# 46 C.F.R. § 356.19 (2026): Requirements to hold a Preferred Mortgage

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/CFR_T46_P356_S356_19

## Section

- **Citation:** 46 C.F.R. § 356.19 (2026)
- **Heading:** Requirements to hold a Preferred Mortgage
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Title 46 CFR: Shipping / Chapter II / Part 356 / Subpart D / § 356.19: § 356.19   Requirements to hold a Preferred Mortgage.

## Text

(a) In order for a Mortgagee to be eligible to obtain a Preferred Mortgage on a Fishing Industry Vessel, it must be: (1) A Citizen of the United States; (2) A state or federally chartered financial institution that is insured by the Federal Deposit Insurance Corporation; (3) A farm credit lender established under title 12, chapter 23, of the United States Code (12 U.S.C. 2001 et seq. ); (4) A commercial fishing and agriculture bank established pursuant to State law; (5) A Commercial Lender organized under the laws of the United States or of a State and eligible to own a vessel under 46 U.S.C. 12103; or (6) A Mortgage Trustee that complies with the requirements of 46 U.S.C. 31322(f) and 46 CFR 356.27 through 356.37. (b) A Mortgagee must demonstrate to the Citizenship Approval Officer that it satisfies one of the requirements set forth in paragraph (a) of this section before it will be qualified to obtain a Preferred Mortgage on a Fishing Industry Vessel after April 1, 2003. A Mortgagee that has an existing Preferred Mortgage on a Fishing Industry Vessel prior to April 1, 2003, will be required to demonstrate that it satisfies one of the requirements set forth in paragraph (a) of this section before the vessel's next certificate of documentation renewal date after April 1, 2003. Failure to submit the required information may result in the loss of the preferred status for the mortgage. A sample format that may be used to submit the required information for Mortgagees, Commercial Lenders and Lender Syndicates is available on the MARAD website at http://www.marad.dot.gov/afa.html. The required information that must be submitted in order to make such a demonstration for each category in paragraph (a) is as follows: (1) If a Mortgagee plans to qualify as a United States Citizen under paragraph (a)(1) of this section, the Mortgagee must file an Affidavit of United States Citizenship demonstrating that it complies with the citizenship requirements of 46 U.S.C. 12113 and 46 U.S.C

## Nearby sections

- [46 C.F.R. § 356.19 (2026) § 356.19   Requirements to hold a Preferred Mortgage.](https://www.frixlaw.com/law-library/statutes/CFR_T46_P356_S356_19.md)
- [46 C.F.R. § 356.21 (2026) § 356.21   General approval of standard loan or mortgage agreements.](https://www.frixlaw.com/law-library/statutes/CFR_T46_P356_S356_21.md)
- [46 C.F.R. § 356.23 (2026) § 356.23   Restrictive loan covenants approved for use by lenders.](https://www.frixlaw.com/law-library/statutes/CFR_T46_P356_S356_23.md)
- [46 C.F.R. § 356.25 (2026) § 356.25   Operation of Fishing Industry Vessel Mortgagees.](https://www.frixlaw.com/law-library/statutes/CFR_T46_P356_S356_25.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/CFR_T46_P356_S356_19. Check the current official text before relying on it. Not legal advice.