Section 29 Preferred Ship Mortgages

• Library: Secured Transactions 2005

The Ship Mortgage Act, 41 Stat. 1000, 46 U.S.C. §§ 31321–330, was amended in recent years to provide that non-judicial repossession and sale of vessels are allowed, as long as a sale is not made to anyone who is not qualified to own a documented vessel under the federal shipping law. 46 U.S.C. § 31325(b)(3). The shipping law generally prohibits the transfer of documented vessels to non-citizens. 46 U.S.C. app. §§ 808 and 835. An exception authorizes sales to non-citizens of vessels operated only for...