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 September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Legal

Danny Broad Appointed to ARENA Board

The Chair, Board members and staff of the Australian Renewable Energy Agency (ARENA) are delighted to advise that Danny Broad has been appointed by the Australian Government to the Board of ARENA.

Monitoring U.S. Troops Returning from Ebola Mission

Secretary Hagel has signed an order that validated a recommendation from the Joint Chiefs of Staff to place all U.S. military service members returning from

Eurodam Tops in USPH Inspections

Holland America Line’s ms Eurodam achieved a perfect score of 100 on a recent routine United States Public Health (USPH) inspection conducted by the U.S. Centers for Disease Control and Prevention.

Cruise Ship Trends

Eurodam Tops in USPH Inspections

Holland America Line’s ms Eurodam achieved a perfect score of 100 on a recent routine United States Public Health (USPH) inspection conducted by the U.S. Centers for Disease Control and Prevention.

Cruise Shipping: RCL's 'Quantum of the Seas' Delivered

First Ship of New Class for Royal Caribbean MEYER WERFT delivered the 167,800-gt cruise ship Quantum of the Seas to the U.S. cruise operator Royal Caribbean Cruises Ltd.

L-3 MSI Supplies Navigation for the Oasis Class

L-3 Marine Systems International (L-3 MSI) has been awarded a contract to provide its NACOS Platinum navigation system, including an integrated dynamic positioning system,

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Navigation Offshore Oil Pipelines Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Sonar 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: 0.0970 sec (10 req/sec)