(b) The affidavit of the mortgagor required by subsection D (a) (3), of the Ship Mortgage Act, 1920,26 if not included in the mortgage, shall be presented with each preferred mortgage submitted for recording and shall be retained by the collector." Any acknowledgment of such affidavit valid under the laws of the State where made may be accepted.

(c) No vessel covered by a preferred mortgage shall be granted clearance at any port until the preferred mortgage endorsement required by subsection D (c) of the Ship Mortgage Act, 1920," has been placed on her marine document.

(d) In addition to the matters required by § 3.33 (c), the collector shall note on the index on customs Form 1364 the day, hour, and minute that (1) the proposed mortgage endorsement is placed on the marine document, and (2) such notation was made on the index.

(e) When a marine document bearing a preferred mortgage endorsement is surrendered and a new document is issued before the mortgage is satisfied

29

25 "The collector of customs upon the recording of a preferred mortgage shall deliver two certified copies thereof to the mortgagor who shall place, and use due diligence to retain, one copy on board the mortgaged vessel and cause such copy and the documents of the vessel to be exhibited by the master to any person having business with the vessel, which may give rise to a maritime lien upon the vessel or to the sale, conveyance, or mortgage thereof. The master of the vessel shall, upon the request of any such person, exhibit to him the documents of the vessel and the copy of any preferred mortgage of the vessel placed on board thereof." (46 U. S. C. 923)

or the vessel released, the endorsement shall be placed on the new document.

(f) For the purposes of this section and the related statutes, an assignment of a preferred mortgage shall be regarded in all respects as a new preferred mortgage.

(g) A notice of claim of lien upon a vessel shall be recorded only if the vessel is covered by a preferred mortgage and if the notice is in the form of an affidavit.30

(h) Each notice of claim of lien and certificate of discharge of lien presented to a collector shall be recorded in a book to be kept for that purpose and indexed on customs Form 1364.

(i) When a preferred mortgage has been discharged in whole or in part and a certificate of such discharge has been filled with the collector of customs at the home port of any vessel covered by the discharge, the collector at the home port, or the collector at the port where the vessel is, at the direction of the collector at the home port, shall endorse the fact of such discharge upon the document of the vessel. No clearance shall be granted to such vessel until such endorsement has been made.31

31

(Sec. 30, subsecs. C, D, E, G, H, O, W, 41 Stat. 1000, as amended, 1001, 1002, 1004, as amended, 1006; 46 U. S. C. 921-923, 925, 926, 961, 983)

30 "The collector of customs of the port of documentation shall, upon the request of any person, record notice of his claim of a lien upon a vessel covered by a preferred mortgage, together with the nature, date of creation, and amount of the lien, and the name and address of the person. Any person who has caused notice of his claim of lien to be so recorded shall, upon a discharge in whole or in part of the indebtedness, forthwith file with the collector of customs a certificate of such discharge. The collector of customs shall thereupon record the certificate." (46 U. S. C. 925 (a))

Such

31 "The mortgagor, upon a discharge in whole or in part of the mortgage indebtedness, shall forthwith file with the collector of customs for the port of documentation of the vessel, a certificate of such discharge. collector of customs shall thereupon record the certificate. In case of a vessel covered by a preferred mortgage, the collector of customs at the port of documentation shall (1) indorse upon the documents of the vessel, or direct the collector of customs at any port in which the vessel is found, to so indorse, the fact of such discharge, and (2) shall deny clearance to the vessel until such indorsement is made." (46 U. S. C. 925 (b))

33

$ 3.40 Frontier enrollment and license. (a) Vessels under frontier enrollment and license 3 may engage in foreign or coastwise trade or the fisheries in waters covered by the license.

(b) In similar cases frontier enrollments shall bear the same endorsements as are placed on registers. When the endorsement required by § 3.2 (c), class 1, or by § 3.2 (d) (1) is placed on a frontier enrollment and license, the word "Coasting" in the license shall be deleted, and the word "Fisheries" inserted in lieu thereof.

(c) A foreign-built vessel which is owned by a citizen but which was not so owned and documented prior to February 1, 1920, or which was not owned by the United States on June 5, 1920, shall not be granted a frontier enrollment and license, but shall be registered. (See § 3.42 (f).)

