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 Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter July 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Legal

Ecuador Pays $112 mln Award to Chevron

Ecuador has paid $112 million to energy company Chevron Corp over a four-decade-old contract dispute, even though it remains in disagreement, the head of the central bank has said.

ASEAN in Discord Ahead of Meeting with top China, U.S. Diplomats

Southeast Asian nations were thrown into disarray after Cambodia on Saturday blocked them from issuing a statement referring to an international court ruling against

Cosco: No to Shark Fin

China's biggest shipping and logistics company Cosco has pledged a total ban on transporting shark's fins,  says SCMP. It called the move a "body blow" to the international shark's fin trade.

Cruise Ship Trends

China to Add 8 Cruises to Push Tourism in South China Sea

Three State-owned enterprises from the shipping, tourism and construction sectors will cooperate to equip up to eight cruise liners and offer diversified sightseeing

RINA Awards Carnival Maritime with Environmental, Safety

RINA recently awarded Carnival Maritime GmbH ISO 14001 and BS OHSAS 18001 certificates.   Now the Carnival Maritime office in Hamburg as well as 26 ships in

40% Cruise Ships Use Outdated Sewage Treatment Plants

ACO Marine has welcomed the findings reported in the Friends of the Earth 2016 Cruise Ship Report Card, the annual survey of cruise shipping’s impact on the environment,

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Naval Architecture Offshore Oil Pipelines Pod Propulsion Ship Electronics Ship Repair Sonar
rss | archive | history | articles | privacy | 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: 0.0777 sec (13 req/sec)