘‘or’’ after semicolon.
Subsec. (a)(1)(C). Pub. L. 111–281, § 913(d)(1)(B), substituted ‘‘Secretary.’’ for ‘‘Secretary; or’’.
Pub. L. 111–281, § 913(a)(1), struck out ‘‘of Transportation’’ after ‘‘Secretary’’.
Subsec. (a)(1)(D). Pub. L. 111–281, § 913(d)(1)(C), struck
out subpar. (D) which read as follows: ‘‘with intent to
defraud, does not comply with section 31321(h) of this
title.’’
Subsec. (a)(2)(B) to (D). Pub. L. 111–281, § 913(d)(2), inserted ‘‘or’’ at end of subpar. (B), substituted ‘‘faith.’’
for ‘‘faith; or’’ at end of subpar. (C), and struck out subpar. (D) which read as follows: ‘‘does not comply with
section 31321(h) of this title.’’
1996—Subsec. (b). Pub. L. 104–324 struck out ‘‘31328 or’’
before ‘‘31329’’ in pars. (1) to (3).

SUBCHAPTER III—MARITIME LIENS
§ 31341. Persons presumed to have authority to
procure necessaries
(a) The following persons are presumed to
have authority to procure necessaries for a vessel:
(1) the owner;
(2) the master;
(3) a person entrusted with the management
of the vessel at the port of supply; or
(4) an officer or agent appointed by—
(A) the owner;
(B) a charterer;
(C) an owner pro hac vice; or
(D) an agreed buyer in possession of the
vessel.
(b) A person tortiously or unlawfully in possession or charge of a vessel has no authority to
procure necessaries for the vessel.
(Pub. L. 100–710, title I, § 102(c), Nov. 23, 1988, 102
Stat. 4748; Pub. L. 101–225, title III, § 303(5), Dec.
12, 1989, 103 Stat. 1924.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

31341(a) ........................................
31341(b) ........................................

46:972 (1st sentence), 973
46:972 (2d sentence)

Section 31341(a) lists those persons who are presumed
to have authority to procure necessaries for a vessel.
These include the owner, master, or a manager at the
port of supply; and an officer or agent appointed by the
owner, charterer, owner pro hac vice, or buyer in possession of the vessel. This subsection makes no substantive change to law.
Section 31341(b) provides that any person that is tortiously or unlawfully in possession of or in charge of a
vessel has no authority to procure necessaries. This
subsection makes no substantive change to law.
AMENDMENTS
1989—Subsec. (a)(3). Pub. L. 101–225 substituted ‘‘management’’ for ‘‘mangement’’.

Page 240

§ 31342. Establishing maritime liens
(a) Except as provided in subsection (b) of this
section, a person providing necessaries to a vessel on the order of the owner or a person authorized by the owner—
(1) has a maritime lien on the vessel;
(2) may bring a civil action in rem to enforce
the lien; and
(3) is not required to allege or prove in the
action that credit was given to the vessel.
(b) This section does not apply to a public vessel.
(Pub. L. 100–710, title I, § 102(c), Nov. 23, 1988, 102
Stat. 4748; Pub. L. 101–225, title III, § 303(6), Dec.
12, 1989, 103 Stat. 1924.)
HISTORICAL AND REVISION NOTES
Revised section

Source section (U.S. Code)

31342 ............................................

46:971

Section 31342 provides that any authorized person
providing necessaries for a vessel has a maritime lien
on the vessel, may bring a civil action in rem in admiralty to enforce the lien, and is not required to allege
or prove that credit was given to the vessel. ‘‘Providing’’ has been substituted for ‘‘furnishing’’ for consistency with other laws. This section makes no substantive change to law. This section does not supersede
the prohibition under the Public Vessels Act, the Foreign Sovereign Immunities Act, or the Suits in Admiralty Act, on bringing an in rem action against a public
vessel.
AMENDMENTS
1989—Pub. L. 101–225 designated existing provisions as
subsec. (a), substituted ‘‘Except as provided in subsection (b) of this section, a person providing necessaries to a vessel on the order of the owner’’ for ‘‘A
person providing necessaries to a vessel (except a public vessel) on the order of a person listed in section
31341 of this title’’, and added subsec. (b).

