(June 5, 1920, ch. 250, § 30, subsec. O, 41 Stat. 1004; Nov. 8, 1965, Pub. L. 89-346, § 3, 79 Stat. 1306; Aug. 6, 1981, Pub. L. 97-31, § 12(55), 95 Stat. 158.) AMENDMENTS 1981-Subsec. (a). Pub. L. 97-31, § 12(55)(C), substituted reference to the Secretary of Transportation for reference to the board, meaning the United States Shipping Board in two instances. Amendment by Pub. L. 97-31, § 12(55)(A) and (B), which directed that a period be inserted after "Commission" and that "The Secretary" be inserted at the beginning of the second sentence, was not executed to text because there already was a period at the end of the first sentence and § 12(55)(C) substituted reference to "The Secretary of Transportation" at the beginning of the second sentence. Subsec. (d). Pub. L. 97-31, § 12(55)(C), substituted reference to Secretary of Transportation for board, meaning United States Shipping Board. Subsec. (e). Pub. L. 97-31, § 12(55)(D), substituted "Secretary of Transportation" for "Secretary of Commerce" wherever appearing. 1965-Subsec. (e). Pub. L. 89-346 added subsec. (e). Former subsec. (e) redesignated (f). Subsec. (f). Pub. L. 89-346 redesignated former subsec. (e) as (f). TRANSFER OF FUNCTIONS For transfer of functions of United States Shipping Board, see Ex. Ord. No. 6166, set out under section 901 of Title 5, Government Organization and Employees, act June 29, 1936, ch. 858, title II, § 204, title IX, § 904, 49 Stat. 1987, 2016, and Reorg. Plan No. 6 of 1949, Reorg. Plan No. 21 of 1950, and Reorg. Plan No. 7 of 1961, set out under section 1111 of this title. REORGANIZATION PLAN NO. 1 OF 1967 Eff. May 9, 1967, 32 F.R. 7049, 81 Stat. 947 Prepared by the President and transmitted to the Senate and the House of Representatives in Congress assembled, February 27, 1967, pursuant to the provisions of chapter 9 of title 5 of the United States Code. CERTAIN FUNCTIONS RELATING TO SHIP MORTGAGES SECTION 1. TRANSFER OF FUNCTIONS The functions which are now vested in the Secretary of Commerce relating to the approval of the surrender of the documents of a vessel pursuant to subsections B(4) and O(a) of the Ship Mortgage Act, 1920, as amended (46 U.S.C. 911(4) and 961(a)), are hereby transferred to the Secretary of Transportation. SEC. 2. INCIDENTAL TRANSFERS (a) So much of the personnel, property, records, and unexpended balances of appropriations, allocations, and other funds employed, used, held, available, or to be made available in connection with the functions transferred by this reorganization plan as the Director of the Bureau of the Budget shall determine, shall be transferred to the Department of Transportation at such time or times as the Director shall direct. (b) Such further measures and dispositions as the Director of the Bureau of the Budget shall deem to be necessary in order to effectuate the transfers provided for in subsection (a) of this section shall be carried out in such manner as he shall direct and by such agencies as he shall designate. MESSAGE OF THE PRESIDENT To the Congress of the United States: I am transmitting Reorganization Plan No. 1 of 1967. This plan would transfer from the Secretary of Commerce to the Secretary of Transportation authori ty to approve the surrender of certain ship documents. These documents include certificates of ownership, declarations of citizenship, and related ship papers issued for commercial vessels covered by preferred mortgages or owned by the United States. Under the act establishing the Department of Transportation, the Secretary of Transportation, acting through the Coast Guard, will have responsibility for recording bills of sale, transfers, and mortgages of ships; for issuing new marine documents; and for retaining custody of preferred mortgages on vessels. The Secretary of Transportation will not, however, have the authority to approve the surrender of documents for vessels covered by preferred mortgages. That authority still resides with the Secretary of Com merce. As a result, shipowners will have to deal with two separate departments of the Federal Government every time a ship's name is changed, its structure is modified, or it is sold or transferred. In each of these and other cases, the shipowner must first seek the approval of the Secretary of Commerce to surrender the ship's documents and then request the Secretary of Transportation to issue new documents. The reorganization plan is designed to eliminate this duplication of effort, and to save time and expense for shipowners. This is not a major reorganization plan. But it is important. It is part of our larger effort to streamline the Government, to make its operations as efficient as possible, and to enable it to provide better service to the citizens and businessmen of this country. This plan has been prepared in accordance with