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.