Maritim Liens and th Creation a d E nforcement

Texas ARM U niversit ' y Sea Grant Colleo ege Program Maritime Liens and the Law: Creation and Enforcement by Dan H. Hinds Michael A. Orlando

Maritimeliens are difFerent from liens on other prop- onlyby an admiral tycourt that has secured jurisdiction erty,and thiscancause a greatdeal of confusionon the overthe vessel by seizingit. Thereis no othermeans of partof peoplein themarine business, A maritime lien enforcement. isa lienenforced by a court of admiralty,whichin this countryis the fcdcral court system. Mari time liens arise I rel etred .'iltlp II !. i~~ac' act out of maritime transactions and maritime accidents and Maritime Licrts which arc within the admiralty jurisdiction of the United States district courts. Thconly maritimelien establishedby statutei> a Basicaliy,such liens ari sc from the following: preferredship mortgage. Prior lo the enactmentof the Seamen'sliens for wages,and maintenance and PreferredShip Mortgage Act, ship rnortgageswerc cure, virtuallyworthless, as the courts held that a mortgage / Salvageliens. on a vesseldid not constitute a maritime lien, and the Tort liens,which are liens for damages resulting lender accordingly carneafter all tnaritime lienholders frommaritime accidents such as collision, per- on a foreclosure.Under the current act, a preferred sonalinjury, death, and loss of, or damageto, mortgagemay be placed on any documentedU.S. cargo. vesselother than certain vessels of lessthan 25 gross Preferredshipmortgages recorded with thc U.S. tons. A documented vessel is a vessel for which a CoastGuard under the U.S.Preferred Ship documentis issuedby the UnitedStates Coast Guard MortgageAct. underthe!awsof the United States secspecialsection!. Liensfor the necessaries furnished to thc vessel, Underthe act, a preferrcxttnortgage isa maritime suchas repairs, fuel, food,etc, lienon the mortgaged vessel which may be enforced by anadmiralty suit against the vessel, and personally HowAre Maritime Liens Different? againstthe owner for any deficiency. Themaritime lien does not depend oneitherno tice or Thestatutory mortgage is classified asa preferred possession.lnfact, uriless there isa preferredship mortgagebecause of thepriority given the lien it cre- mortgageon the vessel, no notice of maritimeliens can ates.tt haspriority over all claimsagainst the vessel, berecorded. ThePreferred ShipMortgage Actpro- exceptfor certainpreferred maritime liens plus the videsthat, where there isa preferredshipmortgage of expenses,feesand costs ofthe Foreclosure proceedings record,notice of mari time liens may bc filed of record, allowedby thecourt. lf thereis no preferred mortgage ofrecord, there isno Theliens which the act designates ashaving a prior- provisionfor the recording ofsuch liens or notices of ity overa preferredmortgage include; them,and the U.S. Coast Guard refuses torecord thorn. / Liens arisingprior to therecording, of themort- Thefact that no notice isnccessary forthecxistenceof gage. a maritimelienis extremely important toanyone desir- Liensfor damagesarising out of tort for acci- ingtopurchase anexisting vesselthat has been operat- dentssuch as col tisions and personal injuries!, ingfor any appreciable periodof time, and iti s also of Liensfor wagesfor thccrew of thevessel, and primaryimportance toany lender who desires tomake maintenance and cure. aloan on such avessel. Thebuyer must becautious ol' Generalaverage and salvage claims. priorunrecorded liens.Unless theseller isunques- Theformal requirements ofthe Preferred Mortgage tionablyfinancially abletoback upits warranty against Actmust be strictly complied with for the mortgage to maritimeliens, the purchaser should have a searchbcvalid. It mustbe recorded in thc Office of Documen- madeastothcexistenceoFpnor liensas to the I ~ tationnnf the Coast Guard, and must be endorsed on the oFthe seller and prior owners and the amount of vessel'sdocument see special section>, insurancecoverage carried byeach, lf he docs not, he ln orderto bc recorded,it must be properly exe- maybepaying offliens incurred bythe seller and/or cutedand acknowledged, anci the mortgagee must file previous owners. anoath as to hiscitizenship. The mortgagee must be a Anothermajor diFference betwee U.S. citizen,! andother liens