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Old 17-06-2021, 09:58   #1
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Name change at transfer of ownership and preferred ship mortgage filing questions.

Hey everyone, been lurking for a while learning, finally buying a (USCG documented) boat and need a little help with USCG documentation transfer. I've done lots of reading but haven't found this specific answer yet, admins please feel free to move to the appropriate sub-forum.

First a little background, my bank (credit union) doesn't see many large boat purchases (they're located in a remote town in the upper peninsula of Michigan). In fact they even told me they don't require a survey, just that the loan be less than the NADA book value of the vessel but if I needed more than that they could take the surveyed value into consideration. They did state they require their name to go on the title as a lienholder...so I believe I'm going to need to file a preferred ship's mortage using CG-5542 to satisfy them. Since they don't seem familiar with large vessel purchases I'm going to assume they aren't familiar with USCG Documentation and I want to make sure that I am before I bring up that they can't have their name on a Michigan title with a documented vessel and explain that this is the USCG equivalent. Am I missing anything here?

Here's the part I'm struggling to figure out is order of operations. Since I'm buying a USCG documented boat which I would like to change the name and hailing port on. I know I do this at the time of purchase using CG-1258, and if there is a preferred ship mortage filed it would require their permission using CG-4593...so when does the CG-5542 to file a preferred ship mortgage get submitted? It seems to me that if that if I file the CG-1258 for sale of the vessel with the new name, and then file the CG-5542 using the new name afterward it would negate the requirement to file a CG-4593 since the bank has already signed the CG-5542 with the updated vessel name and hailing port? Or can the CG-5542 be filed along with the CG-1258 and use the new name on both documents?

Thanks in advance! If this has been covered somewhere and I missed it I apologize and would really appreciate a link.
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Old 17-06-2021, 11:41   #2
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Re: Name change at transfer of ownership and preferred ship mortgage filing questions

First off let's get to know you. Are you a Middle Tennessee University Jeep offroader? Do you know Brad H? And Bidwell or what ever his name is?
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Old 17-06-2021, 12:26   #3
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Re: Name change at transfer of ownership and preferred ship mortgage filing questions

Quote:
Originally Posted by Dogscout View Post
First off let's get to know you. Are you a Middle Tennessee University Jeep offroader? Do you know Brad H? And Bidwell or what ever his name is?
Nope, I went to Michigan Technological University in Houghton MI (hence my bank being in BFE). Did the Jeep thing (built a YJ on 40s with full width axles, chevy 350, 11" lift etc.), was president of the offroad club and then started working on monster trucks off and on and sold the Jeep because I got bored of it after working on those. Had some decent opportunities to make advances into driving positions but student loan payments on 100k of debt didn't let me commit...so here I am with a boring career instead lol. Thankfully covid has me working remotely going forward and able to start cruising so that makes up for it!

Anyhow, back on topic, and not to throw another curveball but the broker (who has been a nightmare) is trying to use scare tactics into having me use a documentation service to the "modest fee" of 400 dollars as its "best to let her especially when there is a death involved". The seller passed away (his wife is alive and the daughter is handling the sale, it's been through probate as well) and the documentation expired a year ago. I work for the USG, so dealing with government paperwork doesn't intimidate me and the whole process seems fairly straightforward. I'm going to call the NVDC tomorrow to verify what all they are going to need along with the bill of sale to do the transfer and call the daughter about getting it as we've been in contact through the whole process. I guess I should have thought of doing that before starting this thread...I'll ask them the same thing I asked here about the namechange and preferred mortage as well.
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Old 17-06-2021, 12:40   #4
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Re: Name change at transfer of ownership and preferred ship mortgage filing questions

When you complete CG-1258 "Application for Initial, Exchange, or Replacement of Certificate of Documentation; Redocumentation" under "A. Vessel Name" you will put the name to which you want to rename the vessel and then in parenthesis the old name.

e.g. On mine it was:

TARDIS (Wind Tryst)

The prior name is listed in section 1. Purpose of Application

That gets sent in along with the old USCG-1270 Certificate of Documentation, CG-7042 Authorization for Credit Card Transactions, it's currently $92.00, and CG-1340 the Coast Guard Bill of Sale (which is different from the state BoS).
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Old 17-06-2021, 12:50   #5
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Re: Name change at transfer of ownership and preferred ship mortgage filing questions

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Originally Posted by flightlead404 View Post
When you complete CG-1258 "Application for Initial, Exchange, or Replacement of Certificate of Documentation; Redocumentation" under "A. Vessel Name" you will put the name to which you want to rename the vessel and then in parenthesis the old name.

e.g. On mine it was:

TARDIS (Wind Tryst)

The prior name is listed in section 1. Purpose of Application

That gets sent in along with the old USCG-1270 Certificate of Documentation, CG-7042 Authorization for Credit Card Transactions, it's currently $92.00, and CG-1340 the Coast Guard Bill of Sale (which is different from the state BoS).
Thanks, from my reading I'll also have to supply death certificate, will naming executor, power of attorney forms along with bill of sale signed by person with POA, but I'll confirm with USCG, seems pretty straightforward though. Just still trying to figure out when I (or the bank) file a CG-5542 either at that time of name change with the new name used on CG-5542 or in a separated transaction after filing the CG-1258 and associated forms.
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Old 17-06-2021, 13:06   #6
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Re: Name change at transfer of ownership and preferred ship mortgage filing questions

IDK I paid cash, sorry can't help
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Old 17-06-2021, 14:07   #7
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Re: Name change at transfer of ownership and preferred ship mortgage filing questions

Looks like you have a great handle on the paperwork. My experience has been that the NVDC is very helpful.
You may want to look into getting the documentation for a 5 year period so there is less to do every year. I did that at renewal. I don’t know if your initial documentation can do that.
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Old 18-06-2021, 14:08   #8
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Re: Name change at transfer of ownership and preferred ship mortgage filing questions

Get a boat loan through a marine loan broker who knows what is required (no special forms or requirement other than "loss payee" on the insurance policy) and usually offer lower interest rates. I did this on 2 boat purchases.
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Old 18-06-2021, 17:48   #9
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Re: Name change at transfer of ownership and preferred ship mortgage filing questions

When I bought the boat I changed the name by putting the new name on the paperwork. That was it.

I wouldnt think you need a death certificate, power of attorney or anything other than a receipt describing what you bought. If the boat came with auxiliary equipment, dingy, electronics etc get it all on the receipt.

If you had a survey done the survey likely has an inventory list. Include it in the statement of purchase. With an executors signature you should be good to go.

The USCG is very helpful. The process is straightforward. I also recommend getting the 5 year documentation.
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Old 19-06-2021, 12:08   #10
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Re: Name change at transfer of ownership and preferred ship mortgage filing questions

Good advice here, and yes, the USCG is the only US government agency that the US taxpayers come even close to getting their money's worth out of. These folks are working overtime and do a hell of job for us.
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