Liens and Fees; Sale.

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Section 33-5A-4

Liens and fees; sale.

Except for vessels subject to Section 33-5A-5:

(1) A person who removes, stores, or sells a vessel in accordance with this chapter shall have a lien on the vessel for all of the following:

a. The reasonable fees connected with the removal and storage of the vessel.

b. The court costs and filing fees incurred in obtaining a court order for the sale of the vessel.

c. The notification and advertisement costs incurred.

d. The costs incurred in selling the vessel.

(2) An owner or lienholder of record may redeem an abandoned or derelict vessel by providing reasonable proof of ownership and satisfying any liens upon the vessel created pursuant to this chapter.

(3) An abandoned or derelict vessel may not be sold unless the person in possession of the vessel files a petition to sell the vessel in any court of competent jurisdiction in the county in which the vessel was abandoned and the court authorizes the sale of the vessel.

(4) A court shall authorize the sale of a vessel upon a finding that the vessel was abandoned or derelict and not redeemed by the owner or lienholder of record within 30 days after notice was given pursuant to subsection (a) of Section 33-5A-3.

(5) The sale of an abandoned or derelict vessel shall be at a public auction. The auction shall take place in the county in which the vessel was located when the person removing the vessel took possession.

(6) Prior to a sale under this section, notice of the sale shall be given by publication once a week for two successive weeks in a newspaper of general circulation in the county in which the sale is to be held. Notice shall be in a manner prescribed by the agency and shall include all of the following:

a. The date, time, and place of the sale.

b. A description of the abandoned or derelict vessel, including the year, make, and model.

c. The name and address of the current owner and lienholder of record, if any, as reflected on the current title or registration record.

d. The contact information for the person filing the notice.

(7) A person selling an abandoned or derelict vessel pursuant to this section shall give notice of the public auction to the agency at least 10 calendar days prior to the date of the auction.

(8) The agency, within five calendar days of receipt of the notice of public auction, shall send a vessel interest termination notice to the current owner and lienholder of record, if any, of the abandoned or derelict vessel, as disclosed on the notice of public auction. The vessel interest termination notice shall advise the owner and lienholder of record, if any, of all of the following:

a. The owner or lienholder's interest in the vessel, upon its sale, will be terminated pursuant to this chapter.

b. Any personal property and items contained in the vessel will be disposed of in a manner determined by the person conducting the sale.

c. The owner or lienholder of record may redeem the vessel prior to the sale by providing reasonable proof of ownership and satisfying any liens upon the vessel created pursuant to this chapter.

d. All of the information provided in the notice of public auction.

e. The owner or other interested party's right to appeal and contest the proposed sale of the vessel as provided in Section 33-5A-7.

(9) The vessel shall be sold to the highest bidder subject to any reserve price established by the agency.

(10)a. Except for any lien created pursuant to this chapter, the ownership rights of the owner and lienholders of record shall terminate upon the sale of an abandoned or derelict vessel, subject to a 90-day right of redemption as provided in this chapter.

b. A person who sells a vessel under this section shall provide notice that the vessel has been sold and a copy of the court order authorizing the sale to the agency. The agency shall issue to the purchaser of the vessel a bill of sale for the vessel, free and clear of all liens, security interests, and encumbrances, in a form as prescribed by the agency.

c. The purchaser of the vessel shall register the vessel with the agency as provided by law.

d. Each person who sells a vessel pursuant to this section shall maintain all of the following for two years from the date of the sale:

1. Copies of the notices sent pursuant to Section 33-5A-3 to the previous vessel owner and lienholder of record.

2. Any other records as required by the agency.

(Act 2018-179, §4.)


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