(a) The filing of an instrument is subject to termination if:
(1) It is determined that the instrument cannot be recorded because the instrument itself is not in substantial compliance with the applicable regulations in this part;
(2) The filing was not made in compliance with the requirements of § 67.213;
(3) The Application for Initial Issue, Exchange, or Replacement of Certificate of Documentation; or Redocumentation (form CG-1258) submitted with the instrument(s) was not made in substantial compliance with the applicable regulations of this part;
(4) The owner of the vessel submits an Application, Consent, and Approval for Withdrawal of Application for Documentation or Exchange of Certificate of Documentation (form CG-4593), with mortgagee consent, if applicable; or
(5) Another instrument is filed evidencing satisfaction or release of the subject instrument and the subject instrument is one described in subpart Q of this part.
(b) Ninety days prior to terminating the filing pursuant to a reason listed in paragraphs (a) (1), (2), or (3) of this section, the National Vessel Documentation Center will send written notice detailing the reasons the filing is subject to termination to the following person(s) and any agent known to be acting on behalf of the same:
(1) The applicant for documentation, if a bill of sale, instrument in the nature of a bill of sale, or a deed of gift;
(2) The mortgagee or assignee, if a mortgage or assignment or amendment thereof;
(3) The claimant, if a notice of claim of lien; or
(4) The lender first named in an interlender agreement affecting a mortgage, preferred mortgage, or related instrument.
(c) If the reason(s) which subject the filing to termination remain uncorrected for a period of 90 days after the notice described in paragraph (b) of this section is sent, or upon receipt of the request for withdrawal described in paragraph (a)(4) of this section, or satisfaction or release as described in paragraph (a)(5) of this section, the instrument will be returned to either:
(1) The applicant for documentation, if a bill of sale, instrument in the nature of a bill of sale, or a deed of gift;
(2) The mortgagee or assignee, if a mortgage or assignment or amendment thereof;
(3) The claimant, if a notice of claim of lien;
(4) The lender first named in an interlender agreement affecting a mortgage, preferred mortgage, or related instrument; or
(5) An agent for any appropriate party, provided that the agent has filed with the Coast Guard a writing bearing the original signature of the appropriate party(ies) clearly identifying the instrument(s) being returned and stating that the instrument(s) may be returned to the agent.
[CGD 89-007, CGD 89-007a, 58 FR 60266, Nov. 15, 1993; 58 FR 65131, Dec. 13, 1993, as amended by CGD 95-014, 60 FR 31605, June 15, 1995]