32 "Each collector of customs shall permit records made under the provisions of this chapter to be inspected during office hours, under such reasonable regulations as the collector may establish. Upon the request of any person the collector of customs shall furnish him from the records of the collector's office (1) a certificate setting forth the names of the owners of any vessel, the interest held by each owner, and the material facts as to any bill of sale or conveyance of, any mortgage covering, or any lien or other incumbrance upon, a specified vessel, (2) a certified copy of any bill of sale, conveyance, mortgage, notice of claim of lien, or certificate of discharge in respect to such vessel, or (3) a certified copy as required by subdivision (c) of section 926 of this title.

U. S. C. 927)

(46

See § 4.98 of this chapter for fees to be collected.

33 "Any vessel of the United States, navigating the waters on the northern, northeastern, and northwestern frontiers, otherwise than by sea shall be enrolled and licensed in such form as other vessels; such enrollment and license shall authorize any such vessel to be employed either in the coasting or foreign trade on such frontiers, and no certificate of registry shall be required for vessels so employed. Such vessel shall be, in every other respect, liable to the regulations and penalties relating to registered and licensed vessels." (46 U. S. C. 258)

(d) A yacht of less than 20 net tons enrolled and licensed to navigate the waters of the northern, northeastern, and northwestern frontiers otherwise than by sea shall not be required to surrender its enrollment and license and obtain a license when proceeding to ports in the United States, its Territories, or possessions, whether by sea or otherwise. (R. S. 4318, as amended, 4321, as amended; 46 U. S. C. 258, 263)

§ 3.41 Transfer from frontier enrollment and license. (a) When a vessel under frontier enrollment and license proceeds to sea, directly or via an intermediate port, she shall surrender her frontier document. If bound on a foreign voyage partly by sea, she shall be granted a register. If proceeding from one United States port to another via the St. Lawrence River and the sea, she shall be granted only a register," but if she proceeds via the Hudson River to any United States port without going to sea, she shall retain her frontier enrollment and license.

(b) The collector at a seaport may issue a frontier enrollment and license. (R. S. 4318, as amended; 46 U. S. C. 258)

§ 3.42 Registry of foreign-built vessels. (a) The application on customs Form 1320 for an official number for a foreign-built vessel (class 9) shall state, in addition to the information therein required, the name of the former owner.

(b) In lieu of the builder's certificate required for a vessel built in the United States, the application shall be accompanied by a photostatic or certified copy of the vessel's foreign register and of its foreign measurement certificate, if there be one. Satisfactory evidence shall be produced to establish that the transfer of registry has the approval of the foreign government concerned. If the vessel was built for the applicant and never under foreign registry, the builder's certificate shall be produced. If the vessel was not built for the applicant, satisfactory evidence of ownership shall be produced as in the case of a vessel built in the United States. There shall also be produced a certificate of the merchant marine officer in charge that the vessel is safe to carry dry and perishable cargo, and if the vessel is required to possess a

3 In such case, she is required by Canadian regulations to enter and clear at Montreal.

35

certificate of inspection, it shall be produced.

(c) The applicant shall submit an affidavit stating that:

(1) The transfer of the vessel conveyed complete and unconditional title and ownership to the purchaser;

(2) There is no agreement or understanding reserving to the vendor, or to any person who is not a citizen, any interest in the vessel or its operation, or any right of control thereof;

(3) The transfer is intended to be permanent and not temporary, no right to repurchase the vessel is reserved to the vendor, and there is no understanding for its retransfer:

(4) The transfer was not made during a voyage of the vessel or while it was in a blockaded port; and

(5) The transfer was not made to avoid the consequences to which a vessel of a belligerent is exposed.

(d) The papers filed in connection with the application for documentation in accordance with the requirements of this section and any other pertinent information shall be forwarded to the Commissioner of Customs for consideration before the granting of a document to the vessel. Except as otherwise provided for in this section, the usual requirements for registry shall be complied with.

(e) No foreign-built vessel owned and documented prior to February 1, 1920, by a citizen nor one owned by the United States on June 5, 1920, and sold to and owned by a citizen shall engage in the American fisheries, but it is otherwise unlimited as to documents and trade so long as it continues in such ownership. When a marine document is issued to such a vessel, the following notation shall be made thereon:

As amended by section 5 of the Panama Canal Act and by the act of August 18, 1914, and sections 22, 27, and 38 of the Merchant Marine Act of June 5, 1920, as amended. This vessel shall not engage in the American fisheries.

If the vessel is owned by a corporation and is entitled to engage in the coastwise trade, the notation required by § 3.2 (d) shall also be made on the document.

