How do you tell if a boat has money owing on it?
If a boat is sold, the new owner becomes responsible to pay the loan back.
What are Marine Liens
What does having maritime lien mean?
A lien is a claim on a property. It is pronounced like “Leen”. Usually by a bank or a mechanic that you owe money too. A boat that has
a mortgage will have a lien placed on it until the boat is paid off and have no money owing. They serve to protect the creditor. It is part
of maritime law and you can read more here.
If a boat is sold, the new owner becomes responsible to pay the loan back.
Types of Liens
#Lien #MarineLiens #MaritimeLien #MaritimeLaw #Claims
What is a preferred ship mortgage? What types of claims will give rise to
maritime liens?
A First Preferred Ship’s Mortgage is a mortgage that would be recorded against a vessel/boat that is documented with the United States
Coast Guard (more on USCG below). It is protected under the Ship’s Mortgage Act of 1920, and takes precedence/priority over all
liens other than preferred Maritime Liens. The First Preferred Ship’s Mortgage assures the mortgagee the owner will properly insure
the vessel and refrain from encumbering the vessel. The mortgagee will be notified if the vessel is seized, libeled, or detained by any
person or country within 15 days and discharge it from same. With the First Preferred Ship’s Mortgage, the owner will comply with all
state, local, and U.S. laws and keep vessel document current and on board the vessel, along with a copy of the Mortgage. The
mortgagee is assured the owner will not leave the country without intending to return, abandon the vessel or sell, mortgage, or charter
the vessel without the consent of the creditor/mortgagee.
How do you place a lien on a vessel? (How do you put a lien on a boat?)
If you are a private party like a mechanic then you can place liens at the secretary of state with a UCC filing. More on those below. You
can also post the claim on marineliens.com into their private database.
What is a HIN
A hull identification number (HI