Public Law 74–319

That section 30, subsection D, subdivision (a), of the Act of June 5, 1920, known as the “Ship Mortgage Act, 1920”, be amended by striking out the words “of two hundred gross tons and upwards”, and adding immediately following the words “vessel of the United States” the following: “(other than towboat, barge, scow, lighter, car float, canal boat, or tank vessel, of less than two hundred gross tons)”, and as so amended be reenacted so as to read as follows:

Mortgages of vessels.

Benefits of Act extended to certain vessels of less than 200 gross tons.

“A valid mortgage which at the time it is made, includes the whole of any vessel of the United States (other than a towboat, barge, scow, lighter, car float, canal boat, or tank vessel, of less than two hundred gross tons), shall, in addition, have, in respect to such vessel and as ofthe date of the compliance with all the provisions of this subdivision, the preferred status given by the provisions of subsection M, if—

“(1)“(1)

The mortgage is endorsed upon the vessel’s documents in

Conditions.

accordance with the provisions of this section;

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“(2)“(2)

The mortgage is recorded as provided in subsection C, together with the time and date when the mortgage is so endorsed;

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“(3)“(3)

An affidavit is filed with the record of such mortgage to the effect that the mortgage is made in good faith and without any design to hinder, delay, or defraud any existing or future creditor of the mortgagor or any lienor of the mortgaged vessel;

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“(4)“(4)

The mortgage does not stipulate that the mortgagee waives the preferred status thereof; and

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“(5)“(5)

The mortgagee is a citizen of the United States and for the

Status of Reconstruction Finance Corporation.

Vol. 41, p. 1008.

U. S. C., p. 2055.

purposes of this act the Reconstruction Finance Corporation shall, in addition to those designated in sections 37 and 38 of this Act, be deemed a citizen of the United States.”

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