chapter 9 of title V of the United States Code. I have found, after investigation, that the reorganization is necessary to accomplish one or more of the purposes set forth in section 901(a) of that title. I recommend that the Congress allow the reorganization plan to become effective. LYNDON B. JOHNSON. THE WHITE HOUSE, February 27, 1967. FEDERAL RULES OF CIVIL PROCEDURE Admiralty and maritime rules of practice (which included libel procedures) were superseded, and civil and admiralty procedures in United States district courts were unified, effective July 1, 1966, see rule 1 and Supplemental Rules for Certain Admiralty and Maritime Claims, Title 28, Appendix, Judiciary and Judicial Procedure. CROSS REFERENCES Amendment of provisions of this chapter as are in conflict with sections 18, 1011, 1012, and 1013 of this title, see section 1014 of this title. "Port of documentation" as meaning "home port", see section 1011 of this title. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 650 of this title. SUBCHAPTER VI-MARITIME LIENS FOR NECESSARIES § 971. Persons entitled to lien Any person furnishing repairs, supplies, towage, use of dry dock or marine railway, or other necessaries, to any vessel, whether foreign or domestic, upon the order of the owner of such vessel, or of a person authorized by the owner, shall have a maritime lien on the vessel, which may be enforced by suit in rem, and it shall not be necessary to allege or prove that credit was given to the vessel. (June 5, 1920, ch. 250, § 30, subsec. P, 41 Stat. 1005.) CROSS REFERENCES Amendment of provisions of this chapter as are in conflict with sections 18, 1011, 1012, and 1013 of this title, see section 1014 of this title. "Port of documentation" as meaning "home port", see section 1011 of this title. § 972. Persons authorized to procure repairs, supplies, and necessaries The following persons shall be presumed to have authority from the owner to procure repairs, supplies, towage, use of dry dock or marine railway, and other necessaries for the vessel: The managing owner, ship's husband, master, or any person to whom the management of the vessel at the port of supply is intrusted. No person tortiously or unlawfully in possession or charge of a vessel shall have authority to bind the vessel. (June 5, 1920, ch. 250, § 30, subsec. Q, 41 Stat. 1005.) CROSS REFERENCES Amendment of provisions of this chapter as are in conflict with sections 18, 1011, 1012, and 1013 of this title, see section 1014 of this title. Officers and agents, see section 973 of this title. "Port of documentation" as meaning "home port", see section 1011 of this title. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 973 of this title. § 973. Notice to person furnishing repairs, supplies, and necessaries The officers and agents of a vessel specified in section 972 of this title shall be taken to include such officers and agents when appointed by a charterer, by an owner pro hac vice, or by an agreed purchaser in possession of the vessel. (June 5, 1920, ch. 250, § 30, subsec. R, 41 Stat. 1005; Aug. 10, 1971, Pub. L. 92-79, 85 Stat. 285.) AMENDMENTS 1971-Pub. L. 92-79 struck out provisions prohibiting the construction of this chapter to confer a lien when the furnisher knew, or by exercise of reasonable diligence could have ascertained that because of the terms of a charter party, agreement for sale of the vessel, or for any other reason, the person ordering the repairs, supplies, or other necessaries was without authority to bind the vessel. CROSS REFERENCES Amendment of provisions of this chapter as are in conflict with sections 18, 1011, 1012, and 1013 of this title, see section 1014 of this title. "Port of documentation" as meaning "home port", see section 1011 of this title. § 974. Waiver of right to lien Nothing in this chapter shall be construed to prevent the furnisher of repairs, supplies, towage, use of dry dock or marine railway, or other necessaries, or the mortgagee, from waiving his right to a lien, or in the case of a preferred mortgage lien, to the preferred status of such lien, at any time by agreement or otherwise; and this chapter shall not be construed to affect the rules of law existing on June 5, 1920, in regard to (1) the right to proceed against the vessel for advances, (2) laches in the enforcement of liens upon vessels, (3) the right to proceed in personam, (4) the rank of preferred maritime liens among themselves, or (5) priorities between maritime liens and mortgages, other than preferred mortgages, upon vessels of the United States. (June 5, 1920, ch. 250, § 30, subsec. S, 41 Stat. 1005.) CODIFICATION Words "existing on June 5, 1920" were substituted for "now existing". CROSS REFERENCES Amendment of provisions of this chapter as are in conflict with sections 18, 1011, 1012, and 1013 