the vendee, mortgagee, pledgee, or transferee shall file with the collector the oath required by section 40, Shipping Act, 1916 (46 U. S. C. 838). The oath of a corporation shall be signed by its president, secretary, or treasurer, or any other official thereof duly authorized by such corporation to execute any such declaration.

(b) No such instrument shall be accepted for recording prior to the receipt by the collector of the approval of the designation of the home port; nor unless the vessel affected is documented as a vessel of the United States or will be so documented substantially simultaneously with the recording of the instrument. If there has been more than one change in ownership of any interest in a vessel and the vessel has not been documented by the intermediate owners, all unrecorded bills of sale which are executed in the form and manner prescribed by this section may be recorded upon documentation of the vessel. No mortgage shall be accepted for recording unless the vessel which it covers was documented as a vessel of the United States at the time the mortgage was made. Any mortgage presented for recording may be on customs Form 1348.

(c) No such instrument shall be valid against any person other than the vendor, mortgagor, pledgor, grantor, the heirs or devisees of any of the foregoing, or a person having actual notice thereof, unless the instrument has been recorded in the office of the collector of customs at the home port of the vessel. If the instrument covers more than one vessel, it shall be recorded at the home port of each vessel and indexed under the name of each vessel whose home port is the port of recordation. The collector shall record all such instruments and certificates of discharge of mortgages in the order of their receipt in books to be kept for that purpose and hereafter indexed on customs Form 1332, continued if necessary on customs Form 1332-A, to show (1) the name of the vessel, (2) the names of the parties to the instrument, (3) the kind and date of the instrument, (4) the interest transferred, mortgaged or discharged, (5) the date, hour, and minute the instrument was received, (6) the book in which the instrument is recorded, (7) the number assigned to the instrument, (8) in the case of a bill of sale or conveyance, the consideration stated in the instrument, and (9) in the

case of a mortgage or certificate of discharge of mortgage, the amount and date of maturity of the mortgage.

(d) Each such instrument shall recite the interest of the grantor or mortgagor in the vessel, the names of the persons to whom the interest has been transferred or mortgaged, and the interest transferred or mortgaged to each. A bill of sale or conveyance shall also recite in full the last marine document of the vessel. A mortgage, whether ordinary or preferred, may, but need not necessarily, recite in full the last marine document of the vessel; if such marine document is not recited, the vessel shall be described by rig, name, official number, and gross tonnage.

(e) The collector shall index on customs Form 1332, continued if necessary on customs Form 1332-A, all decrees of distribution of estates of deceased owners, all orders of referees or courts appointing trustees in bankruptcy, and all orders of courts of record having the effect of transferring any interest in a vessel or discharging a mortgage or lien to show (1) the name of the vessel, (2) the name of the former owner, (3) the name of the new owner, (4) the interest transferred or lien discharged, (5) the name of the court, (6) the title of the case, and (7) the date of the order.

(f) No certificate of death of the owner of any interest in a vessel, letters of appointment of the personal representative of a deceased owner, decree of distribution of the estate of a deceased owner, will of a deceased owner, letters of guardianship appointing a guardian or committee of an owner, order of a referee or court appointing a trustee in bankruptcy of the assets of an owner, nor court order authorizing the transfer of title of any interest in a vessel shall be recorded unless incorporated in a bill of sale, mortgage, hypothecation, or conveyance of an interest in a vessel of the United States.

(g) No bill of sale, conveyance, mortgage, release from mortgage, satisfaction or discharge of mortgage, assignment of mortgage, or certificate of discharge of lien shall be recorded unless previously acknowledged. Any acknowledgment

valid under the laws of the State where made may be accepted. No customs officer or employee is authorized by section 486, Tariff Act of 1930, to take such acknowledgments.

(h) Each certificate of discharge of mortgage presented for recording shall

be on the customs Form 1363 or in a substantially similar form.

(i) Each bill of sale, mortgage, hypothecation, conveyance, release, satisfaction, assignment or notice of claim of lien shall be endorsed by the collector to show the port of recordation, the exact day, hour, and minute it was received for recordation, the book in which it was recorded, and the number assigned to the instrument.

(j) When an instrument other than a preferred mortgage or assignment of a preferred mortgage (see § 3.38) is to be recorded, the original and one copy shall be presented to the collector, who shall retain the copy for his files.

(k) Any abstract of title of a vessel furnished by the collector of customs at the home port of the vessel shall be on customs Form 1332, continued if necessary on customs Form 1332-A, and shall include any entry respecting each instrument required to be indexed under the regulations contained in this part, including a notice of claim of lien (§ 3.38 (h)).

