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"SEC. 4308. Every unregistered vessel owned by a citizen of the United States, and sailing with a sea-letter, going to any foreign country, shall, before she departs from the United States, at the request of the master, be furnished by the collector of the district where such vessel may be with a passport, for which the master shall be subject to the rules and conditions prescribed for vessels of the United States. "SEC. 4309. Every master of a vessel, belonging to citizens of the United States, who shall sail from any port of the United States, shall, on his arrival at a foreign port, deposit his register, sea-letter, and Mediterranean passport with the consul, vice-consul, commercial agent, or vice-commercial agent, if any there be at such port; and it shall be the duty of such consul, vice-consul, commercial agent, or vice-commercial agent, on such master or commander producing to him a clearance from the proper officer of the port where his vessel may be, to deliver to the master all of his papers, if such master or commander has complied with the provisions of law relating to the discharge of seamen in a foreign country, and to the payment of the fees of consular officers.

"SEC. 4310. Every master of any such vessel who refuses or neglects to deposit the papers as required by the preceding section, shall be liable to a penalty of five hundred dollars, to be recovered by such consul, vice-consul, commercial agent, or vice-commercial agent, in his own name, for the benefit of the United States, in any court of competent jurisdiction."

SEC. 272. PENALTY FOR OBSTRUCTING OFFICERS OR EMPLOYEES. Every person who assaults, resists, obstructs, or hinders any officer or employee in the execution of any [Act or] law relating to the [enrollment, registry, enrollment, enrollment and licensing, or licensing of vessels, or of this [Title] chapter, or of any of the powers or authorities vested in him by any such [Act or] law, shall, for every such offense for which no other penalty is particularly provided, be liable to a penalty of $500.

NOTE

This section is based on title 46, U.S.C., 1964 ed., § 324 (R.S. § 4376). The words "or employee" have been inserted following "officer" consistent with the use of the words "officer or employee" throughout this act.

The words "Act or" preceding "law" have been deleted in two places as surplusage.

The words "registry, enrollment, enrollment and licensing, or licensing" have been substituted for "enrollment, registry, or licensing" for the reason stated in the last paragraph of the note to section 235 of this act.

Changes have been made in phraseology as required in the context of this act.

SEC. 273. REMOVAL OF MASTER BY OWNER.-Any person or [body corporate] corporation having more than one-half ownership of any vessel shall have the same power to remove a master[,] who is also part owner of such vessel [,] as such majority owners have to remove a master not an owner. This section shall not apply where there is a valid written agreement [subsisting] by virtue of which [such] the master would be entitled to possession.

NOTE

This section is based on title 46, U.S.C. 1964 ed., § 227 (R.S. § 4250; Feb. 18, 1875, c. 80, § 1, 18 Stat. 320).

Changes have been made in phraseology as required in the context of this act.

CHAPTER 3-VESSEL MORTGAGES

SEC. 301. DEFINITIONS.-When used in this [section] chapter and in the Ship Mortgage Act, 1920, as amended

(1) [The term "document"] "Document" includes registry, [and] enrollment, enrollment and license, and license;

(2) [The term "documented"] "Documented" means registered, [or] enrolled, enrolled and licensed, or licensed under the laws of the United States, whether permanently or temporarily;

[(3) The term "port of documentation" means the "home port" of the vessel, except that the term shall not include a port in which a temporary document is issued;]

[4] (3) [The term "vessel"] "Vessel of the United States" means any vessel documented under the laws of the United States, and such vessel shall be held to continue to be so documented until [its] her documents are surrendered with the approval of the Secretary of Commerce; and

[5] (4) [The term "mortgagee"] "Mortgagee,” in the case of a mortgage involving a trust deed and a bond issue thereunder, means the trustee designated in such deed.