of this title, see section 1014 of this title. "Port of documentation" as meaning "home port", see section 1011 of this title. § 975. State statutes superseded This chapter shall supersede the provisions of all State statutes conferring liens on vessels, insofar as such statutes purport to create rights of action to be enforced by suits in rem in admiralty against vessels for repairs, supplies, towage, use of dry dock or marine railway, and other necessaries. (June 5, 1920, ch. 250, § 30, subsec. T, 41 Stat. 1006.) CROSS REFERENCES Amendment of provisions of this chapter as are in conflict with sections 18, 1011, 1012, and 1013 of this title, see section 1014 of this title. "Port of documentation" as meaning "home port", see section 1011 of this title. SUBCHAPTER VII-MISCELLANEOUS PROVISIONS § 981. 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. (June 5, 1920, ch. 250, § 30, subsec. U, 41 Stat. 1006.) CODIFICATION Words "on June 5, 1920," were inserted, and word "now" which appeared after "vessel" was struck out. CROSS REFERENCES Amendment of provisions of this chapter as are in conflict with sections 18, 1011, 1012, and 1013 of this title, see section 1014 of this title. "Port of documentation" as meaning "home port", see section 1011 of this title. § 982. Books for collectors of customs The Secretary of Transportation or the Secretary of the Treasury are authorized and di 'So in original. Probably should be "and". rected 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. (June 5, 1920, ch. 250, § 30, subsec. V, 41 Stat. 1006; Aug. 6, 1981, Pub. L. 97-31, § 12(56), 95 Stat. 158.) AMENDMENTS 1981-Pub. L. 97-31 substituted reference to Secretary of Transportation and Secretary of the Treasury for reference to Secretary of Commerce. For prior transfers of functions of the Secretary of Commerce, see Transfer of Functions note below. TRANSFER OF FUNCTIONS For transfer of functions of Secretary of Commerce, see sections 101 to 104 of Reorg. Plan No. 3 of 1946, set out as a note under section 1 of this title, and Reorg. Plan No. 26 of 1950 and Reorg. Plan No. 1 of 1965, set out in the Appendix to Title 5, Government Organization and Employees. CROSS REFERENCES Amendment of provisions of this chapter as are in conflict with sections 18, 1011, 1012, and 1013 of this title, see section 1014 of this title. Definition of enrollment, license, or registry with respect to vessel documentation, see section 65w of this title. "Port of documentation" as meaning "home port", see section 1011 of this title. § 983. Rules and regulations by Secretary of Transportation or Secretary of the Treasury The Secretary of Transportation or the Secretary of the Treasury is authorized 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. (June 5, 1920, ch. 250, § 30, subsec. W, 41 Stat. 1006; Aug. 6, 1981, Pub. L. 97-31, § 12(57), 95 Stat. 158.) AMENDMENTS 1981-Pub. L. 97-31 substituted reference to Secretary of Transportation or Secretary of the Treasury for reference to Secretary of Commerce. For prior transfers of functions of the Secretary of Commerce, see Transfer of Functions note below. TRANSFER OF FUNCTIONS For transfer of functions of Secretary of Commerce, see sections 101 to 104 of Reorg. Plan No. 3 of 1946, set out as a note under section 1 of this title, and Reorg. Plan No. 26 of 1950, set out in the Appendix to Title 5, Government Organization and Employees. CROSS REFERENCES Amendment of provisions of this chapter as are in conflict with sections 18, 1011, 1012, and 1013 of this title, see section 1014 of this title. "Port of documentation" as meaning "home port", see section 1011 of this title. § 984. Short title This chapter may be cited as the "Ship Mortgage Act, 1920." (June 5, 1920, ch. 250, § 30, subsec. A, 41 Stat. 1000.) § 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 or 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. (Feb. 16, 1925, ch. 235, § 2, 43 Stat. 948.) TRANSFER OF FUNCTIONS All offices of collector of customs, comptroller of customs, surveyor of customs, and appraiser of merchandise in the Bureau of Customs of the Department of the Treasury to which appointments were required to be made by the President with the advice and consent of the Senate were ordered abolished with such offices to be terminated not later than December 31, 1966, by Reorg. Plan No. 1 of 1965, eff. May 25, 1965, 30 F.R. 7035, 79 Stat. 1317, set out in the Appendix to Title 5, Government Organization and Employees. All functions of the offices eliminated were already vested in the Secretary of the Treasury by Reorg. Plan No. 26 of 1950, eff. July 31, 1950, 15 F.R. 4935, 64 Stat. 1280, set out in the Appendix to Title 5. For transfer of functions of other officers, employees, and agencies of the Department of the Treasury, with certain exceptions, to the Secretary of the Treasury with power to delegate, see Reorg. Plan No. 26 of 1950, §§ 1, 2, eff. July 31, 1950, 15 F.R. 4935, 64 Stat. 1280, 1281, set out in the Appendix to Title 5. The collector of customs, referred to in this section, is an officer of the Treasury Department. ADMINISTRATIVE DELEGATION OF FUNCTIONS BY Administrative delegation of functions by Secretary of the Treasury, see note set out under section 1 of this title. