Abstract of Title

          One of the fundamental differences between U.S. Coast Guard documentation and state level registration is the manner in which liens, encumbrances, and ownership transfers are recorded. State registration is handled in the same fashion a vehicle. When a vessel becomes Coast Guard documented, the recording procedures are more closely related to those you will find in real property transactions.
          Although the Coast Guard and state agencies both issue registration certificates which are similar in appearance, a Coast Guard certificate of documentation does not indicate any liens and encumbrances such as legal owners or secured parties. These are recorded on an underlying abstract of title which is administered by the Coast Guard's National Vessel Documentation Center. An abstract also reflects the true method of ownership which may not always be apparent on the certificate of documentation.
          When a vessel is initially documented, the Coast Guard generates a master record which is titled "General Index or Abstract of Title". Its structure is similar to those employed in the real estate industry with respect to the way items are recorded. In addition to some basic information about the vessel, all transactions involving changes of ownership, mortgages, and liens are recorded on the abstract as separate entries. The abstract also contains notations which relate to the the vessel's ownership or documentation status.
          Until just a few years ago, abstracts were maintained on hard copy and entries were manually typed or notated by hand. Today, the abstract is extracted from an electronic database file system. Upon recording, instruments such as bills of sale and preferred vessel mortgages are scanned into the system as a digital image and the originals are shredded. In fact, most recordings can now be submitted in electronic format with no need for originals.
          It requires a considerable degree of expertise to interpret and summarize all of the entries in an abstract of title. This holds true especially for older or commercially endorsed vessels where transactions are usually more frequent and complex. Accordingly, those who need to conduct research on a documented vessel's lien and ownership status will find our abstract of title service to be an ideal solution.

Resources ►     Abstract of Title Services     Abstracting Handbook

Electronic Documentation

          With certain exceptions, copies of executed forms and instruments can now be sent to the National Vessel Documentation Center by facsimile or email. There is no need to follow up by mailing the originals as these are no longer required. This includes applications for documentation, supporting forms, bills of sale, mortgages, and related instruments. The only items that must be sent as originals are the Builder's Certification and other documents evidencing the facts of build.
          These new filing methods became effective on October 31, 2007 and the respective rules have been officially incorporated into the U.S. Code of Federal Regulations. While hailed by the Coast Guard as a major enhancement to their vessel documentation system, there are still come security issues which come into play and the submissions must be properly formatted. Detailed information on how to conduct electronic filings is now included with all of our service products.
          All things considered, this could have a significant impact on time-critical transactions where constraints of transporting physical documents can sometimes be problematic. Although legal ramifications of finalizing contractual arrangements with nothing more than copies must be considered, these new filing methods certainly present a viable alternative given the right circumstances.
          The process of documenting or re-documenting a vessel is now easier than ever. Anyone can file electronic submissions directly with the Coast Guard and save hundreds of dollars in professional fees. We have accordingly developed a complete range of easy and economical vessel documentation self service kits where everything can be submitted in this fashion.

Resources ►     Vessel Documentation Services     Vessel Documentation Forms

NVDC Backlog Report

          The National Vessel Documentation Center's processing times can vary from a few days to several months depending on its workload and staffing levels. Recording priorities are also influenced by a vessel's usage, the type of filing, and whether there are special circumstances involved.
          In an effort to keep the public apprised of such conditions, the documentation center posts a case processing list to its web site. This is updated on a weekly basis and shows the current status with respect to various types of filings. Although sometimes optimistic, the list is usually accurate within several days.
          If you have submitted items for recording and your filing date exceeds the backlog report by more than a week or two, it would be prudent to contact the documentation center for a status report. Keep in mind that your recording will be delayed if the underlying submission was not complete or if there were deficiencies. Incomplete or deficient fillings are automatically relegated to the bottom of the queue until finalized.

Resources ►     NVDC Backlog Report     NVDC Recording Priorities

National Vessel Documentation Center

          The National Vessel Documentation Center regulates and administers all activities related to U.S. Coast Guard vessel documentation. It commenced operations on August 1, 1995 as the result of consolidation efforts where fourteen regional documentation offices merged their activities into a centralized location. This move greatly enhanced the Coast Guard's ability to process vessel documentation and mortgage related transactions.
         Public assistance from the documentation center is however, limited in scope and detailed or meaningful instructions are difficult to obtain. Just getting through to a live person can a challenge depending on their workload and the time of day. You will accordingly find a number of private agencies throughout the country that represent clients in their efforts to accomplish most documentation tasks.
          In response to the high costs usually associated with such agents, we have developed a full compliment of inexpensive vessel documentation packages which are easy to use and readily available online. Our vessel documentation service packages, self-service kits, forms, and handbooks offer expanded guidelines, forms, examples, and support services that go far beyond anything you will find at the documentation center.

Resources ►     Documentation Services     Documentation Forms     Documentation Handbook

NVDC Recording Priorities

          The National Vessel Documentation Center has a priority system under which applications and other submissions are processed. This is based on the date received, the vessel's trade status, the type of submission, and special circumstances. Upon arrival at the center, all items are placed into a handling queue which is prioritized according to such factors.
          As a general rule, all filings related to vessels with commercial endorsements are given automatic priority over those endorsed only for recreational purposes. However, pleasure vessels may also qualify for priority handling if there are urgent circumstances which necessitate the immediate issuance of a document. Such urgency is most often related to vessels about to embark on foreign voyages, but this is not always the case.
          In order to qualify for priority handling, a specially drafted form titled "Priority Request" must be submitted to the documentation center along with the application. The form must contain certain citations and requires a signature by the vessel's owner, or managing owner. The request is then subject to review and approval by a documentation officer. It should also be noted that priority requests will not be granted for incomplete applications and must be re-submitted if there is a deficiency in the paperwork.