(1) When the home port of a vessel is changed, whether or not any change in title occurs, the collector of customs at the old home port, upon request of the owner of the vessel, shall forward in duplicate to the collector at the new home port an abstract of title of the vessel, which shall bear at the end thereof the following endorsement:

I certify that the foregoing, which is issued in accordance with the provisions of § 3.33 (1), Customs Regulations, incident to a change in home port, is a true abstract of title of the vessel described above, as appears by the records of this office.

Port.. Date_____

Deputy Collector.

(m) The collector at the new home port of a vessel shall record the abstract of title of the vessel forwarded to him in accordance with paragraph (1) of this section, and no bill of sale, mortgage, hypothecation, conveyance, release, satisfaction, assignment, notice of claim of lien, court order conveying title or other instrument shall be recorded at the new home port until such abstract has been received and recorded.

(n) When an abstract of title of a vessel is forwarded to the collector at the new home port of a vessel in accordance with paragraph (1) of this section,

(p) No abstract of title of any vessel issued in accordance with paragraph (0) of this section shall be recorded by any collector of customs, nor shall any endorsement be made in the index when such an abstract is furnished to any person.

(Sec. 40, 40 Stat. 902, as amended, sec. 30, subsecs. C, H, 41 Stat. 1000, 1002, sec. 2, 43 Stat. 948; 46 U.S.C. 838, 921, 926, 1012) § 3.34 Issue of temporary document upon sale.

(a) When a vessel entitled to be documented changes ownership and is in a port other than the home port designated by the new owner, a temporary document may be issued by the collector at the port where she is.

(b) If application is made to the collector at the home port designated by the new owner and all requirements of law are complied with except the issuance of the document, he shall authorize the coìlector at the port where the vessel then is to issue a temporary document to the vessel.

(c) If application is made to the collector at the port where the vessel then is, the same proceedings shall be had as

are required by law at the vessel's home port, except that the bill of sale shall not be recorded at the port where the vessel is. If the bill of sale is presented to the collector at the port where the temporary document is issued, it shall be noted on his record and then forwarded to the collector at the home port designated by the new owner. The recording fees shall be collected by the issuing collector and forwarded with the bill of sale to the collector at such home port.

(d) The bill of sale shall be recorded by the collector at the home port designated by the new owner, but only after that collector has received from the collector at the former home port and recorded the abstract of title of the vessel as required by § 3.33 (m).

(e) The temporary document shall be surrendered within 10 days after the arrival of the vessel within the district to which she belongs.

(R. S. 4159, 4160, sec. 30, subsecs. C, H, W, 41 Stat. 1000, 1002, 1006, as amended, sec. 2, 43 Stat. 948; 46 U. S. C. 29, 30, 921, 926, 983, 1012)

(a) A documented vessel which, while outside the limits of a customs collection district of the United States and not in any port designated as a port of documentation outside any such district, is sold or transferred in whole or in part to a citizen of the United States may be documented anew as a vessel of the United States at the port designated as the vessel's home port by the new owner or owners in accordance with the requirements of § 3.17 of this part. Such a document shall be issued upon compliance with all the applicable requirements contained in this part, and upon surrender of the previous document at the new home port except that (1) any document so issued shall be a permanent document and (2) the document may be issued without first requiring surrender of the outstanding document to the collector in a case in which the vessel is at sea at the time. In such latter case, the new document shall be forwarded to the United States foreign service officer at the vessel's foreign port of call or the collector of customs at a domestic port of call upon request of the owner or his agent. The foreign service officer or the collector of customs to whom the new document is forwarded shall deliver that document to the vessel upon the vessel's arrival in port and upon surrender of the previous document, which shall be for

warded by that officer to the collector at the vessel's home port.

(b) A documented vessel which has been sold or transferred in whole or in part to a citizen while abroad and which is not redocumented under paragraph (a) of this section shall nevertheless be entitled on her first arrival thereafter to all the privileges of a vessel of the United States. (R.S. 4166, as amended; 46 U.S.C. 35.)

(R.S. 161, section 2, 23 Stat. 118, as amended; 5 U.S.C. 22, 46 U.S.C. 2)

§ 3.36 Sale or charter to an alien.

