Page:United States Statutes at Large Volume 120.djvu/1525

 120 STAT. 1494

Regulations.

PUBLIC LAW 109–304—OCT. 6, 2006

‘‘§ 12106. Surrender of title and number ‘‘(a) IN GENERAL.—A documented vessel may not be titled by a State or required to display numbers under chapter 123 of this title, and any certificate of title issued by a State for a documented vessel shall be surrendered as provided by regulations prescribed by the Secretary. ‘‘(b) VESSELS COVERED BY PREFERRED MORTGAGE.—The Secretary may approve the surrender under subsection (a) of a certificate of title for a vessel covered by a preferred mortgage under section 31322(d) of this title only if the mortgagee consents. ‘‘§ 12107. Wrecked vessels ‘‘(a) REQUIREMENTS.—A vessel is a wrecked vessel under this chapter if it— ‘‘(1) was wrecked on a coast of the United States or adjacent waters; and ‘‘(2) has undergone repairs in a shipyard in the United States equal to at least 3 times the appraised salvage value of the vessel. ‘‘(b) APPRAISALS.—The Secretary may appoint a board of three appraisers to determine whether a vessel satisfies subsection (a)(2). The costs of the appraisal shall be paid by the owner of the vessel. ‘‘SUBCHAPTER II—ENDORSEMENTS AND SPECIAL DOCUMENTATION ‘‘§ 12111. Registry endorsement ‘‘(a) REQUIREMENTS.—A registry endorsement may be issued for a vessel that satisfies the requirements of section 12103 of this title. ‘‘(b) AUTHORIZED ACTIVITY.—A vessel for which a registry endorsement is issued may engage in foreign trade or trade with Guam, American Samoa, Wake, Midway, or Kingman Reef. ‘‘(c) CERTAIN VESSELS OWNED BY TRUSTS.— ‘‘(1) NONAPPLICATION OF BENEFICIARY CITIZENSHIP REQUIREMENT.—For the issuance of a certificate of documentation with only a registry endorsement, the beneficiaries of a trust are not required to be citizens of the United States if the trust qualifies under paragraph (2) and the vessel is subject to a charter to a citizen of the United States. ‘‘(2) REQUIREMENTS FOR TRUST TO QUALIFY.— ‘‘(A) IN GENERAL.—Subject to subparagraph (B), a trust qualifies under this paragraph with respect to a vessel only if— ‘‘(i) each trustee is a citizen of the United States; and ‘‘(ii) the application for documentation of the vessel includes the affidavit of each trustee stating that the trustee is not aware of any reason involving a beneficiary of the trust that is not a citizen of the United States, or involving any other person that is not a citizen of the United States, as a result of which the beneficiary or other person would hold more than 25 percent of the aggregate power to influence or limit the exercise of the authority of the trustee with respect to matters involving any ownership or operation of

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