§ 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 no-

Page 241

§ 31343

TITLE 46—SHIPPING

tice 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
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 this section, the person having the claim shall provide
the Secretary with an acknowledged certificate
of discharge of the indebtedness. The Secretary
shall record the certificate.
(2) The district courts of the United States
shall have jurisdiction over a civil action in Admiralty to declare that a vessel is not subject to
a lien claimed under subsection (b) of this section, or that the vessel is not subject to the notice of claim of lien, or both, regardless of the
amount in controversy or the citizenship of the
parties. Venue in such an action shall be in the
district where the vessel is found or where the
claimant resides or where the notice of claim of
lien is recorded. The court may award costs and
attorneys fees to the prevailing party, unless
the court finds that the position of the other
party was substantially justified or other circumstances make an award of costs and attorneys fees unjust. The Secretary shall record any
such declaratory order.
(d) A person claiming a lien on a vessel covered by a preferred mortgage under section
31322(d) of this title must record and discharge
the lien as provided by the law of the State in
which the vessel is titled.
(e) A notice of claim of lien recorded under
subsection (b) of this section shall expire 3 years
after the date the lien was established, as such
date is stated in the notice under subsection (a)
of this section.
(f) This section does not alter in any respect
the law pertaining to the establishment of a
maritime lien, the remedy provided by such a
lien, or the defenses thereto, including any defense under the doctrine of laches.
(Pub. L. 100–710, title I, § 102(c), Nov. 23, 1988, 102
Stat. 4748; Pub. L. 107–295, title II, § 205(a)(1),
Nov. 25, 2002, 116 Stat. 2095; Pub. L. 111–281, title
IX, § 913(a)(1), Oct. 15, 2010, 124 Stat. 3017.)
HISTORICAL AND REVISION NOTES
Revised section
31343 ............................................

Source section (U.S. Code)
46:925

Section 31343 provides that any person claiming a lien
on a vessel covered by a preferred mortgage may record
a notice of lien. This notice must state the nature of
the lien, date it was established; the amount; and the
name and address of the person claiming a lien, and it
must be acknowledged. The Secretary must record a
notice of lien if it complies with these requirements.
When any part of the indebtedness is discharged, the
claimant shall provide the Secretary with a written,
acknowledged certificate of discharge of the indebtedness, and the Secretary shall record the certificate.
This section makes no substantive change to law.

Section 31343(c) provides that, on the full and final
discharge of an indebtedness that is the basis for a
claim, the person having the claim shall provide the
Secretary with an acknowledged certificate of discharge on the request of the Secretary or owner of the
vessel. This subsection makes a substantive change to
law by not requiring partial discharges to be filed, as
well as making the filing of discharge certificates only
at the request of the Secretary or owner of the vessel.
HOUSE FLOOR STATEMENT

Subsection (d) of this section requires a person claiming a lien on a vessel covered by a preferred mortgage
under section 31322(d) to record and discharge the lien
as provided by the law of the State in which the vessel
is titled.
AMENDMENTS
2010—Subsec. (a). Pub. L. 111–281 struck out ‘‘of
Transportation’’ after ‘‘Secretary’’ in introductory provisions.
2002—Pub. L. 107–295, § 205(a)(1)(A), substituted ‘‘notices of claim of maritime lien’’ for ‘‘liens on preferred
mortgage vessels’’ in section catchline.
Subsec. (a). Pub. L. 107–295, § 205(a)(1)(B), substituted
‘‘documented, or for which an application for documentation has been filed, under chapter 121’’ for ‘‘covered by a preferred mortgage filed or recorded under
this chapter’’ in introductory provisions.
Subsec. (b). Pub. L. 107–295, § 205(a)(1)(C), amended
subsec. (b) generally. Prior to amendment, subsec. (b)
read as follows: ‘‘The Secretary shall record a notice
complying with subsection (a) of this section.’’
Subsec. (c). Pub. L. 107–295, § 205(a)(1)(D), amended
subsec. (c) generally. Prior to amendment, subsec. (c)
read as follows: ‘‘On full and final discharge of the indebtedness that is the basis for a claim recorded under
subsection (b) of this section, on request of the Secretary or owner, the person having the claim shall provide the Secretary with an acknowledged certificate of
discharge of the indebtedness. The Secretary shall
record the certificate.’’
Subsecs. (e), (f). Pub. L. 107–295, § 205(a)(1)(E), added
subsecs. (e) and (f).
EFFECTIVE DATE OF 2002 AMENDMENT
Amendment by Pub. L. 107–295 effective Jan. 1, 2003,
see section 205(e) of Pub. L. 107–295, set out as a note
under section 31325 of this title.

Subtitle IV—Regulation of Ocean
Shipping
PART A—OCEAN SHIPPING
Chapter

401.
403.
405.
407.
409.
411.
413.

Sec.

General ..................................................
Agreements ...........................................
Tariffs, Service Contracts, Refunds,
and Waivers ......................................
Controlled Carriers ............................
Ocean
Transportation
Intermediaries ...........................................
Prohibitions and Penalties ...............
Enforcement .........................................

40101
40301
40501
40701
40901
41101
41301

PART B—ACTIONS TO ADDRESS FOREIGN PRACTICES

421.
423.

Regulations Affecting Shipping in
Foreign Trade ................................... 42101
Foreign Shipping Practices .............. 42301
PART C—MISCELLANEOUS

441.

Evidence of Financial Responsibility for Passenger Transportation 44101
PART A—OCEAN SHIPPING
CHAPTER 401—GENERAL

Sec.

40101.

Purposes.