§ 31323. Disclosing and incurring obligations before executing preferred mortgages

• (a) On request of the mortgagee and before executing a preferred mortgage, the mortgagor shall disclose in writing to the mortgagee the existence of any obligation known to the mortgagor on the vessel to be mortgaged.
• (b) After executing a preferred mortgage and before the mortgagee has had a reasonable time to file the mortgage, the mortgagor may not incur, without the consent of the mortgagee, any contractual obligation establishing a lien on the vessel except a lien for—
  • (1) wages of a stevedore when employed directly by a person listed in section 31341 of this title ;
  • (2) wages for the crew of the vessel;
  • (3) general average; or
  • (4) salvage, including contract salvage.
• (c) On conviction of a mortgagor under section 31330(a)(1)(A) or (B) of this title for violating this section, the mortgage indebtedness, at the option of the mortgagee, is payable immediately.