Bill Text: MS HB304 | 2015 | Regular Session | Introduced

Mississippi House Bill 304 (Prior Session Legislation)

Introduced

Bill Title: Uniform Certificate of Title for Watercraft Act; enact.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2015-02-03 - Died In Committee [HB304 Detail]

Download: Mississippi-2015-HB304-Introduced.html

MISSISSIPPI LEGISLATURE

2015 Regular Session

To: Judiciary B; Marine Resources

By: Representative Moak

House Bill 304

AN ACT TO CREATE THE MISSISSIPPI UNIFORM CERTIFICATE OF TITLE FOR WATERCRAFT ACT OF 2015; TO AMEND SECTION 59-25-1, MISSISSIPPI CODE OF 1972, TO DEFINE AND REVISE THE DEFINITION OF CERTAIN TERMS; TO CREATE NEW SECTION 59-25-2.1, MISSISSIPPI CODE OF 1972, TO PROVIDE FOR THE APPLICABILITY OF THE PROVISIONS OF THIS ACT TO ANY TRANSACTION, CERTIFICATE OF TITLE OR RECORD RELATING TO A WATERCRAFT; TO CREATE NEW SECTION 59-25-2.2, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE LAWS OF THE STATE OR JURISDICTION UNDER WHOSE CERTIFICATE OF TITLE COVERS A WATERCRAFT SHALL GOVERN THE MATTER RELATING TO THE WATERCRAFT UNTIL THE TIME THAT ANOTHER CERTIFICATE OF TITLE BECOMES EFFECTIVE AND DOCUMENTED; TO CREATE NEW SECTION 59-25-2.3, MISSISSIPPI CODE OF 1972, TO PROHIBIT THE OPERATION OF A WATERCRAFT SUBJECT TO TITLE UNDER THIS ACT UNTIL SUCH TIME THAT THE INDIVIDUAL HAS APPLIED TO THE DEPARTMENT OF WILDLIFE, FISHERIES AND PARKS FOR A CERTIFICATE OF TITLE OR A TEMPORARY REGISTRATION CERTIFICATE IS PROVIDED; TO AMEND SECTION 59-25-3, MISSISSIPPI CODE OF 1972, TO REQUIRE THAT THE APPLICATION FOR CERTIFICATE OF TITLE CONTAIN THE APPLICANT'S DRIVER'S LICENSE NUMBER, SOCIAL SECURITY NUMBER OR TAXPAYER IDENTIFICATION NUMBER OF EACH OWNER OF THE WATERCRAFT; TO CREATE NEW SECTION 59-25-6, MISSISSIPPI CODE OF 1972, TO PROVIDE FOR THE CREATION AND CANCELLATION OF A CERTIFICATE OF TITLE, AND TO PRESCRIBE CONDITIONS UNDER WHICH THE DEPARTMENT MAY REJECT AN APPLICATION FOR TITLE; TO REQUIRE THE DEPARTMENT TO PROVIDE THE OWNER AND ANY OTHER INTERESTED PARTY AN OPPORTUNITY FOR AN INFORMAL PROCEEDING TO PRESENT EVIDENCE IN SUPPORT OF CONTESTING THE CANCELLATION OF TITLE; TO CREATE NEW SECTION 59-25-6.1, MISSISSIPPI CODE OF 1972, TO SPECIFY THE INFORMATION TO BE INCLUDED IN THE CONTENT OF A CERTIFICATE OF TITLE; TO CREATE NEW SECTION 59-25-6.2, MISSISSIPPI CODE OF 1972, TO PRESCRIBE STIPULATIONS ON THE OWNER OF RECORD IN THE TRANSFER OF OWNERSHIP INTEREST IN A HULL-DAMAGED WATERCRAFT COVERED BY A CERTIFICATE OF TITLE; TO REQUIRE A BRAND DESIGNATION AS "HULL DAMAGED" IN THE APPLICATION FOR A NEW CERTIFICATE OF TITLE WITH THE DEPARTMENT, TO PRESCRIBE THE PENALTY FOR VIOLATIONS OF THIS PROVISION; TO AMEND SECTION 59-25-15, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE EFFECT OF CERTIFICATE OF TITLE IS PRIMA FACIE EVIDENCE OF THE ACCURACY OF THE INFORMATION IN THE RECORD THAT CONSTITUTES THE CERTIFICATE; TO CREATE NEW SECTION 59-25-16, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT POSSESSION OF CERTIFICATE OF TITLE DOES NOT ALONE GRANT A RIGHT TO OBTAIN POSSESSION OF A WATERCRAFT; NOR DOES GARNISHMENT, ATTACHMENT, LEVY, REPLEVIN OR OTHER JUDICIAL PROCESS; TO PROVIDE THAT A LEVY BY VIRTUE OF A PROPER COURT ORDER OR LEGAL ACTION SHALL CONSTITUTE A LIEN WHEN PROPER ACTION IS TAKEN BY THE OFFICER MAKING THE LEVY TO REPORT TO THE DEPARTMENT; TO CREATE NEW SECTION 59-25-19, MISSISSIPPI CODE OF 1972, TO REQUIRE THE DEPARTMENT TO ASSIGN AND MAINTAIN THE HULL IDENTIFICATION NUMBER OF THE WATERCRAFT AND ALL OTHER INFORMATION SUBMITTED WITH APPLICATION FOR CERTIFICATE OF TITLE; TO PROVIDE ACCESS TO THE INFORMATION REQUIRED UNDER CERTAIN PROVISION OF THIS ACT AS DOCUMENTS OF PUBLIC RECORD; TO CREATE NEW SECTION 59-25-20, MISSISSIPPI CODE OF 1972, TO REQUIRE THE DEPARTMENT TO PROMPTLY SEND THE CERTIFICATE OF TITLE TO THE SECURED PARTY OF RECORD OR TO THE OWNER OF RECORD UPON THE CREATION OF A WRITTEN CERTIFICATE OF TITLE; TO PROVIDE THAT A WRITTEN CERTIFICATE OF TITLE IF CREATED CANCEL AND REPLACES ANY ELECTRONIC CERTIFICATE OF TITLE FOR THE WATERCRAFT; TO REQUIRE THE SURRENDER OF ANY WRITTEN CERTIFICATE OF TITLE IN A WATERCRAFT BEFORE THE CREATION OF AN ELECTRONIC CERTIFICATE BY THE DEPARTMENT; TO CREATE NEW SECTION 59-25-21, MISSISSIPPI CODE OF 1972, TO PRESCRIBE THE MEANS OF PERFECTING A SECURITY INTEREST IN A WATERCRAFT; TO CREATE NEW SECTION 59-25-23, MISSISSIPPI CODE OF 1972, TO REQUIRE A SECURED PARTY INDICATED ON THE DEPARTMENT'S FILES AS HAVING A SECURITY INTEREST IN A WATERCRAFT TO DELIVER A TERMINATION STATEMENT TO THE DEPARTMENT ON THE DEBTOR'S REQUEST WITHIN TWENTY DAYS AFTER RECEIPT OF THE DEMAND FOR THE TERMINATION LETTER OR WITHIN THIRTY DAYS AFTER THERE IS NO OBLIGATION SECURED BY THE WATERCRAFT OR GIVE VALUE SECURED BY THE WATERCRAFT; TO HOLD A SECURED PARTY THAT FAILS TO DELIVER THE REQUIRED TERMINATION STATEMENT LIABLE FOR ANY LOSS SUCH PARTY HAD REASON TO KNOW COULD POSSIBLY RESULT FOR THE FAILURE; TO CREATE NEW SECTION 59-25-25, MISSISSIPPI CODE OF 1972, TO PROVIDE FOR TRANSFER OF OWNERSHIP IN A WATERCRAFT COVERED BY A CERTIFICATE OF TITLE; TO CREATE NEW SECTION 59-25-27, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT A CERTIFICATE OF TITLE OR OTHER RECORD AUTHORIZED BY THIS ACT IS EFFECTIVE IF IT CONTAINS INCORRECT INFORMATION OR LACKS THE REQUIRED INFORMATION; TO CREATE NEW SECTION 59-25-29, MISSISSIPPI CODE OF 1972, TO PROVIDE FOR TRANSFER OF OWNERSHIP IN A WATERCRAFT BY A SECURED PARTY'S TRANSFER STATE; TO CREATE NEW SECTION 59-25-31, MISSISSIPPI CODE OF 1972, TO PROVIDE FOR TRANSFER OF OWNERSHIP OR TERMINATION OF A SECURITY INTEREST IN A WATERCRAFT WITHOUT A CERTIFICATE OF TITLE; TO CREATE NEW SECTION 59-25-33, MISSISSIPPI CODE OF 1972, TO PROVIDE THE PROCEDURES TO BE TAKEN FOR THE REPLACEMENT OF CERTIFICATE OF TITLE IN EVENT OF LOSS, THEFT OR MUTILATION; TO CREATE NEW SECTION 59-25-35, MISSISSIPPI CODE OF 1972, TO PROVIDE RIGHTS TO A BUYER IN ORDINARY COURSE UNDER THE UNIFORM COMMERCIAL CODE; TO CREATE NEW SECTION 59-25-37, MISSISSIPPI CODE OF 1972, TO PRESCRIBE THE RIGHTS OF A SECURED PARTY FOR THE PERFECTION AND NONPERFECTION OF A SECURITY INTEREST WITH RESPECT TO THE RIGHTS OF A PURCHASER OR CREDITOR; TO CREATE NEW SECTION 59-25-39, MISSISSIPPI CODE OF 1972, TO PROVIDE A MEANS FOR ACQUIRING TITLE TO AN ABANDONED WATERCRAFT AFTER A PERIOD OF SIXTY DAYS OF ABANDONMENT; TO REQUIRE THE INDIVIDUAL DESIRING TO ACQUIRE TITLE IN THE ABANDONED WATERCRAFT TO PLACE NOTICE IN THREE CONSECUTIVE NOTICES IN A NEWSPAPER OF GENERAL CIRCULATION IN THE CITY OR COUNTY OF THE WATERCRAFT'S LOCATION; TO CREATE NEW SECTION 59-25-41, MISSISSIPPI CODE OF 1972, TO PRESCRIBE THE DUTIES AND OPERATIONS OF THE DEPARTMENT IN RETAINING DOCUMENTATION AS EVIDENCE TO ESTABLISH ACCURACY OF INFORMATION IN ITS FILES AND RETAINING INFORMATION REGARDING SECURITY INTEREST IN A WATERCRAFT FOR AT LEAST TEN YEARS; TO CREATE NEW SECTION 59-25-43, MISSISSIPPI CODE OF 1972, TO REQUIRE THAT CONSIDERATION BE GIVEN TO THE NEED TO PROMOTE UNIFORMITY OF THIS LAW IN CONSTRUING THE PROVISIONS HEREIN WITH STATES THAT ENACT SIMILAR UNIFORM LAWS PERTAINING TO CERTIFICATE OF TITLES FOR WATERCRAFT; TO CREATE NEW SECTION 59-25-45, MISSISSIPPI CODE OF 1972, TO PROVIDE A SAVING CLAUSE FOR CERTAIN TRANSACTIONS AND SECURITY INTERESTS IN WATERCRAFT CERTIFICATE OF TITLE CREATED BEFORE JULY 1, 2015, AND FOR A PRESCRIBED PERIOD THEREAFTER; TO BRING FORWARD SECTIONS 59-25-5, 59-25-7, 59-25-9, 59-25-11, 59-25-13 AND 59-25-17, MISSISSIPPI CODE OF 1972, FOR PURPOSES OF POSSIBLE AMENDMENTS; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 59-25-1, Mississippi Code of 1972, is amended as follows:

59-25-1. The following words, as used in this chapter, shall have the following meanings:

(a) "Abandoned watercraft" means a watercraft that is left unattended on private property for more than ten (10) days without the consent of the property's owner, regardless of whether it was brought onto the private property with the consent of the owner or person in control of the private property.

(b) "Barge" means a watercraft that is not self-propelled or fitted for propulsion by sail, paddle, oar, or similar device.

(d) "Buyer" means a person that buys or contracts to buy a watercraft.

(e) "Cancel," with respect to a certificate of title, means to make the certificate ineffective.

( * * *af) "Certificate of origin" * * * means a record created by a manufacturer or importer as the manufacturer's or importer's proof of identity of a watercraft. The term includes a manufacturer's certificate or statement of origin and an importer's certificate or statement of origin. The term does not include a builder's certificate.

(g) "Certificate of title" means a record, created by the department under this chapter or by a governmental agency of another jurisdiction under the law of that jurisdiction that is designated as a certificate of title by the department or agency and is evidence of ownership of a watercraft.

( * * *bh) "Dealer" means any person engaged wholly or in part in the business of selling or offering for sale, buying or taking in trade for the purpose of resale, or exchanging, displaying, demonstrating or offering for sale vessels or motors, and who receive or expect to receive money, profit or any other thing of value.

( * * *ci) "Department" means the Department of Wildlife, Fisheries and Parks.

( * * *dj) "Documented vessel" means a vessel documented under 46 * * *~~U.S.C.S.~~ USCS, Chapter 121.

(k) "Electronic" means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities.

(l) "Electronic certificate of title" means a certificate of title consisting of information that is stored solely in an electronic medium and is retrievable in perceivable form.

(m) "Foreign-documented vessel" means a watercraft whose ownership is recorded in a registry maintained by a country other than the United States that identifies each person that has an ownership interest in a watercraft and includes a unique alphanumeric designation for the watercraft.

(n) "Good faith" means honesty in fact and the observance of reasonable commercial standards of fair dealing.

(o) "Hull damaged" means compromised with respect to the integrity of a watercraft's hull by a collision, allision, lightning strike, fire, explosion, running aground or similar occurrence, or the sinking of a watercraft in a manner that creates a significant risk to the integrity of the watercraft's hull.

(p) "Hull identification number" means the alphanumeric designation assigned to a watercraft pursuant to 33 CFR, Part 181.

( * * *eq) "Lienholder," with respect to watercraft, means * * *~~a person holding a security interest~~:

(i) A creditor that has acquired a lien on the watercraft by attachment, levy, or the like;

(ii) An assignee for benefit of creditors from the time of assignment;

(iii) A trustee in bankruptcy from the date of the filing of the petition; or

(iv) A receiver in equity from the time of appointment.

( * * *fr) "Manufacturer" means any person engaged in the manufacture, construction or assembly of vessels, or their importation into the United States, for the purpose of sale or trade.

( * * *gs) "Motor" means any type of outboard device providing motorized propulsion for vessels operated by any type fuel.