(f) A foreign-built vessel which is owned by a citizen, but which was not so owned and documented on February 1,

35 See $3.54.

1920, or which was not owned by the United States on June 5, 1920, is limited to the foreign trade. A foreign-built vessel admitted to American registry and thereafter sold foreign in whole or in part or placed under foreign registry is limited, upon afterward becoming the property of a citizen, to the foreign trade. When a register is issued to a vessel of either such class, the following notation shall be made thereon:

As amended by section 5 of the Panama Canal Act, by the act of August 18, 1914, by section 27 of the Merchant Marine Act of June 5, 1920, as amended, and by the act of May 24, 1938, entitling the vessel to engage only in trade with foreign countries or the islands of Guam, Tutuila, Wake, Midway, and Kingman Reef. This vessel shall not engage in the coastwise trade or the American fisheries.

(g) A foreign-built vessel which has been purchased from the Maritime Commission or the War Shipping Administration by a citizen shall not engage in the American fisheries, but it is otherwise unlimited as to documents and trade so long as it continues in such ownership. When a marine document is issued to such a vessel, the following notation shall be made thereon:

As amended by section 9 of the Shipping Act, 1916, as amended. This vessel shall not engage in the American fisheries.

(h) If the vessel is owned by a corporation, the notation required by § 3.2 (d) shall also be made on the document. (R. S. 4132, as amended, secs. 2, 9, 39 Stat. 729, as amended, 730, as amended, secs. 22, 27, 41 Stat. 997, 999; 46 U. S. C. 11, 13, 802, 808, 883)

$ 3.43 Documentation of Americanbuilt foreign-flag vessels. (a) In the case of an American-built foreign-flag vessel which has never been documented as a vessel of the United States, a builder's certificate shall be produced unless a certificate of record has been issued to the vessel previously. A certificate of admeasurement shall also be produced unless a certificate of record has been issued and the tonnage of the vessel has not since been changed. Application for an official number shall be made in accordance with § 3.42 (a).

(b) In the case of an American-built foreign-flag vessel which was documented as a vessel of the United States before being placed under foreign flag, the production of a builder's certificate shall not be required, nor shall the pro

duction of a certificate of admeasurement unless the tonnage of the vessel has been changed. The official number originally awarded to the vessel shall be retained and the vessel shall be documented in the name under which it was last documented as a vessel of the United States.

(c) The application for documentation shall be accompanied by a photostatic or certified copy of the vessel's foreign register and foreign measurement certificate, if there be one. Satisfactory evidence shall be produced to establish that the transfer of registry has the approval of the foreign government concerned. If the vessel was not built for the applicant, satisfactory evidence of ownership shall be presented as in the case of a vessel of the United States.

(d) The applicant shall submit an atfidavit as required by § 3.42 (c).

(e) The papers filed in connection with the application for documentation in accordance with the requirements of this section and any other pertinent information shall be forwarded to the Commissioner of Customs for consideration before the granting of a document to the vessel. Except as otherwise provided for in this section, the usual requirements for registry shall be complied with.

(f) In appropriate cases, the notation required under class 1 of § 3.2 (c) shall be endorsed on a document issued under this section.

(R. S. 4132, as amended, sec. 27, 41 Stat. 999, as amended; 46 U. S. C. 11, 883)

§ 3.44 Foreign-built yachts. Any foreign-built yacht purchased by a citizen of the United States may be documented upon compliance with all the requirements set forth in § 3.42. The collector of customs may then issue to any such yacht owned by a citizen a consolidated certificate of enrollment and yacht license on customs Form 1290 or, except upon the Great Lakes, a license of yacht under 20 tons on customs Form 1288. Any document issued to such a yacht shall have written across its face the legend, "This vessel shall not engage in the coastwise trade or the American fisheries."

(R. S. 4132, as amended, 4214, as amended; 46 U. S. C. 11, 103)

§ 3.46 Recorded vessels. In the documentation of a recorded vessel (class 3), no builder's certificate shall be required. No admeasurement certificate shall be required unless the vessel has been altered since the certificate of record was issued.

§3.47 Record of American-built vessels owned by aliens. (a) A vessel built in the United States, never before documented, and belonging wholly or in part to an alien may be granted a certificate of record on customs Form 1316. Such a vessel may be documented as a vessel of the United States if transferred to a citizen.

(b) Before a certificate of record is issued, a builder's certificate on customs Form 1261 and a certificate of admeasurement on customs Form 1414 shall be filed with the collector.

