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- Subtitle III. Maritime Liability
- Chapter 313. Commercial Instruments and Maritime Liens
- Subchapter II. Commercial Instruments
46 U.S.C. § 31323 Disclosing and Incurring Obligations Before Executing Preferred Mortgages
Library | United States Statutes |
Edition | 2023 Edition |
Currency | Current through P.L. 118-19 (published on www.congress.gov on 10/06/2023) |
(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.
<TABLE> <TR><TD colspan="2">HISTORICAL AND REVISION NOTES</TD> </TR> <TR> <TD>Revised section</TD> <TD>Source section (U.S. Code)</TD> </TR> <TR> <TD>31323(a)</TD> <TD>46:924(1)</TD> </TR> <TR> <TD>31323(b)</TD> <TD>46:924(2)</TD> </TR> <TR> <TD>31323(c)</TD> <TD>46:941(b) (last sentence)</TD> </TR> </TABLE>
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