Bill Text: FL S0676 | 2019 | Regular Session | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Certificates of Title for Vessels
Spectrum: Slight Partisan Bill (? 2-1)
Status: (Introduced - Dead) 2019-04-30 - Laid on Table, companion bill(s) passed, see CS/CS/CS/HB 475 (Ch. 2019-76) [S0676 Detail]
Download: Florida-2019-S0676-Introduced.html
Bill Title: Certificates of Title for Vessels
Spectrum: Slight Partisan Bill (? 2-1)
Status: (Introduced - Dead) 2019-04-30 - Laid on Table, companion bill(s) passed, see CS/CS/CS/HB 475 (Ch. 2019-76) [S0676 Detail]
Download: Florida-2019-S0676-Introduced.html
Florida Senate - 2019 SB 676
By Senator Hooper
16-01049A-19 2019676__
1 A bill to be entitled
2 An act relating to certificates of title for vessels;
3 creating s. 328.001, F.S.; providing a short title;
4 creating s. 328.0015, F.S.; defining terms; amending
5 s. 328.01, F.S.; revising requirements for application
6 for, and information to be included in, a certificate
7 of title for a vessel; creating s. 328.015, F.S.;
8 requiring the Department of Highway Safety and Motor
9 Vehicles to retain certain information relating to
10 ownership and titling of vessels; requiring the
11 department to furnish certain information upon
12 request; creating s. 328.02, F.S.; providing that
13 local law governs all issues relating to a certificate
14 of title; specifying when a vessel becomes covered by
15 such certificate; amending s. 328.03, F.S.; requiring
16 a vessel owner to deliver an application for a
17 certificate of title to the department by a specified
18 time; revising circumstances under which a vessel must
19 be titled by this state; providing requirements for
20 issuing, transferring, or renewing the number of an
21 undocumented vessel issued under certain federal
22 provisions; deleting provisions relating to operation,
23 use, or storage of a vessel; deleting provisions
24 relating to selling, assigning, or transferring a
25 vessel; specifying that a certificate of title is
26 prima facie evidence of the accuracy of the
27 information in the record that constitutes the
28 certificate; creating s. 328.04, F.S.; providing
29 requirements for the content of a certificate of
30 title; creating s. 328.045, F.S.; providing the
31 respective responsibilities of an owner and insurer of
32 a hull-damaged vessel when transferring an ownership
33 interest in the vessel; requiring the department to
34 create a new certificate of title indicating such
35 damage; providing a civil penalty; creating s.
36 328.055, F.S.; requiring the department to maintain
37 certain information in its files and to provide
38 certain information to governmental entities;
39 specifying that certain information is a public
40 record; creating s. 328.06, F.S.; providing
41 responsibilities of the department when creating a
42 certificate of title; creating s. 328.065, F.S.;
43 specifying effect of possession of a certificate of
44 title; providing construction; amending s. 328.09,
45 F.S.; providing duties of the department relating to
46 creation, issuance, refusal to issue, or cancellation
47 of a certificate of title; providing for a hearing;
48 creating s. 328.101, F.S.; specifying that a
49 certificate of title and certain other records are
50 effective despite missing or incorrect information;
51 amending s. 328.11, F.S.; providing requirements for
52 obtaining a duplicate certificate of title; creating
53 s. 328.12, F.S.; providing requirements for the
54 determination and the perfection of a security
55 interest in a vessel; providing applicability;
56 requiring the department to adopt rules; creating s.
57 328.125, F.S.; providing requirements for the delivery
58 of a statement of termination of a security interest;
59 providing duties of the department; providing
60 liability for noncompliance; creating s. 328.14, F.S.;
61 providing for the rights of a purchaser of a vessel
62 who is not a secured party; creating s. 328.145, F.S.;
63 providing for the rights of a secured party; amending
64 s. 328.15, F.S.; deleting certain provisions relating
65 to notice of a lien; providing for future repeal of
66 certain provisions; amending ss. 328.16 and 328.165,
67 F.S.; conforming provisions to changes made by the
68 act; creating s. 328.215, F.S.; specifying
69 circumstances under which the department may create a
70 new certificate of title after receipt of an
71 application for a transfer of ownership or termination
72 of a security interest unaccompanied by a certificate
73 of title; authorizing the department to indicate
74 certain information on the new certificate;
75 authorizing the department to require a bond,
76 indemnity, or other security under certain
77 circumstances; providing for the release of such bond,
78 indemnity, or other security; creating s. 328.22,
79 F.S.; providing rules for the transfer of ownership in
80 a vessel; providing effect of noncompliance; creating
81 s. 328.23, F.S.; defining the term “secured party’s
82 transfer statement”; providing duties of the
83 department upon receipt of a secured party’s transfer
84 statement; providing construction; creating s. 328.24,
85 F.S.; defining the term “by operation of law”;
86 providing requirements for a transfer of ownership by
87 operation of law; providing duties of the department;
88 providing applicability; creating s. 328.25, F.S.;
89 providing that the principles and law of equity
90 supplement the provisions of the act; amending ss.
91 409.2575, 705.103, and 721.08, F.S.; conforming
92 provisions and cross-references to changes made by the
93 act; providing construction and applicability
94 regarding transactions, certificates of title, and
95 records entered into or created, actions or
96 proceedings commenced, and security interests
97 perfected before the effective date of the act;
98 providing applicability; providing an effective date.
99
100 Be It Enacted by the Legislature of the State of Florida:
101
102 Section 1. Section 328.001, Florida Statutes, is created to
103 read:
104 328.001 Short title.—This part may be cited as the “Uniform
105 Certificate of Title for Vessels Act.”
106 Section 2. Section 328.0015, Florida Statutes, is created
107 to read:
108 328.0015 Definitions.—
109 (1) As used in this part, the term:
110 (a) “Barge” means a vessel that is not self-propelled or
111 fitted for propulsion by sail, paddle, oar, or similar device.
112 (b) “Builder’s certificate” means a certificate of the
113 facts of the build of a vessel as described in 46 C.F.R. s.
114 67.99.
115 (c) “Buyer” means a person who buys or contracts to buy a
116 vessel.
117 (d) “Cancel,” with respect to a certificate of title, means
118 to make the certificate ineffective.
119 (e) “Certificate of origin” means a record created by a
120 manufacturer or importer as the manufacturer’s or importer’s
121 proof of identity of a vessel. The term includes a
122 manufacturer’s certificate or statement of origin and an
123 importer’s certificate or statement of origin. The term does not
124 include a builder’s certificate.
125 (f) “Certificate of title” means a record, created by the
126 department or by a governmental agency of another jurisdiction
127 under the law of that jurisdiction, that is designated as a
128 certificate of title by the department or agency and is evidence
129 of ownership of a vessel.
130 (g) “Dealer” means a person, including a manufacturer, in
131 the business of selling vessels.
132 (h) “Department” means the Department of Highway Safety and
133 Motor Vehicles.
134 (i) “Documented vessel” means a vessel covered by a
135 certificate of documentation issued pursuant to 46 U.S.C. s.
136 12105. The term does not include a foreign-documented vessel.
137 (j) “Electronic” means relating to technology having
138 electrical, digital, magnetic, wireless, optical,
139 electromagnetic, or similar capabilities.
140 (k) “Electronic certificate of title” means a certificate
141 of title consisting of information that is stored solely in an
142 electronic medium and is retrievable in perceivable form.
143 (l) “Foreign-documented vessel” means a vessel of which the
144 ownership is recorded in a registry maintained by a country
145 other than the United States which identifies each person who
146 has an ownership interest in a vessel and includes a unique
147 alphanumeric designation for the vessel.
148 (m) “Good faith” means honesty in fact and the observance
149 of reasonable commercial standards of fair dealing.
150 (n) “Hull damaged” means compromised with respect to the
151 integrity of a vessel’s hull by a collision, allision, lightning
152 strike, fire, explosion, running aground, or similar occurrence,
153 or the sinking of a vessel in a manner that creates a
154 significant risk to the integrity of the vessel’s hull.
155 (o) “Hull identification number” means the alphanumeric
156 designation assigned to a vessel pursuant to 33 C.F.R. part 181.
157 (p) “Lien creditor,” with respect to a vessel, means:
158 1. A creditor who has acquired a lien on the vessel by
159 attachment, levy, or the like;
160 2. An assignee for benefit of creditors from the time of
161 assignment;
162 3. A trustee in bankruptcy from the date of the filing of
163 the petition; or
164 4. A receiver in equity from the time of appointment.
165 (q) “Owner” means a person who has legal title to a vessel.
166 (r) “Owner of record” means the owner indicated in the
167 files of the department or, if the files indicate more than one
168 owner, the one first owner indicated.
169 (s) “Person” means an individual, corporation, business
170 trust, estate, trust, statutory trust, partnership, limited
171 liability company, association, joint venture, public
172 corporation, government or governmental subdivision, agency, or
173 instrumentality, or any other legal or commercial entity.
174 (t) “Purchase” means to take by sale, lease, mortgage,
175 pledge, consensual lien, security interest, gift, or any other
176 voluntary transaction that creates an interest in a vessel.
177 (u) “Purchaser” means a person who takes by purchase.
178 (v) “Record” means information that is inscribed on a
179 tangible medium or that is stored in an electronic or other
180 medium and is retrievable in perceivable form.
181 (w) “Secured party,” with respect to a vessel, means a
182 person:
183 1. In whose favor a security interest is created or
184 provided for under a security agreement, regardless of whether
185 any obligation to be secured is outstanding;
186 2. Who is a consignor as defined under chapter 679; or
187 3. Who holds a security interest arising under s. 672.401,
188 s. 672.505, s. 672.711(3), or s. 680.508(5).