is that maritime lienseen m a maritime lien The preferredship mortgageis of assistanceto i nsmay be enforced vesselowners, Prior to the enactmentof the Preferred MortgageAct it w asdiFficult, if not impossible,for a ~ Ship's husband vesselox< ner tn obtainfinancing. With thesecurity now ~ Master affordedby the act,tinancing i seasier to obtain. ~ Any personto whom the managementof the vessel While the act is a boon to the vessel owner and at the port of supply is entrusted lendinginstitutions, it is oftena snarefor thesupplier. Section973 provides that the persons named in Sec- Many suppliers of American vessels have been cut off tion972 shall be taken to include those appointed by a by the foreclosureof a prior preferred maritime mort- charterer,or byan agreedpurchaser in possessionof' gagethat exceededthe proceedsfrom the vessel'ssale. thc vessel. Before the 'l97] amendment, Section 973 provided furlher that no lien was conferred when the Notice of Clairrt furnisher"knew, or by exercise of reasonablediligence As previously noted,under Section 925 of the Pre- could have ascertained that because of the terms of a ferredShip MortgageAct, any personmay record a charterparty, agreement for sa]e,or any otherreason, noticeof hisclaim of lienupon any vessel covered by a theperson was without authorityto bindthe vessel." preferredmortgage. The notice must be in writing, Thelatter section was struck by theamendment in an properly execute, datedand acknowledged,and effortto aid thesupplier. However, Grant Gi Imnre and should statethe natureof the claimed lien, thedate of CharlesL, Black,in theirbook on admiralty,express its creation, the amount of the lien, and the name and theiropinion that despite the amendment, "I f underall addressof the personclaiming it. The filing of such the circumstances he [the materialman! has reason to notice is with the Coast Guard Office of Vessel Docu- know thatthe ship is charteredand makesno further rnentationwhere the vessel is documented see special inquiry, a prohibition of lien clauseshould be effective section!.This filing does not establish the lien. againsl him." Uponfiling a notice of a claimedlien, do not expect The U.S. District Courts that have considered prompt payment.Do not call the CoastGuard and ask Gilmore'sand Black's opinion have for themost part whenpayment will bereceived. Filing does not prove rejectedit andhave logically held thatthe amendrncnt up the lien and the Coast Guard does not act as a gives the suppliera lien unless he had "actualknowl- collection agency. edgethat the vesselwas operatingunder a charter Thisnotice is helpful, however, in threerespects: I! which containeda no-lien provision." However,the It givesnotice of theclaimed lien to a prospective EleventhCircuit Court of Appeals hasupheld enf'orce- purchaseror lender, either of whommay require pay- mentof a no-lienclause despite the fact that the sup- mentin full axbareboat charter should bc aware that the charterer videsthat the followingpersons shaH be presurncM to may incur liensagainst the vesseldespitr. a prohibition have authorityfrom the ownerto procurerepairs, of lien clause. supplies, and other necessaries to the vessel: Any question as to the solvency and abi!ity ot the ~ Managing owner chartererto dischargeall liensshould be checked by the owner,and hc shouldalso make sure that a noticeof the seizure, but insurance coveragewhile the vessel is charterarid prohibition of liensis keptposted on thc under seizure, watchman service, and other expenses. vessel,and that the charterercontinues to be solvent Thecharges for watchmanservices exceed $'100 a day. andis keepingall of hiscurrent bills paid. In onc district, the U.S.marshal requiresa minimum cashdeposit of $5,000.When thc marshal'sexpenses Transfer of Maritime Liens exceedthe initial cashdeposit he will require further advances as the proceedings progress. Preferredmortgages are transferredby written as- After the seizure, the vessel owner may secure a signmentswhich may be made only to citizensof thc releaseof thevessel by postinga corporatesurety bond UnitedStates. The assignment should bc f0cdof record or makinga cashbond, The amount of hebond is with the U.S. Coast Guard, Office of Vest 1 Documen- determinedby agrcemcntbetween the attorneys,or