the Secretary of Commerce. The Secretary shall refuse such approval unless the mortgagee consents to such surrender. (b) The interest of the mortgagee in a vessel of the United States covered by a mortgage, shall not be terminated by the forfeiture of the vessel for a violation of any law of the United States, unless the mortgagee authorized, consented, or conspired to effect the illegal act, failure, or omission which constituted such violation. (c) Upon the sale of any vessel of the United States covered by a preferred mortgage, by order of a district court of the United States in any suit in rem in admiralty for the enforcement of a maritime lien other than a preferred maritime lien, the vessel shall be sold free from all preexisting claims thereon; but the court shall, upon the request of the mortgagee, the libellant, or any intervenor, require the purchaser at such sale to give and the mortgagor1 to accept a new mortgage of the vessel for the balance of the term of the original mortgage. The conditions of such new mortgage shall be the same, so far as practicable, as those of the original mortgage and shall be subject to the approval of the court. If such new mortgage is given, the mortgagee shall not be paid from the proceeds of the sale and the amount payable as the purchase price shall be held diminished in the amount of the new mortgage indebtedness. (d) No rights under a mortgage of a vessel of the United States shall be assigned to any person not a citizen of the United States without the approval of the Secretary of Commerce. Any assignment in violation of any provision of this chapter shall be void. MISCELLANEOUS PROVISIONS 46981. Existing mortgages not affected This chapter shall not apply (1) to any existing mortgage, or (2) to any mortgage hereafter placed on any vessel under an existing mortgage, on June 5, 1920, so long as such existing mortgage remains undischarged. (e) No bond, note or other evidence of indebtedness which is secured by a mortgage of a vessel to a trustee may be issued, transferred, or assigned to a person not a citizen of the United States, without the approval of the Secretary of Commerce, unless the trustee or substitute trustee of such mortgage is approved by the Secretary of Commerce. The Secretary of Commerce shall grant his approval if such trustee or substitute trustee is a bank or trust company which (1) is organized as a corportation, and is doing business, under the laws of the United States or any State thereof, (2) is authorized under such laws to exercise corporate trust powers, (3) is a citizen of the United States, (4) is subject to supervision or examination by Federal or State authority, and (5) has a combined capital and surplus (as set forth in its most recent published report of condition) of at least $3,000,000. If such trustee or a substitute trustee at any time ceases to meet the foregoing 1 "Mortgagor" in subsec. (c) is the same as in the original. Probably should be "mortgagee". qualifications, the Secretary of Commerce shall disapprove such trustee or substitute trustee, and after such disapproval the transfer or assignment of such bond, note, or other evidence of indebtedness to a person not a citizen of the United States, without the approval of the Secretary of Commerce, shall be unlawful. If a bond, note, or other evidence of indebtedness which is secured by a mortgage of a vessel to a trustee is issued, transferred, or assigned to a person not a citizen of the United States in violation of this paragraph, the issuance, transfer, or assignment shall be void. (f) No vessel of the United States shall be sold by order of a district court of the United States in any suit in rem in admiralty to any person not a citizen of the United States. 46 § 982. Books for collectors of customs The Commissioner of Customs is authorized and directed to furnish collectors of customs with all necessary books and records, and with certificates of registry and of enrollment and license in such form as provides for the making of all indorsements thereon required by this chapter. 46 983. Rules and regulations by Commissioner of Customs The Commissioner of Customs is autorized to make such regulations in respect to the recording and indorsing of mortgages covering vessels of the United States, as he deems necessary to the efficient execution of the provisions of this chapter. Sec. 1011. 1012. 1013. 1014. Chapter 26.-HOME PORT OF VESSELS Port of documentation. Record at home port. Conveyances and other instruments and acts validated. 46 1011. Port of documentation Wherever in the Ship Mortgage Act, 1920, the words "port of documentation" are used they shall be deemed to mean the "home port" of the vessel, except that the words "port of documentation" shall not include a port in which a temporary document is issued. 46 § 1012. Record at home port No bill of sale, conveyance, mortgage, assignment of mortgage, or hypothecation (except bottomry), which includes a vessel of the United States or any portion thereof shall be valid in respect to such vessel against any person other than the grantor or mortgagor, his heirs and devisees, and any person having actual notice thereof, until such bill of sale, conveyance, mortgage, assignment of mortgage, or hypothecation is recorded in the office of the collector of customs at the home port of such vessel. Any bill of sale or conveyance of the whole or any part of a vessel shall be recorded at the home port of such vessel as shown in her new document. 46 § 1013. Conveyances and other instruments and acts validated All conveyances and mortgages of any vessel or any part thereof, and all documentations, recordations, indorsements, and indexing thereof, and proceedings incidental thereto made or done, prior to February 16, 1925, are declared valid to the extent they would have been valid if the port or ports at which said vessel has in fact been documented from time to time had been the port or ports at which it should have been documented in accordance with law; and this section is declared retroactive so as to accomplish such validations: Provided, That nothing herein contained shall be construed to deprive any person of any vested right. 46 § 1014. Navigation laws and Ship Mortgage Act amended All such provisions of the navigation laws of the United States and of the Ship Mortgage Act, 1920, as are in conflict with sections 18, 1011, 1012, and 1013 of this title, are amended to conform therewith. 1384. Conditions to receiving payments or use of vessels. 1385. 1386. 1387. 