189 (x) “Secured party of record” means the secured party whose
190 name is indicated as the name of the secured party in the files
191 of the department or, if the files indicate more than one
192 secured party, the one first indicated.
193 (y) “Security interest” means an interest in a vessel which
194 secures payment or performance of an obligation if the interest
195 is created by contract or arises under s. 672.401, s. 672.505,
196 s. 672.711(3), or s. 680.508(5). The term includes any interest
197 of a consignor in a vessel in a transaction that is subject to
198 chapter 679. The term does not include the special property
199 interest of a buyer of a vessel on identification of that vessel
200 to a contract for sale under s. 672.501, but a buyer also may
201 acquire a security interest by complying with chapter 679.
202 Except as otherwise provided in s. 672.505, the right of a
203 seller or lessor of a vessel under chapter 672 or chapter 680 to
204 retain or acquire possession of the vessel is not a security
205 interest, but a seller or lessor also may acquire a security
206 interest by complying with chapter 679. The retention or
207 reservation of title by a seller of a vessel, notwithstanding
208 shipment or delivery to the buyer under s. 672.401, is limited
209 in effect to a reservation of a security interest. Whether a
210 transaction in the form of a lease creates a security interest
211 is determined as provided in part II of chapter 671.
212 (z) “Sign” means, with present intent to authenticate or
213 adopt a record, to:
214 1. Make or adopt a tangible symbol; or
215 2. Attach to or logically associate with the record an
216 electronic symbol, sound, or process.
217 (aa) “State” means a state of the United States, the
218 District of Columbia, Puerto Rico, the United States Virgin
219 Islands, or any territory or insular possession subject to the
220 jurisdiction of the United States.
221 (bb) “State of principal use” means the state on the waters
222 of which a vessel is or will be used, operated, navigated, or
223 employed more than on the waters of any other state during a
224 calendar year.
225 (cc) “Title brand” means a designation of previous damage,
226 use, or condition that must be indicated on a certificate of
227 title.
228 (dd) “Transfer of ownership” means a voluntary or
229 involuntary conveyance of an interest in a vessel.
230 (ee) “Vessel” means a watercraft used or capable of being
231 used as a means of transportation on water, except any of the
232 following:
233 1. A seaplane.
234 2. An amphibious vehicle for which a certificate of title
235 is issued pursuant to chapter 319 or a similar statute of
236 another state.
237 3. Watercraft less than 16 feet in length and propelled
238 solely by sail, paddle, oar, or an engine of less than 10
239 horsepower.
240 4. Watercraft that operate only on a permanently fixed,
241 manufactured course and the movement of which is restricted to
242 or guided by means of a mechanical device to which the
243 watercraft is attached or by which the watercraft is controlled.
244 5. A stationary floating structure that:
245 a. Does not have and is not designed to have a mode of
246 propulsion of its own;
247 b. Is dependent for utilities upon a continuous utility
248 hookup to a source originating on shore; and
249 c. Has a permanent, continuous hookup to a shoreside sewage
250 system.
251 6. Watercraft owned by the United States, a state, or a
252 foreign government or a political subdivision of the United
253 States, a state, or a foreign government.
254 7. Watercraft used solely as a lifeboat on another
255 watercraft.
256 (ff) “Vessel number” means the alphanumeric designation for
257 a vessel issued pursuant to 46 U.S.C. s. 12301.
258 (gg) “Written certificate of title” means a certificate of
259 title consisting of information inscribed on a tangible medium.
260 (2) The following definitions and terms also apply to this
261 part:
262 (a) “Agreement” as defined in s. 671.201(3).
263 (b) “Buyer in ordinary course of business” as defined in s.
264 671.201(9).
265 (c) “Conspicuous” as defined in s. 671.201(10).
266 (d) “Consumer goods” as defined in s. 679.1021(1)(w).
267 (e) “Debtor” as defined in s. 679.1021(1)(bb).
268 (f) “Knowledge” as defined in s. 671.209.
269 (g) “Lease” as defined in s. 680.1031(1)(j).
270 (h) “Lessor” as defined in 680.1031(1)(p).
271 (i) “Notice” as defined s. 671.209.
272 (j) “Representative” as defined in s. 671.201(36).
273 (k) “Sale” as defined in s. 672.106(1).
274 (l) “Security agreement” as defined in s. 679.1021(1)(uuu).
275 (m) “Seller” as defined in s. 672.103(1)(d).
276 (n) “Send” as defined in s. 671.201(39).
277 (o) “Value” as defined in s. 671.211.
278 Section 3. Section 328.01, Florida Statutes, is amended to
279 read:
280 328.01 Application for certificate of title.—
281 (1)(a) The owner of a vessel that which is required to be
282 titled shall apply to the county tax collector for a certificate
283 of title. Except as otherwise provided in ss. 328.045, 328.11,
284 328.12, 328.215, 328.23, and 328.24, only an owner may apply for
285 a certificate of title.
286 (2) An application for a certificate of title must be
287 signed by the applicant and contain:
288 (a) The applicant’s name, the street address of the
289 applicant’s principal residence, and, if different, the
290 applicant’s mailing address;
291 (b) The name and mailing address of each other owner of the
292 vessel;
293 (c) The hull identification number for the vessel or, if
294 none, an application for the issuance of a hull identification
295 number for the vessel;
296 (d) The vessel number for the vessel or, if none issued by
297 the department, an application for a vessel number;
298 (e) A description of the vessel as required by the
299 department, which must include:
300 1. The official number for the vessel, if any, assigned by
301 the United States Coast Guard;
302 2. The name of the manufacturer, builder, or maker;
303 3. The model year or the year in which the manufacture or
304 build of the vessel was completed;
305 4. The overall length of the vessel;
306 5. The vessel type;
307 6. The hull material;
308 7. The propulsion type;
309 8. The engine drive type, if any; and
310 9. The fuel type, if any;
311 (f) An indication of all security interests in the vessel
312 known to the applicant and the name and mailing address of each
313 secured party;
314 (g) A statement that the vessel is not a documented vessel
315 or a foreign-documented vessel;
316 (h) Any title brand known to the applicant and, if known,
317 the jurisdiction under whose law the title brand was created;
318 (i) If the applicant knows that the vessel is hull damaged,
319 a statement that the vessel is hull damaged;
320 (j) If the application is made in connection with a
321 transfer of ownership, the transferor’s name, the street address
322 of the transferor’s principal residence, and, if different,
323 mailing address, the sales price, if any, and the date of the
324 transfer; and
325 (k) If the vessel was previously registered or titled in
326 another jurisdiction, a statement identifying each jurisdiction
327 known to the applicant in which the vessel was registered or
328 titled.
329 (3) In addition to the information required by subsection
330 (2), an application for a certificate of title may contain an
331 electronic communication address of the owner, transferor, or
332 secured party.
333 (4) Except as otherwise provided in s. 328.11, s. 328.215,
334 s. 328.23, or s. 328.24, an application for a certificate of
335 title must be accompanied by:
336 (a) A certificate of title that is signed by the owner
337 shown on the certificate and that:
338 1. Identifies the applicant as the owner of the vessel; or
339 2. Is accompanied by a record that identifies the applicant
340 as the owner; or
341 (b) If there is no certificate of title:
342 1. If the vessel was a documented vessel, a record issued
343 by the United States Coast Guard which shows the vessel is no
344 longer a documented vessel and which identifies the applicant as
345 the owner;
346 2. If the vessel was a foreign-documented vessel, a record
347 issued by the foreign country which shows the vessel is no
348 longer a foreign-documented vessel and which identifies the
349 applicant as the owner; or
350 3. In all other cases, a certificate of origin, bill of
351 sale, or other record that, to the satisfaction of the
352 department, identifies the applicant as the owner.
353 (5) A record submitted in connection with an application is
354 part of the application. The department shall maintain the
355 record in its files.
356 (6) The department may require that an application for a
357 certificate of title be accompanied by payment or evidence of
358 payment of all fees and taxes payable by the applicant under the
359 laws of this state other than this part in connection with the
360 application or the acquisition or use of the vessel The
361 application shall include the true name of the owner, the
362 residence or business address of the owner, and the complete
363 description of the vessel, including the hull identification
364 number, except that an application for a certificate of title
365 for a homemade vessel shall state all the foregoing information
366 except the hull identification number.
367 (7)(a) The application must shall be signed by the owner
368 and must shall be accompanied by personal or business
369 identification and the prescribed fee. An individual applicant
370 shall must provide a valid driver license or identification card
371 issued by this state or another state or a valid passport. A
372 business applicant shall must provide a federal employer
373 identification number, if applicable, verification that the
374 business is authorized to conduct business in the state, or a
375 Florida city or county business license or number.
376 (b) The owner of an undocumented vessel that is exempt from
377 titling may apply to the county tax collector for a certificate
378 of title by filing an application accompanied by the prescribed
379 fee.
380 (2)(a) The owner of a manufactured vessel that was
381 initially sold in this state for which vessel an application for
382 an initial title is made shall establish proof of ownership by
383 submitting with the application the original copy of the
384 manufacturer’s statement of origin for that vessel.