( * * *ht) "Operate" means to navigate or otherwise use a vessel.

( * * *iu) "Owner" means a person, other than a lienholder, having the property in or title to a vessel or motor. The term includes a person entitled to the use or possession of a vessel or motor subject to an interest in another person, reserved or created by agreement and securing payment of performance of an obligation, but the term excludes a lessee under a lease not intended as security.

(v) "Owner of record" means the owner indicated in the files of the department or, if the files indicate more than one (1) owner, the owner first indicated.

( * * *jw) "Person" means an individual, firm, partnership, corporation, company, association, joint-stock association or governmental entity and includes a trustee, receiver, assignee or similar representative of any of them.

(x) "Purchase" means to take by sale, lease, mortgage, pledge, consensual lien, security interest, gift, or any other voluntary transaction that creates an interest in a watercraft.

(y) "Purchaser" means a person that takes by purchase.

(z) "Record" means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.

(aa) "Registration number" means the alphanumeric designation for a vessel issued pursuant to 46 USCS Section 12301.

(bb) "Secured party," with respect to a watercraft, means a person:

(i) In whose favor a security interest is created or provided for under a security agreement, whether or not any obligation to be secured is outstanding;

(ii) That is a consignor; or

(iii) That holds a security interest.

(cc) "Secured party of record" means the secured party whose name is indicated as the name of the secured party in the files of the department or, if the files indicate more than one (1) secured party, the party first indicated.

( * * *kdd) "Security interest" means an interest which is reserved or created by an agreement which secures payment or performance of an obligation if the interest is created by contract or arises under Sections 75-2-401 or 75-2-505, 75-2-711(3) or 75-2A-508(5) and is valid against third parties generally. The term includes any interest of a consignor in a watercraft in a transaction that is subject to Chapter 9, Title 75, Mississippi Code of 1972. The term does not include the special property interest of a buyer of a watercraft on identification of that watercraft to a contract for sale under Section 75-2-401, but a buyer also may acquire a security interest by complying with Chapter 9, Title 75, Mississippi Code of 1972. Except as otherwise provided in Section 79-2-505, the right of a seller or lessor of a watercraft under Chapters 2 and 2A, Title 75, Mississippi Code of 1972, to retain or acquire possession of the watercraft is not a security interest, but a seller or lessor also may acquire a security interest by complying with Chapter 9, Title 75, Mississippi Code of 1972. The retention or reservation of title by a seller of a watercraft notwithstanding shipment or delivery to the buyer under Section 75-2-401 is limited in effect to a reservation of a security interest is determined by Section 75-1-203.

( * * *lee) "State of principal operation" means the state on whose waters a vessel is used or to be used most during a calendar year.

(ff) "Title brand" means a designation of previous damage, use, or condition that shall be indicated on a certificate of title.

( * * *mgg) "Titling authority" means a state whose vessel titling system has been certified by the Coast Guard as complying with the guidelines for state vessel titling systems listed in 33 CFR, Part 187.

(hh) "Transfer of ownership" means a voluntary or in voluntary conveyance of an interest in a watercraft.

( * * *nii) "Use" means to operate, navigate or employ a vessel. A vessel is in use whenever it is upon the water.

( * * *ojj) " * * *~~Vessel~~ Watercraft" means * * * any vessel used or capable of being used as a means of transportation on water, that is required to be numbered in accordance with the Mississippi Boating Law, Chapter 21 of Title 59, Mississippi Code of 1972, except:

means of transportation on water, except:

(i) A seaplane;

(ii) An amphibious vehicle for which a certificate of title is issued under the laws of this state or a similar statute of another state;

(iii) Vessels less than sixteen (16) feet in length and propelled solely by sail, paddle, oar, or an engine of less than ten (10) horsepower;

(iv) Vessels that operate only on a permanently fixed, manufactured course and whose movement is restricted to or guided by means of a mechanical device to which the vessel is attached or by which the vessel is controlled;

(v) A stationary floating structure that:

1. Does not have and is not designed to have a mode of propulsion of its own;

2. Is dependent for utilities upon a continuous utility hookup to a source originating on shore; and

3. Has a permanent, continuous hookup to a shoreside sewage system;

(vi) Vessels owned by the United States, a state, or a foreign government or a political subdivision of any of them;

(vii) A vessel used solely as a lifeboat on another vessel; and

(viii) Vessels measuring between sixteen (16) feet and eighteen (18) feet in length that are propelled solely by sail, paddle, or oar owned or purchased before July 1, 2016.

(kk) "Written certificate of title" means a certificate of title consisting of information inscribed on a tangible medium.

SECTION 2. The following shall be codified as Section 59-25-2.1, Mississippi Code of 1972:

59-25-2.1. (1) This chapter applies to any transaction, certificate of title, or record relating to a watercraft, even if the transaction, certificate of title, or record was entered into or created before July 1, 2015.

(2) Unless displaced by a provision of this chapter, the principles of law and equity supplement its provisions.

SECTION 3. The following shall be codified as Section 59-25-2.2, Mississippi Code of 1972:

59-25-2.2. (1) The laws of the State of Mississippi or other jurisdiction under whose certificate of title a watercraft is covered governs all issues relating to the certificate from the time the watercraft becomes covered by the certificate until the watercraft becomes covered by another certificate or becomes a documented watercraft, even if no other relationship exists between the jurisdiction and the watercraft or its owner.

(2) A watercraft becomes covered by a certificate of title when an application for the certificate and the applicable fee are delivered to the Department of Wildlife, Fisheries and Parks in accordance with this chapter or to the governmental agency that creates a certificate in another jurisdiction in accordance with the law of that jurisdiction.

SECTION 4. The following shall be codified as Section 59-25-2.3, Mississippi Code of 1972:

59-25-2.3. (1) No person shall operate a watercraft subject to titling under this chapter unless the owner has applied to the department for a certificate of title for the watercraft or has been issued a valid temporary registration certificate. Except as otherwise provided in subsections (2) through (5) of this section, the owner of a watercraft for which Mississippi is the state of principal use shall deliver to the department an application for a certificate of title for the watercraft, with the applicable fee, not later than twenty (20) days after the later of:

(a) The date of a transfer of ownership; or

(b) The date Mississippi becomes the state of principal use.

(2) An application for a certificate of title is not required for:

(a) A documented vessel;

(b) A foreign-documented vessel;

(d) A watercraft before delivery if the watercraft is under construction or completed pursuant to contract; or

(e) A watercraft held by a dealer for sale or lease.

(3) A dealer transferring a watercraft required to be titled under this chapter shall assign the title to the new owner or, in the case of a new watercraft, assign the certificate of origin. The dealer shall forward all fees and applications to the department within twenty (20) days of sale. Each dealer shall maintain a record for six (6) years of any watercraft he bought, sold, exchanged, or received for sale or exchange. This record shall be available for inspection by department representatives during reasonable business hours.

(4) No dealer shall purchase or acquire a new watercraft without obtaining from the seller a certificate of origin. No manufacturer, importer, dealer or other person shall sell or otherwise dispose of a new watercraft to a dealer for purposes of display and resale without delivering to the dealer a certificate of origin. The certificate of origin shall be a uniform or standardized form prescribed by the department and shall contain:

(a) On the front, a description of the watercraft including its trade name, if any, year, series or model, body type and manufacturer's serial number; certification of date of transfer of watercraft and name and address of transferee; certification that this was the transfer of watercraft in ordinary trade and commerce; and the signature and address of a representative of the transferor; and

(b) On the reverse side, an assignment form, including the name and address of the transferee, a certification that the watercraft is new, and a warranty that the title at the time of delivery is subject only to such liens and encumbrances as set forth and described in full in the assignment.

