Assumption of Preferred Mortgage Form
Assumption of Preferred Vessel Mortgage form with example and instructions.
The assumption of preferred vessel mortgage form can be used for allowing a third party to assume the obligations and terms of an underlying preferred vessel mortgage. This can only be implemented upon approval of the existing mortgagor and mortgagee. It is not intended to change the actual mortgage terms as this is accomplished through the recording of an amendment.
Usage Context
The Assumption of Preferred Vessel Mortgage when properly executed is considered as a recordable instrument subject to filing with the National Vessel Documentation Center. Upon acceptance, it is indexed and recorded separately on the vessel's underlying abstract of title. This form is typically used in a purchase arrangement where the buyer has agreed to assume responsibility for the underlying mortgage as all or partial consideration of the purchase price. However, it can be adapted for other circumstances.
Form Example
An example of the assumption form is available in Adobe PDF format from the Referrals for this page. It can be easily converted into your favorite word processing application for modification and editing purposes. If your system does not already have this capability, there are a number of free or subscription internet services available that can provide such an accommodation.
Citations and Instructions
Paragraph 1 - Insert the names and addresses of the original mortgagor, the mortgagee, and the party that will be assuming the mortgage. Addresses for each party are require for recording purposes.
A. - Insert the name and official number under which the vessel is documented.
B. Insert the recording information for the underlying mortgage being assigned.
C. Insert the execution date and amount of the underlying promissory note.
D. Insert the unpaid balance of the mortgage, which is the amount being assumed.
Signature Date Line - Insert the date on which the assumption was executed.
Signature Lines - Insert the names of the parties signing and their capacities. The assumption can not be executed in counterparts. However, separate signature pages can be attached if necessary.
Acknowledgement - All signatures must be acknowledged by a U.S. notary, U.S. Consulate, or apostillized by a member country of the Hague Convention. The notary public may need to provide an
attachment if the standard acknowledgement on this form does not fulfill your jurisdictional requirements.
Please note that attachments count as additional pages with respect to recording fees. The acknowledgement date can not precede the respective signature date. This instrument may not be changed or altered after it has been executed unless the notary specifically notates such alterations in the Acknowledgement.
Conclusion
If unsure of whether an assumption contains the required citations, it can be accompanied by an optional application for filing as shown in the referrals. In any event, a preferred vessel mortgage assumption can affect the legal rights of the respective parties. You should consult with an attorney with any such concerns.
References and Referrals
Comments - Suggestions - Corrections