
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 46USC31323]

 
                           TITLE 46--SHIPPING
 
                    Subtitle III--Maritime Liability
 
         CHAPTER 313--COMMERCIAL INSTRUMENTS AND MARITIME LIENS
 
                  SUBCHAPTER II--COMMERCIAL INSTRUMENTS
 
Sec. 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.

(Pub. L. 100-710, title I, Sec. 102(c), Nov. 23, 1988, 102 Stat. 4744.)

                      Historical and Revision Notes
------------------------------------------------------------------------
          Revised section                Source section (U.S. Code)
------------------------------------------------------------------------
31323(a)..........................  46:924(1)
31323(b)..........................  46:924(2)
31323(c)..........................  46:941(b) (last sentence)
------------------------------------------------------------------------

    Section 31323(a) requires the mortgagor to disclose any obligations 
on the vessel before executing a preferred mortgage. This subsection 
makes no substantive change to law.
    Section 31323(b) provides that, after executing a preferred 
mortgage, the mortgagor may not incur, without consent of the mortgagee, 
any contractual obligations establishing a lien on the vessel--except a 
lien for stevedore wages, crew wages, general average, and salvage. The 
only substantive change to law made by this subsection is that the 
reasonable time to record a mortgage is changed to a reasonable time to 
file the mortgage, and the elimination of the reference to endorsements. 
These changes are in keeping with the changes made in section 31322.
    Section 31323(c) provides that if a mortgagor is convicted of a 
violation of this section, then the mortgage indebtedness, at the option 
of the mortgagee, is payable immediately. This subsection makes no 
substantive change to law.

                  Section Referred to in Other Sections

    This section is referred to in section 31330 of this title.