(5) The department shall not issue, transfer, or renew under the requirements of 46 USCS Section 12301, a certificate of number for a watercraft unless the department has created a certificate of title for the watercraft or an application for a certificate for the watercraft and the applicable fee have been delivered to the department. Any owner of a watercraft that was not previously required to be titled and whose certificate of number has expired, shall apply for a certificate of title at the time of renewal of the certificate of number.

SECTION 5. Section 59-25-3, Mississippi Code of 1972, is amended as follows:

59-25-3. (1) Any owner of a vessel principally operated on the waters of the state and required to be numbered may apply to the department for a certificate of title for the vessel or the motor.

(2) (a) The application shall contain the name and mailing address of the owner, and the names and addresses of all persons having any liens or encumbrances upon the vessel or motor in the order of their priority. The application shall contain the signatures of all owners certifying that statements made are true and correct to the best of the applicant's knowledge, information and belief, under penalty of perjury.

(b) Every application for a certificate of title shall contain a description of the vessel or motor to be titled, including the state certificate of number (if previously assigned), hull length, type and principal material of construction, model year, the date of purchase, hull identification number, manufacturer, horse power, serial number and the name and address of the person from whom the vessel or motor was purchased. The application shall contain the date of sale and gross purchase price of the vessel or motor, or the fair market value if no sale immediately preceded the transfer and any additional information the department requires. If the application is made for a vessel or motor previously registered or titled in another state or foreign country, it shall contain this information. The application shall be on forms prescribed and furnished by the department and shall contain any other information required by the department.

(c) The application for certificate of title shall also contain the motor vehicle driver's license number, social security number or taxpayer identification number of each owner.

(3) If a dealer buys or acquires a used numbered vessel or motor for resale, he shall report the acquisition to the department on forms the department provides, or he may apply for and obtain a certificate of title as provided in this chapter. If a dealer acquires a new vessel or motor requiring titling for resale, he may apply for and obtain a certificate of title as provided in this chapter.

Every dealer transferring a vessel or motor requiring titling, as determined by the department, shall assign the title to the new owner, or in the case of a new vessel or motor assign either the certificate of origin or, if titled, the title.

(4) No person may sell, assign or transfer a vessel or motor titled by the department without delivering to the purchaser or transferee a certificate of title with an assignment on it showing title in the purchaser or transferee's name. No person may purchase or otherwise acquire a vessel or motor titled by the department without obtaining a certificate of title for it in his name.

(5) Every certificate of title shall contain the owner's name; the address of the principal place of residence of an individual owner and the address of the principal place of business of an owner that is not an individual, including zip code; date of title issuance; vessel or motor description, including the vessel or motor identification number as described in 33 CFR 187.05, name of manufacturer or model, year built or the model year, vessel length, vessel type, drive or propulsion type, motor horsepower, vessel use, hull material and fuel type; each lienholder's name and address; recording or perfection date of new liens and original recording date of any liens outstanding; and other items as required by the department. Space must also be provided for assignment of interest, with a certification that statements provided on the title assignment are true and correct to the best of the owner's knowledge, under penalty of perjury.

(6) The department shall retain the evidence used to establish the accuracy of the information required for titling purposes, and shall maintain a record of any certificate of title it issues.

SECTION 6. Section 59-25-5, Mississippi Code of 1972, is brought forward as follows:

59-25-5. (1) The department may charge a fee not to exceed Ten Dollars ($10.00) to issue a certificate of title; a transfer of title or a duplicate or corrected certificate of title.

(2) The holder of an original title shall apply for a duplicate title within thirty (30) days after, or after the discovery of, the loss, theft, mutilation or destruction of an original certificate of title. The department shall issue a duplicate certificate of title plainly marked "duplicate" across its face upon application by the person entitled to hold the certificate if the department is satisfied that the original certificate has been lost, stolen, mutilated, destroyed or has become illegible. The applicant shall furnish information concerning the original certificate and the circumstances of its loss, theft, mutilation or destruction. Mutilated or illegible certificates shall be returned to the department with the application for a duplicate. If a duplicate certificate of title has been issued and the lost or stolen original is recovered, the original shall be promptly surrendered to the department for cancellation.

SECTION 7. The following shall be codified as Section 59-25-6, Mississippi Code of 1972:

59-25-6. (1) Unless an application for a certificate of title is rejected under subsections (3) or (4), the department shall create a certificate for the watercraft in accordance with subsection (2) not later than twenty (20) days after delivery to it of an application that complies with Section 59-25-3.

(2) If the department creates electronic certificates of title, the department shall create an electronic certificate unless in the application the secured party of record or, if none, the owner of record, requests that the department create a written certificate.

(3) Except as otherwise provided in subsection (4), the department shall reject an application for a certificate of title only if:

(a) The application does not comply with Section

59-25-3;

(b) The application does not contain documentation sufficient for the department to determine whether the applicant is entitled to a certificate;

(c) There is a reasonable basis for concluding that the application is fraudulent or issuance of a certificate would facilitate a fraudulent or illegal act; or

(d) The application does not comply with the law of the commonwealth other than this chapter.

(4) The department shall reject an application for a certificate of title for a watercraft that is a documented vessel or a foreign-documented vessel.

(5) The department shall cancel a certificate of title created by it only if the department:

(a) Could have rejected the application for the certificate under subsection (3);

(b) Is required to cancel the certificate under another provision of this chapter; or

(6) The department shall provide an opportunity for an informal fact-finding proceeding at which the owner and any other interested party may present evidence in support of or opposition to cancellation of a certificate of title. The department shall serve all owners and secured parties indicated in the files of the department with notice of the opportunity for an informal fact-finding proceeding. Service shall be made personally or by mail through the United States Postal Service, properly addressed, postage paid, return receipt requested. Service by mail is complete on deposit with the United States Postal Service. The department by rule may authorize service by electronic transmission if a copy is sent on the same day by first-class mail or by a commercial delivery company. If not later than thirty (30) days after the notice was served, the department receives a request for an informal fact-finding proceeding from an interested party, the department shall hold the proceeding not later than twenty (20) days after receiving the request.

SECTION 8. The following shall be codified as Section 59-25-6.1, Mississippi Code of 1972:

59-25-6.1. (1) A certificate of title shall contain:

(a) The date the certificate was created;

(b) The name of the owner of record and, if not all owners are listed, an indication that there are additional owners indicated in the files of the department;

(d) The hull identification number;

(e) The information listed in Section 59-25-3(2)(b);

(f) Except as otherwise provided in Section 59-25-21(2), the name and mailing address of the secured party of record, if any, and if not all secured parties are listed, an indication that there are other security interests indicated in the files of the department; and

(g) All title brands indicated in the files of the department covering the watercraft, including brands indicated on a certificate created by a governmental agency of another jurisdiction and delivered to the department.

(2) The department may note on a certificate of title the name and mailing address of a secured party that is not a secured party of record.

