46 U.S.C. § 31329

1. (a)A documented vessel may be sold by order of a district court only to—
   1. (1)a person eligible to own a documented vessel under section 12103 of this title; or
   2. (2)a mortgagee of that vessel.
2. (b)When a vessel is sold to a mortgagee not eligible to own a documented vessel—
   1. (1)the vessel must be held by the mortgagee for resale;
   2. (2)the vessel held by the mortgagee is subject to chapter 563 of this title; and
   3. (3)the sale of the vessel to the mortgagee is not a sale to a person not a citizen of the United States under section 12132 of this title.
3. (c)Unless waived by the Secretary of Transportation, a person purchasing a vessel by court order under subsection (a)(1) of this section or from a mortgagee under subsection (a)(2) of this section must document the vessel under chapter 121 of this title.
4. (d)The vessel may be operated by the mortgagee not eligible to own a documented vessel only with the approval of the Secretary of Transportation.
5. (e)A sale of a vessel contrary to this section is void.
6. (f)This section does not apply to a documented vessel that has been operated only for pleasure.