1388. Subsistence payments Detailing of certain officers; compensation. Rules and regulations. Authorization of appropriations. 46 § 1381. Declaration of policy It is declared to be the policy of this chapter to promote the national policy with respect to the United States Merchant Marine, as set out in section 1101 of this title, by assisting and cooperating with the States and Territories in the operation and maintenance of maritime academies or colleges for the training of merchant marine officers. 46 § 1382. Vessels for maritime academies (a) In order to carry out the policy set out in section 1381 of this title, the Secretary of Commerce (hereinafter referred to as the "Secretary") may furnish any suitable vessel under his jurisdiction, or obtained under the provisions of subsection (b) of this section, or construct and furnish a suitable vessel if such a vessel is not available, to the State of Maine, the State of Massachusetts, the State of New York, the State of California, and to any other State or Territory of the United States, for use as a training vessel for a maritime academy or college meeting the requirements of this chapter. Any such vessel (1) shall be repaired, reconditioned, equipped (including all apparel, charts, books, and instruments of navigation) as necessary for use as a training ship, (2) shall be furnished only upon application therefor in writing by the Governor of such State or Territory, (3) shall be furnished only if a suitable port for the safe mooring of such vessel is available while it is being used by such academy or college, (4) shall be maintained in good repair by the Secretary, and (5) shall remain the property of the United States. (b) Any department or agency of the United States may provide to the Secretary for disposition under the provisions of this chapter any vessel (including equipment) which is suitable for the purposes of this chapter and can be spared without detriment to the service to which such vessel has been assigned. (c) In any case where the Secretary has not, prior to July 9, 1971, furnished a suitable vessel to a State as authorized by subsection (a) of this section, the Secretary may, in lieu of furnishing such a vessel, repair, recondition and equip (including all apparel, charts, books, and instruments of navigation) as necessary, a vessel which is owned by a State on July 9, 1971, for use as a training vessel for a maritime academy or college meeting the requirements of this chapter. 46 1383. Contracts for assistance The Secretary may enter into agreements with not more than one maritime academy or college, which meets the requirements of this chapter, in each State or Territory, to make annual payments to such academy or college for not in excess of four years in the case of each such agreement, to be used for the maintenance and support of such academy or college. Such payments for any year to any maritime academy or college shall be an amount equal to the amount furnished to such academy or college for its maintenance and support by the State or Territory in which such academy or college is located, except that such payments to any academy or college for any year shall not exceed $75,000, or $25,000 if such academy or college does not meet the requirement of section 1384(b) of this title. 46 § 1384. Conditions to receiving payments or use of vessels (a) As a condition to receiving any payments or the use of any vessel under the provisions of this chapter an academy or college shall (1) provide courses of instruction to youths in navigation and marine engineering, including steam and diesel propulsion, and courses in atomic or nuclear propulsion as soon as practical and possible; and (2) shall agree in writing to conform to such standards in such course, in training facilities, in entrance requirements, and in instructors, as are established by the Secretary after consultation with superintendents of maritime academies and colleges in the United States. (b) As a condition to receiving payment of any amount in excess of $25,000 for any year under the provisions of section 1383 of this title, a maritime academy or college shall agree to admit to such academy or college students resident in other States in such numbers as the Secretary shall prescribed, except that the number of such students prescribed for any academy or college shall not at any time exceed one-third of the student capacity of such academy or college. 46 § 1385. Subsistence payments (a) The Secretary may enter into agreements, with each academy or college with which he contracts under section 1383 of this title to make payments, at a rate not in excess of $600 per academic year per student, to such academy or college, with respect to each student attending such academy or college. Such payments (1) shall be used to assist in defraying the cost of uniforms, books, and subsistence for such student, (2) shall commence to accrue on the day such student begins his first term of work at such academy or college, and (3) shall be paid to such academy or college in such installments as the Secretary shall prescribe, while such student is in attendance and until the completion of his course of instruction, but in no event for more than four academic years for any one student. (b) If the Secretary deems it advisable in the case of any such academy or college, he may, in lieu of entering into agreements with such academy or college for payments under this section, enter into such agreements directly with each student at such academy or college and make such payments directly to each such student. 46 § 1386. Detailing of certain officers; compensation When requested by the governor of any State or Territory, the President of the United States is authorized to detail, when in his opinion such detailing can be done without detriment to the public service, proper officers of the Navy or Coast Guard or United States Maritime Service instructors employed under the provisions of section 1126 of this title, as superintendents or instructors, or both, at maritime academies or colleges meeting the requirements of this chapter. Officers or instructors so detailed shall be compensated by the Federal agency ordinarily compensating them for service as such an officer or instructor. 46 1387. Rules and regulations The Secretary may establish such rules and regulations as may be necessary to carry out the provisions of this chapter. 46 § 1388. Authorization of appropriations There are authorized to be appropriated such amounts as may be necessary to carry out the provisions of this chapter. |