NOTE

This section is based on title 46, U.S.C., 1964 ed., §§ 911, 1011 (June 5, 1920, c. 250, § 30, subsec. B, 41 Stat. 1000; Feb. 16, 1925, c. 235, § 4, 43 Stat. 948; Ex. Ord. No. 6166, § 12, June 10, 1933; June 29, 1936, c. 858, title IX, § 904, 49 Stat. 2016; 1950 Reorganization Plan No. 21, §§ 204, 306, eff. May 24, 1950, 15 F.R. 3178, 64 Stat. 1276, 1277).

The definition of "port of documentation" in former paragraph (3) of this section has been deleted as covered by section 204 of this act.

The words "The term" at the beginning of each paragraph have been deleted as surplusage.

The words "enrollment and license" and "enrolled and licensed" have been inserted in paragraphs (1) and (2), respectively, consistent with section 232 of this act, which provides for issuance of a consolidated form of enrollment and license, to make clear that the definitions in this section are applicable to enrolled and licensed vessels as well as to registered, enrolled, and licensed vessels. Changes have been made in phraseology as required in the context of this act.

SEC. 302. RECORD AT HOME PORT OF BILL OF SALE, CONVEYANCE, MORTGAGE, ASSIGNMENT OF MORTGAGE, OR HYPOTHECATION OF VESSEL OF THE UNITED STATES.-(a) No bill of sale, conveyance, mortgage, assignment of mortgage, or hypothecation (except bottomry), which, at the time such sale, conveyance, mortgage, assignment of mortgage, or hypothecation is made, includes a vessel of the United States or any portion thereof as the whole or any part of the property sold, conveyed, mortgaged, or hypothecated shall be valid in respect to such vessel against any person other than the grantor, [or] mortgagor, assignor, or pledgor, his heirs or devisees, and any person having actual notice thereof, until such bill of sale, conveyance, mortgage, assignment of mortgage, or hypothecation is recorded, as provided in subsection (b) of this section, by the [collector of customs] officer or employee designated by the Secretary for that purpose at the home port of such vessel. Any bill of sale or conveyance of the whole or any part of a vessel shall be recorded at the home port of such vessel as shown in her new document.

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(b) Such [collector of customs] officer or employee shall record bills of sale, conveyances, [and] mortgages, assignments of mortgages, and hypothecations delivered to him, in the order of their [reception] receipt, in books to be kept for that purpose and indexed to show(1) The name of the vessel;

(2) The names of the parties to the sale, conveyance, [or] mortgage, assignment of mortgage, or hypothecation;

(3) The time and date of [reception] receipt of the instrument; (4) The interest in the vessel so sold, conveyed, [or] mortgaged, or hypothecated, or the interest in the mortgage so assigned; (5) The amount and date of maturity of the mortgage.

NOTE

This section is based on title 46, U.S.C., 1964 ed., §§ 921, 1012 (June 5, 1920, c. 250, § 30, subsec. C, 41 Stat. 1000; Feb. 16, 1925, c. 235, § 2, 43 Stat. 948; 1950 Reorganization Plan No. 26, §§ 1, 2, eff. July 31, 1950, 15 F.R. 4935, 64 Stat. 1280; 1965 Reorganization Plan No. 1, §§ 1, 2, eff. May 25, 1965, 30 F. R. 7035, 79 Stat. 1317).

Subsection (a) of this section combines section 2 of the act of Feb. 16, 1925, c. 235, 43 Stat. 948 (46 U.S.C. 1012), and subsection C(a) of section 30 of the act of June 5, 1920, c. 250, 41 Stat. 1000 (46 U.S.C. 921(a)), the former having superseded the latter, which reads:

"(a) No sale, conveyance, or mortgage which, at the time such sale, conveyance, or mortgage is made, includes a vessel of the United States, or any portion thereof, as the whole or any part of the property sold, conveyed, or mortgaged shall be valid, in respect to such vessel, against any person other than the grantor or mortgagor, his heirs or devisees, and a person having actual notice thereof, until such bill of sale, conveyance, or mortgage is recorded in the office of the collector of customs of the port of documentation of such vessel, as provided in subdivision (b) of this subsection."

