A Preferred Mortgage Has Priority in Event of Default
A “Preferred Mortgage” has the status of a maritime lien.
As such, it is given priority in the event of a default. Moreover, without the mortgagee’s consent, the Coast Guard cannot make changes to the vessel’s documentation, such as altering its name, hailing port, or ownership details.
Click here to apply for a First Preferred Ship Mortgage.
Click here to apply for a Release of Mortgage form.
A One-Stop Shop for First Preferred Ship Mortgage Information
From renewing documentation and applying for initial paperwork to replacing lost forms and conducting vessel searches, the National Documentation Portal offers streamlined solutions. You can also request an Abstract of Title or conduct an online search to gain detailed vessel information.
Remember, our site cannot comment on whether or not you qualify for a mortgage. Before applying for one, it is recommended that you speak to a maritime lawyer.
Refer to the legal guidelines below for further insights into your circumstances:
Subpart O—Filing and Recording of Instruments—General Provisions
- 67.200 Instruments eligible for filing and recording.
Only the following listed instruments are eligible for filing and recording:
(a) Bills of sale and instruments in the nature of bills of sale;
(b) Deeds of gift;
(c) Mortgages and assignments, assumptions, supplements, amendments, subordinations, satisfactions, and releases thereof;
(d) Preferred mortgages and assignments, assumptions, supplements, amendments, subordinations, satisfactions, and releases thereof;
(e) Interlender agreements affecting mortgages, preferred mortgages, and related instruments; and
(f) Notices of claim of lien, assignments, amendments, and satisfactions and releases thereof.
- 67.203 Restrictions on filing and recording.
(a) No instrument will be accepted for filing unless the vessel to which it pertains is the subject of:
(1) A valid Certificate of Documentation; or
(2) An application for initial documentation, exchange of Certificate of Documentation, return to documentation, or for deletion from documentation, which is in substantial compliance with the applicable regulations, submitted to the National Vessel Documentation Center.
(b) An instrument identified as eligible for filing and recording under § 67.200 may not be filed and recorded if it bears a material alteration.
(c) An instrument identified as eligible for filing and recording under § 67.200 (a) or (b) may not be filed and recorded if any vendee or transferee under the instrument is not a citizen of the United States as defined in section 2 of the Shipping Act, 1916, (46 U.S.C. app. 802) unless the Maritime Administration has consented to the grant to a non-citizen made under the instrument.
(d) The restriction imposed by paragraph (c) of this section does not apply to a bill of sale or deed of gift conveying an interest in a vessel which was neither documented nor last documented pursuant to these regulations or any predecessor regulations thereto at the time the instrument was executed, nor to an instrument conveying an interest in a vessel identified in § 67.11(b).
[CGD 89-007, CGD 89-007a, 58 FR 60266, Nov. 15, 1993; 58 FR 65131, Dec. 13, 1993, as amended by CGD 95-014, 60 FR 31605, June 15, 1995; USCG-2016-0531, 82 FR 43864, Sept. 20, 2017]
- 67.205 Requirement for vessel identification.
(a) Every instrument presented for filing and recording must contain sufficient information to clearly identify the vessel(s) to which the instrument relates.
(b) Instruments pertaining to vessels which have been documented must contain the vessel’s name and official number, or other unique identifier.
(c) Vessels which have never been documented must be identified by one of the following:
(1) The vessel’s Hull Identification Number assigned in accordance with 33 CFR 181.25; or
(2) Other descriptive information, which clearly describes the vessel. Such information may include length, breadth, depth, year of build, name of manufacturer, and any numbers which may have been assigned in accordance with 33 CFR part 173.
- 67.207 Requirement for date and acknowledgment.
(a) Every instrument presented for filing and recording must:
(1) Bear the date of its execution; and
(2) Contain an acknowledgment.
(b) No officer or employee of the Coast Guard is authorized to take such acknowledgments unless the instrument is executed on behalf of the Federal Government of the United States.
- 67.209 No original instrument requirement.
A copy of the original signed and acknowledged instrument must be presented. The original instrument itself may be presented but is not required. The copy may be delivered to the National Vessel Documentation Center or transmitted by facsimile or in portable document format (.pdf) in accordance with the procedures in §§ 67.218 and 67.219 of this part. Signatures may be affixed manually or digitally.
[USCG-2007-28098, 72 FR 42312, Aug. 2, 2007]
- 67.211 Requirement for citizenship declaration.
(a) Instruments in the nature of a bill of sale or deed of gift, mortgages, and assignments of mortgages conveying an interest in a documented vessel are ineligible for filing and recording unless accompanied by a declaration of citizenship, except as provided in paragraph (c) and (d) of this section.
(b) Citizenship declarations must be executed on the form prescribed by the Maritime Administration in 46 CFR part 221. These forms are available from the National Vessel Documentation Center and from the Vessel Transfer and Disposal Officer (MAR-745.1), Maritime Administration, United States Department of Transportation, Washington, DC 20590.
(c) The requirement for presentation of a citizenship declaration does not apply to a transaction conveying an interest in a vessel:
(1) Described in 46 CFR 221.11(b)(1) (i) through (iv);
(2) To a person making application for documentation; or
(3) To an entity of the Federal Government of the United States or of a State or political subdivision thereof, or a corporate entity which is an agency of any such government or political subdivision.
(d) The requirement for presentation of a citizenship declaration is waived when the instrument(s) presented for filing effects a transfer for which:
(1) The Maritime Administration has given general approval in 46 CFR part 221; or
(2) Written approval of the Maritime Administrator has been obtained in accordance with 46 CFR part 221.
(e) If the transfer of interest is one which requires written approval of the Maritime Administrator in accordance with rules in 46 CFR part 221, evidence of that approval must be presented for filing with the instrument effecting the transfer of interest.
