(a) Except as otherwise provided in this section or section 15-227, a security interest in a vessel may be perfected only by delivery to the Department of Motor Vehicles of an application for a certificate of title that identifies the secured party and otherwise complies with section 15-207. The security interest shall be perfected on the later of delivery to the department of the application and all applicable fees or attachment of the security interest under section 42a-9-203.
(b) 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 title of a person as owner, lessor, consignor or bailor shall not in and of itself be a factor in determining whether the person's interest is a security interest.
(c) If the department has created a certificate of title for a vessel, a security interest in the vessel may be perfected by delivery to the department of an application, in such form as the department may require, to have the security interest added to the certificate of title. The application shall be signed by an owner of the vessel or by the secured party and shall include:
(1) The name of the owner of record;
(2) The name and mailing address of the secured party;
(3) The hull identification number for the vessel; and
(4) If the department has created a written certificate of title for the vessel, the certificate of title.
(d) A security interest perfected under subsection (c) of this section shall be perfected on the later of delivery to the department of the application and all applicable fees or attachment of the security interest under section 42a-9-203.
(e) On delivery of an application that complies with subsection (c) of this section and payment of all applicable fees, the department shall create a new certificate of title pursuant to section 15-208 and deliver the new certificate of title or a record evidencing an electronic certificate of title pursuant to subsection (a) of section 15-211. The department shall maintain in its files the date and time of delivery of the application to the department.
(f) If a secured party assigns a perfected security interest in a vessel, the receipt by the department of a statement providing the name of the assignee as secured party shall not be required to continue the perfected status of the security interest against creditors of and transferees from the original debtor. A purchaser of a vessel subject to a security interest which obtains a release from the secured party indicated in the files of the department or on the certificate of title 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 of title.
(g) The provisions of this section shall not apply to a security interest:
(1) Created in a vessel by a person during any period in which the vessel is inventory held for sale or lease by the person or is leased by the person as lessor if the person is in the business of selling vessels;
(2) In a barge or any other vessel for which a certificate of title is not permitted under sections 15-201 to 15-232, inclusive; or
(3) In a vessel before delivery if the vessel is under construction, or completed, pursuant to contract and for which no application for a certificate of title has been delivered to the department.
(h) When a certificate of documentation for a documented vessel is deleted or canceled, if a security interest in the vessel was valid immediately before deletion or cancellation against a third party as a result of compliance with 46 USC 31321, the security interest is and remains perfected until the earlier of four months after deletion or cancellation of the certificate or the time the security interest becomes perfected under this section.
(i) A security interest in a vessel arising under section 42a-2-401 or 42a-2-505, subdivision (3) of section 42a-2-711 or subsection (d) of section 42a-2A-724 shall be perfected when it attaches but shall become unperfected when the debtor obtains possession of the vessel, unless before the debtor obtains possession the security interest is perfected pursuant to subsection (a) or (c) of this section.
(j) A security interest in a vessel as proceeds of other collateral shall be perfected to the extent provided in section 42a-9-315.
(k) A security interest in a vessel perfected under the law of another jurisdiction shall be perfected to the extent provided in subsection (d) of section 42a-9-316.
(P.A. 14-63, S. 14.)
History: P.A. 14-63 effective January 1, 2016.