Subsection (b) of this section is taken from subsection C(b) of section 30 of the act of June 5, 1920, c. 250, 41 Stat. 1000 (46 U.S.C. 921(b)), with changes in phraseology consistent with subsection (a) of this section.

Necessary changes in phraseology have been made as required to effect the consolidation, including the insertion of the words "assignor or pledgor" after "mortgagor" in subsection (a) to designate the maker of an assignment or hypothecation.

The words "officer or employee designated by the Secretary for that purpose" have been substituted for "collector of customs" in accordance with 1965 Reorganization Plan No. 1, which abolished the office of "collector of customs."

SEC. 303. INSTRUMENTS AND ACTS PRIOR TO FEBRUARY 16, 1925, VALIDATED.-All conveyances and mortgages of any vessel or any part thereof, and all documentations, recordations, [indorsements, endorsements; and indexing thereof, and proceedings incidental thereto made or done, prior to February 16, 1925, are declared valid to the extent they would have been valid if the port or ports at which said vessel has in fact been documented from time to time had been the port or ports at which it should have been documented in accordance with law; and this section is declared retroactive so as to accomplish such validations[:]. [Provided, That nothing herein contained shall be construed to deprive a person of any vested right.]

NOTE

This section is based on title 46, U.S.C., 1964 ed., § 1013 (Feb. 16, 1925, c. 235, § 3, 43 Stat. 948).

The proviso has been deleted as unnecessary in the light of the saving clause, section 109 of this act.

A change has been made in phraseology as required in the context of this act.

SEC. 304. RECORD OF SALE OR OTHER DISPOSITION OF VESSELS; DECLARATION AS REQUISITE.-(a) Whenever any bill of sale, conveyance, mortgage, assignment of mortgage, or hypothecation [, or conveyance] of any vessel, or part thereof, or interest therein, is presented for recordation to any [collector of customs to be recorded,] officer or employee designated by the Secretary, the vendee, transferee, mortgagee, or transferee,] assignee, or pledgee shall file therewith a written declaration in such form as the Secretary of Commerce may by regulation prescribe, setting forth the facts relating to his citizenship and such other facts as the Secretary of Commerce requires, showing that the transaction does not involve a violation of any of the provisions of section 9 or 37 of the Shipping Act, 1916, as amended. Unless the Secretary of Commerce, before such presentation, has failed to prescribe such form no such bill of sale, conveyance, mortgage, assignment of mortgage, or hypothecation, or conveyance] shall be valid against any person whatsoever until such declaration has been filed. Any declaration filed by or in behalf of a corporation shall be signed by the president, secretary, or treasurer thereof, or any other official thereof duly authorized by such corporation to execute any such declaration.

(b) Whoever knowingly makes any false statement of a material fact in any such declaration shall be [guilty of a misdemeanor and] subject to a fine of not more than $5,000, or to imprisonment for not more than five years, or both.

NOTE

This section is based on title 46, U.S.C. 1964 ed., § 838 (Sept. 7, 1916, c. 451, § 40, as added July 15, 1918, c. 152, § 4, 40 Stat. 902, and amended Éx. Ord' No. 6166, § 12, June 10, 1933; June 29, 1936, c. 858, §§ 204, 904, 49 Stat. 1987 2016; May 10, 1948, c. 269, 62 Stat. 212; 1950 Reorganization Plan No. 21' §§ 204, 305, 306, eff. May 24, 1950, 15 F.R. 3178, 64 Stat. 1276, 1277; 1950, Reorganization Plan No. 26, §§ 1, 2, eff. July 31, 1950, 15 F.R. 4935, 64 Stat. 1280; 1965 Reorganization Plan No. 1, §§ 1, 2, eff. May 25, 1965, 30 F.R. 7035, 79 Stat. 1317).

Changes have been made in phraseology so that the language of this section may be consistent with that of section 302 of this act.

