Title 46, ShippingRelease 119-102
§31327 Forfeiture of Mortgagee Interest
Title 46 › Subtitle III — Maritime Liability › CHAPTER 313 — COMMERCIAL INSTRUMENTS AND MARITIME LIENS › SUBCHAPTER II — COMMERCIAL INSTRUMENTS › § 31327
Summary
A lender’s interest in a documented vessel or one with a preferred mortgage is lost only if the lender approved or helped plan the illegal act or omission.
Full Legal Text
Title 46, §31327
Shipping, Source: USLM XML via OLRC
The interest of a mortgagee in a documented vessel or a vessel covered by a preferred mortgage under section 31322(d) of this title may be terminated by a forfeiture of the vessel for a violation of a law of the United States only if the mortgagee authorized, consented, or conspired to do the act, failure, or omission that is the basis of the violation.
Legislative History
Notes & Related Subsidiaries
Historical and Revision Notes
Revised sectionSource section (U.S. Code) 3132746:961(b) section 31327 provides for forfeiture of the mortgagee’s interest if the mortgagee authorized, consented, or conspired to do the act, failure, or omission that is the basis of the violation that caused forfeiture of the vessel. This section makes no substantive change to law.
Statutory Notes and Related Subsidiaries
Effective Date
Section effective Jan. 1, 1989, with certain exceptions and qualifications, see section 107 of Pub. L. 100–710, set out as a note under section 31301 of this title.
Reference
Citations & Metadata
Citation
46 U.S.C. § 31327
Title 46, Shipping
Last Updated
Aug 21, 2026
Release point: 119-102