tation, failingagreement, it is setby thecourt. If a bondis not Maritime liens other than preferred mortgagesalso madepromptly, notice is publishedin a localpaper maybeassigned freely. In fact, some decisions hold that requiringall persons having claims against the vessel to a personwho advances funds for thc sole purpose of come in and assert their claims. All other lien claimants dischargingmartime lieris becomes subrogated to such must then intervene. maritimeliens and is ableto enforcethem. By subroga- If the vessel is condemned and sold by virtue of the tion the courtsmerely meanthat he, in effect,becomes suit, the sale cuts off all maritime lienholders and the owner of thc maritime lien. However, a vesselown- passestitle which is effectiveworldwide, Sales by the eror agent for an owner cannot acquire a lienagainst his admiraltycourt in thiscountry cut off maritimelien- ownvessel by advancingfunds to dischargeliens. holders in other countries, and salesby foreign admi- raltycourts cut off maritime lienholders in thiscountry. Does the Lien Exist? The vesselowner, and, on foreclosureof a preferred Whena preferredship mortgage is paidaff, a "satis- shipmortgage, anylienholders who have filed notice of factionof mortgage"form shouldbe filed to clearthe claimwith the U.S.Coast Guard, and thc holdersof any recordof themor tgages, When a noticeof lien claim has otherrecorded preferred ship mortgages, will be en- been filed for record with the Coast Guard, a written titledto personal notice of the proceedings. Noone else releaseof the lien should be filed of record when the will beentitled to personalnotice; and the only notice claimis paid off or settled seespecial section!. givento themwill bethat published in a localpaper of As statedearlier, a real problem exists for the pur- generalcirculation in thedistrict. chaserin determiningwhether any outst ending mari- Forexample, XYZ Company furnishes fuel to the time liens, other than those that are of record, exist fishingvessel "Little Darling,"and the "Little Darling" againsta vesselthat has been in operationfor some is later soldby an admiraltycourt in Florida.Unless time.This problem becomes acute when the selleris thereis a preferredmortgage on the vessel being fore- financiallyunabletobackuphis warranty asto titleand closed,and unless it hasfiled notice of its lien,XYZ will against liens. notbe entitled to personal notice. And if XYZCompany Severalpassible solutions to this prob!cmexist, but doesnot file a claimin theseproceedings prior to the first thepurchaser should engage a compcteritattorney fundsfrom the salebeing disbursed, XYZ Company to assisthim. One solution is to retain, for a reasonable will be left out, asits lien hasbeen cut off. period,a sufficientpart of thepurchase price to dis- If XYZ does not receive the Florida newspaper where chargeany unknowri liens. Another is ta makea dili- thenotice is published,how does it learnof thepro- gentsearch for all possiblelienclaimants and to require ceedingsand intervene in it?In mostcases it will learn themto be paid aff first. In eitherevent, it shouldbe ofthe proceedings from the scuttlebutt along the wa ter- determinedthrough the adviceof an attorneythat front.But many XYZ's never learn of theproceedings adequateinsurance has been carried on thevessel by andlose out becausethey do not intervenein time. prior ownersto takecare of anypersonal injury or It isimperative that the holder of maritime liens stay collision or other third party claims. on topof thesituation and keep abreast of develop- mentsif liensare not paid promptly. Foreclosure on a Maritime Lien One U.S.District Court hasheld that the holder of a A maritimelien is foreclosedonly by a suitagainst the recordedpreferred ship mortgage is not entitledto vesselitself filed on theadmiralty docket of thedistrict personalnotice when the vessel isbeing sold by virtue court where the vesselcan be found and seized.This of a maritime lien other than another recordedpre- processshould begin by securingthe services of an ferredship mortgage. If this decision is followed,the samerulc would apply to lienholderswha have filed attorney. Secondly,before a U.S,marshal will seizea vessel,he notice of their liens with the U.S. Coast Guard, and requiresa cashdeposit to coverhis