Sec. 1548.20. (A) Chapter 1309. of the Revised Code does not | 12 |
permit or require the deposit, filing, or other record of a | 13 |
security interest covering a watercraft or outboard motor for | 14 |
which a certificate of title is required. Any security agreement | 15 |
covering a security interest in a watercraft or outboard motor, if | 16 |
it is accompanied by delivery of a manufacturer's or importer's | 17 |
certificate and followed by actual and continued possession of | 18 |
that certificate by the holder of the instrument, or, in the case | 19 |
of a certificate of title, if a notation of the security agreement | 20 |
has been made by a clerk of a court of common pleas on the face of | 21 |
the certificate of title or the clerk has entered a notation of | 22 |
the agreement into the automated title processing system and a | 23 |
physical certificate of title for the watercraft or outboard motor | 24 |
has not been issued, shall be valid as against the creditors of | 25 |
the debtor, whether armed with process or not, and against | 26 |
subsequent purchasers, secured parties, and other lienholders or | 27 |
claimants. All security interests, liens, mortgages, and | 28 |
encumbrances entered into the automated title processing system in | 29 |
relation to a particular certificate of title, regardless of | 30 |
whether a physical certificate of title is issued, take priority | 31 |
according to the order of time in which they are entered into the | 32 |
automated title processing system by the clerk. Exposure for sale | 33 |
of any watercraft or outboard motor by its owner, with the | 34 |
knowledge or with the knowledge and consent of the holder of any | 35 |
security interest, lien, mortgage, or encumbrance on the | 36 |
watercraft or outboard motor, shall not render the security | 37 |
interest lien, mortgage, or encumbrance ineffective as against the | 38 |
creditors of the owner or against holders of subsequent security | 39 |
interests, liens, mortgages, or encumbrances upon the watercraft | 40 |
or outboard motor. | 41 |
(B) If a secured party presents evidence of the security | 42 |
interest to a clerk of a court of common pleas together with the | 43 |
certificate of title, if a physical certificate of title for the | 44 |
watercraft or outboard motor exists, and the fee prescribed by | 45 |
section 1548.10 of the Revised Code, the clerk, unless the secured | 46 |
party specifically requests the clerk not to issue a physical | 47 |
certificate of title, shall issue a new original certificate of | 48 |
title from the automated title processing records. The new | 49 |
certificate shall indicate the security interest and the date of | 50 |
the security interest. The clerk also shall note the security | 51 |
interest and its date in the clerk's files and enter that | 52 |
information into the automated title processing system, and on | 53 |
that day shall notify the chief of the division of watercraft. The | 54 |
clerk shall indicate by appropriate notation on the security | 55 |
agreement itself the fact that the security interest has been | 56 |
noted on the certificate of title. | 57 |
(C) If a security interest is fully discharged as a result of | 58 |
its holder's receipt of good funds in the correct amount and if | 59 |
the holder holds a physical certificate of title, the holder shall | 60 |
note the discharge of the security interest over the holder's | 61 |
signature on the face of the certificate of title, or, if there is | 62 |
not sufficient space for the notation on the face of the | 63 |
certificate of title, the holder shall note the discharge over the | 64 |
holder's signature on a form prescribed by the chief. Except as | 65 |
otherwise provided in this section, prior to delivering the | 66 |
certificate of title to the owner, the holder or the holder's | 67 |
agent shall convey the certificate of title or a separate sworn | 68 |
statement of the discharge of the security interest and any | 69 |
additional information the chief requires to a clerk. The | 70 |
conveyance shall occur not more than seven business days after the | 71 |
date good funds in the correct amount to fully discharge the | 72 |
security interest have been credited to an account of the holder, | 73 |
provided the holder has been provided accurate information | 74 |
concerning the watercraft or outboard motor. Conveyance of the | 75 |
certificate of title or separate sworn statement of the discharge | 76 |
within the required seven business days may be indicated by | 77 |
postmark or receipt by a clerk within that period. If the | 78 |
