Where unpaid services, supplies and repairs are provided to a ship, a maritime lien protects the claims of service providers, lenders and suppliers. A maritime lien can be established in accordance with the statutory Notice Of Claim Of Lien in maritime law. The document provides for the filing of the claim with the National Vessel Documentation Center (NVDC) in its interest.
One advantage of a NOCL is to give notice of the lienor’s rights to the vessel. The notice prevents the vessel from being sold, transferred, or re-documented without payment of the factual amount of money owed. It also acts as a public notice to buyers or creditors that a lien exists. It is important to know how to prepare, file, and maintain your lien notice in order to protect your rights under federal maritime law.
Understanding the Notice Of Claim Of Lien
A Notice Of Claim Of Lien is a record filed with the NVDC to show a maritime lien has been placed on a U.S.-documented vessel. It evidences the owner of the vessel owes a debt to the claimant that has not been paid or satisfied.
| Aspect | Description |
| Authority | U.S. Coast Guard, National Vessel Documentation Center (NVDC) |
| Purpose | To formally record a lien against a vessel for unpaid debts |
| Legal Basis | Governed under 46 U.S.C. § 31343 |
| Filing Outcome | Creates a public record of the lien, protecting the claimant’s interest |
Why It Matters
The Notice Of Claim Of Lien affords a number of advantages to creditors and service providers:
- Legal Protection: This protects the legal validity of the debt under maritime law.
- Public Awareness: Makes the lien known to potential buyers and lenders throughout.
- Debt Recovery: Helps creditors with vessel sale or foreclosure.
- Prevent Fraudulent Transfers: Stalls documentation changes until the issue is resolved.
A creditor who fails to file this notice will lose priority to be paid or may not be identified in subsequent transfers.
Key Elements of a Notice Of Claim Of Lien
The NVDC will not accept an incomplete filing of the Notice Of Claim Of Lien. Complete and accurate information about the claim and the vessel must be provided with the filing.
The lien notice must include the name for the vessel, which is the legal name under which the vessel is registered, and the official number, which is the vessel’s unique identifier number assigned by the USCG. The lien notice should also include the name, business address and contact information for the claimant, and the amount claimed, which is the sum of money purportedly owed or unpaid, including interest due, if any.
Dates of Service When the services or supplies were provided
Signature required to authenticate the filing.
Legal Significance
Filing a Notice Of Claim Of Lien does not perfect the title or grant the right to foreclosure, it simply creates a public claim on the property which may later be enforced in the event of a non-payment.
Common Claim Types
Unpaid bill for ship repairs
- Crew wages
- Fuel, provisions, or equipment supplied
- Insurance premiums or charter payments
- Dockage and storage fees
These claims are governed by federal maritime lien laws, which place them above most other types of debts in priority.
Filing Process for a Notice Of Claim Of Lien
Filing a lien requires the completion and filing of certain forms with the NVDC.
Step 1: Prepare Supporting Information
Gather the following documentation:
- Proof of services rendered or goods supplied.
- Invoices or contracts with payment terms.
- Vessel registration details (official number, name, and owner).
A signed acknowledgement or communication from an owner of the vessel, if available.
To apply, complete the official NVDC application form. If you submit an incomplete or incorrect application, the registry may reject it.
Section Purpose
- Claimant details identify who the creditor is.
- Vessel information links the lien to the documented vessel.
- Debt amount and reason establish the financial claim.
- Signature with date authenticates the filing.
Step 3: Submit the Form to the NVDC
People may mail or submit the application form electronically to the National Vessel Documentation Center, where they evaluate it for completeness, accuracy, and compliance with maritime law.