(3) For each title brand indicated on a certificate of title, the certificate shall identify the jurisdiction under whose law the title brand was created or the jurisdiction that created the certificate on which the title brand was indicated. If the meaning of a title brand is not easily ascertainable or cannot be accommodated on the certificate, the certificate may state: "Previously branded in (insert the jurisdiction under whose law the title brand was created or whose certificate of title previously indicated the title brand)."

(4) If the files of the department indicate that a watercraft previously was registered or titled in a foreign country, the department shall indicate on the certificate of title that the watercraft was registered or titled in that country.

(5) A written certificate of title shall contain a form that all owners indicated on the certificate may sign to evidence consent to a transfer of an ownership interest to another person. The form shall include a certification, signed under penalty of perjury, that the statements made are true and correct to the best of each owner's knowledge, information and belief.

(6) A written certificate of title shall contain a form for the owner of record to indicate, in connection with a transfer of an ownership interest, that the watercraft is hull damaged.

SECTION 9. The following shall be codified as Section 59-25-6.2, Mississippi Code of 1972:

59-25-6.2. (1) Unless subsection (3) applies, at or before the time the owner of record transfers an ownership interest in a hull-damaged watercraft that is covered by a certificate of title created by the department, if the damage occurred while that person was an owner of the watercraft and the person has notice of the damage at the time of the transfer, the owner shall:

(a) Deliver to the department an application for a new certificate that complies with Section 59-25-3 and includes the title brand designation "Hull Damaged"; or

(b) Indicate on the certificate in the place designated for that purpose that the watercraft is hull damaged and deliver the certificate to the transferee.

(2) Not later than twenty (20) days after delivery to the department of the application under subsection (1)(a) of this section or the certificate of title under subsection (1)(b) of this section, the department shall create a new certificate that indicates that the watercraft is branded "Hull Damaged."

(3) Before an insurer transfers an ownership interest in a hull-damaged watercraft that is covered by a certificate of title created by the department, the insurer shall deliver to the department an application for a new certificate that includes the title brand designation "Hull Damaged." Not later than twenty (20) days after delivery of the application to the department, the department shall create a new certificate that indicates that the watercraft is branded "Hull Damaged."

(4) An owner of record that fails to comply with subsection (1), a person that solicits or colludes in a failure by an owner of record to comply with subsection (1), or an insurer that fails to comply with subsection (3) is subject to a civil penalty of One Thousand Dollars ($1,000.00).

SECTION 10. Section 59-25-7, Mississippi Code of 1972, is brought forward as follows:

59-25-7. (1) No dealer shall purchase or acquire a new vessel or motor without obtaining from the seller a manufacturer's or importer's certificate of origin. No manufacturer, importer, dealer or other person shall sell or otherwise dispose of a new vessel or motor to a dealer for purposes of resale without delivering to the dealer a manufacturer's or importer's certificate of origin.

(2) The manufacturer's or importer's certificate of origin shall be a uniform or standardized form prescribed by the department and shall contain: a description of the vessel or motor including its trade name, model year, length, type and hull identification number; an assignment form, including the certification of date of transfer of vessel or motor, the name and address of transferee; certification that the vessel or motor is new, and a warranty that the vessel or motor at the time of delivery is subject only to such liens and encumbrances as set forth and described in full in the assignment.

(3) Every dealer shall maintain for at least three (3) years a record of any vessel or motor bought, sold, exchanged or received for sale or exchange. This record shall be available for inspection by department representatives during reasonable business hours.

SECTION 11. Section 59-25-9, Mississippi Code of 1972, is brought forward as follows:

59-25-9. (1) Every vessel shall have a hull identification number assigned and affixed. The department shall assign a hull identification number to an undocumented vessel not having a hull identification number at the time of numbering or applying for a certificate of title after transfer of ownership or change of state of principal operation. Every motor shall have a motor serial number affixed.

(2) A person may not destroy, remove, alter, cover or deface the manufacturer's hull identification number or motor serial number, the plate bearing it or any hull identification number or motor serial number the department assigns to any vessel or motor, without authorization from the department.

SECTION 12. Section 59-25-11, Mississippi Code of 1972, is brought forward as follows:

59-25-11. (1) In the event of a transfer by operation of law of the title or interest of an owner in a vessel or motor titled under this chapter, the transferee or his legal representative shall apply to the department for a certificate of title within thirty (30) days of the transfer. The application shall be accompanied by the title or other states' registration previously issued for the vessel or motor, if available, together with any instruments or documents of authority, or certified copies thereof, satisfactory to the department as proof of ownership and the required fee.

(2) For purposes of this chapter, transfer by operation of law shall include transfers to anyone as legatee or distributee or as surviving joint owner or by an order in bankruptcy or insolvency, execution sale, repossession upon default in the performing of the terms of a lease or executory sales contract, or transfers pursuant to any written agreement ratified or incorporated in a decree or order of a court of record, or otherwise than by the voluntary act of the person whose title or interest is so transferred.

(3) If the holder of a certificate of title is deceased and there has been no qualification on his estate, a transfer may be made by a legatee or distributee. The legatee or distributee presents to the department the original certificate of title and a statement made to the effect that there has not been or expected to be a qualification on the estate and that the decedent's debts have been paid or that the proceeds from the sale of the vessel or motor will be applied against his debts. The statement shall contain the name, residence at the time of death, date of death of the decedent, and the names of any other persons having an interest in the vessel or motor for which the title is to be transferred. If these persons are of legal age, they shall indicate in writing their consent to the transfer of the title.

SECTION 13. Section 59-25-13, Mississippi Code of 1972, is brought forward as follows:

59-25-13. (1) The department, upon receiving an application for a certificate of title to a vessel or motor showing security interest on the vessel or motor, shall show upon the face of the certificate of title all security interest in the order of their priority as shown on the application. When a security interest exists, the application for a certificate of title must also contain the name and address of the secured party and the date and amount of the security interest.

(2) Security interest created after the original issue of title to the owner must be shown on the certificate of title. The owner shall surrender the original certificate of title to the department and file an application with the department containing the name and address of the secured party, the amount of the security interest, the date and payment of a filing fee. The department shall then issue a new certificate of title showing name and address of the secured party. The newly issued certificate of title shall be sent to the secured party.

For the purpose of recording a subsequent security interest, the department shall require any secured party to deliver the certificate of title to the department. Upon receipt of the certificate of title, completion of the forms and required fees, the department shall then issue a new certificate of title showing the security interest in the order of their priority according to the date of the filing of the application. The newly issued certificate of title shall be sent to the first secured party listed on the certificate of title.

(3) The certificate of title when issued by the department showing a security interest shall be adequate notice to the state, creditors and purchasers that a security interest exists. The recording or filing of the security interest in the county or city where the purchaser or debtor resides shall not be required.

(4) If application for the recordation of a security interest is filed in the principal office of the department within five (5) days from the date of the applicant's purchase of the vessel or motor, it shall be valid to all persons as if the recordation had been done on the day the security interest was acquired.

(5) The security interest, except security interest in inventory held for sale, shown on the certificates of title issued by the department pursuant to applications for certificates shall have priority over any other liens or security interest however created and recorded, except for liens designated by the department.

(6) The certificate of title shall be delivered to the person holding the security interest having first priority. The title shall be retained by that lienholder until the entire amount of the security interest is fully paid by the owner. The certificate of title shall then be delivered to the secured party next in order of priority and so on, or, if none, then to the owner.

