§56305 — Title 46 Shipping | U.S. Code

Summary

A vessel can still be taken by the government even if someone has a legal claim on it (an encumbrance). If there are claims, the Secretary of Transportation may put some or all of the payment owed for taking the vessel into a special fund in the Treasury, but not more than the total claimed. The Secretary must announce that fund in the Federal Register. Money in the fund can be used to pay the government’s compensation or to satisfy any claims that existed when the vessel was taken. The holder of a claim has 6 months after that notice to file an admiralty lawsuit against the fund. The case must be in a U.S. district court where the vessel was taken from custody or where it was located when taken. The court will require legal notice to the U.S. Attorney, the Attorney General, the Secretary, and other interested people, and will decide the case under the same rules used for similar private disputes.

Title 46, §56305

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(a)The existence of an encumbrance on a vessel does not prevent the requisition of the vessel under this chapter.

(b)(1)If an encumbrance exists, the Secretary of Transportation may deposit part of the compensation or advance of compensation to be paid under this chapter (but not more than the total amount of all encumbrances) in a fund in the Treasury. The Secretary shall publish notice of the creation of the fund in the Federal Register.

(2)Amounts deposited in the fund shall be available to pay the compensation or any of the encumbrances (including encumbrances stipulated to in a court of the United States or a State) existing at the time the vessel was requisitioned.

(c)(1)Within 6 months after publication of notice under subsection (b), the holder of an encumbrance may bring a civil action in admiralty, according to the principles of libels in rem, against the fund.

(2)The action must be brought in the district court of the United States—

(A)from whose custody the vessel was or may be requisitioned; or

(B)in whose district the vessel was located when it was requisitioned.

(3)Service of process shall be made on the appropriate United States Attorney, the Attorney General, and the Secretary, in the manner provided by the Federal Rules of Civil Procedure (28 App. U.S.C.). Notice of the action shall be given to all interested persons as ordered by the court.

(4)The action shall proceed and be determined according to the principles of law and the rules of practice applicable in like cases between private parties.

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 5630546 App.:1242(d) (last par.).June 29, 1936, ch. 858, title IX, § 902(d) (last par.), as added Mar. 24, 1943, ch. 26, § 3(d), 57 Stat. 49; Pub. L. 97–31, § 12(131), Aug. 6, 1981, 95 Stat. 165. In this section, the words “encumbrance” and “encumbrances” are substituted for “any valid claim by way of mortgage or maritime claim or attachment lien” and “any valid claim by way of mortgage or maritime lien or attachment lien” to eliminate unnecessary words. In subsection (b)(1), the words “The Secretary shall publish notice of the creation of the fund in the Federal Register” are added for clarity, based on language barring a civil action not brought within 6 months after publication of such a notice. In subsection (c)(1), the words “Within 6 months after publication of notice under subsection (b)” are substituted for “prior to June 30, 1943, or within six months after the first such deposit with the Treasurer and publication of notice thereof in the Federal Register, whichever date is later” for clarity and to eliminate obsolete language. Subsection (c)(3) is substituted for “and such suit shall be commenced in the manner provided by section 742 of this Appendix and service of process shall be made in the manner therein provided by service upon the United States attorney and by mailing by registered mail to the Attorney General and the Secretary of Transportation and due notice shall under order of the court be given to all interested persons” because the relevant sentences in 46 App. U.S.C. 742 were struck by an amendment in 1996. See generally Henderson v. United States, 517 U.S. 654, 116 S. Ct. 1638 (1996). In subsection (c)(4), the words “any decree in said suit shall be paid out of the first and all subsequent deposits of compensation” and “any decree shall be subject to appeal and revision as now provided in other cases of admiralty and maritime jurisdiction” are omitted as surplus.

§56305 Vessel Encumbrances

Summary

Title 46, §56305

Notes & Related Subsidiaries

Historical and Revision Notes

Citations & Metadata