Coast Guard Documentation

Coast Guard Documentation describes a process that enables a boat owner to record their ownership of a particular vessel on a federal level. The federally-recorded ownership takes preference over other forms of proof of ownership, such as a state-issued title. In order for a boat to qualify for Coast Guard Documentation, it must be of a certain size, generally larger than 25 feet. In addition, the owner is required to be a US citizen. Marine lenders prefer a Coast Guard Documented boat to other forms of ownership, as it enables them to record a First Preferred Ship Mortgage against the vessel. This is the highest-priority lien available, enabling the lender to make a boat loan with less risk than if it received a different type of lien, such as a state title lien. The benefit of Coast Guard Documentation from a boat owners perspective, is that it potentially reduces the interest rate being charged (due to minimized lender risk) and enhances the boats value at the time of sale, as the Coast Guard document represents indisputable proof of ownership.