The words

"officer or employee designated by the Secretary for that purpose" have been substituted for "collector of customs" in subsection (a) in accordance with 1965 Reorganization Plan No. 1, which abolished the office of "collector of customs"; and

"guilty of a misdemeanor" in subsection (b) have been deleted as inconsistent with § 1 of title 18, United States Code, enacted into positive law by act June 25, 1948, c. 645, 62 Stat. 683, which defines a "misdemeanor" as any offense other than an offense punishable by death or imprisonment for a term exceeding 1 year, notwithstanding any act of Congress to the contrary. The offense described is a felony.

Other changes have been made in phraseology as required in the context of this act.

SEC. 305. DOCUMENTATION CONTINUES UNTIL DOCUMENT SURRENDERED WITH APPROVAL OF SECRETARY OF COMMERCE.—Any vessel registered, enrolled, enrolled and licensed, or licensed under the laws of the United States shall be deemed to continue to be documented under the laws of the United States within the meaning of subdivision (b) of section 37, Shipping Act, 1916, as amended, until such registry, enrollment, enrollment and license, or license is sur

rended with the approval of the Secretary of Commerce, the provisions of any other Act of Congress to the contrary notwithstanding.

NOTE

This section is based on title 46, U.S.C., 1964 ed., § 840 (Sept. 7, 1916, c. 451. $42, as added July 15, 1918, c. 152, § 4, 40 Stat. 903, and amended Ex. Ord, No. 6166, § 12, June 10, 1933; June 29, 1936, c. 858, §§ 204, 904, 49 Stat. 1987, 2016; 1950 Reorganization Plan No. 21, §§ 204, 305, 306, eff. May 24, 1950, 15 F.R. 3178, 64 Stat. 1276, 1277).

The words "enrolled and licensed" have been inserted after "enrolled" and "enrollment and license" after "enrollment," for the reason stated in the last paragraph of the note to section 235 of this act.

Changes have been made in phraseology as required in the context of this act.

SEC. 306. PREFERRED MORTGAGES.-(a) A valid mortgage which at the time it is made[,] includes the whole of any vessel of the United States (other than a towboat, barge, scow, lighter, car float, canal boat, or tank vessel, of less than twenty-five gross tons), shall, in addition, have, in respect to such vessel and as of the date of the compliance with all the provisions of this [subdivision] subsection, the preferred status given by the provisions of subsection M of the Ship Mortgage Act, 1920, if—

(1) The mortgage is endorsed upon the vessel's documents in accordance with the provisions of this section;

(2) The mortgage is recorded as provided in [subsection C] section 301 of this Act, together with the time and date when the mortgage is so endorsed;"

(3) An affidavit is filed with the record of such mortgage to the effect that the mortgage is made in good faith and without any design to hinder, delay, or defraud any existing or future creditor of the mortgagor or any lienor of the mortgaged vessel;

(4) The mortgage does not stipulate that the mortgagee waives the preferred status thereof; and

(5) The mortgagee is a citizen of the United States [and for the purposes of this Act the Reconstruction Finance Corporation shall, in addition to those designated in sections 37 and 38 of this Act, be deemed a citizen of the United States].

With respect to any mortgage in existence on September 26, 1961, or any mortgage placed on a vessel after September 26, 1961, under a mortgage on such vessel in existence on that date, so long as such existing mortgage remains undischarged, "twenty-five gross tons" in this subsection shall read "two hundred gross tons.'

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(b) Any mortgage which complies in respect to any vessels with the conditions enumerated in this [subsection] section is hereafter in this [section] chapter called a "preferred mortgage" as to such vessel.

(c) There shall be [indorsed] endorsed upon the documents of a vessel covered by a preferred mortgage

(1) The names of the mortgagor and mortgagee;

(2) The time and date the [indorsement] endorsement is made; (3) The amount and date of maturity of the mortgage; and (4) Any amount required to be [indorsed] endorsed by the provisions of [subdivision] subsection (e) or (f) of this [subsection] section.

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