
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 46USC31301]

 
                           TITLE 46--SHIPPING
 
                    Subtitle III--Maritime Liability
 
         CHAPTER 313--COMMERCIAL INSTRUMENTS AND MARITIME LIENS
 
                          SUBCHAPTER I--GENERAL
 
Sec. 31301. Definitions

    In this chapter--
        (1) ``acknowledge'' means making--
            (A) an acknowledgment or notarization before a notary public 
        or other official authorized by a law of the United States or a 
        State to take acknowledgments of deeds; or
            (B) a certificate issued under the Hague Convention 
        Abolishing the Requirement of Legalisation for Foreign Public 
        Documents, 1961;

        (2) ``district court'' means--
            (A) a district court of the United States (as defined in 
        section 451 of title 28);
            (B) the District Court of Guam;
            (C) the District Court of the Virgin Islands;
            (D) the District Court for the Northern Mariana Islands;
            (E) the High Court of American Samoa; and
            (F) any other court of original jurisdiction of a territory 
        or possession of the United States;

        (3) ``mortgagee'' means--
            (A) a person to whom property is mortgaged; or
            (B) when a mortgage on a vessel involves a trust, the 
        trustee that is designated in the trust agreement;

        (4) ``necessaries'' includes repairs, supplies, towage, and the 
    use of a dry dock or marine railway;
        (5) ``preferred maritime lien'' means a maritime lien on a 
    vessel--
            (A) arising before a preferred mortgage was filed under 
        section 31321 of this title;
            (B) for damage arising out of maritime tort;
            (C) for wages of a stevedore when employed directly by a 
        person listed in section 31341 of this title;
            (D) for wages of the crew of the vessel;
            (E) for general average; or
            (F) for salvage, including contract salvage; and

        (6) ``preferred mortgage''--
            (A) means a mortgage that is a preferred mortgage under 
        section 31322 of this title; and
            (B) also means in sections 31325 and 31326 of this title, a 
        mortgage, hypothecation, or similar charge that is established 
        as a security on a foreign vessel if the mortgage, 
        hypothecation, or similar charge was executed under the laws of 
        the foreign country under whose laws the ownership of the vessel 
        is documented and has been registered under those laws in a 
        public register at the port of registry of the vessel or at a 
        central office.

(Pub. L. 100-710, title I, Sec. 102(c), Nov. 23, 1988, 102 Stat. 4739.)

                      Historical and Revision Notes
------------------------------------------------------------------------
          Revised section                Source section (U.S. Code)
------------------------------------------------------------------------
31301(1), (2).....................  New
31301(3)..........................  46:911(5)
31301(4)..........................  Derived from 46:971-974
31301(5)..........................  46:953(a)
31301(6)(A).......................  46:922(b)
31301(6)(B).......................  46:951 (2d par. less proviso)
------------------------------------------------------------------------

    Section 31301(1) defines the term ``acknowledge''. This paragraph 
makes a substantive change to law to expand the current law by allowing 
a notarization under State law, a form prescribed by the Secretary, as 
well as a certificate issued under the Hague Convention Abolishing the 
Requirement of Legalisation for Foreign Public Documents, 1961.
    Section 31301(2) defines ``district court''. This paragraph makes a 
substantive change to law by including the District Court of Guam, the 
District Court of the Virgin Islands, the District Court of the Northern 
Mariana Islands, the High Court of American Samoa, and other Federal 
territorial courts as they are established. Under current law, only the 
district courts of the United States have jurisdiction under the Ship 
Mortgage Act, 1920.
    Section 31301(3) defines ``mortgagee'' as a person to whom property 
is mortgaged and the trustee authorized under section 31328 that is 
designated in the trust agreement.
    Section 31301(4) defines ``necessaries'' to include repairs, 
supplies, towage, and the use of a drydock and marine railway for a 
vessel. As in all codifications, the term ``includes'' means ``includes 
but is not limited to'' and, therefore, is not intended to be an 
exclusive listing of those items that a court has determined or may 
determine as falling within the meaning of the term ``other 
necessaries'' as contained in current law. The definition is new, is 
based on 46 App. U.S.C. 971-974, and makes no substantive change to law.
    Section 31301(5) defines ``preferred maritime lien'' to mean a lien 
on a vessel that arises before a preferred mortgage was filed under 
section 31321 of this title for damages arising out of maritime tort, 
stevedore wages, crew wages, general average, and salvage. The 
definition is new and is based on 46 App. U.S.C. 953(a). The only 
substantive change to law made by this paragraph is to change the 
effective date from the day the preferred mortgage is recorded and 
endorsed to when it is filed. This change is in keeping with other 
changes with regard to filing. The term ``duly and validly'' that is in 
existing law is not used because it is unnecessary. An instrument that 
is not ``duly and validly'' executed is not executed under the laws of 
the foreign country. This makes no substantive change to law.
    Section 31301(6)(A) defines ``preferred mortgage'' to mean a 
mortgage that meets the requirements of section 31322. This clause makes 
no substantive change to law.
    Section 31301(6)(B) defines ``preferred mortgage'' to also mean a 
mortgage on a documented foreign vessel that is preferred under sections 
31325 and 31326 for purposes of enforcement of the outstanding mortgage 
indebtedness. Preference is only granted if the mortgage is executed 
under the laws of a foreign country, registered under those laws in a 
public register at the port of registry or at a central office. The use 
of the word ``established'' in place of ``created'' in the current law 
or ``effective'' as used in the treaties is not intended to make any 
substantive change to law. The only substantive changes to law made by 
this clause are the elimination of the exemption of foreign vessels of 
less than 200 gross tons, and clarification of the rule of 
interpretation that if a vessel is registered in one country, but is 
permitted to fly temporarily the flag of another country (such as 
through a demise charter), it is the law of the country in which the 
ownership of the vessel is documented that is used to determine when a 
mortgage attains preferred status.


                             Effective Date

    Chapter effective Jan. 1, 1989, with certain exceptions and 
qualifications, and not to affect any civil action filed before that 
date, see section 107 of Pub. L. 100-710, set out as a note under 
section 30101 of this title.

                  Section Referred to in Other Sections

    This section is referred to in section 1271 of Appendix to this 
title.