firstfew days' accordingly,they would only be entitled to personal expensesin seizing and holding the vessel. These ex- noticeif a preferredship mortgage isbeing foreclosed, pensesinclude nat onlythe immediate expense of While this decisionis questionableand may not be teillowe d, itdemnnstratcsthe nccessityofthcho'ldcrsof seizure. Therefore, be certain that if you furnishany- ,ill maritimeliens keepingthemselves up to dateon the thing to a vesselwhi/e it is under seizure,it is at the linancial condition of the vcsscl owner and whether or requestof themarsha I or thccourt, or that you are paid not he is keeping other liens paid off. in cash,! It is c ven morc important tor thc licnholdcrs to take Liensfor scarncn'swages, maintenance and ciire, prompt action in the caseof foreign tramp steamers. andfor salvageand general a veragemust then be con- They may neverreturn to the U.S.,and tbc lien will be sidered.The seamen must be paid before anyone else lostby saicin a I'oreignadmiralty court orby theloss of getsanything, Sal vage and general average. lien claims the vesselthrough sinking or salefor scrap. are rare. Frequently,except for a deductible,maritirnc tort Priority of Liens claimsare coveredby insurance. However, if theyarc Assumeyou are a repairmanor other supplierof not covered,they must be paid next. necessariesand that you have either learned of a Preferredmortgages under the U.S. Preferred Mort- seizure and intervened, or that you were the initial gageAct havepriority over alt maritiineliens for nec- claimant, If no one comes forward and bonds the vessel essaries,except those which accrued prior to the time out, ordinarily a motion to sell the vessel is filed. The themortgage was record. court then setsthe hme and place lf any fundsare left after pay- for the saleby thc U.S. marshal ingoffaU,S. preferredmortgagc, and orders the required publica- rishi.i . theliens for necessariesaccruing tion of the notice. The court will after the recordingof the mort- not order the sale until after the gageare paid next.The liens arc time to appear0 daysafter the paid in inverse order nf their in- notice of seizure is published! currence, i,e., the most recent has elapsed. Notice of sale must liens are paid first. laic local be published at least one time COurtSapply a Calendar-year within 10 daysprior to sale. yardstick, and all liens arising After the sale, if suFficient duringthe mostrecent calendar funds are available to pay oFf year are paid first, IF suFficicnt everyonewho bas filed a claim, fundsdo not exist to pay these no problems arise. But if suffi- liensin full, payment is prorated cient fundsare not obtainedby among such lien claimants. If all the sale which is often the case claimants in thc most recent cal- verycomplicated questions as endar year arc paid in full, then to priorities may arise. those during thc next preceding In theory,liens and claims of catcndaryear arc paid,ctc. maritime and non-maritime na- Foreignmaritime liens, includ- ture should be rankedas to pri- ing preferred mnrtages on for- ority by class in the following eign vessels, asserted in U.S. order: ] -"-- "- cnurts come after the marit"e 1,Expenses of justicewhile the liens of Arncricansuppliers for vessel is under seizure, necessaries furnished in the 2, Seamen'sliens for wages, United States. However, if tbc and maintenance and cure. claimant travels to a for< ign 3.Sal vagc a ndgeneral average country to enforcehis lien, it will liens. be paid only after the toreign 4. Tort liens that is dama s preferredmortgage. forcollision, personal injury andother accident daims. Thoughnot alwaysthe case,most vessels that are 5, PreferredU.S. mortgageliens seize< and sold by virtue of rnaritimcliens have a 6. Liens for necessariessuch as fuel, repairs,etc, preferred ship mortgageon them. 7. State-created liens of a maritime nature. Frequent!y,little or nomoney is left afterpaying thc 8.Maritime liens for penaltiesand forfcitures for vio- preferredship mortgage, and the holders iit rn*ritirne lation of a federal statute. liens for necessariesfurnished subsequentto the re- 9. Perfected non-rnaritirne liens. cording of the mortgage are cut off with little cir no Onlythose expenses incurred bythe U.S. marshal, or I'eCOvc'y, such as are authorized by the court, are