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LegalText 46 U.S.C. § 31323 Disclosing and incurring obligations before executing preferred mortgages us united_states_code code_section 46 SHIPPING 313 COMMERCIAL INSTRUMENTS AND MARITIME LIENS 31323 46 U.S.C. § 31323 current 119-100 2026-06-26 official https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc46@119-100.zip /us/usc/t46/s31323 data/legal/raw/us/code/title-46/usc46.xml 299d81938c87e98ab88091a541fb34fce5bf675baf1480da6bba321a01895d59 eb1331aa3c08ed87231a3606d86b30d1b5942cdf8542f6a3df8ac1d66e86057f e31f2880cc959db49e1227d04dccc2b9c203ba22113292976fe4120766779513 2026-07-04 official
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46 U.S.C. § 31323 - Disclosing and incurring obligations before executing preferred mortgages

Text

(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. 100710, title I, § 102(c), Nov. 23, 1988, 102 Stat. 4744.)

Notes

Historical and Revision Notes Revised sectionSource 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.

Statutory Notes and Related Subsidiaries

Effective DateSection effective Jan. 1, 1989, with certain exceptions and qualifications, see section 107 of Pub. L. 100710, set out as a note under section 31301 of this title.