385 (b) The owner of a manufactured vessel that was initially
386 sold in another state or country for which vessel an application
387 for an initial title is made shall establish proof of ownership
388 by submitting with the application:
389 1. The original copy of the manufacturer’s statement of
390 origin if the vessel was initially sold or manufactured in a
391 state or country requiring the issuance of such a statement or
392 the original copy of the executed bill of sale if the vessel was
393 initially sold or manufactured in a state or country not
394 requiring the issuance of a manufacturer’s statement of origin;
395 and
396 2. The most recent certificate of registration for the
397 vessel, if such a certificate was issued.
398 (c) In making application for an initial title, the owner
399 of a homemade vessel shall establish proof of ownership by
400 submitting with the application:
401 1. A notarized statement of the builder or its equivalent,
402 whichever is acceptable to the Department of Highway Safety and
403 Motor Vehicles, if the vessel is less than 16 feet in length; or
404 2. A certificate of inspection from the Fish and Wildlife
405 Conservation Commission and a notarized statement of the builder
406 or its equivalent, whichever is acceptable to the Department of
407 Highway Safety and Motor Vehicles, if the vessel is 16 feet or
408 more in length.
409 (d) The owner of a nontitled vessel registered or
410 previously registered in another state or country for which an
411 application for title is made in this state shall establish
412 proof of ownership by surrendering, with the submission of the
413 application, the original copy of the most current certificate
414 of registration issued by the other state or country.
415 (e) The owner of a vessel titled in another state or
416 country for which an application for title is made in this state
417 shall not be issued a title unless and until all existing titles
418 to the vessel are surrendered to the Department of Highway
419 Safety and Motor Vehicles. The department shall retain the
420 evidence of title which is presented by the applicant and on the
421 basis of which the certificate of title is issued. The
422 department shall use reasonable diligence in ascertaining
423 whether the facts in the application are true; and, if satisfied
424 that the applicant is the owner of the vessel and that the
425 application is in the proper form, the department shall issue a
426 certificate of title.
427 (f) In making application for the titling of a vessel
428 previously documented by the Federal Government, the current
429 owner shall establish proof of ownership by submitting with the
430 application a copy of the canceled documentation papers or a
431 properly executed release-from-documentation certificate
432 provided by the United States Coast Guard. In the event such
433 documentation papers or certification are in the name of a
434 person other than the current owner, the current owner shall
435 provide the original copy of all subsequently executed bills of
436 sale applicable to the vessel.
437 (3)(a) In making application for a title upon transfer of
438 ownership of a vessel, the new owner shall surrender to the
439 Department of Highway Safety and Motor Vehicles the last title
440 document issued for that vessel. The document shall be properly
441 executed. Proper execution includes, but is not limited to, the
442 previous owner’s signature and certification that the vessel to
443 be transferred is debt-free or is subject to a lien. If a lien
444 exists, the previous owner shall furnish the new owner, on forms
445 supplied by the Department of Highway Safety and Motor Vehicles,
446 the names and addresses of all lienholders and the dates of all
447 liens, together with a statement from each lienholder that the
448 lienholder has knowledge of and consents to the transfer of
449 title to the new owner.
450 (b) If the application for transfer of title is based upon
451 a contractual default, the recorded lienholder shall establish
452 proof of right to ownership by submitting with the application
453 the original certificate of title and a copy of the applicable
454 contract upon which the claim of ownership is made. If the claim
455 is based upon a court order or judgment, a copy of such document
456 shall accompany the application for transfer of title. If, on
457 the basis of departmental records, there appears to be any other
458 lien on the vessel, the certificate of title must contain a
459 statement of such a lien, unless the application for a
460 certificate of title is either accompanied by proper evidence of
461 the satisfaction or extinction of the lien or contains a
462 statement certifying that any lienholder named on the last
463 issued certificate of title has been sent notice by certified
464 mail, at least 5 days before the application was filed, of the
465 applicant’s intention to seek a repossessed title. If such
466 notice is given and no written protest to the department is
467 presented by a subsequent lienholder within 15 days after the
468 date on which the notice was mailed, the certificate of title
469 shall be issued showing no liens. If the former owner or any
470 subsequent lienholder files a written protest under oath within
471 the 15-day period, the department shall not issue the
472 repossessed certificate for 10 days thereafter. If, within the
473 10-day period, no injunction or other order of a court of
474 competent jurisdiction has been served on the department
475 commanding it not to deliver the certificate, the department
476 shall deliver the repossessed certificate to the applicant, or
477 as is otherwise directed in the application, showing no other
478 liens than those shown in the application.
479 (c) In making application for transfer of title from a
480 deceased titled owner, the new owner or surviving coowner shall
481 establish proof of ownership by submitting with the application
482 the original certificate of title and the decedent’s probated
483 last will and testament or letters of administration appointing
484 the personal representative of the decedent. In lieu of a
485 probated last will and testament or letters of administration, a
486 copy of the decedent’s death certificate, a copy of the
487 decedent’s last will and testament, and an affidavit by the
488 decedent’s surviving spouse or heirs affirming rights of
489 ownership may be accepted by the department. If the decedent
490 died intestate, a court order awarding the ownership of the
491 vessel or an affidavit by the decedent’s surviving spouse or
492 heirs establishing or releasing all rights of ownership and a
493 copy of the decedent’s death certificate shall be submitted to
494 the department.
495 (c)(d) An owner or coowner who has made a bona fide sale or
496 transfer of a vessel and has delivered possession thereof to a
497 purchaser shall not, by reason of any of the provisions of this
498 chapter, be considered the owner or coowner of the vessel so as
499 to be subject to civil liability for the operation of the vessel
500 thereafter by another if the owner or coowner has fulfilled
501 either of the following requirements:
502 1. The owner or coowner has delivered to the department, or
503 has placed in the United States mail, addressed to the
504 department, either the certificate of title, properly endorsed,
505 or a notice in the form prescribed by the department; or
506 2. The owner or coowner has made proper endorsement and
507 delivery of the certificate of title as provided by this
508 chapter. As used in this subparagraph, the term “proper
509 endorsement” means:
510 a. The signature of one coowner if the vessel is held in
511 joint tenancy, signified by the vessel’s being registered in the
512 names of two or more persons as coowners in the alternative by
513 the use of the word “or.” In a joint tenancy, each coowner is
514 considered to have granted to each of the other coowners the
515 absolute right to dispose of the title and interest in the
516 vessel, and, upon the death of a coowner, the interest of the
517 decedent in the jointly held vessel passes to the surviving
518 coowner or coowners. This sub-subparagraph is applicable even if
519 the coowners are husband and wife; or
520 b. The signatures of every coowner or of the respective
521 personal representatives of the coowners if the vessel is
522 registered in the names of two or more persons as coowners in
523 the conjunctive by the use of the word “and.”
524
525 The department shall adopt suitable language that must appear
526 upon the certificate of title to effectuate the manner in which
527 the interest in or title to the vessel is held.
528 (8)(4) If the owner cannot furnish the department of
529 Highway Safety and Motor Vehicles with all the required
530 ownership documentation, the department may, at its discretion,
531 issue a title conditioned on the owner’s agreement to indemnify
532 the department and its agents and defend the title against all
533 claims or actions arising out of such issuance.
534 (9)(5)(a) An application for an initial title or a title
535 transfer shall include payment of the applicable state sales tax
536 or proof of payment of such tax.
537 (b) An application for a title transfer between
538 individuals, which transfer is not exempt from the payment of
539 sales tax, shall include payment of the appropriate sales tax
540 payable on the selling price for the complete vessel rig, which
541 includes the vessel and its motor, trailer, and accessories, if
542 any. If the applicant submits with his or her application an
543 itemized, properly executed bill of sale which separately
544 describes and itemizes the prices paid for each component of the
545 rig, only the vessel and trailer will be subject to the sales
546 tax.
547 (10)(6) The department of Highway Safety and Motor Vehicles
548 shall prescribe and provide suitable forms for applications,
549 certificates of title, notices of security interests, and other
550 notices and forms necessary to carry out the provisions of this
551 chapter.
552 Section 4. Section 328.015, Florida Statutes, is created to
553 read:
554 328.015 Duties and operation of the department.—
555 (1) The department shall retain the evidence used to
556 establish the accuracy of the information in its files relating
557 to the current ownership of a vessel and the information on the
558 certificate of title.
559 (2) The department shall retain in its files all
560 information regarding a security interest in a vessel for at
561 least 10 years after the department receives a termination
562 statement regarding the security interest. The information must
563 be accessible by the hull identification number for the vessel
564 and any other methods provided by the department.
565 (3) If a person submits a record to the department, or
566 submits information that is accepted by the department, and
567 requests an acknowledgment of the filing or submission, the
568 department shall send to the person an acknowledgment showing
569 the hull identification number of the vessel to which the record
570 or submission relates, the information in the filed record or
571 submission, and the date and time the record was received by or
572 the submission was accepted by the department. A request under
573 this section must contain the hull identification number and be
574 delivered by means authorized by the department.
575 (4) The department shall send or otherwise make available
576 in a record the following information to any person who requests
577 it and pays the applicable fee:
578 (a) Whether the files of the department indicate, as of a
579 date and time specified by the department, but not a date
580 earlier than 3 days before the department received the request,
581 any certificate of title, security interest, termination
582 statement, or title brand that relates to a vessel:
583 1. Identified by a hull identification number designated in
584 the request;
585 2. Identified by a vessel number designated in the request;
586 or
587 3. Owned by a person designated in the request;
588 (b) With respect to the vessel:
589 1. The name and address of any owner as indicated in the
590 files of the department or on the certificate of title;
591 2. The name and address of any secured party as indicated
592 in the files of the department or on the certificate, and the
593 effective date of the information; and
594 3. A copy of any termination statement indicated in the
595 files of the department and the effective date of the
596 termination statement; and
597 (c) With respect to the vessel, a copy of any certificate
598 of origin, secured party transfer statement, transfer-by-law
599 statement under s. 328.24, and other evidence of previous or
600 current transfers of ownership.