normally al- Collt-'ction of maritime liens for necessaries invol vcs lowed, risk. It is advisable to collect payment from high-risk No lien is acquired against a vesselfor necessaries purchaserswhile they still havefunds to pay their debts «rnisbed at the owner'srequest while it is under andbefore they incur further debts. Maritime Liens Do Not Always Exist of all of its assetsin an effort to satisfythe liabilities of No maritime liens exist for many maritime-related thebusiness. If the maritimelien is a valid lien and is matters.Among theseare new ship constructioncosts properlyfiled as a claimin the bankruptcy proceed ing, since the construction of a vesselis not consideredto be thenonce the vessel is soldthrough the bankruptcy within the admiralty jurisdictionof the U.S. district courtthe henattaches to the proceedsof sale.The courts.It mustbe rememberedthat the work or sup- bankruptcycourt will pay the maritimeliens in the pliesmust have been ordered by a personhaving sameorder as will a courtof admiralty after deducting presumedauthority according to Sections 972 and 973 administrativeexpenses. of the PreferredShip MortgageAct, or by a person Accordingly,those maritime liens which are not havingactual authority to bind the vessel.@fork or outrankedby administrative expenses, preferred mort- suppliesordered by anyother person does not create a gagesand other liens will be paid, Frequently, how- maritimelien againstthe vessel. For example,the ves- ever,the preferred mortgage is solarge and/or other sel owner contractswith Repairer X to make certain liens are so numerous tha t the lienholder is outrank'~"Ii repairsto the vessel,and X orders parts from Y with and receivesno proceeds. which to makethe repairs. Ordinarily, the personfur- The other typeoi proceeding,that cif a Chapter11 nishingthe parts or servicesto the supplierwill not reorganization,also presentsserious concerns for the obtain a maritimelien againstthc vessel. holderof a maritimelien. Thebasic premise of reor- It shouldalso be notedthat therepairs and supplies ganizationis thatthe value of thcwhole of anongoing must bc furnished to the vessel, Assume that XYZ businessis greater to creditorsthan is a liquidationoF Corporation owns 50 fishingvessels and orders food the business. for all of its fleet to be delivered to its warehouse. XYZ Therefore,bankruptcy courts are given the power to then delivers portions of thefood to itsvarious vessels. forcea secured crcdi tor such asa mari time I ienholdcr to Thesupplier is held to havefurnished the goodsto the allowu se of the property du ring reorganization inspi te owner, and notto any or all of the vessels,and obtains of thesecurity interest or rnaritirnelien held against the nolien againstany vessel, A court would saythat he property.This means tha t if the securedproperty is to furnished the food on the credit oFthe owner, and not be usedin thereorganization, the creditorcannot fore- on the creditof any onevessel. close,provided the debtor gives the lienholder ln this regard,suppliers should show the name of the "adequateprotection." In other words, if the debtor vesselto which the goodswerc furnishedon each makesprovision in a planof reorganization to pay off invoice,This helps identiFy the vesselto which the thesecured parties' claims, then the bankruptcy court gciodswere furnished,and makesa recordof it. I'ref- generallywill allow the use of the property and prevent crablythe invoic'e isdirected to thevessel itse]f, either f'oreclosure of the 1 icn. in careof theowners, or to thevessel itself and the Adequate protection isnot defined inthe bankruptcy ownersjointty. The supptier should also deliver the actand thus is subject to eachcourt's own interpreta- siippliesto the vesselitself, or at leastdetermine for tion.It remainsa nebulousconcept. The amount and e hichspecific vessel the supphes arebeing purchased. termsof whatis adequateprotection vary with the facts ofeach situation and with the varying thoughts ofeach Effect ot' Bankruptcy on Maritime Liens judgeas to what is equitable.If suchprotection is not As astart to understanding howthe filing of a bank- givenby the debtor,thc courtwill usuallyrelieve the ruptcyhy one of your debtors will affect an existing lienholderfrom thc automaticstay and allow foreclo- m,irit»ne lien, you i'irst ncaa to understandthcideas an

