Re: Can someone explain Coast Guard Registered boats?
Commercial capability ^^^^^
With a licensed Master Captain on board she can be used for hire with more than 6 passengers. Undocumented is limited to 6 passengers with an OUPV (Operator of Uninspected Passenger Vessel) Captain AKA 6 pack . . .
Not necessarily, Vessels are documented as either commercial,or recreational. Just looking at our renewed Certificate of Documentation that came in the mail yesterday, I see that our boat is limited to recreational use only and restricted from coastwise shipping (freight & people transportation) and commercial fishing.
Reasons for documenting include:
1. Lenders prefer it;
a) Boat can be traced not only nationally, but internationally via HIN or documentation number,
b) Debt on a documented vessel is very clearly a maritime lien giving a lender vastly superior powers in the event of a default,
2. It can be cheaper for the owners as there are no fees for annual renewal.
3. Some people do document to avoid payment of ad valorum, excise, or personal property taxes.
4. Documented vessels are legal entities (like corporations) that do not pass liabilities down to the owners. That is good for you in the event of an accident, like an oil spill, or if you want to create a trust or corporation to own the vessel. But it is also bad for you if you buy a documented vessel that has outstanding debt on it created by the previous owner. If the PO does not clear that debt, it stays with the vessel. So once you own the boat a debt holder can come to you and demand you pay the debt. His recourse is that he can seize the vessel ('arrest') by obtaining a court order that will be granted because of the maritime lien that exists.
