Vessel Documentation Guide!

          Our Coast Guard Documentation Guide contains information about title, ownership, and vessel requirements for the first time documentation or re-documentation of a previously documented vessel. It is designed to compliment our service kits and individual forms. You may also wish to visit our Federal Page for additional details about Coast Guard documentation, the National Vessel Documentation Center, and other federal agencies.
          Please contact us if you have questions about any of these subjects and be sure to bookmark our web site to stay current on frequent updates.

Maintaining Your Documentation

          Renewing The Certificate of Documentation  -  A certificate of documentation must be renewed annually based on the date of issue. Approximately 45 days prior to the document's expiration date, the National Vessel Documentation Center will send a notice of renewal to the managing owner's address. There are no fees involved if the renewal certification is submitted prior the expiration date shown on the document. However, the owner must take responsibility for renewing even though a notification from the NVDC was never received. A minimal fee will be assessed for late renewals which do not exceed 30 days. After that time, the owner must file an application for re-documentation along with the appropriate fees in order to reinstate the document. A Renewal Certification form with instructions can be downloaded from our Forms page. This can be faxed or mailed to the NVDC. A Reinstatement of Documentation Kit can be found on our Services page.

Recordable Instruments

          Material Alterations  -  The Coast Guard will disallow instruments submitted for recording if they contain "material alterations" which are not addressed by the notary. Recordable instruments include bills of sale, preferred vessel mortgages, mortgage supplements, and all other documents requiring notarization. A material alteration is a correction or insertion which involves an erasure, type-over, whiteout, or lineout that changes the intent or nature of the instrument. Changes in the parties names, percentages of ownership, and dates of execution are examples of material alterations.
          Instruments which contain material alterations can be made acceptable for recording purposes if the notary ascribes to such alterations with specific language in the acknowledgement. This means that the notary must clearly document the fact that such alterations were made prior to execution of the instrument.
          Please note that even beyond the recording aspects, any alterations or insertions made subsequent to a notarization can bring the instrument into question from a legal perspective. You should consult with an attorney about any such concerns.
          Preferred Vessel Mortgage  -  A preferred vessel mortgage is an instrument which perfects a lender's interest when recorded with the National Vessel Documentation Center (NVDC). However, mortgages can only be filed on vessels which are actively documented or in the process of becoming documented. Any number of mortgages can be recorded on the same vessel and they attain priority according to the date on which received for filing (as opposed to the date actually recorded which may take several weeks). If the vessel's abstract of title shows an outstanding preferred mortgage, the owner can not implement any changes to the vessel's ownership or status without the mortgagee's written consent.
          Once recorded, the NVDC will return a copy showing the recording information. The mortgagor must then exercise due diligence in keeping a certified copy of the mortgage on board the vessel. Please note, the returned copy may show a stamp with the recording information, but this is not the same as a certification. A certified copy can be requested from the NVDC for a fee, or the mortgagee or mortgagee's agent can certify a copy for the mortgagor. Upon fulfillment of the mortgage obligation, the mortgagee must file a satisfaction or release of mortgage as evidence that it has been discharged.
          Please visit our Services page for a self-service preferred mortgage recording kit. This contains all of the necessary forms with examples and step-by-step instructions for filing direct with the National Vessel Documentation Center. Individual mortgage forms can also be found on our Forms page.
          Amendment of Mortgage  -  An Amendment of Mortgage is used to change terms, make corrections, or add supplemental information to the underlying preferred mortgage. It is recorded separately from the mortgage and can therefore be filed either at the same time or subsequent to the underlying mortgage's recording. Amendments are typically filed in conjunction with a change in the promissory note or loan contract upon which the mortgage is based. Whether to use an amendment or file a replacement mortgage is a discretionary matter. However, an amendment allows the original filing date of the underlying mortgage to remain unchanged and this can be advantageous if there are any intervening liens.
          Once recorded, the National Vessel Documentation Center (NVDC) will return a copy showing the recording information. The mortgagor must then exercise due diligence in keeping a certified copy of the amendment on board the vessel along with the underlying mortgage. Please note, the returned copy may show a stamp with the recording information, but this is not the same as a certification. A certified copy can be requested from the NVDC for a fee, or the mortgagee or mortgagee's agent can certify a copy for the mortgagor.
          Please visit our Services page for a self-service mortgage supplement recording kit. This contains all of the necessary forms with examples and step-by-step instructions for filing an amendment direct with the NVDC. Individual amendment forms can also be found on our Forms page.