The role of the U.S, Coast Guard Office of Vessel / by a trust arrangement,when the addressor Dc>cumcntationcan be Found in the Code of Federal addresses of the trustee or al I of the trustees is in Regulations,46 C.F.R. 67. These regulations have their Texas or New Mexico. basi~,in part, in t.hePreferred Ship Mortgage Act. Since by thestate of Texasor NewMexico, a political a preferredship mortgage may only be placedon a subdivision of the stateof Texasor Nc w Mexico, documented vessel, we must first define a documented or any agency thereof. vessel. Futhermore,the vessel'shome port is listedon the ship's Certificate of Documentation, which must bc PreferredShip Mortgage onboardthe vesselat all times.The hailing port to bc markedon the stem may be eitherthe vessel'shome Eligible and KxetnptVessels port or the placewhich the owner usedto determineth» All vesselsof five net tons,except those listed below, horne port of the vessel. which engage in the fisheries, Great Lakes trade, or coastwisetrade, must be documented. Also, any vessel Requirementsof Filingand Contents of Mortgage of at leastfive net tons, wholly owned by a UnitedStates ln orderto recorda preferredmortgage with theU S. citizen or citizens,is eligible for documentation,includ- CoastGuard, the following mustbe provided: ing vesselsused exclusively for pleasure and vessels 1. Exceptthat a copy forcertification is not required used in foreign trade. for a non-self-propelledvessel, each filing of a pre- The followingclasses of vesselsare exemptfrom ferredmortgagernust consist of anoriginal, a copyto be docurncntation: retainedat thehome port, a copyto beccrh fied fr r the 1. Vessels of less than five net tons. owner, a nda copyto becerti fied for eachvessel cov en' 2, Vesselswhich do not operateon the navigable by the mortgage.Both the original mortgageand the waters of the United States. horneport copymust bear the original signature of the 3. Non-self-propelledvessels qualified to engagein mortgagor or one signing on behalf of the mortgagor. coastwise trade when used in that trade: 2. To recorda preferredmortgage, a Dcclarat ton c f ~ within a harbor. Cittzcnshipof themortgagee form MA-fl99!, showing e in whole or in part on therivers or in landlakes of the that he is a citizen of the United States must be filed. United States. 3. Anotheritem tobe filed is an affidavit of good faith ~ inwhole or in part on the internalwaters or canals hensfrom the mortgagor s! t<>the effect that thea ftida- of any state, vit is made in good faith from the mortgagor s! and Thus,most commercial vessels of a burdengreater without any intent to binder, delay or defraud any than five net tonsengaged in tradeor in the fisheries existi~gor future creditor or any lien giver of the vessel. eithermust or may be documentedby the U.S.Coast 4. The vessel's U,S. Coast Guard Ccrti f'icate of Ltocu- Guard. The records of the documented vessels are rnentation must be included, so that the mortgagecan maintainedat the vessel'shorne port. beendorsed upon it to obtainpref'erred status. The mortgage must contain: Home Port a! The name s!of the mortgagor s! and the indt vid- Thevessel's home port is theport of documentation ual interestin the vesselheld by eachmortgagor. where the recordsof a vesselare kept. The port of b! The name s!of themortgagee s!and the individ- documentationisthat port which has been designated ual interestin the vesselmortgaged to eachmortgage, by theCornrnandant asa placewhich may serve as the c! Theamount and maturity date of the mortgage,A homeport of a vessel,A documentationofficeis!ocated mortgagereciting the amount in foreign currency must in each port of documentation.Houston must be the also recite the atnount in U.S. currency at the then- home port of a vesselowned: applicable conversion rate. by one person who is domiciled in Texasor New d! If covering a vesselmeasuring less than 25 gross Mexico. tons,includeorbe accompaniedby a statementthat the by a partnership whose businessaddress is in vesselis not a tow boat, barge,scow, lighter, car float, Texas or New Mexico. canal boat or tank vessel. / by a Texascorporation whose principal place of c! The mortgagemust cover thc whole ot a vessel business is in