601 (5) In responding to a request under this section, the
602 department may provide the requested information in any medium.
603 On request, the department shall send the requested information
604 in a record that is self-authenticating.
605 Section 5. Section 328.02, Florida Statutes, is created to
606 read:
607 328.02 Law governing vessel covered by certificate of
608 title.—
609 (1) The local law of the jurisdiction under whose
610 certificate of title a vessel is covered governs all issues
611 relating to the certificate from the time the vessel becomes
612 covered by the certificate until the vessel becomes covered by
613 another certificate or becomes a documented vessel, even if no
614 other relationship exists between the jurisdiction and the
615 vessel or its owner.
616 (2) A vessel becomes covered by a certificate of title when
617 an application for the certificate and the applicable fee are
618 delivered to the department in accordance with this part or to
619 the governmental agency that creates a certificate in another
620 jurisdiction in accordance with the law of that jurisdiction.
621 Section 6. Section 328.03, Florida Statutes, is amended to
622 read:
623 328.03 Certificate of title required.—
624 (1) Except as otherwise provided in subsections (2) and
625 (3), each vessel that is operated, used, or stored on the waters
626 of this state must be titled by this state pursuant to this
627 part, and the owner of a vessel for which this state is the
628 state of principal use shall deliver to the department an
629 application for a certificate of title for the vessel, with the
630 applicable fee, not later than 20 days after the later of:
631 (a) The date of a transfer of ownership.
632 (b) The date this state becomes the state of principal use.
633 (2) An application for a certificate of title is not
634 required for chapter, unless it is:
635 (a) A documented vessel;
636 (b) A foreign-documented vessel;
637 (c) A barge;
638 (d) A vessel before delivery if the vessel is under
639 construction or completed pursuant to contract;
640 (e) A vessel held by a dealer for sale or lease;
641 (f) A vessel used solely for demonstration, testing, or
642 sales promotional purposes by the manufacturer or dealer;
643 (g)(a) A vessel operated, used, or stored exclusively on
644 private lakes and ponds;
645 (h)(b) A vessel owned by the United States Government;
646 (c) A non-motor-powered vessel less than 16 feet in length;
647 (d) A federally documented vessel;
648 (i)(e) A vessel already covered by a registration number in
649 full force and effect which was awarded to it pursuant to a
650 federally approved numbering system of another state or by the
651 United States Coast Guard in a state without a federally
652 approved numbering system, if the vessel is not located in this
653 state for a period in excess of 90 consecutive days; or
654 (j)(f) A vessel from a country other than the United States
655 temporarily used, operated, or stored on the waters of this
656 state for a period that is not in excess of 90 days;
657 (g) An amphibious vessel for which a vehicle title is
658 issued by the Department of Highway Safety and Motor Vehicles;
659 (h) A vessel used solely for demonstration, testing, or
660 sales promotional purposes by the manufacturer or dealer; or
661 (i) A vessel owned and operated by the state or a political
662 subdivision thereof.
663 (3) The department may not issue, transfer, or renew a
664 certificate of number for a vessel issued pursuant to the
665 requirements of 46 U.S.C. s. 12301, unless the department has
666 created a certificate of title for the vessel or an application
667 for a certificate for the vessel and the applicable fee have
668 been delivered to the department.
669 (2) A person shall not operate, use, or store a vessel for
670 which a certificate of title is required unless the owner has
671 received from the Department of Highway Safety and Motor
672 Vehicles a valid certificate of title for such vessel. However,
673 such vessel may be operated, used, or stored for a period of up
674 to 180 days after the date of application for a certificate of
675 title while the application is pending.
676 (3) A person shall not sell, assign, or transfer a vessel
677 titled by the state without delivering to the purchaser or
678 transferee a valid certificate of title with an assignment on it
679 showing the transfer of title to the purchaser or transferee. A
680 person shall not purchase or otherwise acquire a vessel required
681 to be titled by the state without obtaining a certificate of
682 title for the vessel in his or her name. The purchaser or
683 transferee shall, within 30 days after a change in vessel
684 ownership, file an application for a title transfer with the
685 county tax collector.
686 (4) An additional $10 fee shall be charged against the
687 purchaser or transferee if he or she files a title transfer
688 application after the 20-day 30-day period. The county tax
689 collector shall be entitled to retain $5 of the additional
690 amount.
691 (5)(4) A certificate of title is prima facie evidence of
692 the accuracy of the information in the record that constitutes
693 the certificate and of the ownership of the vessel. A
694 certificate of title is good for the life of the vessel so long
695 as the certificate is owned or held by the legal holder. If a
696 titled vessel is destroyed or abandoned, the owner, with the
697 consent of any recorded lienholders, must shall, within 30 days
698 after the destruction or abandonment, surrender to the
699 department for cancellation any and all title documents. If a
700 titled vessel is insured and the insurer has paid the owner for
701 the total loss of the vessel, the insurer shall obtain the title
702 to the vessel and, within 30 days after receiving the title,
703 forward the title to the department of Highway Safety and Motor
704 Vehicles for cancellation. The insurer may retain the
705 certificate of title when payment for the loss was made because
706 of the theft of the vessel.
707 (6)(5) The department of Highway Safety and Motor Vehicles
708 shall provide labeled places on the title where the seller’s
709 price shall be indicated when a vessel is sold and where a
710 selling dealer shall record his or her valid sales tax
711 certificate of registration number.
712 (7)(6)(a) The department of Highway Safety and Motor
713 Vehicles shall charge a fee of $5.25 for issuing each
714 certificate of title. The tax collector shall be entitled to
715 retain $3.75 of the fee.
716 (b) Beginning July 1, 1996, The department of Highway
717 Safety and Motor Vehicles shall use security procedures,
718 processes, and materials in the preparation and issuance of each
719 certificate of title to prohibit, to the extent possible, a
720 person’s ability to alter, counterfeit, duplicate, or modify the
721 certificate.
722 (8)(7) The department of Highway Safety and Motor Vehicles
723 shall charge a fee of $4 in addition to that charged in
724 subsection (7) (6) for each initial certificate of title issued
725 for a vessel previously registered outside this state.
726 (9)(8) The department of Highway Safety and Motor Vehicles
727 shall make regulations necessary and convenient to carry out the
728 provisions of this chapter.
729 Section 7. Section 328.04, Florida Statutes, is created to
730 read:
731 328.04 Content of certificate of title.—
732 (1) A certificate of title must contain:
733 (a) The date the certificate was created;
734 (b) The name of the owner of record and, if not all owners
735 are listed, an indication that there are additional owners
736 indicated in the files of the department;
737 (c) The mailing address of the owner of record;
738 (d) The hull identification number;
739 (e) The information listed in s. 328.01(2)(e);
740 (f) Except as otherwise provided in s. 328.12(2), the name
741 and mailing address of the secured party of record, if any, and
742 if not all secured parties are listed, an indication that there
743 are other security interests indicated in the files of the
744 department; and
745 (g) All title brands indicated in the files of the
746 department covering the vessel, including brands indicated on a
747 certificate created by a governmental agency of another
748 jurisdiction and delivered to the department.
749 (2) This part does not preclude the department from noting
750 on a certificate of title the name and mailing address of a
751 secured party who is not a secured party of record.
752 (3) For each title brand indicated on a certificate of
753 title, the certificate must identify the jurisdiction under
754 whose law the title brand was created or the jurisdiction that
755 created the certificate on which the title brand was indicated.
756 If the meaning of a title brand is not easily ascertainable or
757 cannot be accommodated on the certificate, the certificate may
758 state: “Previously branded in (insert the jurisdiction under
759 whose law the title brand was created or whose certificate of
760 title previously indicated the title brand).”
761 (4) If the files of the department indicate that a vessel
762 was previously registered or titled in a foreign country, the
763 department shall indicate on the certificate of title that the
764 vessel was registered or titled in that country.
765 (5) A written certificate of title must contain a form that
766 all owners indicated on the certificate may sign to evidence
767 consent to a transfer of an ownership interest to another
768 person. The form must include a certification, signed under
769 penalty of perjury, that the statements made are true and
770 correct to the best of each owner’s knowledge, information, and
771 belief.
772 (6) A written certificate of title must contain a form for
773 the owner of record to indicate, in connection with a transfer
774 of an ownership interest, that the vessel is hull damaged.
775 Section 8. Section 328.045, Florida Statutes, is created to
776 read:
777 328.045 Title brands.—
778 (1) Unless subsection (3) applies, at or before the time
779 the owner of record transfers an ownership interest in a hull
780 damaged vessel that is covered by a certificate of title created
781 by the department, if the damage occurred while that person was
782 an owner of the vessel and the person has notice of the damage
783 at the time of the transfer, the owner shall:
784 (a) Deliver to the department an application for a new
785 certificate that complies with s. 328.01 and includes the title
786 brand designation “Hull Damaged”; or
787 (b) Indicate on the certificate in the place designated for
788 that purpose that the vessel is hull damaged, and deliver the
789 certificate to the transferee.