Note:
If the grantee(s) of an ownership interest in a vessel described in paragraphs (c)(1) or (d) of this section do(es) not make application for documentation, a declaration of citizenship may be required in order to ensure that the vessel so conveyed retains any coastwise privileges to which it may be entitled.
[CGD 89-007, CGD 89-007a, 58 FR 60266, Nov. 15, 1993; 58 FR 65131, Dec. 13, 1993, as amended by CGD 95-014, 60 FR 31605, June 15, 1995; USCG-2009-0702, 74 FR 49230, Sept. 25, 2009]
- 67.213 Place of filing and recording.
(a) All instruments submitted for filing and recording must be submitted to the National Vessel Documentation Center.
(b) All instruments are recorded at the National Vessel Documentation Center.
[CGD 95-014, 60 FR 31605, June 15, 1995]
- 67.215 Date and time of filing.
(a) An instrument is deemed filed at the actual date and time at which the instrument is received by the National Vessel Documentation Center, except as provided in paragraph (b) of this section. Any materials submitted to supplement an instrument after the instrument is filed are deemed part of the original filing and relate back to the date and time of that filing.
(b) If filing of an instrument is subject to termination in accordance with § 67.217(a) and a new instrument is filed as a substitute for the original instrument, the filing of the original instrument will be terminated in accordance with § 67.217(c) and the substitute instrument will be considered a new filing. The substitute instrument will be deemed filed at the actual time and date it is received by the National Vessel Documentation Center.
[CGD 89-007, CGD 89-007a, 58 FR 60266, Nov. 15, 1993; 58 FR 65131, Dec. 13, 1993, as amended by CGD 95-014, 60 FR 31605, June 15, 1995]
- 67.217 Termination of filing and disposition of instruments.
(a) The filing of an instrument is subject to termination if:
(1) It is determined that the instrument cannot be recorded because the instrument itself is not in substantial compliance with the applicable regulations in this part;
(2) The filing was not made in compliance with the requirements of § 67.213;
(3) The Application for Initial Issue, Exchange, or Replacement of Certificate of Documentation; or Redocumentation (form CG-1258) submitted with the instrument(s) was not made in substantial compliance with the applicable regulations of this part;
(4) The owner of the vessel submits an Application, Consent, and Approval for Withdrawal of Application for Documentation or Exchange of Certificate of Documentation (form CG-4593), with mortgagee consent, if applicable; or
(5) Another instrument is filed evidencing satisfaction or release of the subject instrument and the subject instrument is one described in subpart Q of this part.
(b) Ninety days prior to terminating the filing pursuant to a reason listed in paragraphs (a) (1), (2), or (3) of this section, the National Vessel Documentation Center will send written notice detailing the reasons the filing is subject to termination to the following person(s) and any agent known to be acting on behalf of the same:
(1) The applicant for documentation, if a bill of sale, instrument in the nature of a bill of sale, or a deed of gift;
(2) The mortgagee or assignee, if a mortgage or assignment or amendment thereof;
(3) The claimant, if a notice of claim of lien; or
(4) The lender first named in an interlender agreement affecting a mortgage, preferred mortgage, or related instrument.
(c) If the reason(s) which subject the filing to termination remain uncorrected for a period of 90 days after the notice described in paragraph (b) of this section is sent, or upon receipt of the request for withdrawal described in paragraph (a)(4) of this section, or satisfaction or release as described in paragraph (a)(5) of this section, the instrument will be returned to either:
(1) The applicant for documentation, if a bill of sale, instrument in the nature of a bill of sale, or a deed of gift;
(2) The mortgagee or assignee, if a mortgage or assignment or amendment thereof;
(3) The claimant, if a notice of claim of lien;
(4) The lender first named in an interlender agreement affecting a mortgage, preferred mortgage, or related instrument; or
(5) An agent for any appropriate party, provided that the agent has filed with the Coast Guard a writing bearing the original signature of the appropriate party(ies) clearly identifying the instrument(s) being returned and stating that the instrument(s) may be returned to the agent.
[CGD 89-007, CGD 89-007a, 58 FR 60266, Nov. 15, 1993; 58 FR 65131, Dec. 13, 1993, as amended by CGD 95-014, 60 FR 31605, June 15, 1995]
- 67.218 Optional filing of instruments in portable document format as attachments to electronic mail.
(a) Any instrument identified as eligible for filing and recording under § 67.200 may be submitted in portable document format (.pdf) as an attachment to electronic mail (e-mail) for filing at the National Vessel Documentation Center. The e-mail address to be used for instrument filing may be obtained from the National Vessel Documentation Center Web site. If the instrument submitted for filing in .pdf format pertains to a vessel that is not a currently documented vessel, a completed Application for Initial Issue, Exchange, or Replacement Certificate of Documentation, or Return to Documentation (form CG-1258) or a letter application for deletion from documentation must already be on file with the National Vessel Documentation Center or must be submitted in .pdf format with the instrument being submitted in .pdf format for filing.
(b) All instruments submitted for filing in .pdf format must be clearly legible, be submitted from 81⁄2 inch by 11 inch paper in not less than 10-point type size, and submitted as an attachment to e-mail.
(c) The e-mail required by paragraph (b) should indicate:
(1) The name, address, telephone number, and e-mail address of the person submitting the instrument for filing in .pdf format;
(2) The number of pages submitted for filing in .pdf format; and
(3) The name of the vessel, official number or hull identification number of the vessel(s), and the name(s) of the owner(s) of the vessel(s) to which the instrument relates.
(d) The filing of any instrument submitted for filing in .pdf format is terminated and the instrument will be returned to the submitter if the instrument is subject to termination for any cause under § 67.217(a).
[USCG-2007-28098, 72 FR 42312, Aug. 2, 2007]