Texas. which was a documented vessel at the time the rnort- / by a New Mexicocorporation whose principal gage was made, may not contain language which con- place of businessis in New Mexico. stitutes the mortgagee'swaiver of the preferred status by any corporation incorportated in any state of that mortgage, and cover a vessel whose mortgagor whoseprincipal placeof businessis in Texasor held legal title at the time of the execution of the New lVfexico. mortgage. Themortgage must bear the date of its execution and gageor lien, and the date and time of the recordation of c<>ntainanacknowledgment taken in accordancewith thcmortgage orlien being discharged and thebook and the laws of the state in which the instrument was pagewhere thc mortgage orlien is recorded. cxccuted,No officeror employeeof thcCoast Gttard is authorized to take such acknowledgments. Fees and Filing Anyordinary mortgage must be presented indupii- Thefce for recording a mortgageis 20 cents for each catc,with at leastone copy bearing the original signa- 100words with a minimumcharge of $1,Thc feeis tureof thc mortgagor, accompanied bythe Dcclttra tion appliedto the oriy'nal instrument and each certified ofCitizenship, and contain the names and individual copythereof, up to 10certified copies. The fee for interestsofboththemortgagor and s! the mortgagee s! ccrtificdcopies in excess of10is$1 for each copy. There and the amount and maturity date of the mortgage. is no feefor recordingnotices of claimof lienor dis- chargesof mortgagcsor releasesof lien. Notice of Lien Forall vesselswhose home port is in Houston,all thc A notice of claim of lien upon a vesselshall be abovedocuments may be filed at: recordedonly if thevessel is coveredby a preferred U.S,Coast Guard VesselDocumentation mortgageand if thenotice is properly executed, dated 8876Gulf Freeway,Suite 2'10 andacknowledged. Inaddition to the name and official Houston, Texas 77017 number of the vessel,the lien must include the name and addressof the claimant,the natureof the lien Abstract of Title claimed,the date on whichthc lien arose,and thc TheHouston office maintains an abstractof title on amountof thelien claimed.The notice of lien mustbe eachvessel therein homcported. The abstract of title is filedin duplicate,with at leastone copy bearing the theinstrument on which ail bills of saleand mortgages originalsignature of theclaimant or onesigning on or liensare recorded. Copies of theabstract of title are behalf of the claimant. availablcat a feeof 20cents for each100 words, with a minimum fee of $1. Discharge of Lien or Mortgage A written verificationof informationcontained on Whena preferredmortgage or lien hasbeen dis- theabstract of title is availablein theform of a Certifi- chargedin whole or in part, a certificateotdischarge is cateof Ownership, i.e. ownership and outstanding to be submitted in duplicate, with at least one copy mortgagesornotice of claim of liens!. Thc fee is 20 cents bearingthe originalsignature of the mortgageeor per100 words; minimum $1. Any titne a requestfor claimantor onesigning on behalfof themortgagee or informationis made,the name and official number of claimant,respectively, for recording.Thc discharge the vessel are to be furnished. mustbe acknowledged and include the name s!of the NOTE:This section ttras compiled by Joyce mortgagor s!,if any, and the name s!of the AuBuchon,Marine Documentation Officer for the mortgageeor s! claimant s!,the amount of themort- U.S. CoastGuard, Houston, Texas.

R ECEIV EO NATIONALSEA GRANT OEPOSITOkt PELLLIBRARY BUILDING NATIONALSEA6RANT DEPOSITOR't tIRI, NARRAGANSETTBAYt',AMPU; E ~A NARRArGANSFTT,R l 02882 Singlecopiesfree. Multiple copiesprice on request. TAMU-SG-88-505 MarineInformation Service 1tvIFebruary 1988 TexasA&M ScaGrant College Program NA85AA-D-SG128 CollegeStation,Texas 77843-4115 A/F4 Thisadvisory bulletin isfurnished «sapublic .sere>'ce bythe 'lcxas Marine Advt'sory Service,a coc>perative effortofthe TexasSccaCrranc Program, thcTexccs.4,,:rrcccltcc. «lExtc.nsic>n Service and the County Commissioners'Cuurtsof rc'tne coastctlc-.ntieS.s. 7'heAdvisory Serst'cc >scrtsto apply theedcccatic>nal andresearch cctpctl>ilittes ofthe 'l'c'xas A~l.4f University.System tothe problems crfforestal ccrrrtrnur>>ties andmarine-related ina'uslrces.