COMMERCIAL INSTRUMENTS AND MARITIME LIENS.

SEC. 303. COMMERCIAL INSTRUMENTS AND MARITIME LIENS. Chapter 313 of title 46, United States Code, is amended as follows: (1) Section 31306 is amended— (A) in subsection (a), by striking “When” and inserting “Except as provided by the Secretary of Transportation, when” and by striking “of Transportation”; and (B) in subsection (c), by striking “An” and inserting “Except as provided by the Secretary, an”. (2) Section 31321(c) is amended— (A) by striking “that has not yet been documented,” and inserting “for which an application for documentation is filed,”; and (B) by striking “party whose name and address is stated on” and inserting “interested party to”; (3) Section 31322 is amended— (A) by amending subsection (a)(2) to read as follows: “(2) Paragraph (1)(D) of this subsection does not apply to— “(A) a documented vessel that has a fisheries endorsement or a recreational endorsement, or both endorsements; or “(B) a vessel for which an application for documentation with a fisheries endorsement or a recreational endorsement, or both endorsements, has been filed.”; (B) in subsection (d)(1), by striking “representing financing of a vessel under State law that is made under applicable State law” and inserting “granting a security interest perfected under State law”; and (C) in subsection (e) (1) and (2) by striking “the validity of the preferred mortgage” each place that phrase appears and inserting “the status of the preferred mortgage”. (4) Section 31325 is amended by amending subsections (b) and (c) to read as follows: “(b) On default of any term of the preferred mortgage, the mortgage may— “(1) enforce the perferred mortgage lien in a civil action in rem for a documented vessel, a vessel to be documented under chapter 121 of this title, or a foreign vessel; and “(2) enforce a claim for the outstanding indebtedness secured by the mortgaged vessel in— “(A) a civil action in personam in admiralty against the mortgagor, maker, comaker, or guarantor for the amount of the outstanding indebtedness or any deficiency in full payment of that indebtedness; and “(B) a civil action against the mortgagor, maker, comaker, or guarantor for the amount of the outstanding 103 STAT. 1924 indebtedness or any deficiency in full payment of that indebtedness; and “(c) The district courts have original jurisdiction of a civil action brought under subsection (b) (1) or (2) of this section. However, for a documented vessel, a vessel to be documented under chapter 121 of this title, or a foreign vessel, this jurisdiction is exclusive of the courts of the States for a civil action brought under subsection (b)(1) of this section.” (5) Section 31341(a)(3) is amended by striking “mangement” and inserting “management”. (6) Section 31342 is amended— (A) by striking “A person providing necessaries to a vessel (except a public vessel) on the order of a person listed in section 31341 of this title” and inserting “(a) Except as provided in subsection (b) of this section, a person providing necessaries to a vessel on the order of the owner”; and (B) by adding the following new subsection (b) at the end: “(b) This section does not apply to a public vessel.”.