discharge of the security interest appears to be genuine, the | 79 |
clerk shall note the discharge of the security interest on the | 80 |
face of the certificate of title, if it was so conveyed, and note | 81 |
it in the automated title processing system. | 82 |
If a security interest is fully discharged as a result of its | 83 |
holder's receipt of good funds in the correct amount and the | 84 |
holder does not hold a physical certificate of title, when the | 85 |
holder notifies a clerk of the discharge of its security interest, | 86 |
the holder at that time also may request the clerk to issue a | 87 |
physical certificate of title to the watercraft or outboard motor. | 88 |
The request shall specify whether the clerk is to send the | 89 |
certificate of title directly to the owner or to the holder or the | 90 |
holder's agent for transmission to the owner. If such a request is | 91 |
made, the clerk shall issue a physical certificate of title and | 92 |
send it to the specified person. | 93 |
(D)(1) In all cases, a secured party may choose to present a | 98 |
clerk with evidence of a security interest via electronic means, | 99 |
and the clerk shall enter the security interest into the automated | 100 |
title processing system. A secured party also may choose to notify | 101 |
a clerk of the discharge of its security interest via electronic | 102 |
means, and the clerk shall enter the cancellation into the | 103 |
automated title processing system. | 104 |
(2) In the case of a security interest that is being | 105 |
satisfied by a watercraft dealer to whom a certificate of title is | 106 |
being transferred, the cancellation of the security interest shall | 107 |
occur during the course of the transfer. The dealer shall submit a | 108 |
discharge request to the secured party. A discharge request shall | 109 |
include good funds in the correct amount to fully discharge the | 110 |
security interest and accurate information concerning the | 111 |
watercraft or outboard motor. | 112 |
(3)(a) Upon receiving a discharge request that complies with | 113 |
division (D)(2) of this section, except as otherwise provided in | 114 |
this division, a secured party shall convey the certificate of | 115 |
title, with the discharge of the security interest noted on its | 116 |
face, to the dealer within seven business days after the date good | 117 |
funds in the correct amount to fully discharge the security | 118 |
interest have been credited to an account of the secured party. | 119 |
(4) A secured party is liable to a dealer for a late fee of | 131 |
ten dollars per day for each certificate of title, or affidavit | 132 |
and required payment, conveyed to the dealer more than seven | 133 |
business days but less than twenty-one days after the date | 134 |
specified in division (D)(3)(a) of this section and, from then on, | 135 |
twenty-five dollars per day until the certificate of title, or | 136 |
affidavit and required payment, are conveyed to the dealer. | 137 |
(E) IfRegardless of whether a physical certificate of title | 138 |
has not been issued for a watercraft or outboard motor and, if all | 139 |
the security interests relating to that watercraft or outboard | 140 |
motor have been discharged and if the secured party does not | 141 |
convey to the owner of the watercraft or outboard motor a physical | 142 |
certificate of title with the discharge noted on the certificate, | 143 |
the owner of the watercraft or outboard motor may obtain aone | 144 |
physical certificate of title for the watercraft or outboard motor | 145 |
from the clerk of any court of common pleas uponwithout payment | 146 |
of the fee specified in section 1548.10 of the Revised Code. The | 147 |
owner of the watercraft or outboard motor thereafter may obtain a | 148 |
duplicate physical certificate of title for the watercraft or | 149 |
outboard motor from the clerk of any court of common pleas upon | 150 |
payment of the fee specified in section 1548.10 of the Revised | 151 |
Code. | 152 |
(F) If a clerk of a court of common pleas, other than the | 153 |
clerk of the court of common pleas of the county in which the | 154 |
owner of a watercraft or outboard motor resides, enters a notation | 155 |
of the existence of, or the cancellation of, a security interest | 156 |
relating to the watercraft or outboard motor, the clerk shall | 157 |
transmit the data relating to the notation to the automated title | 158 |
processing system. | 159 |
(2) Chapter 1309. of the Revised Code applies to a security | 178 |