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 1014 of this title. § 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. (Feb. 16, 1925, ch. 235, § 3, 43 Stat. 948.) SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 1014 of this title. § 1014. Navigation laws and other legislation amended All such provisions of the navigation laws of the United States and of the Ship Mortgage Act, 1920 [46 U.S.C. 911 et seq.], as are in conflict with sections 18, 1011, 1012, and 1013 of this title, are amended to conform therewith. (Feb. 16, 1925, ch. 235, § 5, 43 Stat. 948.) REFERENCES IN TEXT The navigation laws of the United States, referred to in text, are classified generally to Title 33, Navigation and Navigable Waters. The Ship Mortgage Act, 1920, referred to in text, is act June 5, 1920, ch. 250, § 30, 41 Stat. 1000, as amended, which is classified generally to chapter 25 (§ 911 et seq.) of this title. For complete classification of this Act to the Code, see section 984 of this title and Tables. Section 18 of this title, referred to in text, was repealed by Pub. L. 96-594, title I, § 127, Dec. 24, 1980, 94 Stat. 3459. 1122a. 1122b. Survey of existing merchant marine for creation of adequate American-owned fleet. Investigations, studies, records, etc. (a) Suitable ocean routes and lines to (b) Bulk cargo carrying services. and abroad. (e) Relative cost of operation under laws of United States and foreign countries. (f) Foreign subsidies. (g) Shipyards. (h) Laws applicable to aircraft. (i) Transportation to foreign ports of cotton, coal, lumber, and cement. (j) New designs of vessels; intercoastal and inland water transportation. Priority loading for vessels engaged in coastwise transportation of coal; exception, report to Congress. Maritime problems; cooperation with others; discriminatory charges on exports; cargo carriage; recommendations. (a) Study of maritime problems. (b) Inducing preferences for American construction of super vessels; liners. (b) Basis for fixing subsidy; cost of construction in foreign yards; annual recomputation and publication of foreign cost; limitation on construction differential; report on American shipbuilding industry. (c) Terms of sale of vessel to purchaser. (d) Repealed. (e) Construction in navy yards; sales to citizens; terms. (f) Survey of shipbuilding capability; correction of inadequacies; reimbursement of certain vessel construction and delivery expenses. (g) Sale of vessels acquired by Secretary. (h) Installation or removal of national defense features; title to such features. (i) Plans, specifications, and proposals for national defense features; certification of approval. Documentation of completed vessel under laws of United States; delivery to purchaser; first mortgage to secure deferred pay. ments. Purchase of vessel constructed in accordance with application for subsidy; bid or negotiated price basis for subsidy and payments for cost of national defense features; documentation. Eligible shipyards; materials; conditions of contracts; limitation to American shipyards; American materials, waiver; ability of bidders; filing bids and data. Suspension of profit limiting provisions as to certain subcontracts. Operation of subsidy constructed vessel limited to foreign trade; repayments to Secretary for deviations. Construction of new vessel to replace obsolete; purchase of old vessel by Secretary; bond of seller against liens. Disposition of vessels transferred to Maritime Administration of Department of Transportation. Vessels to be operated in domestic trade; terms and conditions of construction aid and sale to purchaser. Acquisition of obsolete vessels. (a) Definitions. (b) Promotion of construction of new vessels; allowance on obsolete vessels. (c) Utility value of new vessel; gross ton nage. (d) Amount of allowance on obsolete vessel; determination of amount. (e) Recognition of gain for income tax purposes; basis for gain or loss. (f) Report to Congress. (g) Use of vessels 25 years old or more. (h) Acquisition of tankers for national defense reserve. (i) Exchange of vessels; valuation; scrapping of traded out vessels. (j) Placement in national defense reserve fleet of acquired vessels. Reserve funds for construction or acquisition of vessels; taxation. (a) "New vessel" defined. (b) Establishment of construction re- (c) Recognition of gain for taxation |