790 (2) Not later than 20 days after delivery of the
791 application under paragraph (1)(a) or the certificate of title
792 under paragraph (1)(b), the department shall create a new
793 certificate that indicates that the vessel is branded “Hull
794 Damaged.”
795 (3) Before an insurer transfers an ownership interest in a
796 hull-damaged vessel that is covered by a certificate of title
797 created by the department, the insurer shall deliver to the
798 department an application for a new certificate that complies
799 with s. 328.01 and includes the title brand designation “Hull
800 Damaged.” Not later than 20 days after delivery of the
801 application to the department, the department shall create a new
802 certificate that indicates that the vessel is branded “Hull
803 Damaged.”
804 (4) An owner of record who fails to comply with subsection
805 (1), a person who solicits or colludes in a failure by an owner
806 of record to comply with subsection (1), or an insurer that
807 fails to comply with subsection (3) is subject to a civil
808 penalty of $1,000.
809 Section 9. Section 328.055, Florida Statutes, is created to
810 read:
811 328.055 Maintenance of and access to files.—
812 (1) For each record relating to a certificate of title
813 submitted to the department, the department shall:
814 (a) Ascertain or assign the hull identification number for
815 the vessel;
816 (b) Maintain the hull identification number and all the
817 information submitted with the application pursuant to s.
818 328.01(2) to which the record relates, including the date and
819 time the record was delivered to the department;
820 (c) Maintain the files for public inspection subject to
821 subsection (5); and
822 (d) Index the files of the department as required by
823 subsection (2).
824 (2) The department shall maintain in its files the
825 information contained in all certificates of title created under
826 this part. The information in the files of the department must
827 be searchable by the hull identification number of the vessel,
828 the vessel number, the name of the owner of record, and any
829 other method used by the department.
830 (3) The department shall maintain in its files, for each
831 vessel for which it has created a certificate of title, all
832 title brands known to the department, the name of each secured
833 party known to the department, the name of each person known to
834 the department to be claiming an ownership interest, and all
835 stolen property reports the department has received.
836 (4) Upon request, for safety, security, or law enforcement
837 purposes, the department shall provide to federal, state, or
838 local government the information in its files relating to any
839 vessel for which the department has issued a certificate of
840 title.
841 (5) Except as otherwise provided by the laws of this state
842 other than this part, the information required under s. 328.04
843 is a public record.
844 Section 10. Section 328.06, Florida Statutes, is created to
845 read:
846 328.06 Action required on creation of certificate of
847 title.—
848 (1) On creation of a written certificate of title, the
849 department shall promptly send the certificate to the secured
850 party of record or, if none, to the owner of record at the
851 address indicated for that person in the department’s files. On
852 creation of an electronic certificate of title, the department
853 shall promptly send a record evidencing the certificate to the
854 owner of record and, if there is one, to the secured party of
855 record at the address indicated for each person in the
856 department’s files. The department may send the record to the
857 person’s mailing address or, if indicated in the department’s
858 files, to an electronic address.
859 (2) If the department creates a written certificate of
860 title, any electronic certificate of title for the vessel is
861 canceled and replaced by the written certificate. The department
862 shall maintain in the department’s files the date and time of
863 cancellation.
864 (3) Before the department creates an electronic certificate
865 of title, any written certificate for the vessel must be
866 surrendered to the department. If the department creates an
867 electronic certificate, the department must destroy or otherwise
868 cancel the written certificate for the vessel which has been
869 surrendered to the department and maintain in the department’s
870 files the date and time of destruction or other cancellation. If
871 a written certificate being canceled is not destroyed, the
872 department shall indicate on the face of the certificate that it
873 has been canceled.
874 Section 11. Section 328.065, Florida Statutes, is created
875 to read:
876 328.065 Effect of possession of certificate of title;
877 judicial process.—Possession of a certificate of title does not
878 by itself provide a right to obtain possession of a vessel.
879 Garnishment, attachment, levy, replevin, or other judicial
880 process against the certificate is not effective to determine
881 possessory rights to the vessel. This part does not prohibit
882 enforcement under the laws of this state of a security interest
883 in, levy on, or foreclosure of a statutory or common-law lien on
884 a vessel. Absence of an indication of a statutory or common-law
885 lien on a certificate does not invalidate the lien.
886 Section 12. Section 328.09, Florida Statutes, is amended to
887 read:
888 (Substantial rewording of section. See
889 s. 328.09, F.S., for present text.)
890 328.09 Refusal to issue and authority to cancel a
891 certificate of title or registration.—
892 (1) Unless an application for a certificate of title is
893 rejected under subsection (3) or subsection (4), the department
894 shall create a certificate for the vessel in accordance with
895 subsection (2) not later than 20 days after delivery to the
896 department of an application that complies with s. 328.01.
897 (2) If the department creates electronic certificates of
898 title, the department shall create an electronic certificate
899 unless in the application the secured party of record or, if
900 none, the owner of record requests that the department create a
901 written certificate.
902 (3) Except as otherwise provided in subsection (4), the
903 department may reject an application for a certificate of title
904 only if:
905 (a) The application does not comply with s. 328.01;
906 (b) The application does not contain documentation
907 sufficient for the department to determine whether the applicant
908 is entitled to a certificate;
909 (c) There is a reasonable basis for concluding that the
910 application is fraudulent or that issuance of a certificate
911 would facilitate a fraudulent or illegal act; or
912 (d) The application does not comply with the laws of this
913 state other than this part.
914 (4) The department shall reject an application for a
915 certificate of title for a vessel that is a documented vessel or
916 a foreign-documented vessel.
917 (5) The department may cancel a certificate of title it
918 created only if the department:
919 (a) Could have rejected the application for the certificate
920 under subsection (3);
921 (b) Is required to cancel the certificate under another
922 provision of this part; or
923 (c) Receives satisfactory evidence that the vessel is a
924 documented vessel or a foreign-documented vessel.
925 (6) The department shall provide an opportunity for a
926 hearing pursuant to ss. 120.569 and 120.57 at which the owner
927 and any other interested party may present evidence in support
928 of or opposition to cancellation of a certificate of title.
929 Section 13. Section 328.101, Florida Statutes, is created
930 to read:
931 328.101 Effect of missing or incorrect information.—Except
932 as otherwise provided in s. 679.337, a certificate of title or
933 other record required or authorized by this part is effective
934 even if it contains incorrect information or does not contain
935 required information.
936 Section 14. Section 328.11, Florida Statutes, is amended to
937 read:
938 328.11 Duplicate certificate of title.—
939 (1) If a written certificate of title is lost, stolen,
940 mutilated, destroyed, or otherwise becomes unavailable or
941 illegible, the secured party of record or, if no secured party
942 is indicated in the department’s files, the owner of record may
943 apply for and, by furnishing information satisfactory to the
944 department, obtain a duplicate certificate in the name of the
945 owner of record.
946 (2) An applicant for a duplicate certificate of title shall
947 sign the application, and, except as otherwise permitted by the
948 department, the application must comply with s. 328.01. The
949 application must include the existing certificate unless the
950 certificate is lost, stolen, mutilated, destroyed, or otherwise
951 unavailable.
952 (3) A duplicate certificate of title created by the
953 department must comply with s. 328.04 and indicate on the face
954 of the certificate that it is a duplicate certificate.
955 (4) If a person receiving a duplicate certificate of title
956 subsequently obtains possession of the original written
957 certificate, the person shall promptly destroy the original
958 certificate of title.
959 (5)(1) The Department of Highway Safety and Motor Vehicles
960 may issue a duplicate certificate of title upon application by
961 the person entitled to hold such a certificate if the department
962 is satisfied that the original certificate has been lost,
963 destroyed, or mutilated. The department shall charge a fee of $6
964 for issuing a duplicate certificate.
965 (6)(2) In addition to the fee imposed by subsection (5)
966 (1), the department of Highway Safety and Motor Vehicles shall
967 charge a fee of $5 for expedited service in issuing a duplicate
968 certificate of title. Application for such expedited service may
969 be made by mail or in person. The department shall issue each
970 certificate of title applied for under this subsection within 5
971 working days after receipt of a proper application or shall
972 refund the additional $5 fee upon written request by the
973 applicant.
974 (3) If, following the issuance of an original, duplicate,
975 or corrected certificate of title by the department, the
976 certificate is lost in transit and is not delivered to the
977 addressee, the owner of the vessel or the holder of a lien
978 thereon may, within 180 days after the date of issuance of the
979 title, apply to the department for reissuance of the certificate
980 of title. An additional fee may not be charged for reissuance
981 under this subsection.
982 (7)(4) The department shall implement a system to verify
983 that the application is signed by a person authorized to receive
984 a duplicate title certificate under this section if the address
985 shown on the application is different from the address shown for
986 the applicant on the records of the department.
987 Section 15. Section 328.12, Florida Statutes, is created to
988 read:
989 328.12 Perfection of security interest.—
990 (1) Except as otherwise provided in this section, a
991 security interest in a vessel may be perfected only by delivery
992 to the department of an application for a certificate of title
993 which identifies the secured party and otherwise complies with
994 s. 328.01. The security interest is perfected on the later of
995 delivery to the department of the application and the applicable
996 fee or attachment of the security interest under s. 679.2031.
997 (2) If the interest of a person named as owner, lessor,
998 consignor, or bailor in an application for a certificate of
999 title delivered to the department is a security interest, the
1000 application sufficiently identifies the person as a secured
1001 party. Identification on the application for a certificate of a
1002 person as owner, lessor, consignor, or bailor is not by itself a
1003 factor in determining whether the person’s interest is a
1004 security interest.
