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
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● About Vessel Documentation
- An overview of the U.S. Coast Guard federal vessel registry system, its
administration, and basic documentation requirements.
● Maintaining The Documentation
- Rules that apply to
maintaining, renewing, and removing a vessel from Coast Guard documentation. ●Ownership Requirements
- Methods of holding ownership, citizenship requirements, and signature rules for Coast
Guard documentation.
● Recordable Instruments -
Requirements for recording instruments such as bills of sale, preferred
mortgages, mortgage supplements, claims of lien, and mortgage or lien
releases.
●
Title Requirements -
Requirements for proving ownership when documenting a vessel for the first
time or establishing new ownership of a
previously documented vessel.
● Vessel Requirements - Information
pertaining to vessel measurement methods, marking requirements, hull
identifications, and build factors.
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.
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.
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.
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.
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.
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