United States Code
USC most recently checked for updates: Oct 09, 2024
§ 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.
cite as: 46 USC 31323