1005 (3) If the department has created a certificate of title
1006 for a vessel, a security interest in the vessel may be perfected
1007 by delivery to the department of an application, on a form the
1008 department may require, to have the security interest added to
1009 the certificate. The application must be signed by an owner of
1010 the vessel or by the secured party and must include:
1011 (a) The name of the owner of record;
1012 (b) The name and mailing address of the secured party;
1013 (c) The hull identification number for the vessel; and
1014 (d) If the department has created a written certificate of
1015 title for the vessel, the certificate.
1016 (4) A security interest perfected under subsection (3) is
1017 perfected on the later of delivery to the department of the
1018 application and all applicable fees or attachment of the
1019 security interest under s. 679.2031.
1020 (5) Upon delivery of an application that complies with
1021 subsection (3) and payment of all applicable fees, the
1022 department shall create a new certificate of title pursuant to
1023 s. 328.09 and deliver the new certificate or a record evidencing
1024 an electronic certificate pursuant to s. 328.06. The department
1025 shall maintain in the department’s files the date and time of
1026 delivery of the application to the department.
1027 (6) If a secured party assigns a perfected security
1028 interest in a vessel, the receipt by the department of a
1029 statement providing the name of the assignee as secured party is
1030 not required to continue the perfected status of the security
1031 interest against creditors of and transferees from the original
1032 debtor. A purchaser of a vessel subject to a security interest
1033 who obtains a release from the secured party indicated in the
1034 files of the department or on the certificate takes free of the
1035 security interest and of the rights of a transferee unless the
1036 transfer is indicated in the files of the department or on the
1037 certificate.
1038 (7) This section does not apply to a security interest:
1039 (a) Created in a vessel by a person during any period in
1040 which the vessel is inventory held for sale or lease by the
1041 person or is leased by the person as lessor if the person is in
1042 the business of selling vessels;
1043 (b) In a barge for which no application for a certificate
1044 of title has been delivered to the department; or
1045 (c) In a vessel before delivery if the vessel is under
1046 construction, or completed, pursuant to contract and for which
1047 no application for a certificate has been delivered to the
1048 department.
1049 (8) This subsection applies if a certificate of
1050 documentation for a documented vessel is deleted or canceled. If
1051 a security interest in the vessel was valid immediately before
1052 deletion or cancellation against a third party as a result of
1053 compliance with 46 U.S.C. s. 31321, the security interest is and
1054 remains perfected until the earlier of 4 months after
1055 cancellation of the certificate or the time the security
1056 interest becomes perfected under this part.
1057 (9) A security interest in a vessel arising under s.
1058 672.401, s. 672.505, s. 672.711(3), or s. 680.508(5) is
1059 perfected when it attaches, but becomes unperfected when the
1060 debtor obtains possession of the vessel, unless the security
1061 interest is perfected pursuant to subsection (1) or subsection
1062 (3) before the debtor obtains possession.
1063 (10) A security interest in a vessel as proceeds of other
1064 collateral is perfected to the extent provided in s. 679.3151.
1065 (11) A security interest in a vessel perfected under the
1066 law of another jurisdiction is perfected to the extent provided
1067 in s. 679.3161(4).
1068 (12) The department shall adopt rules to administer this
1069 section.
1070 Section 16. Section 328.125, Florida Statutes, is created
1071 to read:
1072 328.125 Termination statement.—
1073 (1) A secured party indicated in the department’s files as
1074 having a security interest in a vessel shall deliver a
1075 termination statement to the department and, on the debtor’s
1076 request, to the debtor, by the earlier of:
1077 (a) Twenty days after the secured party receives a signed
1078 demand from an owner for a termination statement and there is no
1079 obligation secured by the vessel subject to the security
1080 interest and no commitment to make an advance, incur an
1081 obligation, or otherwise give value secured by the vessel; or
1082 (b) If the vessel is consumer goods, 30 days after there is
1083 no obligation secured by the vessel and no commitment to make an
1084 advance, incur an obligation, or otherwise give value secured by
1085 the vessel.
1086 (2) If a written certificate of title has been created and
1087 delivered to a secured party and a termination statement is
1088 required under subsection (1), the secured party, not later than
1089 the date required by subsection (1), shall deliver the
1090 certificate to the debtor or to the department with the
1091 statement. If the certificate is lost, stolen, mutilated,
1092 destroyed, or is otherwise unavailable or illegible, the secured
1093 party shall deliver with the statement, not later than the date
1094 required by subsection (1), an application for a duplicate
1095 certificate which meets the requirements of s. 328.11.
1096 (3) Upon delivery to the department of a termination
1097 statement authorized by the secured party, the security interest
1098 to which the statement relates ceases to be perfected. If the
1099 security interest to which the statement relates is indicated on
1100 the certificate of title, the department shall create a new
1101 certificate and deliver the new certificate or a record
1102 evidencing an electronic certificate. The department shall
1103 maintain in its files the date and time of delivery to the
1104 department of the statement.
1105 (4) A secured party who fails to comply with this section
1106 is liable for any loss that the secured party had reason to know
1107 might result from its failure to comply and which could not
1108 reasonably have been prevented and for the cost of an
1109 application for a certificate of title under s. 328.01 or s.
1110 328.11.
1111 Section 17. Section 328.14, Florida Statutes, is created to
1112 read:
1113 328.14 Rights of purchaser other than secured party.—
1114 (1) A buyer in ordinary course of business has the
1115 protections afforded by ss. 672.403(2) and 679.320(1), even if
1116 an existing certificate of title was not signed and delivered to
1117 the buyer or a new certificate listing the buyer as owner of
1118 record was not created.
1119 (2) Except as otherwise provided in ss. 328.145 and 328.22,
1120 the rights of a purchaser of a vessel who is not a buyer in
1121 ordinary course of business or a lien creditor are governed by
1122 the Uniform Commercial Code.
1123 Section 18. Section 328.145, Florida Statutes, is created
1124 to read:
1125 328.145 Rights of secured party.—
1126 (1) Subject to subsection (2), the effect of perfection and
1127 nonperfection of a security interest and the priority of a
1128 perfected or unperfected security interest with respect to the
1129 rights of a purchaser or creditor, including a lien creditor, is
1130 governed by the Uniform Commercial Code.
1131 (2) If, while a security interest in a vessel is perfected
1132 by any method under this part, the department creates a
1133 certificate of title that does not indicate that the vessel is
1134 subject to the security interest or contain a statement that it
1135 may be subject to security interests not indicated on the
1136 certificate:
1137 (a) A buyer of the vessel, other than a person in the
1138 business of selling or leasing vessels of that kind, takes free
1139 of the security interest if the buyer, acting in good faith and
1140 without knowledge of the security interest, gives value and
1141 receives possession of the vessel; and
1142 (b) The security interest is subordinate to a conflicting
1143 security interest in the vessel that is perfected under s.
1144 328.12 after creation of the certificate and without the
1145 conflicting secured party’s knowledge of the security interest.
1146 Section 19. Section 328.15, Florida Statutes, is amended to
1147 read:
1148 328.15 Notice of lien on vessel; recording.—
1149 (1) No lien for purchase money or as security for a debt in
1150 the form of retain title contract, conditional bill of sale,
1151 chattel mortgage, or otherwise on a vessel shall be enforceable
1152 in any of the courts of this state against creditors or
1153 subsequent purchasers for a valuable consideration and without
1154 notice unless a sworn notice of such lien is recorded. The lien
1155 certificate shall contain the following information:
1156 (a) Name and address of the registered owner;
1157 (b) Date of lien;
1158 (c) Description of the vessel to include make, type, motor
1159 and serial number; and
1160 (d) Name and address of lienholder.
1161
1162 The lien shall be recorded by the Department of Highway Safety
1163 and Motor Vehicles and shall be effective as constructive notice
1164 when filed. The date of filing of the notice of lien is the date
1165 of its receipt by the department’s central office in
1166 Tallahassee, if first filed there, or otherwise by the office of
1167 a county tax collector or of the tax collector’s agent.
1168 (2)(a) The Department of Highway Safety and Motor Vehicles
1169 shall not enter any lien upon its lien records, whether it is a
1170 first lien or a subordinate lien, unless the official
1171 certificate of title issued for the vessel is furnished with the
1172 notice of lien, so that the record of lien, whether original or
1173 subordinate, may be noted upon the face thereof. After the
1174 department records the lien, it shall send the certificate of
1175 title to the holder of the first lien who shall hold such
1176 certificate until the lien is satisfied in full.
1177 (b) When a vessel is registered in the names of two or more
1178 persons as coowners in the alternative by the use of the word
1179 “or,” whether or not the coowners are husband and wife, each
1180 coowner is considered to have granted to any other coowner the
1181 absolute right to place a lien or encumbrance on the vessel, and
1182 the signature of one coowner constitutes proper execution of the
1183 notice of lien. When a vessel is registered in the names of two
1184 or more persons as coowners in the conjunctive by the use of the
1185 word “and,” the signature of each coowner is required in order
1186 to place a lien or encumbrance on the vessel.
1187 (c) If the owner of the vessel as shown on the title
1188 certificate or the director of the state child support
1189 enforcement program desires to place a second or subsequent lien
1190 or encumbrance against the vessel when the title certificate is
1191 in the possession of the first lienholder, the owner shall send
1192 a written request to the first lienholder by certified mail and
1193 such first lienholder shall forward the certificate to the
1194 department for endorsement. The department shall return the
1195 certificate to the first lienholder, as indicated in the notice
1196 of lien filed by the first lienholder, after endorsing the
1197 second or subsequent lien on the certificate and on the
1198 duplicate. If the first lienholder fails, neglects, or refuses
1199 to forward the certificate of title to the department within 10
1200 days after the date of the owner’s or the director’s request,
1201 the department, on written request of the subsequent lienholder
1202 or an assignee thereof, shall demand of the first lienholder the
1203 return of such certificate for the notation of the second or
1204 subsequent lien or encumbrance.