(7) Upon the satisfaction of a security interest, the secured party shall attach to the certificate of title a release of security interest or in whatever form as may be prescribed by the department. Within five (5) days the secured party shall mail or deliver the certificate of title to the owner and a copy of the security release, if required by the department. Upon request of the owner and upon receipt of a copy of the security release, if required, and the certificate of title, the department shall correct its records and issue a new certificate of title to the owner.

(8) It shall constitute a misdemeanor for a secured party who holds a security interest as provided for in this chapter to refuse or fail to surrender the certificate of title to the person to whom it is legally entitled within five (5) days after the security interest has been paid and satisfied. The misdemeanor is punishable as provided in Section 59-21-153(a).

(9) This section does not apply to any of the following: a lien given by statute or rule of law to a supplier of services or materials for the vessel or motor; a lien given by statute to the United States, a state or a political subdivision thereof; or any lien arising out of an attachment of a vessel or motor.

SECTION 14. Section 59-25-15, Mississippi Code of 1972, is amended as follows:

59-25-15. (1) Issuance of a certificate of number shall be prima facie evidence of ownership of a vessel and entitles a person to a certificate of title, but certificate of number and certificate of title shall be subject to rebuttal.

(2) A certificate of title is prima facie evidence of the accuracy of the information in the record that constitutes the certificate.

SECTION 15. The following shall be codified as Section 59-25-16, Mississippi Code of 1972:

59-25-16. (1) Possession of a certificate of title does not by itself provide a right to obtain possession of a watercraft. Garnishment, attachment, levy, replevin, or other judicial process against the certificate is not effective to determine possessory rights to the watercraft. This chapter does not prohibit enforcement under law of this state other than this chapter of a security interest in, levy on, or foreclosure of a statutory or common-law lien on a watercraft. Absence of an indication of a statutory or common-law lien on a certificate does not invalidate the lien.

(2) A levy made by virtue of an execution, fieri facias, or other proper court order, upon a watercraft for which a certificate of title has been issued by the department, shall constitute a lien, when the officer making the levy reports to the department at its principal office, on forms provided by the department, that the levy has been made and that the vessel levied upon is in the custody of the officer. Should the lien thereafter be satisfied or should the vessel levied upon and seized thereafter be released by the officer, he shall immediately report that fact to the department at its principal office. Any owner who, after such levy and seizure by an officer and before the report is made by the officer to the department, fraudulently assigns or transfers his title to or interest in the watercraft, or causes the certificate of title to be assigned or transferred, or causes a security interest to be shown upon such certificate of title, is guilty of a misdemeanor.

SECTION 16. Section 59-25-17, Mississippi Code of 1972, is brought forward as follows:

59-25-17. (1) The department shall adopt the necessary rules and regulations to implement this chapter.

(2) The department shall prescribe and provide suitable forms of applications, certificates of title, notices of security interests and all other notices and forms necessary to carry out this chapter.

(3) The department may make necessary investigations to procure information required to carry out this chapter.

SECTION 17. The following shall be codified as Section 59-25-19, Mississippi Code of 1972:

59-25-19. (1) For each record relating to a certificate of title submitted to the department, the department shall:

(a) Ascertain or assign the hull identification number for the watercraft;

(b) Maintain the hull identification number and all the information submitted with the application under Section 59-25-3(2) to which the record relates, including the date and time the record was delivered to the department;

(d) Index the files of the department as required by subsection (2).

(2) The department shall maintain in its files the information contained in all certificates of title created under this chapter. The information in the files of the department shall be searchable by the hull identification number of the watercraft, the registration number, the name of the owner of record and any other method used by the department.

(3) The department shall maintain in its files, for each watercraft for which it has created a certificate of title, all title brands known to the department, the name of each secured party known to the department, the name of each person known to the department to be claiming an ownership interest and all stolen-property reports the department has received.

(4) Upon request, for safety, security or law-enforcement purposes, the department shall provide to federal, state or local government the information in its files relating to any watercraft for which the department has issued a certificate of title.

(5) Except as otherwise provided by the laws of the State of Mississippi other than this chapter, the information required under Section 59-25-6.1 is a public record. The information provided under subdivision Section 59-25-3(2)(c) is not a public record.

SECTION 18. The following shall be codified as Section 59-25-20, Mississippi Code of 1972:

59-25-20. (1) On creation of a written certificate of title, the department promptly shall send the certificate to the secured party of record or, if none, to the owner of record at the address indicated for that person in the files of the department. On creation of an electronic certificate of title, the department promptly shall send a record evidencing the certificate to the owner of record and, if there is one, to the secured party of record at the address indicated for that person in the files of the department. The department shall send the record to the person's mailing address or, if indicated in the files of the department, an electronic address.

(2) If the department creates a written certificate of title, any electronic certificate of title for the watercraft is canceled and replaced by the written certificate. The department shall maintain in the files of the department the date and time of cancellation.

(3) Before the department creates an electronic certificate of title, any written certificate for the watercraft shall be surrendered to the department. If the department creates an electronic certificate, the department shall destroy or otherwise cancel the written certificate for the watercraft that has been surrendered to the department and maintain in the files of the department the date and time of destruction or other cancellation. If a written certificate being canceled is not destroyed, the department shall indicate on the face of the certificate that it has been canceled.

SECTION 19. The following shall be codified as Section 59-25-21, Mississippi Code of 1972:

59-25-21. (1) Except as otherwise provided in this section or Section 59-25-45, a security interest in a watercraft shall be perfected only by delivery to the department of an application for a certificate of title that identifies the secured party and otherwise complies with Section 59-25-3. The security interest is perfected on the later of delivery to the department of the application and the applicable fee or attachment of the security interest.

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

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

(a) The name of the owner of record;

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

(d) If the department has created a written certificate of title for the watercraft, the certificate.

(4) A security interest perfected under subsection (3) is perfected on the later of delivery to the department of the application and all applicable fees or attachment of the security interest.

(5) On delivery of an application that complies with subsection (3) and payment of all applicable fees, the department shall create a new certificate of title pursuant to Section 59-25-6 and deliver the new certificate or a record evidencing an electronic certificate pursuant to Section 59-25-20(1). The department shall maintain in the files of the department the date and time of delivery of the application to the department.

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

(7) This section does not apply to a security interest:

(a) In a watercraft by a person during any period in which the watercraft 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 watercraft;

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

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

(8) This subsection applies if a certificate of documentation for a documented vessel is deleted or canceled. If a security interest in the watercraft was valid immediately before deletion or cancellation against a third party as a result of compliance with 46 USCS Section 31321, the security interest is and remains perfected until the earlier of four (4) months after cancellation of the certificate or the time the security interest becomes perfected under this article.

(9) A security interest in a watercraft arising is perfected when it attaches but becomes unperfected when the debtor obtains possession of the watercraft, unless before the debtor obtains possession the security interest is perfected pursuant to subsection (1) or (3).

SECTION 20. The following shall be codified as Section 59-25-23, Mississippi Code of 1972:

59-25-23. (1) A secured party indicated in the files of the department as having a security interest in a watercraft shall deliver a termination statement to the department and, on the debtor's request, to the debtor by the earlier of:

(a) Twenty (20) days after the secured party receives a signed demand from an owner for a termination statement and there is no obligation secured by the watercraft subject to the security interest and no commitment to make an advance, incur an obligation, or otherwise give value secured by the watercraft; or

(b) If the watercraft is consumer goods, thirty (30) days after there is no obligation secured by the watercraft and no commitment to make an advance, incur an obligation, or otherwise give value secured by the watercraft.

