BoatWiki

BoatWiki.com

The Free Boating Encyclopedia

DefinitionsGuidelinesResources
FormsDatabasesBlogsProfiles

Participate TranslateAbout
LinkTermsPrivacyContact

--- WikiTags ---

Documentation Overview - Blog
Documentation Requirements - Resource



BoatScope

The nation's premier boat history report with a full compliment of title search resources. Includes eight maritime databases all rolled into one convenient interface. A must-have service for any prospective buyer, marine lender, or maritime professional.

Visit Now

Advertisement

Owner Background Search

Court Records - Criminal Records
Assets - Properties
Personal Details


Know your seller!

Sponsored by

BeenVerified

Preferred Vessel Mortgage

WikiTagsWikiShare


BoatWiki - Definitions

Definition


A preferred vessel mortgage can be defined as an instrument that perfects a security interest in a Coast Guard documented vessel. Also known as a ship mortgage, it offers a priority standing with respect to any subsequent mortgage or contractual related encumbrances. Preferred vessel mortgages were brought about by the Ship Mortgage Act of 1920. This was enacted by congress in order to enhance maritime activities throughout the United States.

Meaning


One of the main advantages of Coast Guard documentation is the enhancement it provides to marine lenders when it comes to financing vessels. In addition to full control over any subsequent changes in the documentation status, it provides a simplified pathway of foreclosure either in a federal court or non-judicially. It also establishes a prioritized position among other security arrangements of the same nature.

Context


Most lenders will not finance a qualified boat unless the borrower agrees to have it documented. This accounts for such a large number of recreational vessels in a system that was initially designed for commercial operations. In fact there are provisions in the regulations where a single fleet mortgage can cover any number of documented vessels when owned by the same party.

Conclusion


Although preferred vessel mortgages are relatively easy to record, they must contain specific citations in order to satisfy federal regulations. There is also a matter of ensuring its priority standing. Marine lenders should accordingly consider the assistance of a maritime attorney or seasoned documentation specialist when dealing with this type of security arrangement. Additional information can be found in above WikiTags and other pages of BoatWiki.


Credits and References

4/26/2022 - Page initiated by Team BoatWiki.




Advertisement

BoatUS Towing


---  Float Your BoatWiki ---

Learn about the role you can play
in supporting the internet's most reliable
source of boating information.

---  WikiAlerts ---

Stay informed about urgent matters of
boater fraud and the latest changes in
 boat registration or safety regulations.

Advertisement

Advertisement

BoatUS Member


BoatWiki.com

A Division of Maritime Partners, LLC
State of Washington  USA
© Copyright 1998 - 2022 All rights reserved.