---
kind: "section"
citation: "46 C.F.R. § 356.25"
title: "46"
number: "356.25"
heading: "Operation of Fishing Industry Vessel Mortgagees."
url: "https://uscodex.org/cfr/46/356.25"
---

# §356.25. Operation of Fishing Industry Vessel Mortgagees.

- (a) A Mortgagee that has demonstrated to MARAD that it qualifies as a Citizen of the United States and is eligible to own a vessel with a fishery endorsement may operate a Fishing Industry Vessel.
- (b) A Mortgagee not eligible to own a Fishing Industry Vessel cannot operate or cause operation of, the vessel in the fisheries of the United States. Except as provided in [paragraph (c)](#c) of this section, the vessel may not be operated for any purpose without the prior written approval of the Citizenship Approval Officer.
- (c) A Mortgagee not eligible to own a Fishing Industry Vessel may operate the vessel for a non-commercial purpose to the extent necessary for the immediate safety of the vessel or for repairs, drydocking or berthing changes; provided, that the vessel is operated under the command of a Citizen of the United States and for no longer than 15 calendar days.
- (d) A Mortgagee that is holding a Preferred Mortgage on a Fishing Industry Vessel but that is not eligible to own a Fishing Industry Vessel may take possession of the vessel in the event of default by the mortgagor other than by foreclosure pursuant to [46 U.S.C. 31329](/usc/46/31329.md), if provided for in the mortgage or a related financing document. However, the vessel may not be operated, or caused to be operated in commerce, except as provided in [paragraph (c)](#c) of this section or with the approval of the Citizenship Approval Officer.
- (e) A Non-Citizen Lender that has brought a civil action in rem for enforcement of a Preferred Mortgage lien on a Citizen-owned Fishing Industry Vessel pursuant to [46 U.S.C. 31325(b)(1)](/usc/46/31325.md?p=b-1) may petition the court pursuant to [46 U.S.C. 31325(e)(1)](/usc/46/31325.md?p=e-1) for appointment of a receiver, and, if the receiver is a Person eligible to own a Fishing Industry Vessel , to authorize the receiver to operate the mortgaged vessel pursuant to terms and conditions consistent with this part 356. If the receiver is not a Citizen of the United States that meets the requirements of 46 U.S.C. [12113](/usc/46/12113.md) and [46](/usc/46/46.md) U.S.C. 50501(d), the vessel may not be operated in the fisheries of the United States.

## Notes

### Amendments

[65 FR 44877, July 19, 2000, as amended at 91 FR 33645, June 4, 2026]

### Authority

Authority: 46 U.S.C. 12102; 46 U.S.C. 12151; 46 U.S.C. 31322; Pub. L. 105-277, division C, title II, subtitle I, section 203 (46 U.S.C. 12102 note), section 210(e), and section 213(g), 112 Stat. 2681; Pub. L. 107-20, section 2202, 115 Stat. 168-170; Pub. L. 114-74; 49 CFR 1.93.

### Source

Source: 65 FR 44877, July 19, 2000, unless otherwise noted.

### Amendments

[65 FR 44877, July 19, 2000, as amended at 91 FR 33645, June 4, 2026]