(a) When a documented vessel is sold in whole or in part, even in trust or confidence, to one who is not a citizen, its document shall be delivered (1) within 7 days after the sale to the collector at the port where the vessel is, if it is in the United States, or (2) within 8 days after the first arrival of the master in the United States to the collector at the port of his first arrival, if the vessel is at sea or not in the United States at the time of sale.23

(b) The master and all watch officers of a documented vessel chartered to one who is not a citizen 23 shall be citizens. (R. S. 4146, as amended, 4172, sec. 9, 39 Stat. 730, as amended; 46 U. S. C. 23, 41, 808) § 3.37 Preferred mortgages.

(a) For the purposes of these regulations a"preferred mortgage" is one which meets the requirements of subsection D of the Ship Mortgage Act.

24

23 See footnote 21, § 3.32. 24"(a) A valid mortgage which at the time it is made, includes the whole of any vessel of the United States (other than a towboat, barge, scow, lighter, car float, canal boat, or tank vessel, of less than twenty-five gross tons), shall, in addition, have, in respect to such vessel and as of the date of the compliance with all the provisions of this subsection, the preferred status given by the provisions of section 953 of this title, if—

"(1) The mortgage is endorsed upon the vessel's documents in accordance with the provisions of this section;

"(2) The mortgage is recorded as provided in section 921 of this title, together with the time and date when the mortgage is so endorsed;

"(3) An affidavit is filed with the record of such mortgage to the effect that the mortgage is made in good faith and without any design to hinder, delay, or defraud any existing or future creditor of the mortgagor or any lienor of the mortgaged vessel;

"(4) The mortgage does not stipulate that the mortgagee waives the preferred status thereof; and

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(b) A preferred mortgage may not be placed upon any vessel which is not a documented vessel, nor upon any vessel of less than twenty-five gross tons which is a towboat (including tugs and other vessels used for towing), barge, scow, lighter, car float, canal boat, or tank vessel. It may cover more than one vessel, but may not be limited to a part of any vessel.

"(5) The mortgagee is a citizen of the United States and for the purposes of this section the Reconstruction Finance Corporation shall, in addition to those designated in sections 888 and 802 of this title, be deemed a citizen of the United States,

"(b) Any mortgage which complies in respect to any vessel with the conditions enumerated in this section is hereafter in this chapter called a 'preferred mortgage' as to such vessel.

"(c) There shall be indorsed upon the documents of a vessel covered by a preferred mortgage

"(1) The names of the mortgagor and mortgagee;

"(2) The time and date the indorsement is made;

"(3) The amount and date of maturity of the mortgage; and

"(4) Any amount required to be indorsed by the provisions of subdivision (e) or (f) of this section.

"(d) Such indorsement shall be made (1) by the collector of customs of the port of documentation of the mortgaged vessel, or (2) by the collector of customs of any port in which the vessel is found, if such collector is directed to make the indorsement by the collector of customs of the port of documentation; and no clearance shall be issued to the vessel until such indorsement is made. The collector of customs of the port of documentation shall give such direction by wire or letter at the request of the mortgagee and upon the tender of the cost of communication of such direction. Whenever any new document is issued for the vessel, such indorsement shall be transferred to and indorsed upon the new document by the collector of customs.

"(e) A mortgage which includes property other than a vessel shall not be held a preferred mortgage unless the mortgage provides for the separate discharge of such property by the payment of a specified portion of the mortgage indebtedness. If a preferred mortgage so provides for the separate discharge, the amount of the portion of such payment shall be indorsed upon the documents of the vessel.

"(f) If a preferred mortgage includes more than one vessel and provides for the separate discharge of each vessel by the payment of a portion of the mortgage indebtedness, the amount of such portion of such payment shall be indorsed upon the documents of the vessel. In case such mortgage does not provide for the separate discharge of a vessel

and the vessel is to be sold upon the order of a district court of the United States in a suit in rem in admiralty, the court shall determine the portion of the mortgage indebtedness increased by 20 per centum (1) which, in the opinion of the court, the approximate value of the vessel bears to the approximate value of all the vessels covered by the mortgage, and (2) upon the payment of which the vessel shall be discharged from the mortgage." (46 U. S. C. 922)

24 Section 1(b), Public Law 87-303, approved September 26, 1961 (75 Stat. 661), provides that the amendment reducing the minimum tonnage for preferred mortgages on certain classes of vessels from 200 to 25 gross tons under subsection (D) of the Ship Mortgage Act, 1920, as amended (46 U.S.C. 922), shall not apply to (1) any mortgage in existence on the date of enactment or (2) any mortgage placed on a vessel after the date of enacement under a mortgage on such vessel in existence on the date of enactment so long as such existing mortgage remains undischarged.

