---
kind: "section"
citation: "46 U.S.C. § 31330"
title: "46"
title_heading: "Shipping"
number: "31330"
heading: "Penalties"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/46/31330"
units:
  - "Subtitle III — Maritime Liability"
  - "Chapter 313 — Commercial Instruments and Maritime Liens"
  - "Subchapter II — Commercial Instruments"
---

# §31330. Penalties

- (a)
  - (1) A mortgagor shall be fined under [title 18](/usc/18.md), imprisoned for not more than 2 years, or both, if the mortgagor—
    - (A) with intent to defraud, does not disclose an obligation on a vessel as required by [section 31323(a) of this title](/usc/46/31323.md?p=a);
    - (B) with intent to defraud, incurs a contractual obligation in violation of [section 31323(b) of this title](/usc/46/31323.md?p=b); or
    - (C) with intent to hinder or defraud an existing or future creditor of the mortgagor or a lienor of the vessel, files a mortgage with the [Secretary](/usc/46/31301.md?p=7).
  - (2) A mortgagor is liable to the United States Government for a civil penalty of not more than $10,000 if the mortgagor—
    - (A) does not disclose an obligation on a vessel as required by [section 31323(a) of this title](/usc/46/31323.md?p=a);
    - (B) incurs a contractual obligation in violation of [section 31323(b) of this title](/usc/46/31323.md?p=b); or
    - (C) files with the [Secretary](/usc/46/31301.md?p=7) a mortgage made not in good faith.
- (b)
  - (1) A person that knowingly violates [section 31329 of this title](/usc/46/31329.md) shall be fined under [title 18](/usc/18.md), imprisoned for not more than 3 years, or both.
  - (2) A person violating [section 31329 of this title](/usc/46/31329.md) is liable to the Government for a civil penalty of not more than $25,000.
  - (3) A vessel involved in a violation under [section 31329 of this title](/usc/46/31329.md) and its equipment may be seized by, and forfeited to, the Government.
- (c) If a person not an individual violates this section, the president or chief executive of the person also is subject to any penalty provided under this section.

## Source credit

(Pub. L. 100–710, title I, § 102(c), Nov. 23, 1988, 102 Stat. 4747; Pub. L. 104–324, title XI, § 1113(b)(2), Oct. 19, 1996, 110 Stat. 3970; Pub. L. 111–281, title IX, § 913(a)(1), (d), Oct. 15, 2010, 124 Stat. 3017.)

## Notes

| Historical and Revision Notes |  |
| --- | --- |
| Revised section | Source section (U.S. Code) |
| 31330(a) | 46:941(b) (1st sentence) |
| 31330(b) | New |
| 31330(c) | 46:941(b) (1st sentence) |

Section 31330(a) provides for criminal penalties for not disclosing obligations, incurring contractual obligations in violation of section 31323(b), and filing a mortgage made not in good faith. This subsection makes a substantive change to law by adding civil penalties and by making it a crime to record with the Secretary of Transportation a mortgage made not in good faith with the intent to hinder an existing or future creditor of the mortgagor or a lienor of the vessel. This is done since the affidavit of good faith has been eliminated from the elements of a preferred mortgage.

Section 31330(b) adds criminal and civil penalties for violating the sale and trust requirements under sections 31328 and 31329. It also makes a vessel and its equipment involved in those violations subject to seizure by the Government.

Section 31330(c) makes the president or chief executive officer of a corporation or association liable as a mortgagor for the penalties under this section.

### house floor statement

Subsection (a) of this section adds criminal and civil penalties for a preferred mortgagor’s failure to carry out certain requirements under chapter 313 of title 46 (as enacted by this Act).

### Editorial Notes

### Amendments

2010—Subsec. (a)(1)(B). Pub. L. 111–281, § 913(d)(1)(A), inserted “or” after semicolon.

Subsec. (a)(1)(C). Pub. L. 111–281, § 913(d)(1)(B), substituted “Secretary.” for “Secretary; or”.

Pub. L. 111–281, § 913(a)(1), struck out “of Transportation” after “Secretary”.

Subsec. (a)(1)(D). Pub. L. 111–281, § 913(d)(1)(C), struck out subpar. (D) which read as follows: “with intent to defraud, does not comply with section 31321(h) of this title.”

Subsec. (a)(2)(B) to (D). Pub. L. 111–281, § 913(d)(2), inserted “or” at end of subpar. (B), substituted “faith.” for “faith; or” at end of subpar. (C), and struck out subpar. (D) which read as follows: “does not comply with section 31321(h) of this title.”

1996—Subsec. (b). Pub. L. 104–324 struck out “31328 or” before “31329” in pars. (1) to (3).

### Statutory Notes and Related Subsidiaries

### Effective Date

Section effective Jan. 1, 1989, with certain exceptions and qualifications, see section 107 of Pub. L. 100–710, set out as a note under section 31301 of this title.