interest in a motor vehicle held as inventory for sale by a | 179 |
dealer. The security interest has priority over creditors of the | 180 |
dealer as provided in Chapter 1309. of the Revised Code without | 181 |
notation of the security interest on a certificate of title, | 182 |
without entry of a notation of the security interest into the | 183 |
automated title processing system if a physical certificate of | 184 |
title for the motor vehicle has not been issued, or without the | 185 |
retention of a manufacturer's or importer's certificate. | 186 |
(B) Subject to division (A) of this section, any security | 187 |
agreement covering a security interest in a motor vehicle, if a | 188 |
notation of the agreement has been made by a clerk of a court of | 189 |
common pleas on the face of the certificate of title or the clerk | 190 |
has entered a notation of the agreement into the automated title | 191 |
processing system and a physical certificate of title for the | 192 |
motor vehicle has not been issued, is valid as against the | 193 |
creditors of the debtor, whether armed with process or not, and | 194 |
against subsequent purchasers, secured parties, and other | 195 |
lienholders or claimants. All security interests, liens, | 196 |
mortgages, and encumbrances entered into the automated title | 197 |
processing system in relation to a particular certificate of | 198 |
title, regardless of whether a physical certificate of title is | 199 |
issued, take priority according to the order of time in which they | 200 |
are entered into the automated title processing system by the | 201 |
clerk. Exposure for sale of any motor vehicle by its owner, with | 202 |
the knowledge or with the knowledge and consent of the holder of | 203 |
any security interest, lien, mortgage, or encumbrance on it, does | 204 |
not render that security interest, lien, mortgage, or encumbrance | 205 |
ineffective as against the creditors of that owner, or against | 206 |
holders of subsequent security interests, liens, mortgages, or | 207 |
encumbrances upon that motor vehicle. | 208 |
The secured party, upon presentation of evidence of a | 209 |
security interest to a clerk of a court of common pleas, together | 210 |
with the certificate of title if a physical certificate of title | 211 |
for the motor vehicle exists, and the fee prescribed by section | 212 |
4505.09 of the Revised Code, may have a notation of the security | 213 |
interest made. Unless the secured party specifically requests the | 214 |
clerk not to issue a physical certificate of title and instead to | 215 |
issue an electronic certificate of title, the clerk shall issue, | 216 |
over the clerk's signature and seal of office, a new original | 217 |
certificate of title from the automated title processing records | 218 |
that indicates the security interest and the date of the security | 219 |
interest. | 220 |
If a security interest is fully discharged as a result of its | 221 |
holder's receipt of good funds in the correct amount and if the | 222 |
holder holds a physical certificate of title, the holder shall | 223 |
note the discharge of the security interest on the face of the | 224 |
certificate of title over the holder's signature, or over the | 225 |
holder's signature on a form prescribed by the registrar of motor | 226 |
vehicles when there is no space for the discharge on the face of | 227 |
the certificate of title. Except as otherwise provided in this | 228 |
section, prior to delivering the certificate of title to the | 229 |
owner, the holder or the holder's agent shall convey the | 230 |
certificate of title or a separate statement of the discharge of | 231 |
the security interest to a clerk. The conveyance shall occur not | 232 |
more than seven business days after the date good funds in the | 233 |
correct amount to fully discharge the security interest have been | 234 |
credited to an account of the holder, provided the holder has been | 235 |
provided accurate information concerning the motor vehicle. | 236 |
Conveyance of the certificate of title or separate statement of | 237 |
the discharge within the required seven business days may be | 238 |
indicated by postmark or receipt by a clerk within that period, | 239 |
or, in the case of a written confirmation that is sent | 240 |
electronically as provided in division (C)(1) of this section, by | 241 |
the date of the electronic mail or other electronic communication. | 242 |
If the discharge of the security interest appears to be genuine, | 243 |
the clerk shall note the cancellation of the security interest on | 244 |
