Each vessel, not documented according to the maritime or admiralty laws of the United States, shall be subject to a lien in the amount of a claim of not less than fifty dollars by any person, hereinafter called the lienor, for work done, including the equipping of such vessel with safety devices, materials furnished or expenses incurred in connection with the building, repairing, mooring, dockage or storage of such vessel. This lien shall be subordinate to security interests previously filed in the office of the Secretary of the State. The lienor may retain possession of the vessel until the charges for such work, materials or expenses have been paid or the lien has been dissolved.
(1949 Rev., S. 7234; 1969, P.A. 818, S. 1; P.A. 77-34; P.A. 87-505, S. 7.)
History: 1969 act replaced previous provisions which specified that all vessels in construction or repair of which a person claims more than $20 for materials or services rendered are subject to lien for the claim amount, that lien takes precedence over other subsequent encumbrances except lien for mariners' wages and that lien may be foreclosed “like a mortgage of personal property” with new provisions applicable solely to vessels “not documented according to the maritime or admiralty laws of the United States”; P.A. 77-34 authorized liens for “mooring, dockage or storage” of vessels; P.A. 87-505 added provision re safety devices and authorized retention of the vessel until charges have been paid or the lien dissolved.
There is no maritime lien in favor of a shipbuilder, nor for materials or supplies furnished to a vessel in her home port, but a state can give a lien in such cases. 7 Wall. 645. U.S. courts have power to allow such a lien to be enforced by admiralty process in rem; 4 Wheat. 438; 1 Black. 529; but the U.S. Supreme Court in 1858 refused to exercise this power for the future, and repealed their former rule authorizing such libels, but see 167 U.S. 606.
Cited. 21 CA 808.