(c) Whenever the master or name of a recorded vessel is changed, the collector at the port where the vessel is, or the

36 "No document certifying or proving any vessel to be the property of a citizen of the United States shall be issued, except to vessels duly registered or enrolled and licensed as vessels of the United States, or to vessels which shall be wholly owned by citizens of the United States, and furnished with or entitled to customhouse documents." (46 U. S. C. 61)

collector at the port where the vessel next arrives if it is at sea or in a foreign port, shall endorse such change upon the certificate of record on the written application of one or more of the owners.

(R. S. 4132, as amended, 4180, 4181, 4182, as amended, 4183, as amended; 46 U. S. C. 11, 54, 55, 56, 73)

§ 3.48 Certificates of record. Certificates of record shall be consecutively numbered. An exact copy of each certificate shall be placed in a permanent record kept for that purpose and a proper index made thereof on customs Form 1241 appropriately modified (on customs Form 2112 at New York). When a recorded vessel is documented, the certificate of record shall be surrendered, canceled, and forwarded to the Commissioner of Customs and the collector at the port of issue shall be notified.

§ 3.49 Prizes and forfeited vessels. If application is made for documentation of a vessel of class 4 or 5, all the requirements relating to documentation, except the filing of a builder's certificate shall be complied with, and the collector shall be furnished with a properly authenticated copy of the decree of condemnation and the proof of the applicant's ownership.

(R. S. 4132, as amended; 46 U. S. C. 11)

§ 3.50 Inspection of marine documents. Except in the case of vessels within the purview of § 3.24 (e) and (f), the document of a documented vessel, when such vessel is in commission, shall be on board and accessible to the person in charge, except when such papers are in the custody of the collector, and shall be produced to any customs officer upon demand."

§ 3.51 Change of name of documented vessel. (a) The name of a documented vessel (including any documented yacht) shall not be changed except with the consent and approval of the collector of

37 Any officer concerned in the collection of the revenue may at all times inspect the register or enrollment or license of any vessel or any document in lieu thereof; and if the master of any such vessel shall not exhibit the same, when required by such officer, he shall be liable to a penalty of $100, unless the failure to do so is willful in which case he shall be liable to a penalty of $1,000 and to a fine of not more than $1,000 or imprisonment for not more than one year, or both." (46 U. S. C. 277)

customs for the district in which the vessel's home port is located.38

(b) An application for change of name shall be executed by the owner or owners of the vessel, addressed to the collector, and shall be submitted in duplicate to the deputy collector at the vessel's home port.

(c) The application shall state the change desired, the reasons therefor, official number, rig, gross tonnage, name or names of the owner or owners of the vessel, and date and place of last inspection, if the vessel is subject to inspection. If the vessel is not subject to inspection, a certificate of seaworthiness issued by an officer in charge, marine inspection, United States Coast Guard, shall be obtained by the applicant and submitted with the application. A certificate of ownership on customs Form 1330 from the deputy collector at the vessel's home port shall be submitted with the application as evidence to the collector of the date and place of build and pecuniary liability of the vessel. The consent of the mortgagee or other beneficiary under each lien, mortgage, or other encumbrance of record at the vessel's home port shall be submitted in writing with the application, together with a certified copy of any approval of the United States Maritime Commission required by subsection O (a) of the Ship Mortgage Act, 1920.3

38a

38 "The Director of the Bureau of Marine Inspection and Navigation [Commissioner of Customs] shall, under the direction of the Secretary of Commerce [Commissioner of Customs], be empowered to change the names of vessels of the United States on application of the owner or owners of such vessels when in his judgment there shall be sufficient cause for so doing." (46 U. S. C. 51. Sec. 102, Reorg. Plan No. 3 of 1946, 3 CFR, 1946 Supp., Ch. IV)

"No master, owner, or agent of any vessel of the United States shall in any way change the name of such vessel, or by any device. advertisement, or contrivance deceive or attempt to deceive the public, or any officer or agent of the United States, or of any State, or any corporation or agent thereof, or any person or persons, as to the true name or character of such vessel, on pain of the forfeiture of such vessel.' (46 U. S. C. 50)

38 The requirement of subsection O (a) of the Ship Mortgage Act, 1920 (46 U. S. C. 961 (a)), that the document of a vessel covered by a preferred mortgage may not be surrendered without the approval of the United States Maritime Commission and the mortgagee applies to the surrender of the document of such a vessel for the purpose of changing its name.