Page:United States Statutes at Large Volume 41 Part 1.djvu/1022

 SIXTY-SIXTH CONGRESS. Sess. II. Ch. 250. 1920. 1001 of the date of the compliance with all the provisions of this subdivision, the preferred status given by the provisions of subsection M if— ,(1) The mortgage is indorsed upon the vessel’s documents in accordance with the provisions of this section; (2) The mortgage is recorded as provided in subsection C, together with the time and date when the mortgage is so indorsed; (3) An affidavit is filed with the record of such mortgage to the effect that the mortg e is made in good faith and without any desi to hinder, delay, oradefraud any existirgg or future creditor of tig mortg or or any lienor of the mortgag vessel; (4) gigs mortgage does not stipulate that the mortgagee waives the preferred status thereof; and (5) The mortgagee is a citizen of the United States. (b) Any mortgage which complies in respect to any vessel with the P'°I°"°° m°'°g°“°°‘ conditions enumerated in this subsection is hereafter in this section called a "preferred mortgage" as to such vessel. md ts (c) There shall be indorsed upon the documents of a vessel covered quseimriilmauwémiiité by a preferred mortgage- °"°“°*· (1) The names of the mortgagor and mortgagee; (2) The time and date the m orsement is made; (3) The amount and date of maturitg of the mortgage; and (4) Any amount r uired to be in orsed by the provisions of subdivision (e) or (f) gil this subsection. (d) Such indorsement shall be made (1) by the collector of customs h§{},‘}‘j'§§§}°¤‘ by °°" of the port of documentation of the mortgaged vessel, or (2) by the collector of customs of any port in which the vessel is found, if such collector is directed to ma e the indorsement by the collector of customs of the port of documentation; and no clearance shall be issued to the vessel until such indorsement is made. Thescollector of customs of the port of documentation shall give such direction by wire or letter at the request of the mortgagee and u n the tender of the cost of communication of such direction. Wliignever any new d0'fu'§.f"f,‘§ ‘° "°" document is issued for the vessel, such indorsement shall be transferred to and indorsed upon the new document by the collector of customs. (e) A mortgage which includes property other than a vessel shall .,;§° i§°°°°°" not be held a preferred mortgage unless the mortgage provides for the separate disc arge of such (property by the payment of a specified portion of the mortgage in ebtedness. If a preferred mortgage so provides for the separate dischargte, the amount of the portion of such payment shall be mdorsed upon the documents of the vessel. Pm, gd mm (f) If a preferred mortgage includes more than one vessel and includm moreglgzii provides for the separate_d1sc $3 of each vessel by the payment of a °“° "°“”°‘· portion of the mortgage mdeb ess, the amount of such portion of Mmm of com on such payment shall e mdorsed upon the documents of the vessel. In mit, case such mortgage does not provide for the separate discharge of a vessel and the vessel is to be sold upon the order of a district court of the United States in a suit in rem in admiralty, the court shall determine the portion of the mortgage indebtedness increased by 20 per centum (1) which, in the opinion of the court, the a proximate va ue of the vessel bears to the approximate value of all tli)e vessels covered by the mortgage, and (2) upon the payment of which the vessel shall be discharged from the mortgage. C . { rd t Subsection E. The collector of customs u n the recording of a mgi?t§i§ori) '°°° ° preferred mortgage shall deliver two certifiego copies thereof to the mortgagor who shall place, and use due diligence to retain, one copy on board the mortgaged vessel and cause such copy and the documents Exhmi of the vessel to be exhibited by the master to any PGTSQIQ }18V}I1g’ se1,etc.1 im im WS, business with the vessel, which may give rise to a mar1t1me lien upon the vessel or to the sale, conveyance, or mortgage thereof. 4425l°-—·2l—65