RECORDING AND DISCHARGING NOTICES OF CLAIM OF MARITIME LIEN.

SEC. 205. RECORDING AND DISCHARGING NOTICES OF CLAIM OF MARITIME LIEN. (a) Liens on Any Documented Vessel.— (1) In general.—Section 31343 of title 46, United States Code, is amended as follows: (A) By amending the section heading to read as follows: “§ 31343. Recording and discharging notices of claim of maritime lien”. (B) In subsection (a) by striking “covered by a preferred mortgage filed or recorded under this chapter” and inserting “documented, or for which an application for documentation has been filed, under chapter 121”. (C) By amending subsection (b) to read as follows: “(b)(1) The Secretary shall record a notice complying with subsection (a) of this section if, when the notice is presented to the Secretary for recording, the person having the claim files with the notice a declaration stating the following: “(A) The information in the notice is true and correct to the best of the knowledge, information, and belief of the individual who signed it. “(B) A copy of the notice, as presented for recordation, has been sent to each of the following: “(i) The owner of the vessel. “(ii) Each person that recorded under subsection (a) of this section an unexpired notice of a claim of an undischarged lien on the vessel. “(iii) The mortgagee of each mortgage filed or recorded under section 31321 of this title that is an undischarged mortgage on the vessel. “(2) A declaration under this subsection filed by a person that is not an individual must be signed by the president, member, partner, trustee, or other individual authorized to execute the declaration on behalf of the person.”. (D) By amending subsection (c) to read as follows: “(c)(1) On full and final discharge of the indebtedness that is the basis for a notice of claim of lien recorded under subsection (b) of this section, the person having the claim shall provide the Secretary with an acknowledged certificate of discharge of the indebtedness. The Secretary shall record the certificate. “(2) The district courts of the United States shall have jurisdiction over a civil action in Admiralty to declare that a vessel is not subject to a lien claimed under subsection (b) of this section, or that the vessel is not subject to the notice of claim of lien, or both, regardless of the amount in controversy or the citizenship of the parties. Venue in such an action shall be in the district where the vessel is found or where the claimant resides or where the notice of claim of lien is recorded. The court may award costs and attorneys fees to the prevailing party, unless the court finds that the position of the other party was substantially justified or other circumstances make an award of costs and attorneys fees unjust. The Secretary shall record any such declaratory order.”. (E) By adding at the end the following: “(e) A notice of claim of lien recorded under subsection (b) of this section shall expire 3 years after the date the lien was established, as such date is stated in the notice under subsection (a) of this section. 116 STAT. 2096 “(f) This section does not alter in any respect the law pertaining to the establishment of a maritime lien, the remedy provided by such a lien, or the defenses thereto, including any defense under the doctrine of laches.”. (2) Clerical amendment—The table of sections for chapter 313 of title 46, United States Code, is amended by striking the item relating to section 31343 and inserting the following: “31343. Recording and discharging notices of claim of maritime lien.”. (b) Notice Requirements.—Section 31325 of title 46, United States Code, is amended as follows: (1) In subsection (d)(1)(B) by striking “a notice of a claim” and inserting “an unexpired notice of a claim”. (2) In subsection (f)(1) by striking “a notice of a claim” and inserting “an unexpired notice of a claim”. (c) Approval of Surrender of Documentation.—Section 12111 of title 46, United States Code, is amended by adding at the end the following: “(d)(1) The Secretary shall not refuse to approve the surrender of the certificate of documentation for a vessel solely on the basis that a notice of a claim of a lien on the vessel has been recorded under section 31343(a) of this title. “(2) The Secretary may condition approval of the surrender of the certificate of documentation for a vessel over 1,000 gross tons.”. (d) Technical Correction.—Section 9(c) of the Shipping Act, 1916 (46 App. U.S.C. 808(c)) is amended in the matter preceding paragraph (1) by striking “Except” and all that follows through “12106(e) of title 46,” and inserting “Except as provided in section 611 of the Merchant Marine Act, 1936 (46 App. U.S.C. 1181) and in section 12106(e) of title 46,”. (e) Effective Date.—This section shall take effect January 1, 2003.