(a)(1) A mortgagor shall be fined under title 18, imprisoned for not more than 2 years, or both, if the mortgagor-
(A) with intent to defraud, does not disclose an obligation on a vessel as required by section 31323(a) of this title;
(B) with intent to defraud, incurs a contractual obligation in violation of section 31323(b) of this title; or
(C) with intent to hinder or defraud an existing or future creditor of the mortgagor or a lienor of the vessel, files a mortgage with the Secretary.
(2) A mortgagor is liable to the United States Government for a civil penalty of not more than $10,000 if the mortgagor-
(A) does not disclose an obligation on a vessel as required by section 31323(a) of this title;
(B) incurs a contractual obligation in violation of section 31323(b) of this title; or
(C) files with the Secretary a mortgage made not in good faith.
(b)(1) A person that knowingly violates section 31329 of this title shall be fined under title 18, imprisoned for not more than 3 years, or both.
(2) A person violating section 31329 of this title is liable to the Government for a civil penalty of not more than $25,000.
(3) A vessel involved in a violation under section 31329 of this title and its equipment may be seized by, and forfeited to, the Government.
(c) If a person not an individual violates this section, the president or chief executive of the person also is subject to any penalty provided under this section.
(
| Revised section | Source section (U.S. Code) |
|---|---|
| 31330(a) | 46:941(b) (1st sentence) |
| 31330(b) | New |
| 31330(c) | 46:941(b) (1st sentence) |
Section 31330(a) provides for criminal penalties for not disclosing obligations, incurring contractual obligations in violation of section 31323(b), and filing a mortgage made not in good faith. This subsection makes a substantive change to law by adding civil penalties and by making it a crime to record with the Secretary of Transportation a mortgage made not in good faith with the intent to hinder an existing or future creditor of the mortgagor or a lienor of the vessel. This is done since the affidavit of good faith has been eliminated from the elements of a preferred mortgage.
Section 31330(b) adds criminal and civil penalties for violating the sale and trust requirements under sections 31328 and 31329. It also makes a vessel and its equipment involved in those violations subject to seizure by the Government.
Section 31330(c) makes the president or chief executive officer of a corporation or association liable as a mortgagor for the penalties under this section.
Subsection (a) of this section adds criminal and civil penalties for a preferred mortgagor's failure to carry out certain requirements under chapter 313 of title 46 (as enacted by this Act).
2010-Subsec. (a)(1)(B).
Subsec. (a)(1)(C).
Subsec. (a)(1)(D).
Subsec. (a)(2)(B) to (D).
1996-Subsec. (b).
Section effective Jan. 1, 1989, with certain exceptions and qualifications, see section 107 of