Ownership Requirements for Documentation           

           About Ownership Requirements Individuals and entities must meet certain qualifications of ownership when applying for vessel documentation. These will vary according to trade endorsements and the manner in which ownership is to be stated. Although the Coast Guard will record any type of ownership allowed under jurisdictional law, this can greatly impact an owner's interest and rights in the subject vessel. Applicants should accordingly consult with a marine attorney in making such decision.
          The following is a general overview of how documentation rules pertain to owners of vessels which will be used for recreational purposes. Those seeking commercial endorsements should keep in mind that additional rules may apply with respect to citizenship. Coast Guard regulations are also subject to various interpretations and may change without notice. Applicants should contact the National Vessel Documentation Center regarding any specific concerns about title, ownership, and vessel requirements for documentation.
          Association or Joint Venture  -  Each member of an association or joint venture must be a native-born, naturalized, or derivative citizen of the United States. If a member is an entity, it must meet citizenship requirements in its own right. Documentation ownership is listed in the name of the association or joint venture.
          Corporation  -  A corporation must be incorporated under the laws of the United States or of a state. The corporation's chief executive officer, by whatever title, its chairman of the board, and a majority of the number of directors necessary to constitute a majority must be U.S. citizens. Documented ownership of a corporation is listed in the Corporation's name.
          Estate -  Ownership of an estate is listed in the name of a duly appointed representative or representatives. Such persons must be U.S. citizens.
          Fictitious Trade Name  -  The Coast Guard will not recognize a trade name for documentation ownership purposes. However, this can be listed as an adjunct to the true owner's name.
          Governmental Entity  -  A governmental agency is a citizen for the purpose of obtaining documentation if it is an entity of the federal government, or of a state. Documented ownership is listed in the name of the entity.
          Individual  - Applicants as individuals must be native-born, naturalized, or derivative citizens of the United States. Ownership methods of multiple individuals can vary according to their preferences. These may include Tenants in Common with divided or undivided interests, Joint Tenants With Right of Survivorship, Tenants by the Entirety, Community Property, or any other method authorized by jurisdictional laws.
          Limited Liability Company  -  The Coast Guard recognizes a limited liability company as an entity under its own name rather than those of its individual members. However, the members names can as an option be included on recordable instruments as a qualification to the entity name (e.g. Blue Sea Enterprises, LLC, a Limited Liability Company consisting of John L. Doe and Sally A. Jones"). All members and and any non-member managers must be U.S. citizens. Entities that serve as members or managers, must also meet citizenship requirements in their own right.
          When applying for documentation, evidence of title must be presented that shows ownership in the name of the entity itself. In completing the application, a list of all members must be included with a clear indication that such list is conclusive. The social security numbers of all members must also be listed unless a federal identification number for the entity is provided. The entity's name must always be shown on the application as managing owner. An agent for the entity can sign the application if it is based on a federal tax identification number. It must otherwise be signed by one of the members.
          The application for documentation must also indicate whether the entity is member or non-member managed. If non-member managed, the application must be accompanied by the following statement: " I (we) certify that any person elected to manage the LLC or who is authorized to bind the LLC, and any person who holds a position equivalent to the chief executive officer, by whatever title, and the chairman of the board of directors in a corporation, and any persons authorized to act in their absence are citizens of the United States; and non-citizens do not have authority within a management group, whether through veto power, combined voting, or otherwise, to exercise control over the LLC." The statement must be signed by the person signing the application. A separate Declaration of Citizenship must also be submitted for each non-member manager or managers.
          When transferring ownership from a limited liability company, the signature of only one member is sufficient if the operating agreement allows such action. The Coast Guard does not require substantiation. However, the Coast Guard will likely question the signature of any member or manager who is not listed on its records.
          Re-documentation is required whenever all or part of the membership changes. This must be evidenced by either a recordable Transfer of Interest or a statement of facts explaining the transaction. If an instrument is executed by the representative of an estate for a deceased member, the Coast Guard will require a copy of the operating agreement allowing such succession and evidence that the respective state laws allow passage in this manner.
          The Coast Guard will accept a preferred mortgage signed by any member on a presumption that the operating agreement allows such action.
          General Partnership  -  The Coast Guard recognizes a general partnership as a entity under its own name rather than those of its individual partners. However, the partners names can as an option be included on recordable instruments as a qualification to the entity name  (e.g. "Blue Sea Partners, a General Partnership consisting of John L. Doe and Sally A. Jones"). All individual partners must be U.S. citizens.
          When applying for documentation, evidence of title must be presented that shows ownership in the name of the partnership itself. In completing the application, a list of the partners must be inserted with a clear indication that such list is conclusive. The social security numbers of all partners must also be listed unless a federal identification number for the partnership is provided. The entity's name must always be shown on the application as managing owner. An agent for the partnership can sign the application if it is based on a federal tax identification number. It must otherwise be signed by one of the partners.
          When transferring ownership from a general partnership, the signature of only one partner is sufficient if the partnership agreement allows such action. The Coast Guard does not require substantiation.
          Trust Arrangement - Each trustee and each beneficiary with an enforceable interest in a trust arrangement must be a U.S. citizen. A certain percentage of other equity interests must also meet citizenship requirements if the documentation is to have commercial endorsements. Documentation ownership of a trust is listed in the name of the trustees.

