Preferred Ship Mortgage on Vessel Under Construction

Monday, May 03, 2004
The U.S. Court of Appeals for the Fifth Circuit ruled that a preferred ship mortgage may be recorded before a vessel’s construction is completed. In the instant case, the mortgage was recorded with the U.S. Coast Guard on July 27, 1999. The ship completed its sea trials and was delivered on August 18, 1999. The owner later defaulted on the mortgage and other debts. The U.S. Maritime Administration (MARAD) asserted that its preferred ship mortgage took precedence over other claims. A classification society asserted that the mortgage was not entitled to status as a preferred ship mortgage because it was issued on a ship technically not in existence. The court held that the Ship Mortgage Act allows a preferred ship mortgage to be filed on a ship under construction. United States v. Trident Crusader, No. 03-30426 (5th Cir.) (HK Law)
Maritime Reporter October 2013 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Legal

Port Firm Fined £650,000 for Health, Safety Breach

A port operator has today (Monday 29 September) pleaded guilty to health and safety breaches, following the deaths of three crew members of a tug which capsized on the River Clyde in 2007.

IMO Takes Step Towards Electronic Certificates

In the future, the IMO member States should accept the use of electronic certificates. This is the request of the Facilitation Committee (FAL) and, hence, the road is paved for less paperwork,

K-Line to Plead Guilty to Price Fixing

Kawasaki Kisen Kaisha Ltd. (K-Line), a Japanese corporation, has agreed to plead guilty and to pay a $67.7 million criminal fine for its involvement in a conspiracy to fix prices,

Cruise Ship Trends

MTN Broadband Coverage Expanding

After launching its Terrestrial Broadband Network (TBN) just more than one year ago, MTN Communications (MTN) announces the number of TBN-connected cruise ships

2 Cruise Season Records at Lerwick Harbor

The arrival of the cruise ship Norwegian Star at Lerwick Harbour today (Thursday 25 September) marks the end of the Shetland port's best season yet, with two records achieved.

Holland America Line Wins 8 Magellan Awards

Travel Weekly magazine announced the recipients of its 2014 Magellan Awards, and Holland America Line received eight of the prestigious honors. The line won

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Naval Architecture Navigation Offshore Oil Pod Propulsion Salvage Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1075 sec (9 req/sec)