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Old 06-05-2021, 08:56   #1
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Lenders not recognizing USCG documentation

I’m selling a boat in the state of Maine. Maine does not require state registrations when a vessel is Coast Guard Registered. The boat has a a valid COD from the Coast Guard that I have provided the buyer so that he can go to the bank and obtain financing. The bank is saying they need a state registration for proof of ownership. Has anyone else had any experience with this? I’m finding it super annoying as the national registration is a level above state in officialness
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Old 06-05-2021, 09:06   #2
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Re: Lenders not recognizing USCG documentation

Perhaps this is a local credit union that has never dealt with a boat big enough to have COD?

But mostly I wonder if this isn't an issue of miscommunication, with the buyer not fully understanding. Is there a documentation service in your area that could help? Or up the price to cover state registration....
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Old 06-05-2021, 09:11   #3
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Re: Lenders not recognizing USCG documentation

So, this is where it is getting confused.

A title is typically proof of ownership. The USCG Documentation serves as a title would when issued by the state. However Maine does not title vessels. States that don't title vessels refer to the registration for proof and transfer of ownership.

That is disregarded when the vessel is USCG documented. As stated by SeaStory, the bank is confused and probably has never dealt with a USCG documented vessel before. They need to escalate this within the Bank's chain of command to get someone involved that knows what they're doing.
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Old 06-05-2021, 09:19   #4
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Re: Lenders not recognizing USCG documentation

Ran into a similar issue with our insurance company. They wanted the registration number. We only have a documentation number. They did not understand.
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Old 06-05-2021, 09:28   #5
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Re: Lenders not recognizing USCG documentation

I actually have both... I have my NJ registration and also a USCG COD. The only thing I don't do is put the mandatory letters on the boat that NJ issues, since the USCG documentation is superior.

But I think it's NJ that requires registration even though you have a USCG COD. I may be wrong, though. But I'm okay with it... I don't think I'm doing something 'wrong' or 'illegal' by registering with both NJ and the USCG. I cover both bases. And NJ registration only costs me $54 per year.
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Old 06-05-2021, 09:30   #6
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Re: Lenders not recognizing USCG documentation

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Originally Posted by Cool Hand Luke View Post
I actually have both... I have my NJ registration and also a USCG COD. The only thing I don't do is put the mandatory letters on the boat that NJ issues, since the USCG documentation is superior.

But I think it's NJ that requires registration even though you have a USCG COD. I may be wrong, though. But I'm okay with it... I don't think I'm doing something 'wrong' or 'illegal' by registering with both NJ and the USCG. I cover both bases. And NJ registration only costs me $54 per year.

It's state dependent. Some require state reg on documented boats, others don't. In NY, for example, a documented boat still needs state reg and has to display the little sticker to confirm they have a current state reg, but does not display state reg numbers (you only show those on a non-documented boat).
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Old 06-05-2021, 09:45   #7
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Re: Lenders not recognizing USCG documentation

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Originally Posted by rslifkin View Post
It's state dependent. Some require state reg on documented boats, others don't. In NY, for example, a documented boat still needs state reg and has to display the little sticker to confirm they have a current state reg, but does not display state reg numbers (you only show those on a non-documented boat).
That's my situation too. BUT the significant cost for me was sales tax on the purchase price, required when the boat is first registered. The NY registration is inexpensive. Sales tax not.
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Old 06-05-2021, 09:51   #8
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Re: Lenders not recognizing USCG documentation

Disclaimer: I do not have direct experience with this.

The bank might be looking for an abstract of title, which you can order from the USCG. The Certificate of Documentation really isn't proof of ownership.

Last form on this page: https://www.dco.uscg.mil/Our-Organiz...ons-and-Forms/
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Old 06-05-2021, 09:55   #9
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Re: Lenders not recognizing USCG documentation

Contact a local yacht broker and pay him for his advice....not to be confused with a listing fee. He will have surmounted this obstacle numerous times in his career and can point you to the easiest and simplest solution. An hour of his time paid in cash would be a wise investment.
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Old 06-05-2021, 10:12   #10
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Re: Lenders not recognizing USCG documentation

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Originally Posted by wholybee View Post
Disclaimer: I do not have direct experience with this.

The bank might be looking for an abstract of title, which you can order from the USCG. The Certificate of Documentation really isn't proof of ownership.

Last form on this page: https://www.dco.uscg.mil/Our-Organiz...ons-and-Forms/
^ this... I definitely agree.

Here's the payment page: https://www.pay.gov/public/form/start/1175233
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Old 06-05-2021, 10:58   #11
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Re: Lenders not recognizing USCG documentation

What Shrew says is 100%. I had an issue like this dealing with the DMV in New York...
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Old 07-05-2021, 09:14   #12
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Re: Lenders not recognizing USCG documentation

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Originally Posted by unbusted67 View Post
............The boat has a a valid COD from the Coast Guard that I have provided the buyer so that he can go to the bank and obtain financing. The bank is saying they need a state registration for proof of ownership..........
Seems to me the bank only need the signed bill of sale. Maybe the bank has never provided a loan on a USCG documented boat. I have purchased a couple boats where I got a loan and that issue never came up but in both cases I obtained the boat loan through a no fee boat loan broker.
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Old 07-05-2021, 09:17   #13
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Re: Lenders not recognizing USCG documentation

In Maine the USCG doc IS the title Your only requirement in Maine is to pay excise tax and get a sticker for the bow. "The Documented Boat Excise Tax Form" and the USCG doc are the only two items you need to register a documented boat in Maine. Have the Bank call the Town Clerk's Office.


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Old 07-05-2021, 09:33   #14
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Re: Lenders not recognizing USCG documentation

Go to a company or bank who is used to dealing with boats.

Documentation is far more protection than a State registration. Clearly the person providing the feedback is out of their depths.

Go elsewhere.
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Old 07-05-2021, 10:05   #15
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Re: Lenders not recognizing USCG documentation

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Originally Posted by Cool Hand Luke View Post
I actually have both... I have my NJ registration and also a USCG COD. The only thing I don't do is put the mandatory letters on the boat that NJ issues, since the USCG documentation is superior.

But I think it's NJ that requires registration even though you have a USCG COD. I may be wrong, though. But I'm okay with it... I don't think I'm doing something 'wrong' or 'illegal' by registering with both NJ and the USCG. I cover both bases. And NJ registration only costs me $54 per year.
Same in CT...thnks
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