Title Requirements for Documentation

          In order to document a vessel for the first time or re-document a previously documented vessel, an applicant must provide evidence of title. The following is a general overview of the methods for doing so and how they pertain to various circumstances. Those seeking commercial endorsements should keep in mind that additional rules may apply with respect to a complete chain of ownership, evidence of build, the citizenship of prior owners, and prior foreign registrations.

          ●  Builder's Certification  -  On newly constructed vessels of the size which qualify for documentation, the builder will usually issue a Builder's Certification. When properly executed, this will qualify as evidence of title for the stated "party for whom built". However, the documentation office may require further substantiation that no interim title has been issued if it becomes too outdated. If the applicant is someone other than the party for whom built, the Builder's Certification must show a proper assignment, or it must be chained forward with a recordable transfer instrument such as a Bill of Sale, Deed of Gift, or Transfer of Interest. A Builder's Certification also qualifies as acceptable evidence of build, which may be required for certain commercial endorsements.
          ●  Certificate of Documentation  -  A Certificate of Documentation will serve as evidence of title if ownership is properly assigned on the reverse side by the documented owner. However, the documented owner's name must coincide with that shown as the last owner of record on the underlying abstract of title. If the document is not assigned, or an applicant is someone other than the assignee, it will be necessary to chain ownership forward with a recordable transfer instrument such as a Bill of Sale, Deed of Gift, or Transfer of Interest.
          ●  Court Action  - Passage of title may occur due to court actions such as a divorce settlement, a judicial foreclosure, or the probate of an estate.  Such order will either make a direct award of the vessel or appoint an authorized representative to implement its transfer. In these cases, an applicant must present copies of the relevant court orders as certified by an official of the respective court. If an award was not made directly to an applicant, the ownership must be chained forward with a recordable transfer instrument such as a Bill of Sale, Deed of Gift, or Transfer of Interest. In most cases, a court order must specifically identify the vessel by its official number or hull identification number.
          ●  Foreign License  -  A copy of a foreign license certificate which was issued on the provincial level will serve as evidence of title if accompanied by a properly executed Bill of Sale, Deed of Gift, or Transfer of Interest. The acknowledgement on foreign transfers must be performed by a U.S. notary, U.S. Consulate, or apostillized by the government of a country which is a member of the Hague Convention. Evidence of removal from licensing is not required under these circumstances because provincial licensing is viewed as the equivalent of our domestic state registration. The license and any transfer instruments must properly identify the vessel.
          ●  Foreign Registry  -  An applicant for initial documentation of a vessel that has at any time been registered under the laws of a foreign country must present evidence of removal from the respective registry. On previously documented vessels, such evidence is also required if the vessel was placed in foreign registry since last documented. A foreign registry certificate will furthermore serve as evidence of title if ownership is chained forward with recordable transfer instrument such as a Bill of Sale, Deed of Gift, or Transfer of Interest. The acknowledgement on foreign transfers must be performed by a U.S. notary, U.S. Consulate, or apostillized by the government of a country which is a member of the Hague Convention. Any documents presented in a foreign language must be translated into English by a qualified translator. Evidence of the translator's credentials may be required at the documentation office's discretion.
          ●  Governmental Forfeiture  -  Passage of a vessel's title may occur due to a governmental capture or forfeiture. If this resulted from a court action, a copy of the court order certified by an officer of the court must be provided. When title passes due to an administrative forfeiture, an affidavit or Declaration of Forfeiture from the respective agency must be presented. All such instruments must clearly identify the vessel. If the vessel was not awarded directly to the applicant, ownership must be chained forward with a recordable transfer instrument such as a Bill of Sale, Deed of Gift or Transfer of Interest.
          ●  Manufacturer's Statement of Origin  -  Although not suitable for evidence of build, a Manufacturer's Statement of Origin will serve as title evidence for initial documentation purposes. However, the documentation office may require further substantiation that no interim title has been issued if it becomes too outdated. If not issued in an applicant's name, it must be chained forward with a recordable transfer instrument such as a Bill of Sale, Deed of Gift, or Transfer of interest. This type of evidence will not be accepted when constructing a complete chain of ownership for certain commercial endorsements.
          ●  Merger or Legal Name Change  -  If title to a vessel has passed due to a legal name change, corporate merger, or similar transaction, the applicant must provide persuasive evidence that substantiates the validity of such event. This usually consists of supporting documentation from an agency in the jurisdiction where such change or merger occurred.
          ●  Operation of Law  -  Passage of a vessel's title may occur under circumstances which are authorized by the laws of a particular jurisdiction. Such actions may arise from a non-judicial repossession, death of a Joint Tenant, small estate transfer, and other methods for transferring personal property which do not require court approval. In these cases, the documentation office will require a copy of the relevant statutes which authorize such actions and persuasive evidence of compliance. If the transfer involves the death of an owner, a certified copy of a death certificate will also be required. In case of a repossession, a formal Affidavit of Repossession must be presented which specifies the basis for such foreclosure and the appropriate steps that were taken. A recordable transfer instrument such as a Bill of Sale, Deed of Gift, or Transfer of Interest may also be required from the party who implemented the action, if such party is not the applicant.
          ●  State Title or Registration  -  A copy of a state title or registration certificate will serve as sufficient title evidence for initial documentation, an ownership change of a currently documented vessel, or a return to documentation under a new owner after a deletion. If the title or registration was not issued in the applicant's name, it must be chained forward to the applicant with a recordable transfer instrument such as a Bill of Sale, Deed of Gift, or Transfer of interest. When used for re-documentation purposes, the title or registration certificate's hull number must match that which is listed on the underlying Coast Guard records. If a state registration has expired, the documentation office may require additional evidence that it was the last issue from the respective state jurisdiction. A print-out from the state registration office is usually sufficient for this purpose.
          ●  Transfer Instruments  -  Stand-alone transfer instruments such as Bills of Sale, Deeds of Gift, or Transfers of Interest are not in themselves evidence of title. They are merely used to carry ownership forward from some other basis of titling. However, in the case of a previously documented vessel, such instruments are all that is required when properly chained from the last owner of record on the underlying abstract of title.

