A financed boat abroad.

[kennykroot]

What's the deal with taking a financed boat out of the country? The first bank that I approached said they wouldn't allow it. The next said it WAS allowed and seemed surprised that I'd even asked.

I understand why a bank wouldn't be keen on the boat going anywhere it couldn't be re-possessed in a cost-effective manner. But this begs the question: How do they enforce this? How would they know that their boat has been taken out of U.S. waters? Or do they just put clauses in the loan contracts that provide sanctions painful enough to deter people from even trying to get away with it?

The ancillary question is what countries we're talking about. Are trips to Canada or Mexico treated differently?

I know this all depends on the lender in question but is there a standard deal on this?