25 "The collector of customs upon the recording of a preferred mortgage shall deliver two certified copies thereof to the mortgagor who shall place, and use due diligence to retain, one copy on board the mortgaged vessel and cause such copy and the documents of the vessel to be exhibited by the master to any person having business with the vessel, which may give rise to a maritime lien upon the vessel or to the sale, conveyance, or mortgage thereof. The master of the vessel shall, upon the request of any such person, exhibit to him the documents of the vessel and the copy of any preferred mortgage of the vessel placed on board thereof." (46 U. S. C. 923)

The original shall be returned to the mortgagee and a receipt obtained.

(b) The affidavit of the mortgagor required by subsection D (a) (3), of the Ship Mortgage Act, 1920, if not included in the mortgage, shall be presented with each preferred mortgage submitted for recording and shall be retained by the collector." Any acknowledgment of such

affidavit valid under the laws of the State where made may be accepted.

(c) No vessel covered by a preferred mortgage shall be granted clearance at any port until the preferred mortgage endorsement required by subsection D (c) of the Ship Mortgage Act, 1920," has been placed on her marine document.

(d) In addition to the matters required by § 3.33 (c), the collector shall note on the index on customs Form 1332, continued if necessary on customs Form 1332-A, the day, hour, and minute that (1) the proposed mortgage endorsement is placed on the marine document, and (2) such notation was made on the index.

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(e) When a marine document bearing a preferred mortgage endorsement is surrendered and a new document is issued before the mortgage is satisfied or the vessel released, the endorsement shall be placed on the new document.

(f) For the purposes of this section an assignment, amendment, assumption, or novation of a preferred mortgage shall be regarded in all respects as a new preferred mortgage. The preferred mortgage endorsement respecting the recording of such an assignment, amendment, assumption, or novation shall be entered on the marine document of the vessel by a notation along the left-hand margin of the original endorsement. Such notation shall specify the date, port, time of endorsement, and nature of the instrument. If the instrument is an amendment, the items amended shall be shown in the notation; if other than an amendment, the names of the new parties shall be shown. If the endorsement is made at the request of a customs officer at another port, the title of the requesting officer and the name of the port shall be shown.

(g) A notice of claim of lien upon a vessel shall be recorded only if the vessel is covered by a preferred mortgage and if the notice has been acknowledged." Any acknowledgment valid under the laws of the State where made may be accepted. No customs officer or employee is authorized by section 486, Tariff Act of 1930, or Customs Delegation Order No. 2 (T. D. 53195, 18 F. R. 832), to take such acknowledgments.

(h) Each notice of claim of lien and certificate of discharge of lien presented to a collector shall be recorded in a book to be kept for that purpose and indexed on customs Form 1332, continued if necessary on customs Form 1332-A.

(i) When a preferred mortgage has been discharged in whole or in part and a certificate of such discharge has been filled with the collector of customs at the home port of any vessel covered by the discharge, the collector at the home port, or the collector at the port where the vessel is, at the direction of the collector at the home port, shall endorse the fact of such discharge upon the document of the vessel. No clearance shall be granted to such vessel until such endorsement has been made."1

(Sec. 30, subsecs. C, D, E, G, H, O, W, 41 Stat. 1000, as amended, 1001, 1002, 1004, as amended, 1006; 46 U. S. C. 921-923, 925, 926, 961, 983) [28 F.R. 14575, Dec. 31, 1963, as amended by T.D. 56246, 29 F.R. 12426, Aug. 29, 1964; 29 F.R. 12555, Sept. 3, 1964]

30 "The collector of customs of the port of documentation shall, upon the request of any person, record notice of his claim of a lien upon a vessel covered by a preferred mortgage, together with the nature, date of creation, and amount of the lien, and the name and address of the person. Any person who has caused notice of his claim of lien to be so recorded shall, upon a discharge in whole or in part of the indebtedness, forthwith file with the collector of customs a certificate of such discharge. The collector of customs shall thereupon record the certificate." (46 U. S. C. 925 (a))

31 "The mortgagor, upon a discharge in whole or in part of the mortgage indebtedness, shall forthwith file with the collector of customs for the port of documentation of the vessel, a certificate of such discharge. Such collector of customs shall thereupon record the certificate. In case of a vessel covered by a preferred mortgage, the collector of customs at the port of documentation shall (1) indorse upon the documents of the vessel, or direct the collector of customs at any port in which the vessel is found, to so indorse, the fact of such discharge, and (2) shall deny clearance to the vessel until such indorsement is made." (46 U. S. C. 925 (b))