the face of the certificate of title, if it was so conveyed, and | 245 |
note it in the automated title processing system. | 246 |
If a security interest is fully discharged as a result of its | 247 |
holder's receipt of good funds in the correct amount and the | 248 |
holder does not hold a physical certificate of title, when the | 249 |
holder notifies a clerk of the discharge of its security interest, | 250 |
the holder at that time also may request the clerk to issue a | 251 |
physical certificate of title to the vehicle. The request shall | 252 |
specify whether the clerk is to send the certificate of title | 253 |
directly to the owner or to the holder or the holder's agent for | 254 |
transmission to the owner. If such a request is made, the clerk | 255 |
shall issue a physical certificate of title and send it to the | 256 |
specified person. | 257 |
(C)(1) In all cases, a secured party may choose to present a | 262 |
clerk with evidence of a security interest via written | 263 |
confirmation through electronic means, and the clerk shall enter | 264 |
the security interest into the automated title processing system. | 265 |
A secured party also may choose to notify a clerk of the discharge | 266 |
of its security interest via electronic means, and the clerk shall | 267 |
enter the cancellation into the automated title processing system. | 268 |
(3)(a) Upon receiving a discharge request that complies with | 277 |
division (C)(2) of this section, if the current automated title | 278 |
processing system record indicates that a physical title exists | 279 |
for that motor vehicle, a secured party shall convey the physical | 280 |
certificate of title, with the discharge of the security interest | 281 |
noted on its face, to the dealer within seven business days after | 282 |
the date good funds in the correct amount to fully discharge the | 283 |
security interest have been credited to an account of the secured | 284 |
party. | 285 |
If a secured party is unable to convey to the dealer the | 286 |
physical certificate of title within the required seven business | 287 |
days, the secured party instead shall convey to the dealer an | 288 |
affidavit stating that the security interest has been discharged, | 289 |
together with payment for a duplicate certificate of title, within | 290 |
that period. If the current automated title processing system | 291 |
record for a motor vehicle indicates that an electronic title | 292 |
exists for that motor vehicle, the secured party shall convey to | 293 |
the dealer within the required seven business days written | 294 |
confirmation that the security interest has been satisfied. | 295 |
(b) Conveyance of a physical certificate of title, or | 296 |
affidavit and required payment, or written confirmation that the | 297 |
security interest has been satisfied from a secured party to a | 298 |
dealer under the circumstances described in division (C)(3)(a) of | 299 |
this section within the required seven business days may be | 300 |
indicated by a postmark within that period or, in the case of a | 301 |
written confirmation that is sent electronically, the date of the | 302 |
electronic mail or other electronic communication. | 303 |
(4) A secured party is liable to a dealer for a late fee of | 304 |
ten dollars per day for each physical certificate of title, or | 305 |
affidavit and required payment, or written confirmation that the | 306 |
security interest has been satisfied that is conveyed to the | 307 |
dealer more than seven business days but less than twenty-one days | 308 |
after the date specified in division (C)(3)(a) of this section | 309 |
and, from then on, twenty-five dollars per day until the physical | 310 |
certificate of title, or affidavit and required payment, or | 311 |
written confirmation that the security interest has been satisfied | 312 |
is conveyed to the dealer. | 313 |
(D) Notwithstanding any provision of Chapter 1310. of the | 314 |
Revised Code or of any other law, the lease of a motor vehicle or | 315 |
trailer does not constitute a conditional sale or create a | 316 |
security interest merely because the lease agreement permits or | 317 |
requires the lessor, at the end of the lease term, to adjust the | 318 |
rental price to either a higher or a lower amount by reference to | 319 |
the amount the lessor realizes upon the sale or other disposition | 320 |
of the motor vehicle or trailer. | 321 |
(E)
IfRegardless of whether a physical certificate of title | 322 |
has not been issued for a motor vehicle and, if all the security | 323 |
