Chemical Bank New York Trust Company, Trustee, Mortgagee v. Steamship Westhampton (Formerly Steamship Montauk Point), Her Engines, Boilers, Etc.
Court of Appeals for the Fourth Circuit
1Opinion of the Court
SOBELOFF, Chief Judge.
These appeals are from a decree that the first preferred mortgage and indenture dated August 6,1962, from Seatrade Corporation to Chemical Bank New York Trust Company, is not a preferred mortgage under section 922 of the Ship Mortgage Act of 1920. 41 Stat. 1000 (1920), as amended, 46 U.S.C.A. § 922 (Supp. V, 1964).
Seatrade contracted with Struelcken Shipyard of Hamburg, Germany, during 1961, to convert an aged T-2 tanker into a modern bulk cargo carrier. The tanker involved was the SS. WESTHAMPTON, a vessel documented under the laws of the United States at all times…
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