Resources ►   Vessel Documentation Forms     NVDC Backlog Report

Vessel Measurement Information

     The following information will assist readers in understanding the various methods of calculating vessel tonnage measurement as it relates to Coast Guard vessel documentation.
        
          •  Interactive Calculation Form  -  This form, which is hosted by the Coast Guard's web site, will self-calculate the gross and net tonnage of any vessel by completing the propulsion machinery, shape of hull, and overall dimensions sections. Use your tab button to move among the fields and the results will be displayed in the upper right hand corner of the first page.
          •  Measurement Organizations  -  A list of Coast Guard approved organizations that can perform formal admeasurements.
          •  Tonnage Measurement FAQs  -  Questions and answers about vessel tonnage measurement as related to Coast Guard vessel documentation.
          •  Simplified Measurement Guide  -  A guidebook with information about the simplified measurement process for Coast Guard vessel documentation purposes.

Maritime Administration

          •  MARAD - Link to the Maritime Administration's web site.
          •  Small Passenger Vessel Waiver - MARAD site contains information on obtaining a waiver from the Maritime Administration regarding the U.S. build requirements for operation as commercial passenger vessels.
          •  Foreign Vessel Transfer  -  MARAD information and forms regarding foreign transfers of Coast Guard documented vessels 1,000 gross tons and over.

Boat Lien Recordings

         As defined by most dictionaries, a lien is "the right to take and hold or sell the property of a debtor as security or payment for a debt or duty", or "a claim on the property of another as security for the payment of a just debt". In the realm of maritime or admiralty law however, this term can take on different meanings according to the context in which used. Here you will encounter variations such as  "hidden lien", "maritime lien", "contractual lien", "mechanic's lien", "possessory lien", "salvage lien" and "claim of lien".. just to name a few.
          In the marine industry, boat liens can arise from any number of actions and circumstances. These include operational debts, salvage claims, seaman's wages, damages, and contractual arrangements such as boat loans. However, a valid lien in itself does not mean that you are automatically entitled to your rightful share of the spoils whenever the boat is liquidated.
          There is a common perception that a boat lien must be recorded before it can become a legitimate claim. In fact, maritime liens can exist and may be perfectly valid, even though not actually recorded by any state or federal agencies. Lien recordings are basically a means of prioritizing or perfecting an interest in the boat as a claimant or secured party. They also serve to place the public on notice of such circumstances and will typically allow the lien-holder to conduct a non-judicial foreclosure.
         In the United States, there are three basic methods of recording boat liens, each with its own priority. At the bottom of the list is a Uniform Commercial Code filing, which is a state level recording. These are effective in registration only states where the boat has not been issued a formal title or certificate of documentation. In states that do issue titles for non-documented boats, it is necessary to become listed on the title itself as a secured party or legal owner. This will override any UCC recordings with respect to ranking. At the highest level is the preferred vessel or ships mortgage, which applies only to vessels that are documented with the U.S. Coast Guard. The mortgage is  recorded on the vessel's underlying abstract of title in order to perfect and prioritize a secured interest.
         The aforementioned methods are for the most part voluntary or contractual where the boat owner must authorize such actions. With respect to involuntary or non-authorized recordings, the options are very limited. On the state level, a Uniform Commercial Code recording can be filed without the owner's signature. However, the recording may have a limited effect under such circumstances. If the boat is state titled, an owner's authorization is required because lien claims can not be summarily filed with most state registration agencies. If the boat is currently documented with the Coast Guard, a claimant can file a "Notice of Claim of Lien" without the owner's signature. However, such filing serves only to create a cloud on the title, does not prevent subsequent transfers of title, and affords no rights of foreclosure.
          The priority, effectiveness, and settlement of boat liens are sometimes contentious and can easily become subject to litigation. A boat owner, secured party, or claimant should accordingly look to a marine attorney with any concerns about boat lien issues. Vessel title insurance may also be a worthwhile investment for buyers and lenders as it affords protection against title defects, hidden liens, and transactional deficiencies.

Resources ►   Vessel Title Insurance     Vessel Record Search     Preferred Mortgage Services     Claim of Lien Services

U.S. Customs

       •  Clearance Procedures  -  Information on clearing customs for pleasure vessels.
       •  Tariff and Tax Information  -  Information on import duties for vessels entering the United States.

Vessel Documentation Renewal

         Certificates of documentation are re-issued on a yearly basis according to the expiration date as shown on the certificate. This coincides with the date upon which the vessel was initially placed into documentation or returned to documentation subsequent to a deletion. Approximately 45 days prior to the document's expiration date, the National Vessel Documentation Center will send a renewal certification form to the managing owner's address as shown on their records. The owner must take responsibility for returning a certification even though a notification was never received. It is accordingly very important that you keep the Coast Guard informed of the managing owner's current mailing address.         
          One of the endearing aspects of Coast Guard vessel documentation is that once established, there are no further costs associated with yearly renewals. However, a renewal certification must be returned before the annual expiration date or additional fees will be incurred. If renewed within the 30 day grace period subsequent to expiration, there is a late renewal fee is $ 5.00. If allowed to lapse beyond the grace period, you will have to endure the cost of reinstating the documentation.

Resources ►   Late Renewal Online     Vessel Documentation Forms     Vessel Documentation Services

Vessel 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. 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 and must be as least 4 inches in height. Hailing port markings must include both the city and state which can be abbreviated.

Resources ►   Vessel Title Advisor     Vessel Documentation Services