
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: 46USC31330]

 
                           TITLE 46--SHIPPING
 
                    Subtitle III--Maritime Liability
 
         CHAPTER 313--COMMERCIAL INSTRUMENTS AND MARITIME LIENS
 
                  SUBCHAPTER II--COMMERCIAL INSTRUMENTS
 
Sec. 31330. Penalties

    (a)(1) A mortgagor shall be fined under title 18, imprisoned for not 
more than 2 years, or both, if the mortgagor--
        (A) with intent to defraud, does not disclose an obligation on a 
    vessel as required by section 31323(a) of this title;
        (B) with intent to defraud, incurs a contractual obligation in 
    violation of section 31323(b) of this title;
        (C) with intent to hinder or defraud an existing or future 
    creditor of the mortgagor or a lienor of the vessel, files a 
    mortgage with the Secretary of Transportation; or
        (D) with intent to defraud, does not comply with section 
    31321(h) of this title.

    (2) A mortgagor is liable to the United States Government for a 
civil penalty of not more than $10,000 if the mortgagor--
        (A) does not disclose an obligation on a vessel as required by 
    section 31323(a) of this title;
        (B) incurs a contractual obligation in violation of section 
    31323(b) of this title;
        (C) files with the Secretary a mortgage made not in good faith; 
    or
        (D) does not comply with section 31321(h) of this title.

    (b)(1) A person that knowingly violates section 31329 of this title 
shall be fined under title 18, imprisoned for not more than 3 years, or 
both.
    (2) A person violating section 31329 of this title is liable to the 
Government for a civil penalty of not more than $25,000.
    (3) A vessel involved in a violation under section 31329 of this 
title and its equipment may be seized by, and forfeited to, the 
Government.
    (c) If a person not an individual violates this section, the 
president or chief executive of the person also is subject to any 
penalty provided under this section.

(Pub. L. 100-710, title I, Sec. 102(c), Nov. 23, 1988, 102 Stat. 4747; 
Pub. L. 104-324, title XI, Sec. 1113(b)(2), Oct. 19, 1996, 110 Stat. 
3970.)

                      Historical and Revision Notes
------------------------------------------------------------------------
          Revised section                Source section (U.S. Code)
------------------------------------------------------------------------
31330(a)..........................  46:941(b) (1st sentence)
31330(b)..........................  New
31330(c)..........................  46:941(b) (1st sentence)
------------------------------------------------------------------------

    Section 31330(a) provides for criminal penalties for not disclosing 
obligations, incurring contractual obligations in violation of section 
31323(b), and filing a mortgage made not in good faith. This subsection 
makes a substantive change to law by adding civil penalties and by 
making it a crime to record with the Secretary of Transportation a 
mortgage made not in good faith with the intent to hinder an existing or 
future creditor of the mortgagor or a lienor of the vessel. This is done 
since the affidavit of good faith has been eliminated from the elements 
of a preferred mortgage.
    Section 31330(b) adds criminal and civil penalties for violating the 
sale and trust requirements under sections 31328 and 31329. It also 
makes a vessel and its equipment involved in those violations subject to 
seizure by the Government.
    Section 31330(c) makes the president or chief executive officer of a 
corporation or association liable as a mortgagor for the penalties under 
this section.


                          house floor statement

    Subsection (a) of this section adds criminal and civil penalties for 
a preferred mortgagor's failure to carry out certain requirements under 
chapter 313 of title 46 (as enacted by this Act).


                               Amendments

    1996--Subsec. (b). Pub. L. 104-324 struck out ``31328 or'' before 
``31329'' in pars. (1) to (3).

                  Section Referred to in Other Sections

    This section is referred to in section 31323 of this title.
