(a) Subject to subsection (b) of this section, 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, shall be governed by the provisions of title 42a.
(b) If, while a security interest in a vessel is perfected by any method under section 15-214, the Department of Motor Vehicles creates a certificate of title that does not indicate that the vessel is subject to the security interest or contain a statement that it may be subject to security interests not indicated on the certificate of title:
(1) A buyer of the vessel, other than a person in the business of selling or leasing vessels 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 vessel; and
(2) The security interest is subordinate to a conflicting security interest in the vessel that is perfected under section 15-214 after creation of the certificate of title and without the secured party's knowledge of the conflicting security interest.
(P.A. 14-63, S. 23.)
History: P.A. 14-63 effective January 1, 2016.