Vessel Requirements

          Marking Requirements  -  Before operating under a valid certificate of documentation, every vessel must be marked with its official number, designated name, and hailing port. This means that such markings must be properly affixed to the vessel on or before issuance of a certificate of documentation.
          The official number as shown on the certificate of documentation must be permanently affixed to some clearly visible interior structural part of the hull. The number must be preceded by the abbreviation "NO" and must be shown in block type Arabic numerals of least 3 inches in height. Permanently affixed is defined as being implemented in such a manner that removal or replacement would be obvious and cause some scarring or damage to the surrounding area. Clearly visible means that it must be easily accessible in the event of a boarding inspection. The numbers must be affixed to inside of the hull itself or a permanently attached internal structure such as a bulkhead or engine stringer. There are various methods for installing the numbers such as stenciling, engraving, or affixing a plaque. However, these must be glassed over or permanently bonded and not simply secured with screws, rivets, or bolts.
          For recreational vessels, the name and hailing port must be marked together on some clearly visible exterior part of the hull. If the certificate of documentation is endorsed for commercial usage, the name must be marked on each side of the bow and both the name and hailing port must be marked on the stern. On commercial vessels having a square bow, the name of the vessel must be marked on some clearly visible exterior part of the bow. The name and hailing port must also be marked on some clearly visible exterior part of the stern for commercial vessels. Markings may be made with any materials that are durable.  All letters or numerals must made in clearly legible letters of the Latin alphabet or Arabic or Roman numerals. The markings must be as least 4 inches in height. The hailing port markings must include both the city and state.

Please send us a message before leaving this site to share your thoughts regarding the utility of our web site.
Your comments are important because they provide us with direction in fulfilling your expectations.
 It is our mission to provide the absolute best in professional maritime services and we are constantly striving
to improve our awareness of your vessel documentation, vessel titling, and vessel transaction needs.

Our web site is best viewed with Microsoft Internet Explorer. Click here to download the latest free version.

MARITIME PARTNERS, LLC

©Copyright 1999.      All rights reserved.       Revised: April 25, 2008

Terms of Use     Privacy Policy