Page:United States Statutes at Large Volume 102 Part 5.djvu/739

 PUBLIC LAW 100-710—NOV. 23, 1988

102 STAT. 4745

"(b) A mortgagor of a preferred mortgage covering a self-propelled vessel shall use diligence in keeping a certified copy of the mortgage on the vessel. "§ 31325. Preferred mortgage liens and enforcement "(a) A preferred mortgage is a lien on the mortgaged vessel in the amount of the outstanding mortgage indebtedness secured by the vessel. "(h) On default of any term of the preferred mortgage, the mortgagee may enforce the preferred mortgage lien in— "(1) a civil action in rem for a documented vessel or a vessel to be documented under chapter 121 of this title; "(2) a civil action in personam in admiralty against the mortgagor, comaker, or guarantor for the amount of the outstanding indebtedness secured by the mortgaged vessel or any deficiency in full payment of that indebtedness; and "(3) a civil action against the mortgagor, comaker, or guarantor for the amount of the outstanding indebtedness secured by the mortgaged vessel or any deficiency in full payment of that indebtedness. "(c) The district courts have original jurisdiction of a civil action Courts, U.S. brought under subsection (b) of this section. However, for documented vessels or vessels to be documented under chapter 121 of this title, this jurisdiction is exclusive of the courts of the States for a civil action under subsection (b)(1) of this section. "(d)(1) Actual notice of a civil action brought under subsection (b)(l) of this section, or to enforce a maritime lien, must be given in the manner directed by the court to— "(A) the master or individual in charge of the vessel; "(B) any person that recorded under section 31343(a) or (d) of this title a notice of a claim of an undischarged lien on the vessel; and "(C) a mortgagee of a mortgage filed or recorded under section 31321 of this title that is an undischarged mortgage on the vessel. "(2) Notice under paragraph (1) of this subsection is not required if, after search satisfactory to the court, the person entitled to the notice has not been found in the United States. "(3) Failure to give notice required by this subsection does not Courts, U.S. affect the jurisdiction of the court in which the civil action is brought. However, unless notice is not required under paragraph (2) of this subsection, the party required to give notice is liable to the person not notified for damages in the amount of that person's interest in the vessel terminated by the action brought under subsection (b)(1) of this section. A civil action may be brought to recover the amount of the terminated interest. The district courts have original jurisdiction of the action, regardless of the amount in controversy or the citizenship of the parties. If the plaintiff prevails, the court may award costs and attorney fees to the plaintiff. "(e) In a civil action brought under subsection (b)(1) of this section— "(1) the court may appoint a receiver and authorize the Courts, U.S. receiver to operate the mortgaged vessel and shall retain in rem jurisdiction over the vessel even if the receiver operates the vessel outside the district in which the court is located; and "(2) when directed by the court, a United States marshal may take possession of a mortgaged vessel even if the vessel is in the

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