$1.2M Yacht Loan Default Spurs Federal Foreclosure Action in Fort Lauderdale
Case Summary: Centennial Bank v. M/Y Modern Day Drifter III & Robert S. Myers
Case No.: 0:25-cv-60705
Filed: April 11, 2025
Jurisdiction: U.S. District Court, Southern District of Florida – Admiralty Division
Plaintiff: Centennial Bank (Arkansas)
Defendants: In Rem: M/Y Modern Day Drifter III, a 72’ 2017 Azimut motor yacht; In Personam: Robert S. Myers (Florida resident)
Centennial Bank Seeks Arrest and Judicial Sale of 72’ Azimut Yacht “Modern Day Drifter III” Over Loan Default
- On March 2, 2018, Myers executed a $1.5 million loan (promissory note) with Radius Bank to finance the yacht.
- A First Preferred Ship Mortgage was recorded with the U.S. Coast Guard.
- The note changed hands through mergers, eventually landing with Centennial Bank in 2022.
- As of January 2025, Myers allegedly failed to make three consecutive monthly payments.
- On March 21, 2025, the bank accelerated the debt and issued a formal demand letter.
Total Claimed Debt:
- Principal: $1,162,430.09
- Interest (as of April 2, 2025): $32,813.52
- Late Fees: $1,861.26
- Legal Fees: $6,982.00
- Storage/Repossession/Insurance: $17,475.00
- Repairs: $1,355.30
- Total Claimed (Excluding future interest & costs): $1,222,917.17
Preferred Ship Mortgage Foreclosure & Rule C Arrest
Count I – Breach of Promissory Note (Against Myers)
- Centennial asserts Myers failed to meet payment obligations, triggering default remedies.
Count II – In Rem Foreclosure of Ship Mortgage (Against Vessel)
- The mortgage gives the bank the right to seize and sell the vessel upon default, under 46 U.S.C. §§ 31301–31343.
- Action brought under Supplemental Rule C for in rem arrest and judicial foreclosure of maritime lien.
Key Relief Sought:
- Warrant for the arrest of M/Y Modern Day Drifter III by U.S. Marshals.
- Judicial sale of the yacht to satisfy the debt.
- Right to credit bid at the auction sale.
- Judgment against borrower and vessel for full amount due, plus fees, costs, and interest.
Lender Protections in Yacht Financing Disputes
Growing Trend: Enforcement of Ship Mortgages via Rule C
- Preferred ship mortgages are highly enforceable under U.S. admiralty law.
- Lenders routinely file dual-track lawsuits (in rem against the vessel and in personam against borrower).
- Fort Lauderdale remains a hotspot for such filings due to the high volume of luxury yachts and transient ownership.
Legal & Financial Implications:
- Even “pleasure vessels” like the Azimut in this case are subject to arrest and judicial sale if secured loans go into default.
- Lenders who perfect their maritime liens and record mortgages with the Coast Guard maintain priority over most other creditors.
Takeaways for Yacht Owners, Buyers, and Lenders
For Lenders:
- Record preferred ship mortgages immediately.
- Monitor borrower payments closely and act quickly on default to preserve collateral value.
For Owners:
- Missed payments can lead to arrest, forced sale, and personal liability.
- Early negotiation may help avoid costly federal litigation and vessel seizure.
Call Today
If you’re a maritime lender or vessel owner facing a default, consult an admiralty attorney immediately.
Legal remedies under U.S. maritime law move fast—and can impact ownership, credit, and the ability to recover your investment.