interests relating to that motor vehicle have been discharged and | 324 |
if the secured party does not convey to the owner of the motor | 325 |
vehicle a physical certificate of title with the discharge noted | 326 |
on the certificate, the owner of the motor vehicle may obtain a | 327 |
one physical certificate of title for the motor vehicle from the | 328 |
clerk of any court of common pleas uponwithout payment of the fee | 329 |
specified in section 4505.09 of the Revised Code. The owner of the | 330 |
motor vehicle thereafter may obtain a duplicate physical | 331 |
certificate of title for the motor vehicle from the clerk of any | 332 |
court of common pleas upon payment of the fee specified in section | 333 |
4505.09 of the Revised Code. | 334 |
(F) If a clerk of a court of common pleas, other than the | 335 |
clerk of the court of common pleas of the county in which the | 336 |
owner of a motor vehicle resides, enters a notation of the | 337 |
existence of, or the cancellation of, a security interest relating | 338 |
to the motor vehicle, the clerk shall transmit the data relating | 339 |
to the notation to the automated title processing system. | 340 |
(3) "Good funds" includes cash, or a wire transfer, cashier's | 353 |
check, certified check, draft, money order, or teller's check | 354 |
issued by an insured financial institution, or a dealer's check | 355 |
for which the secured party has received funds that are available | 356 |
for withdrawal pursuant to "Availability of Funds and Collection | 357 |
of Checks (Regulation CC)," 12 C.F.R. 229. | 358 |
(2) Chapter 1309. of the Revised Code applies to a security | 376 |
interest in an off-highway motorcycle or all-purpose vehicle held | 377 |
as inventory, as defined in section 1309.102 of the Revised Code, | 378 |
for sale by a dealer. The security interest has priority over | 379 |
creditors of the dealer as provided in Chapter 1309. of the | 380 |
Revised Code without notation of the security interest on a | 381 |
certificate of title, without entry of a notation of the security | 382 |
interest into the automated title processing system if a physical | 383 |
certificate of title has not been issued, or without the retention | 384 |
of a manufacturer's or importer's certificate. | 385 |
(B) Subject to division (A) of this section, any security | 386 |
agreement covering a security interest in an off-highway | 387 |
motorcycle or all-purpose vehicle, if a notation of the agreement | 388 |
has been made by a clerk of a court of common pleas on the face of | 389 |
the certificate of title or if the clerk has entered a notation of | 390 |
the agreement into the automated title processing system if a | 391 |
physical certificate of title has not been issued, is valid as | 392 |
against the creditors of the debtor, whether armed with process or | 393 |
not, and against subsequent purchasers, secured parties, and other | 394 |
lienholders or claimants. All security interests, liens, | 395 |
mortgages, and encumbrances entered into the automated title | 396 |
processing system in relation to a particular certificate of | 397 |
title, regardless of whether a physical certificate of title is | 398 |
issued, take priority according to the order of time in which they | 399 |
are entered into the automated title processing system by the | 400 |
clerk. Exposure for sale of any off-highway motorcycle or | 401 |
all-purpose vehicle by its owner, with the knowledge or with the | 402 |
knowledge and consent of the holder of any security interest, | 403 |
lien, mortgage, or encumbrance on it, does not render the security | 404 |
interest, lien, mortgage, or encumbrance ineffective as against | 405 |
the creditors of the owner, or against holders of subsequent | 406 |
security interests, liens, mortgages, or encumbrances upon the | 407 |
off-highway motorcycle or all-purpose vehicle. | 408 |
The secured party, upon presentation of evidence of a | 409 |
security interest to a clerk of a court of common pleas, together | 410 |
with the certificate of title if a physical certificate of title | 411 |
for the off-highway motorcycle or all-purpose vehicle exists, and | 412 |
the fee prescribed by section 4519.59 of the Revised Code, may | 413 |
have a notation of the security interest made. Unless the secured | 414 |
party specifically requests the clerk not to issue a physical | 415 |
certificate of title and instead to issue an electronic | 416 |
certificate of title, the clerk, over the clerk's signature and | 417 |
seal of office, shall issue a new original certificate of title | 418 |
