What is a maritime lien?

A maritime lien is a legal claim that is created when a creditor renders a service to a vessel or other maritime property. This lien is used to secure the payment of a debt that is owed to the creditor. In California, maritime liens are governed by the Federal Maritime Lien Act of 1925. This act states that a creditor shall have the right of lien on a vessel, any part of its cargo, or any other maritime property when the creditor has provided “necessaries” such as materials, repairs, supplies, or labor used to maintain the vessel or its operation. This lien serves to protect the creditor from the debtor’s failure to pay the debt owed in connection with the “necessaries” provided. The maritime lien can be enforced in a federal court of law by issuing a warrant of arrest, which is an order granting the creditor the right to seize the property of the debtor. Upon payment of the debt, the maritime lien is removed and the vessel or property is returned to its rightful owner.

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