46 U.S.C. § 31327

Forfeiture of mortgagee interest

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The interest of a mortgagee in a documented vessel or a vessel covered by a preferred mortgage under section 31322(d) of this title may be terminated by a forfeiture of the vessel for a violation of a law of the United States only if the mortgagee authorized, consented, or conspired to do the act, failure, or omission that is the basis of the violation.

Notes of Decisions
Cited in 1 case, 1992–1992 · leading case: Montego Bay Imports, Ltd. v. United States, 25 Cl. Ct. 639 (Ct. Cl. 1992).
Montego Bay Imports, Ltd. v. United States, 25 Cl. Ct. 639 (Ct. Cl. 1992). · cites it 2× “” 46 U.S.C. § 31327 (1988). Since defendant argues that plaintiff has not alleged facts indicating that the SBA “authorized, consented, or conspired” the transportation of the controlled substance that eventually led to the scuttling of the CHANTAL S, defendant asserts that the…”
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