Step 4: Processing and Recordation
Once approved, the lien is inscribed onto the vessel’s documentation record, which is publicly recorded for potential buyers, brokers, and financiers of the lien to see and gives notice.
| Step | Action | Result |
| 1 | Collect evidence and details | Validates claim legitimacy |
| 2 | Complete NVDC form | Prepares official submission |
| 3 | File with NVDC | Initiates review process |
| 4 | Record lien | Creates public notice of claim |
Comparison: Notice Of Claim Of Lien vs. Maritime Mortgage
Although they both deal with financial claims related to vessels, these instruments have different characteristics and legal effects.
- Another reason for these trends is the filing of given maritime liens, which grew from 80 filings in 2015 to 200 in 2024.
- Liens have steadily amassed over unpaid repairs, service disputes, supply claims, and contractor problems.
- Maritime mortgage filings also grow but at a slower and steadier pace indicating the use of ship financing.
- By 2024, the number of lien filings nearly doubles mortgage filings, presenting the growing financial and operational challenges the maritime industry faces.
- Overall, this means the trend line for liens (disputes) has a much steeper slope than the trend line for mortgages.
This growth suggests that there is an increasing demand for lien filings as vessel operations become more diversified and expensive.
Legal Considerations and Limitations
Filing a Notice of Claim of Lien simply tells the debtor that they owe money. If the debtor refuses to pay, the creditor must sue under federal admiralty jurisdiction to collect the debt.
Enforcement through Arrest and Sale
If the owner refuses to pay, the creditor can start a civil maritime action to arrest the vessel. The U.S. Marshal can arrest the vessel and either retain it until paid or sell it to satisfy the debt.
Priority of Claims
Established law gives priority to maritime liens.
- Crew wages
- Salvage claims
- Tort claims (e.g. collision damages)
- Contractual service liens
Mortgages
This hierarchy is important, as lower priority claims may not be fully satisfied following a vessel sale.
Common Mistakes in Filing a Notice Of Claim Of Lien
Even the most experienced mariner could inadvertently overlook a detail, causing a delay or voiding the lien. Knowledge of common pitfalls will provide protection and positive outcomes.
Common mistakes that may lead to a denied lien filing include the omission of vessel particulars and a failure to double-check the registration information at the NVDC office prior to filing. Also, the public notice is sometimes not specific enough in describing the services and failing to include the date of service. Uploading supporting evidence for your claim such as invoices, receipts or other files can help give legitimacy to the claim, and this should not be avoided.
Practical Tips for Effective Lien Management
You may use the following tips to ensure the best protection of your Notice Of Claim Of Lien:
- File on Time: A lien filing is required after a missed payment.
- Documentation Maintenance: Keep contracts, work orders, and communication.
- Monitor the Vessel: changes in ownership or registration that may affect your claim.
- Release Upon Payment: File a lien release form when you receive payment to retain your legal standing.
Tip & Benefit
- Consider filing if priority is important legally.
- Keep records to support future legal claims.
- Monitor the registry to stop unauthorized transfers.
- Files the release to protect business credibility.
These steps increase transparency and foster stakeholder confidence in the maritime business community.
Legal Framework for Filing a Notice Of Claim Of Lien
Legal authority for the federal Notice Of Claim Of Lien is found in federal maritime law and Coast Guard regulation.
Relevant Laws and Provisions
- Pertains toward filing and enforcing a maritime lien.
- NVDC documentation procedures and NVDC lien recordation procedures.
- Maritime Lien Act gives service providers and suppliers the right to pursue unpaid debts.
- Federal Admiralty Jurisdiction: Authority enforces maritime liens with actions in federal court.
Understanding these legal concepts helps ease a claim and protect the interests of claimants.
Securing Your Maritime Rights
Vessel Registrar LLC is one of the best things a company can do if it provides goods or services to, or credits a vessel, in the maritime industry. It advises and protects those with an interest in the vessel financially.
If creditors and service providers are familiar with the process, comply with the NVDC’s requirements, and keep proper records, they should be able to recover payments.
When properly recorded, it strengthens its legal position and increases accountability, fairness, and financial integrity in the shipping and maritime industry.
