California Yacht And Ship Licensing Practice Exam

Owner declines consent to storage; what must occur before the vessel can remain?

The owner must satisfy the lien and remove the vessel. The lien is canceled. The vessel is seized by authorities. The owner must remove the vessel without paying.

Correct Answer:

The owner must satisfy the lien and remove the vessel.

Explanation:

A storage lien on a vessel is the claim a storage operator has to secure payment of storage charges. If the owner doesn’t consent to storage, the vessel can stay only after those charges are paid and the lien is satisfied. Paying the lien releases the vessel from the storage hold, allowing it to be removed or reclaimed. If the lien isn’t satisfied, the storage holder can keep the vessel or pursue enforcement to recover the debt. The lien isn’t automatically canceled, and authorities don’t have to seize the vessel as the immediate step. So, the owner must pay the storage charges (satisfy the lien) and then remove the vessel.

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