Alaskan's Serving Alaskan's
Marine Financing -
“Marine Documentation can present unique challenges for individuals, brokers and financial institutions. We make it our business to understand and apply the correct methodology to insure your documentation is done properly, legally and completely."
As a rule, lenders should require that boats over 25 feet be documented and a notation of the security interest recorded on the title.
The surest way a lender can be fully protected is to require that the boat be federally documented and a First Preferred Ship's Mortgage recorded against the vessel.
A First Preferred Ship's Mortgage is a mortgage recorded against a vessel federally documented (registered) with the United States Coast Guard. The First Preferred Ship's Mortgage takes precedence over all other liens other than crew wages, pre-existing mechanics liens or salvage.
A lender would never think of making a real estate loan without a Deed of Trust against the property. Similarly, securing boat loans with a Ship's Mortgage is just a good business practice and it does not have to be difficult.
When a lender has notifies us that consideration will be issued, we conduct a title search, collect information from both the buyer and the seller to ensure all necessary forms are filled out completely and correctly. Included but not limited to, is an abstract search, Coast Guard Bill of Sale, Application for transfer of ownership, and First Preferred Ship' Mortgage.
Closing Services -
In addition to handing all of the USCG Documentation side, we routinely handle funds for purchases as well acting as the 3rd party.
What is a First Preferred Ship's Mortgage -
A First Preferred Ship's Mortgage is a mortgage recorded against a vessel documented with the United States Coast Guard. It is protected under the Ship's Mortgage Act of 1920, and takes precedence over all liens other than preferred Maritime Liens e.g. seaman's wages. The First Preferred Ship's Mortgage secures not only the note described, but also any future extensions or advances against the vessel.
The First Preferred Ship's Mortgage assures the mortgagee, the owner will properly insure the vessel and refrain from encumbering the vessel. The mortgagee will be notified if the vessel is seized, libeled, or detained by any person or country within 15 days and discharge it from same. With the First Preferred Ship's Mortgage, the owner will comply with all state, local, and U.S. laws and keep vessel document current and on board the vessel, along with a copy of the Mortgage. The mortgagee is assured the owner will not leave the country without intending to return, abandon the vessel or sell, mortgage, or charter the vessel without the consent of the mortgagee.
Carrying 1 mil in E & O insurance for your ease of mind.