from the automated title processing system that indicates the | 419 |
security interest and the date of the security interest. | 420 |
If a security interest is fully discharged as a result of its | 421 |
holder's receipt of good funds in the correct amount and if the | 422 |
holder holds a physical certificate of title, the holder shall | 423 |
note the discharge of the security interest over the holder's | 424 |
signature on the face of the certificate of title, or over the | 425 |
holder's signature on a form prescribed by the registrar of motor | 426 |
vehicles when there is no space for the discharge on the face of | 427 |
the certificate of title. Except as otherwise provided in this | 428 |
section, prior to delivering the certificate of title to the | 429 |
owner, the holder or the holder's agent shall convey the | 430 |
certificate of title or a separate sworn statement of the | 431 |
discharge of the security interest to a clerk. The conveyance | 432 |
shall occur not more than seven business days after the date good | 433 |
funds in the correct amount to discharge fully the security | 434 |
interest have been credited to an account of the holder, provided | 435 |
the holder has been provided accurate information concerning the | 436 |
off-highway motorcycle or all-purpose vehicle. Conveyance of the | 437 |
certificate of title or separate sworn statement of the discharge | 438 |
within the required seven business days may be indicated by | 439 |
postmark or receipt by a clerk within that period. If the | 440 |
discharge of the security interest appears to be genuine, the | 441 |
clerk shall note the cancellation of the security interest on the | 442 |
face of the certificate of title, if it was so conveyed, and also | 443 |
shall note it in the automated title processing system. | 444 |
If a security interest is fully discharged as a result of its | 445 |
holder's receipt of good funds in the correct amount and the | 446 |
holder does not hold a physical certificate of title, when the | 447 |
holder notifies a clerk of the discharge of its security interest, | 448 |
the holder at that time also may request the clerk to issue a | 449 |
physical certificate of title to the off-highway motorcycle or | 450 |
all-purpose vehicle. The request shall specify whether the clerk | 451 |
is to send the certificate of title directly to the owner or to | 452 |
the holder or the holder's agent for transmission to the owner. If | 453 |
such a request is made, the clerk shall issue a physical | 454 |
certificate of title and send it to the specified person. | 455 |
(C) In all cases, a secured party may choose to present a | 460 |
clerk with evidence of a security interest via electronic means, | 461 |
and the clerk shall enter the security interest into the automated | 462 |
title processing system. A secured party also may choose to notify | 463 |
a clerk of the discharge of its security interest via electronic | 464 |
means, and the clerk shall enter the cancellation into the | 465 |
automated title processing system. | 466 |
(D) IfRegardless of whether a physical certificate of title | 467 |
has not been issued for an off-highway motorcycle or all-purpose | 468 |
vehicle and, if all the security interests relating to that | 469 |
motorcycle or vehicle have been discharged and if the secured | 470 |
party does not convey to the owner of the off-highway motorcycle | 471 |
or all-purpose vehicle a physical certificate of title with the | 472 |
discharge noted on the certificate, the owner of the motorcycle or | 473 |
vehicle may obtain
aone physical certificate of title from the | 474 |
clerk of any court of common pleas uponwithout payment of the fee | 475 |
specified in section 4519.59 of the Revised Code. The owner of the | 476 |
off-highway motorcycle or all-purpose vehicle thereafter may | 477 |
obtain a duplicate physical certificate of title for the | 478 |
off-highway motorcycle or all-purpose vehicle from the clerk of | 479 |
any court of common pleas upon payment of the fee specified in | 480 |
section 4519.59 of the Revised Code. | 481 |
(E) If a clerk of a court of common pleas, other than the | 482 |
clerk of the court of common pleas of the county in which the | 483 |
owner of an off-highway motorcycle or all-purpose vehicle resides, | 484 |
enters a notation of the existence of, or the cancellation of, a | 485 |
security interest relating to the off-highway motorcycle or | 486 |
all-purpose vehicle, the clerk shall transmit the data relating to | 487 |
the notation to the automated title processing system. | 488 |