1205 (1)(3) Upon the payment of a any such lien, the debtor or
1206 the registered owner of the motorboat shall be entitled to
1207 demand and receive from the lienholder a satisfaction of the
1208 lien which shall likewise be filed with the Department of
1209 Highway Safety and Motor Vehicles.
1210 (2)(4) The Department of Highway Safety and Motor Vehicles
1211 under precautionary rules and regulations to be promulgated by
1212 it may permit the use, in substitution of the formal
1213 satisfaction of lien, of other methods of satisfaction, such as
1214 perforation, appropriate stamp, or otherwise, as it deems
1215 reasonable and adequate.
1216 (3)(5)(a) The Department of Highway Safety and Motor
1217 Vehicles shall adopt rules to administer this section. The
1218 department may by rule require that a notice of satisfaction of
1219 a lien be notarized. The department shall prepare the forms of
1220 the notice of lien and the satisfaction of lien to be supplied,
1221 at a charge not to exceed 50 percent more than cost, to
1222 applicants for recording the liens or satisfactions and shall
1223 keep a record of such notices of lien and satisfactions
1224 available for inspection by the public at all reasonable times.
1225 The division may furnish certified copies of such satisfactions
1226 for a fee of $1, which are admissible in evidence in all courts
1227 of this state under the same conditions and to the same effect
1228 as certified copies of other public records.
1229 (b) The department shall establish and administer an
1230 electronic titling program that requires the recording of vessel
1231 title information for new, transferred, and corrected
1232 certificates of title. Lienholders shall electronically transmit
1233 liens and lien satisfactions to the department in a format
1234 determined by the department. Individuals and lienholders who
1235 the department determines are not normally engaged in the
1236 business or practice of financing vessels are not required to
1237 participate in the electronic titling program.
1238 (6) The Department of Highway Safety and Motor Vehicles is
1239 entitled to a fee of $1 for the recording of each notice of
1240 lien. No fee shall be charged for recording the satisfaction of
1241 a lien. All of the fees collected shall be paid into the Marine
1242 Resources Conservation Trust Fund.
1243 (4)(7)(a) Should any person, firm, or corporation holding
1244 such lien, which has been recorded by the Department of Highway
1245 Safety and Motor Vehicles, upon payment of such lien and on
1246 demand, fail or refuse, within 30 days after such payment and
1247 demand, to furnish the debtor or the registered owner of such
1248 vessel a satisfaction of the lien, then, in that event, such
1249 person, firm, or corporation shall be held liable for all costs,
1250 damages, and expenses, including reasonable attorney attorney’s
1251 fees, lawfully incurred by the debtor or the registered owner of
1252 such vessel in any suit which may be brought in the courts of
1253 this state for the cancellation of such lien.
1254 (b) Following satisfaction of a lien, the lienholder shall
1255 enter a satisfaction thereof in the space provided on the face
1256 of the certificate of title. If there are no subsequent liens
1257 shown thereon, the certificate shall be delivered by the
1258 lienholder to the person satisfying the lien or encumbrance and
1259 an executed satisfaction on a form provided by the department
1260 shall be forwarded to the department by the lienholder within 10
1261 days after satisfaction of the lien.
1262 (c) If the certificate of title shows a subsequent lien not
1263 then being discharged, an executed satisfaction of the first
1264 lien shall be delivered by the lienholder to the person
1265 satisfying the lien and the certificate of title showing
1266 satisfaction of the first lien shall be forwarded by the
1267 lienholder to the department within 10 days after satisfaction
1268 of the lien.
1269 (d) If, upon receipt of a title certificate showing
1270 satisfaction of the first lien, the department determines from
1271 its records that there are no subsequent liens or encumbrances
1272 upon the vessel, the department shall forward to the owner, as
1273 shown on the face of the title, a corrected certificate showing
1274 no liens or encumbrances. If there is a subsequent lien not
1275 being discharged, the certificate of title shall be reissued
1276 showing the second or subsequent lienholder as the first
1277 lienholder and shall be delivered to the new first lienholder.
1278 The first lienholder shall be entitled to retain the certificate
1279 of title until his or her lien is satisfied. Upon satisfaction
1280 of the lien, the lienholder shall be subject to the procedures
1281 required of a first lienholder in this subsection and in
1282 subsection (2).
1283 (5)(8) When the original certificate of title cannot be
1284 returned to the department by the lienholder and evidence
1285 satisfactory to the department is produced that all liens or
1286 encumbrances have been satisfied, upon application by the owner
1287 for a duplicate copy of the certificate of title, upon the form
1288 prescribed by the department, accompanied by the fee prescribed
1289 in this chapter, a duplicate copy of the certificate of title
1290 without statement of liens or encumbrances shall be issued by
1291 the department and delivered to the owner.
1292 (6)(9) Any person who fails, within 10 days after receipt
1293 of a demand by the department by certified mail, to return a
1294 certificate of title to the department as required by paragraph
1295 (2)(c) or who, upon satisfaction of a lien, fails within 10 days
1296 after receipt of such demand to forward the appropriate document
1297 to the department as required by paragraph (4)(b) (7)(b) or
1298 paragraph (4)(c) (7)(c) commits a misdemeanor of the second
1299 degree, punishable as provided in s. 775.082 or s. 775.083.
1300 (7)(10) The department shall use the last known address as
1301 shown by its records when sending any notice required by this
1302 section.
1303 (8)(11) If the original lienholder sells and assigns his or
1304 her lien to some other person, and if the assignee desires to
1305 have his or her name substituted on the certificate of title as
1306 the holder of the lien, he or she may, after delivering the
1307 original certificate of title to the department and providing a
1308 sworn statement of the assignment, have his or her name
1309 substituted as a lienholder. Upon substitution of the assignee’s
1310 name as lienholder, the department shall deliver the certificate
1311 of title to the assignee as the first lienholder.
1312 (9) Subsections (1), (2), and (4)-(8) shall expire on
1313 October 1, 2022.
1314 Section 20. Section 328.16, Florida Statutes, is amended to
1315 read:
1316 328.16 Issuance in duplicate; delivery; liens, security
1317 interests, and encumbrances.—
1318 (1) The department shall assign a number to each
1319 certificate of title and shall issue each certificate of title
1320 and each corrected certificate in duplicate. The database record
1321 shall serve as the duplicate title certificate.
1322 (2) An authorized person must sign the original certificate
1323 of title and each corrected certificate and, if there are no
1324 liens, security interests, or encumbrances on the vessel, as
1325 shown in the records of the department or as shown in the
1326 application, must deliver the certificate to the applicant or to
1327 another person as directed by the applicant or person, agent, or
1328 attorney submitting the application. If there are one or more
1329 liens, security interests, or encumbrances on the vessel, the
1330 department must deliver the certificate to the first lienholder
1331 or secured party as shown by department records. The department
1332 shall deliver to the first lienholder or secured party, along
1333 with the certificate, a form to be subsequently used by the
1334 lienholder or secured party as a satisfaction. If the
1335 application for certificate of title shows the name of a first
1336 lienholder or secured party which is different from the name of
1337 the first lienholder or secured party as shown by the records of
1338 the department, the certificate shall not be issued to any
1339 person until after the department notifies all parties who
1340 appear to hold a lien or a security interest and the applicant
1341 for the certificate, in writing by certified mail. If the
1342 parties do not amicably resolve the conflict within 10 days
1343 after the date the notice was mailed, the department shall serve
1344 notice in writing by certified mail on all persons that appear
1345 to hold liens or security interests on that particular vessel,
1346 including the applicant for the certificate, to show cause
1347 within 15 days after the date the notice is mailed why it should
1348 not issue and deliver the certificate to the secured party of
1349 record or person indicated in the notice of lien filed by the
1350 lienholder whose name appears in the application as the first
1351 lienholder without showing any lien or liens as outstanding
1352 other than those appearing in the application or those filed
1353 subsequent to the filing of the application for the certificate
1354 of title. If, within the 15-day period, any person other than
1355 the lienholder or secured party of record shown in the
1356 application or a party filing a subsequent lien or security
1357 interest, in answer to the notice to show cause, appears in
1358 person or by a representative, or responds in writing, and files
1359 a written statement under oath that his or her lien or security
1360 interest on that particular vessel is still outstanding, the
1361 department shall not issue the certificate to anyone until after
1362 the conflict has been settled by the lien or security interest
1363 claimants involved or by a court of competent jurisdiction. If
1364 the conflict is not settled amicably within 10 days after the
1365 final date for filing an answer to the notice to show cause, the
1366 complaining party shall have 10 days to obtain a ruling, or a
1367 stay order, from a court of competent jurisdiction. If a ruling
1368 or stay order is not issued and served on the department within
1369 the 10-day period, the department shall issue the certificate
1370 showing no liens or security interests, except those shown in
1371 the application or thereafter filed, to the original applicant
1372 if there are no liens or security interests shown in the
1373 application and none are thereafter filed, or to the person
1374 indicated as the secured party of record or in the notice of
1375 lien filed by the lienholder whose name appears in the
1376 application as the first lienholder if there are liens shown in
1377 the application or thereafter filed. A duplicate certificate or
1378 corrected certificate must show only such security interest or
1379 interests or lien or liens as were shown in the application and
1380 subsequently filed liens or security interests that may be
1381 outstanding.
