U.S. Code > Title 46 Shipping > Subtitle III—Maritime Liability (§§ 30101—31343) > CHAPTER 313—COMMERCIAL INSTRUMENTS AND MARITIME LIENS (§§ 31301—31343) > SUBCHAPTER II—COMMERCIAL INSTRUMENTS (§§ 31321—31330) > § 31329. Court sales of documented vessels

§ 31329. Court sales of documented vessels

(a) A documented vessel may be sold by order of a district court only to—
(1) a person eligible to own a documented vessel under section 12103 of this title; or
(2) a mortgagee of that vessel.
(b) When a vessel is sold to a mortgagee not eligible to own a documented vessel—
(1) the vessel must be held by the mortgagee for resale;
(2) the vessel held by the mortgagee is subject to chapter 563 of this title; and
(3) the sale of the vessel to the mortgagee is not a sale to a person not a citizen of the United States under section 12132 of this title.
(c) Unless waived by the Secretary of Transportation, a person purchasing a vessel by court order under subsection (a)(1) of this section or from a mortgagee under subsection (a)(2) of this section must document the vessel under chapter 121 of this title.
(d) The vessel may be operated by the mortgagee not eligible to own a documented vessel only with the approval of the Secretary.
(e) A sale of a vessel contrary to this section is void.
(f) This section does not apply to a documented vessel that has been operated only for pleasure.