(2) If a written certificate of title has been created and delivered to a secured party and a termination statement is required under subsection (1), the secured party, not later than the date required by subsection (1), shall deliver the certificate to the debtor or to the department with the statement. An owner, upon securing the release of any security interest upon a vessel shown upon the certificate of title issued for the watercraft, may exhibit the documents evidencing the release, signed by the person or persons making such release, and the certificate of title to the department. If the certificate is lost, stolen, mutilated, destroyed, or is otherwise unavailable or illegible, the secured party shall deliver with the statement, not later than the date required by subsection (1), an application for a replacement certificate meeting the requirements of Section 59-25-33.

(3) On delivery to the department of a termination statement authorized by the secured party, the security interest to which the statement relates ceases to be perfected. If the security interest to which the statement relates was indicated on the certificate of title, the department shall create a new certificate and deliver the new certificate or a record evidencing an electronic certificate. The department shall maintain in its files the date and time of delivery to the department of the statement.

(4) A secured party that fails to deliver a required termination statement is liable for any loss that the secured party had reason to know might result from its failure to comply and that could not reasonably have been prevented and for the cost of an application for a certificate of title under Section 59-25-3

or 59-25-33.

(5) It shall constitute a misdemeanor for a secured party who holds a certificate of title to refuse or fail to surrender the certificate to the owner or his agent within ten (10) days after the security interest has been paid and satisfied.

SECTION 21. The following shall be codified as Section 59-25-25, Mississippi Code of 1972:

59-25-25. (1) On voluntary transfer of an ownership interest in a watercraft covered by a certificate of title, the following rules apply:

(a) If the certificate is a written certificate of title and the transferor's interest is noted on the certificate, the transferor promptly shall sign the certificate and deliver it to the transferee. If the transferor does not have possession of the certificate, the person in possession of the certificate has a duty to facilitate the transferor's compliance with this subdivision. A secured party does not have a duty to facilitate the transferor's compliance with this subdivision if the proposed transfer is prohibited by the security agreement.

(b) If the certificate of title is an electronic certificate of title, the transferor promptly shall sign and deliver to the transferee a record evidencing the transfer of ownership to the transferee.

(c) The transferee has a right enforceable by specific performance to require the transferor comply with paragraphs (a) or (b).

(2) The creation of a certificate of title identifying the transferee as owner of record satisfies subsection (1).

(3) A failure to comply with subsection (1) or to apply for a new certificate of title does not render a transfer of ownership of a watercraft ineffective between the parties. Except as otherwise provided in Sections 59-25-27, 59-25-29, 59-25-35 or 59-25-37, a transfer of ownership without compliance with subsection (1) is not effective against another person claiming an interest in the watercraft.

(4) A transferor that complies with subsection (1) is not liable as owner of the watercraft for an event occurring after the transfer, regardless of whether the transferee applies for a new certificate of title.

SECTION 22. The following shall be codified as Section 59-25-27, Mississippi Code of 1972:

59-25-27. A certificate of title or other record required or authorized by this chapter is effective even if it contains incorrect information or does not contain required information.

SECTION 23. The following shall be codified as Section 59-25-29, Mississippi Code of 1972:

59-25-29. (1) For the purpose of this section, "secured party's transfer statement" means a record signed by the secured party of record stating:

(a) A default on an obligation secured by the watercraft has occurred;

(b) The secured party of record is exercising or has exercised post-default remedies with respect to the watercraft;

(c) By reason of the exercise, the secured party of record has the right to transfer the ownership interest of an owner, and the name of the owner;

(d) The name and last-known mailing address of the owner of record and the secured party of record;

(e) The name of the transferee;

(f) All other information required by Section 59-25-3(2); and

(g) One of the following:

(i) The certificate of title is an electronic certificate;

(ii) The secured party does not have possession of the written certificate of title created in the name of the owner of record; or

(iii) The secured party is delivering the written certificate of title to the department with the secured party's transfer statement.

(2) Unless the department rejects a secured party's transfer statement for a reason stated in Section 59-25-6(3), not later than twenty (20) days after delivery to the department of the statement and payment of fees and taxes payable under the law of the state other than this chapter in connection with the statement or the acquisition or use of the watercraft, the department shall:

(a) Accept the statement;

(b) Amend the files of the department to reflect the transfer; and

(i) Cancel the certificate even if the certificate has not been delivered to the department;

(ii) Create a new certificate indicating the transferee as owner; and

(iii) Deliver the new certificate or a record evidencing an electronic certificate.

(3) An application under subsection (1) or the creation of a certificate of title under subsection (2) is not by itself a disposition of the watercraft and does not by itself relieve the secured party of its duties.

SECTION 24. The following shall be codified as Section 59-25-31, Mississippi Code of 1972:

59-25-31. (1) Except as otherwise provided in Section 59-25-11 or 59-25-29, if the department receives, unaccompanied by a signed certificate of title, an application for a new certificate that includes an indication of a transfer of ownership or a termination statement, the department shall create a new certificate under this section only if:

(a) All other requirements under Sections 59-25-3 and 59-25-6 are met;

(b) The applicant provides an affidavit stating facts showing the applicant is entitled to a transfer of ownership or termination statement;

(c) The applicant provides the department with satisfactory evidence that notification of the application has been sent to the owner of record and all persons indicated in the files of the department as having an interest, including a security interest, in the watercraft, at least forty-five (45) days have passed since the notification was sent, and the department has not received an objection from any of those persons; and

(d) The applicant submits any other information required by the department as evidence of the applicant's ownership or right to terminate the security interest, and the department has no credible information indicating theft, fraud, or an undisclosed or unsatisfied security interest, lien, or other claim to an interest in the watercraft.

(2) The department shall indicate in a certificate of title created under subsection (1) that the certificate was created without submission of a signed certificate or termination statement. Unless credible information indicating theft, fraud, or an undisclosed or unsatisfied security interest, lien, or other claim to an interest in the watercraft is delivered to the department not later than one (1) year after creation of the certificate, on request in a form and manner required by the department, the department shall remove the indication from the certificate.

(3) Unless the department determines that the value of a watercraft is less than Five Thousand Dollars ($5,000.00), before the department creates a certificate of title under subsection (1), the department shall require the applicant to post a bond or provide an equivalent source of indemnity or security. The bond, indemnity or other security shall not exceed twice the value of the watercraft as determined by the department. The bond, indemnity or other security shall be in a form required by the department and provide for indemnification of any owner, purchaser or other claimant for any expense, loss, delay or damage, including reasonable attorney fees and costs, but not including incidental or consequential damages, resulting from creation or amendment of the certificate.

(4) Unless the department receives a claim for indemnity not later than one (1) year after creation of a certificate of title under subsection (1), on request in a form and manner required by the department, the department shall release any bond, indemnity or other security.

SECTION 25. The following shall be codified as Section 59-25-33, Mississippi Code of 1972:

59-25-33. (1) If a written certificate of title is lost, stolen, mutilated, destroyed or otherwise becomes unavailable or illegible, the secured party of record or, if no secured party is indicated in the files of the department, the owner of record may apply for and, by furnishing information satisfactory to the department, obtain a replacement certificate in the name of the owner of record.

