[§200A-15] Perfection of security interest.

752 words·~3 min read·/hi/200a-15

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)Except as otherwise provided in this section or section 200A-28, a security interest in a vessel may be perfected only by receipt by the department of an application for a certificate of title that identifies the secured party and otherwise complies with section 200A-7. The security interest is perfected on receipt by the department of the application and the applicable fee or attachment of the security interest under section 490:9-203, whichever occurs later.

(b)If the interest of a person named as owner, lessor, consignor, or bailor in an application for a certificate of title received by the department is a security interest, the application shall be deemed to sufficiently identify the person as a secured party. Identification on the application for a certificate of a person as owner, lessor, consignor, or bailor shall not be by itself a factor in determining whether the person's interest is a security interest.

(c)If the department has created a certificate of title for a vessel, a security interest in the vessel may be perfected by receipt by the department of an application, on a form the department may require, to have the security interest added to the certificate. The application shall be signed by an owner of the vessel or by the secured party and shall include:

(1)The name of the owner of record;

(2)The name and mailing address of the secured party;

(3)The hull identification number for the vessel; and

(4)If the department has created a written certificate of title for the vessel, the certificate.

(d)A security interest perfected under subsection

(c)is perfected on receipt by the department of the application and all applicable fees or attachment of the security interest under section 490:9-203, whichever occurs later.

(e)On receipt of an application that complies with subsection

(c)and payment of all applicable fees, the department shall create a new certificate of title pursuant to section 200A-8 and deliver the new certificate or a record evidencing an electronic certificate pursuant to section 200A-12(a). The department shall maintain in its files the date and time of receipt of the application by the department.

(f)If a secured party assigns a perfected security interest in a vessel, the receipt by the department of a statement providing the name of the assignee as secured party shall not be required to continue the perfected status of the security interest against creditors of and transferees from the original debtor. A purchaser of a vessel subject to a security interest that obtains a release from the secured party indicated in the department's files or on the certificate takes free of the security interest and of the rights of a transferee unless the transfer is indicated in the department's files or on the certificate.

(g)This section shall not apply to a security interest:

(1)Created in a vessel by a person during any period in which the vessel is inventory held for sale or lease by the person or is leased by the person as lessor if the person is in the business of selling vessels;

(2)In a barge for which no application for a certificate of title has been delivered to the department; or

(3)In a vessel before delivery if the vessel is under construction, or completed, pursuant to contract and for which no application for a certificate has been delivered to the department.

(h)This subsection shall only apply if a certificate of documentation for a documented vessel is deleted or canceled. If a security interest in the vessel was valid immediately before deletion or cancellation against a third party as a result of compliance with title 46 United States Code section 31321, as amended, the security interest is and remains perfected until four months after cancellation of the certificate or the time the security interest becomes perfected under this chapter, whichever occurs earlier.

(i)A security interest in a vessel arising under section 490:2-401, 490:2-505, 490:2-711(3), or 490:2A-508(e) is perfected when it attaches but becomes unperfected when the debtor obtains possession of the vessel, unless before the debtor obtains possession the security interest is perfected pursuant to subsection

(a)or (c).

(j)A security interest in a vessel as proceeds of other collateral is perfected to the extent provided in section 490:9-315.

(k)A security interest in a vessel perfected under the law of another jurisdiction is perfected to the extent provided in section 490:9-316(d). [L 2018, c 46, pt of §1]