Section 200A-20 - Transfer by operation of law(a) As used in this section: "By operation of law" means pursuant to a law or judicial order affecting ownership of a vessel:
(1) Because of death, divorce, or other family law proceeding; merger; consolidation; dissolution; or bankruptcy;(2) Through the exercise of the rights of a lien creditor or a person having a lien created by statute or rule of law; or(3) Through other legal process. "Transfer by law statement" means a record signed by a transferee stating that by operation of law the transferee has acquired or has the right to acquire an ownership interest in a vessel.
(b) A transfer by law statement shall contain:(1) The name and last known mailing address of the owner of record and the transferee and the other information required by section 200A-7(b);(2) Documentation sufficient to establish the transferee's ownership interest or right to acquire the ownership interest;(3) A statement that: (A) The certificate of title is an electronic certificate of title;(B) The transferee does not have possession of the written certificate of title created in the name of the owner of record; or(C) The transferee is delivering the written certificate to the department with the transfer by law statement; and(4) Except for a transfer described in paragraph (1) of the definition of "by operation of law", evidence that notification of the transfer and the intent to file the transfer by law statement has been sent to all persons indicated in the department's files as having an interest, including a security interest, in the vessel.(c) Unless the department rejects a transfer by law statement for a reason stated in section 200A-8(c) or because the statement does not include documentation satisfactory to the department as to the transferee's ownership interest or right to acquire the ownership interest, no later than twenty days after delivery to the department of the statement and payment of fees and taxes payable under the law of this State other than this chapter in connection with the statement or with the acquisition or use of the vessel, the department shall: (1) Accept the statement;(2) Amend the department's files to reflect the transfer; and(3) If the name of the owner whose ownership interest is being transferred is indicated on the certificate of title: (A) Cancel the certificate even if the certificate has not been delivered to the department;(B) Create a new certificate indicating the transferee as owner;(C) Indicate on the new certificate any security interest indicated on the canceled certificate, unless a court order provides otherwise; and(D) Deliver the new certificate or a record evidencing an electronic certificate.(d) This section shall not apply to a transfer of an interest in a vessel by a secured party under part 6, article 9 of chapter 490.Added by L 2018, c 46,§ 1, eff. 7/1/2018.