Preferred Vessel Mortgage Form
Preferred vessel mortgage form with examples and instructions.
The Preferred Vessel Mortgage form is designed to perfect and secure a lender's interest in a Coast Guard documented vessel. It is a legacy version that should be acceptable for recording with the National Vessel Documentation Center when properly executed. This type of instrument is also referred to as a Ships Mortgage.
Usage Context
The preferred Vessel mortgage can be recorded against any vessel that is actively documented or in the process of becoming documented. It covers both recreational and commercial vessels. Although this legacy version has been around for a long time, many banks and commercial lenders now have one that is incorporated within their own financing application system. In any event, the Coast Guard is not concerned about the textual content so long as it contains certain required citations. In fact, any mortgage can be recorded even without these requirements if accompanied by a Optional Application for Filing form which can be found in the Referrals for this page..
Examples and Conversion
Examples of the Preferred Vessel Mortgage form are available in Adobe PDF format from the Referrals for this page. They 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.
Instructions
Header - Insert the mortgagor and mortgagee names and current addresses. The mortgagor's name must match that as shown on the Coast Guard abstract of title.
The addresses are required for recording purposes.
Paragraph One - Insert the mortgagor and mortgagee names, the name and hailing port under which the vessel will remain documented, and the official number, if already assigned, or the vessel's hull identification number. Be sure to specify which number is being cited. Insert the amount of the mortgage in text and numerical terms. This will be presumed to be in U.S. denomination unless otherwise specified.
Paragraph Seven - Any existing liens or mortgages should be listed in this paragraph, except for those being satisfied or released in
conjunction with the mortgage filing. The default for this paragraph is "None".
Paragraph Eight - Additional mortgage terms and conditions of your choice can be inserted after this paragraph. These will not impact the recordability aspects of the mortgage. However, any referenced attachments must be submitted with the mortgage and their dates must coincide with or precede
the mortgage date.
Signature Date Line - Insert the date on which the mortgage is executed. The date is not relative to that upon which the mortgagor acquired
or will acquire documentation. However, the date must coincide with or supersede the dates of any attachments referenced in the mortgage.
Signature Lines - Insert the names of the parties signing and their capacities. If the vessel is owned by an individual or individuals,
all must sign and their capacity should be shown as "Owner". The mortgage can not be executed in counterparts. However, an additional signature page can be
attached to facilitate separate signings of the same mortgage. The Coast Guard does not require a copy of the Power of Attorney when signed as an "Attorney In Fact".
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.
Attachments - If there is a promissory note, security agreement, or loan contract, these should be submitted with the mortgage as an attachment.
They should also be referenced in the mortgage. The mortgage contains default references to a promissory note, but these should
be deleted if there will
be no such attachment. All attachments must reflect dates which precede or coincide with the date on which the mortgage is executed.
Alterations - The text on this form is "protected" to allow for tabbing among fields. You may change this to suit your own circumstances by
"unprotecting" the document. However, such changes could impact its recording viability. You should contact the respective agency if you have any such
concerns. This instrument may not be changed or altered after it has been executed unless the notary specifically notates such alterations in the
Acknowledgement.
Conclusion
This form includes terms and conditions that can affect the legal rights of all parties involved and should be reviewed by an attorney regarding any such concerns.
References and Referrals
Comments - Suggestions - Corrections