(2) An applicant for a replacement certificate of title shall sign the application and, except as otherwise permitted by the department, the application shall comply with Section 59-25-3. The application shall include the existing certificate unless the certificate is lost, stolen, mutilated, destroyed or otherwise unavailable.

(3) A replacement certificate of title created by the department shall comply with Section 59-25-6.1 and indicate on the face of the certificate that it is a replacement certificate.

(4) If a person receiving a replacement certificate of title subsequently obtains possession of the original written certificate, the person promptly shall destroy the original certificate of title.

SECTION 26. The following shall be codified as Section 59-25-35, Mississippi Code of 1972:

59-25-35. (1) A buyer in ordinary course of business has the protections afforded by Section 75-2-403(2) and Section 75-9-320(a) even if an existing certificate of title was not signed and delivered to the buyer or a new certificate listing the buyer as owner of record was not created.

(2) Except as otherwise provided in Sections 59-25-25 and 59-25-37, the rights of a purchaser of a watercraft that is not a buyer in ordinary course of business or a lien creditor are governed by the Uniform Commercial Code.

SECTION 27. The following shall be codified as Section 59-25-37, Mississippi Code of 1972:

59-25-37. (1) Subject to subsections (2) or (3), the effect of perfection and nonperfection of a security interest and the priority of a perfected or unperfected security interest with respect to the rights of a purchaser or creditor, including a lien creditor, is governed by Chapters 1 through 11, Title 75, Mississippi Code of 1972.

(2) A security interest perfected under this article has priority over any statutory lien on the watercraft, except for a mechanics lien for repairs to the extent of One Hundred Fifty Dollars ($150.00), provided the mechanic furnishes the holder of any such recorded lien who requests it with an itemized sworn statement of the work done and materials supplied for which the lien is claimed.

(3) If while a security interest in a watercraft is perfected by any method under this article, the department creates a certificate of title that does not indicate that the watercraft is subject to the security interest or contain a statement that it may be subject to security interests not indicated on the certificate:

(a) A buyer of the watercraft, other than a person in the business of selling or leasing watercraft of that kind, takes free of the security interest if the buyer, acting in good faith and without knowledge of the security interest, gives value and receives possession of the watercraft; and

(b) The security interest is subordinate to a conflicting security interest in the watercraft that is perfected under Section 59-25-21 after creation of the certificate and without the conflicting secured party's knowledge of the security interest.

SECTION 28. The following shall be codified as Section 59-25-39, Mississippi Code of 1972:

59-25-39. (1) Any watercraft abandoned for a period exceeding sixty (60) days is subject to the provisions of this section.

(2) A landowner, his lessee or his agent may acquire title to any watercraft abandoned on his land or the water immediately adjacent to his land. Acquisition of title, under the provisions of this section, divests any other person of any interest in the watercraft.

(3) If a watercraft has a registration number assigned by this state or any other state, or if there are other means of identifying the owner, the person desiring to acquire title shall make a good faith effort to secure the last-known address of all owners and lien holders. He shall notify each owner and lien holder by registered letter that if ownership is not claimed and the watercraft not removed within thirty (30) days, he will apply for title to the watercraft in his name.

(4) The person desiring to acquire title also shall place a notice, to appear for three (3) consecutive issues, in a newspaper of general circulation in the county or city where the watercraft is located. The notice shall describe the watercraft, its location and any identifying number or numbers. The notice shall state that if the watercraft is not claimed and removed within thirty (30) days after the first day the notice was published, the person who has placed the notice shall apply to the department for title to the watercraft.

(5) At the end of the thirty-day period, the person seeking to acquire the watercraft shall apply to the department for title. The application shall be accompanied by the following:

(a) An affidavit stating that to the best of the applicant's knowledge the watercraft has been abandoned for a period of at least sixty (60) days;

(b) Proof that the registered letter required by the department was mailed at least thirty (30) days before application or a detailed explanation of the steps taken to identify the owner and lien holder; and

(6) Upon receipt by the department of all items required by subsection (5), and after all fees and taxes due have been paid, the department shall then issue title to the watercraft to the applicant.

(7) All costs incurred in obtaining title to a watercraft under this section shall be borne by the applicant.

SECTION 29. The following shall be codified as Section 59-25-41, Mississippi Code of 1972:

59-25-41. (1) The department shall retain the evidence used to establish the accuracy of the information in its files relating to the current ownership of a watercraft and the information on the certificate of title.

(2) The department shall retain in its files all information regarding a security interest in a watercraft for at least ten (10) years after the department receives a termination statement regarding the security interest. The information shall be accessible by the hull identification number for the watercraft and any other methods provided by the department.

(3) If a person submits a record to the department, or submits information that is accepted by the department, and requests an acknowledgment of the filing or submission, the department shall send to the person an acknowledgment showing the hull identification number of the watercraft to which the record or submission relates, the information in the filed record or submission, and the date and time the record was received or the submission accepted. A request under this section shall contain the hull identification number and be delivered by means authorized by the department.

(4) The department shall send or otherwise make available in a record the following information to any person that requests it and pays the applicable fee:

(a) Whether the files of the department indicate, as of a date and time specified by the department, but not a date earlier than three (3) days before the department received the request, any certificate of title, security interest, termination statement, or title brand that relates to a watercraft:

(i) Identified by a hull identification number designated in the request;

(ii) Identified by a registration number designated in the request; or

(iii) Owned by a person designated in the request;

(b) With respect to the watercraft:

(i) The name and address of any owner as indicated in the files of the department or on the certificate of title;

(ii) The name and address of any secured party as indicated in the files of the department or on the certificate, and the effective date of the information; and

(iii) A copy of any termination statement indicated in the files of the department and the effective date of the termination statement; and

(c) With respect to the watercraft, a copy of any certificate of origin, secured party transfer statement, transfer by law statement under Section 59-25-11, and other evidence of previous or current transfers of ownership.

(5) In responding to a request under this section, the department shall provide the requested information in any medium. On request, the department shall send the requested information in a record that is self-authenticating.

(6) Employees of the department are authorized to administer oaths and take acknowledgments and affidavits incidental to the administration and enforcement of this article. They shall receive no compensation for these services.

SECTION 30. The following shall be codified as Section 59-25-43, Mississippi Code of 1972:

59-25-43. In applying and construing this uniform act, consideration shall be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it.

SECTION 31. The following shall be codified as Section 59-25-45, Mississippi Code of 1972:

59-25-45. (1) The rights, duties and interests flowing from a transaction, certificate of title or record shall remain valid on and after July 1, 2015, if the transaction, certificate of title, or record:

(a) Relates to a watercraft;

(b) Was validly entered into or created before July 1, 2015; and

(2) This chapter does not affect an action or proceeding commenced before July 1, 2015.

(3) Except as otherwise provided in subsection (4), a security interest that is enforceable immediately before July 1, 2015, and would have priority over the rights of a person that becomes a lien creditor at that time is a perfected security interest under this chapter.

(4) A security interest perfected immediately before July 1, 2015, remains perfected until the earlier of:

(a) The time perfection would have ceased under the law under which the security interest was perfected; or

(b) Three (3) years after July 1, 2015.

(5) This chapter does not affect the priority of a security interest in a watercraft if immediately before July 1, 2015, the security interest is enforceable and perfected, and that priority is established.

SECTION 32. This act shall take effect and be in force from and after July 1, 2015.