1382 (3) Except as provided in s. 328.15(11), The certificate of
1383 title shall be retained by the first lienholder or secured party
1384 of record. The first lienholder or secured party of record is
1385 entitled to retain the certificate until the first lien or
1386 security interest is satisfied.
1387 (4) Notwithstanding any requirements in this section or in
1388 s. 328.15 indicating that a lien or security interest on a
1389 vessel shall be noted on the face of the Florida certificate of
1390 title, if there are one or more liens, security interests, or
1391 encumbrances on a vessel, the department shall electronically
1392 transmit the lien or security interest to the first lienholder
1393 or secured party and notify the first lienholder or secured
1394 party of any additional liens or security interests. Subsequent
1395 lien or security interest satisfactions shall be electronically
1396 transmitted to the department and must include the name and
1397 address of the person or entity satisfying the lien or security
1398 interest. When electronic transmission of liens or security
1399 interest and lien satisfactions or security interest are used,
1400 the issuance of a certificate of title may be waived until the
1401 last lien or security interest is satisfied and a clear
1402 certificate of title is issued to the owner of the vessel.
1403 (5) The owner of a vessel, upon which a lien or security
1404 interest has been filed with the department or noted upon a
1405 certificate of title for a period of 5 years, may apply to the
1406 department in writing for such lien or security interest to be
1407 removed from the department files or from the certificate of
1408 title. The application must be accompanied by evidence
1409 satisfactory to the department that the applicant has notified
1410 the lienholder or secured party by certified mail, not less than
1411 20 days before prior to the date of the application, of his or
1412 her intention to apply to the department for removal of the lien
1413 or security interest. Ten days after receipt of the application,
1414 the department may remove the lien or security interest from its
1415 files or from the certificate of title, as the case may be, if
1416 no statement in writing protesting removal of the lien or
1417 security interest is received by the department from the
1418 lienholder or secured party within the 10-day period. However,
1419 if the lienholder or secured party files with the department,
1420 within the 10-day period, a written statement that the lien or
1421 security interest is still outstanding, the department may not
1422 remove the lien or security interest until the lienholder or
1423 secured party presents a satisfaction of lien or satisfaction of
1424 security interest to the department.
1425 Section 21. Subsection (1) of section 328.165, Florida
1426 Statutes, is amended to read:
1427 328.165 Cancellation of certificates.—
1428 (1) If it appears that a certificate of title has been
1429 improperly issued, the department shall cancel the certificate.
1430 Upon cancellation of any certificate of title, the department
1431 shall notify the person to whom the certificate of title was
1432 issued, and any lienholders or secured parties appearing
1433 thereon, of the cancellation and shall demand the surrender of
1434 the certificate of title; however, the cancellation does not
1435 affect the validity of any lien or security interest noted
1436 thereon. The holder of the certificate of title shall
1437 immediately return it to the department. If a certificate of
1438 registration has been issued to the holder of a certificate of
1439 title so canceled, the department shall immediately cancel the
1440 certificate of registration and demand the return of the
1441 certificate of registration, and the holder of such certificate
1442 of registration shall immediately return it to the department.
1443 Section 22. Section 328.215, Florida Statutes, is created
1444 to read:
1445 328.215 Application for transfer of ownership or
1446 termination of security interest without certificate of title.—
1447 (1) Except as otherwise provided in s. 328.23 or s. 328.24,
1448 if the department receives, unaccompanied by a signed
1449 certificate of title, an application for a new certificate that
1450 includes an indication of a transfer of ownership or a
1451 termination statement, the department may create a new
1452 certificate under this section only if:
1453 (a) All other requirements under ss. 328.01 and 328.09 are
1454 met;
1455 (b) The applicant provides an affidavit stating facts
1456 showing the applicant is entitled to a transfer of ownership or
1457 termination statement;
1458 (c) The applicant provides the department with satisfactory
1459 evidence that notification of the application has been sent to
1460 the owner of record and all persons indicated in the
1461 department’s files as having an interest, including a security
1462 interest, in the vessel; at least 45 days have passed since the
1463 notification was sent; and the department has not received an
1464 objection from any of those persons; and
1465 (d) The applicant submits any other information required by
1466 the department as evidence of the applicant’s ownership or right
1467 to terminate the security interest, and the department has no
1468 credible information indicating theft, fraud, or an undisclosed
1469 or unsatisfied security interest, lien, or other claim to an
1470 interest in the vessel.
1471 (2) The department may indicate in a certificate of title
1472 created under subsection (1) that the certificate was created
1473 without submission of a signed certificate or termination
1474 statement. Unless credible information indicating theft, fraud,
1475 or an undisclosed or unsatisfied security interest, lien, or
1476 other claim to an interest in the vessel is delivered to the
1477 department not later than 1 year after creation of the
1478 certificate, on request in a form and manner required by the
1479 department, the department shall remove the indication from the
1480 certificate.
1481 (3) Unless the department determines that the value of a
1482 vessel is less than $5,000, before the department creates a
1483 certificate of title under subsection (1), the department may
1484 require the applicant to post a bond or provide an equivalent
1485 source of indemnity or security. The bond, indemnity, or other
1486 security may not exceed twice the value of the vessel as
1487 determined by the department. The bond, indemnity, or other
1488 security must be in a form required by the department and
1489 provide for indemnification of any owner, purchaser, or other
1490 claimant for any expense, loss, delay, or damage, including
1491 reasonable attorney fees and costs, but not including incidental
1492 or consequential damages, resulting from creation or amendment
1493 of the certificate.
1494 (4) Unless the department receives a claim for indemnity
1495 not later than 1 year after creation of a certificate of title
1496 under subsection (1), on request in a form and manner required
1497 by the department, the department shall release any bond,
1498 indemnity, or other security.
1499 Section 23. Section 328.22, Florida Statutes, is created to
1500 read:
1501 328.22 Transfer of ownership.—
1502 (1) On voluntary transfer of an ownership interest in a
1503 vessel covered by a certificate of title, the following rules
1504 apply:
1505 (a) If the certificate is a written certificate of title
1506 and the transferor’s interest is noted on the certificate, the
1507 transferor shall promptly sign the certificate and deliver it to
1508 the transferee. If the transferor does not have possession of
1509 the certificate, the person in possession of the certificate has
1510 a duty to facilitate the transferor’s compliance with this
1511 paragraph. A secured party does not have a duty to facilitate
1512 the transferor’s compliance with this paragraph if the proposed
1513 transfer is prohibited by the security agreement.
1514 (b) If the certificate of title is an electronic
1515 certificate of title, the transferor shall promptly sign and
1516 deliver to the transferee a record evidencing the transfer of
1517 ownership to the transferee.
1518 (c) The transferee has a right enforceable by specific
1519 performance to require the transferor to comply with paragraph
1520 (a) or paragraph (b).
1521 (2) The creation of a certificate of title identifying the
1522 transferee as owner of record satisfies subsection (1).
1523 (3) A failure to comply with subsection (1) or to apply for
1524 a new certificate of title does not render a transfer of
1525 ownership of a vessel ineffective between the parties. Except as
1526 otherwise provided in s. 328.101, s. 328.14(1), s. 328.145, or
1527 s. 328.23, a transfer of ownership without compliance with
1528 subsection (1) is not effective against another person claiming
1529 an interest in the vessel.
1530 (4) A transferor that complies with subsection (1) is not
1531 liable as owner of the vessel for an event occurring after the
1532 transfer, regardless of whether the transferee applies for a new
1533 certificate of title.
1534 Section 24. Section 328.23, Florida Statutes, is created to
1535 read:
1536 328.23 Transfer of ownership by secured party’s transfer
1537 statement.—
1538 (1) In this section, “secured party’s transfer statement”
1539 means a record signed by the secured party of record stating:
1540 (a) That there has been a default on an obligation secured
1541 by the vessel;
1542 (b) That the secured party of record is exercising or has
1543 exercised post-default remedies with respect to the vessel;
1544 (c) That by reason of the exercise, the secured party of
1545 record has the right to transfer the ownership interest of an
1546 owner, and the name of the owner;
1547 (d) The name and last known mailing address of the owner of
1548 record and the secured party of record;
1549 (e) The name of the transferee;
1550 (f) Other information required by s. 328.01(2); and
1551 (g) One of the following:
1552 1. The certificate of title is an electronic certificate.
1553 2. The secured party does not have possession of the
1554 written certificate of title created in the name of the owner of
1555 record.
1556 3. The secured party is delivering the written certificate
1557 of title to the department with the secured party’s transfer
1558 statement.
1559 (2) Unless the department rejects a secured party’s
1560 transfer statement for a reason stated in s. 328.09(3), not
1561 later than 20 days after delivery to the department of the
1562 statement and payment of fees and taxes payable under the laws
1563 of this state other than this part in connection with the
1564 statement or the acquisition or use of the vessel, the
1565 department shall:
1566 (a) Accept the statement;
1567 (b) Amend the files of the department to reflect the
1568 transfer; and
1569 (c) If the name of the owner whose ownership interest is
1570 being transferred is indicated on the certificate of title:
1571 1. Cancel the certificate even if the certificate has not
1572 been delivered to the department;
1573 2. Create a new certificate indicating the transferee as
1574 owner; and
1575 3. Deliver the new certificate or a record evidencing an
1576 electronic certificate.
1577 (3) An application under subsection (1) or the creation of
1578 a certificate of title under subsection (2) is not by itself a
1579 disposition of the vessel and does not by itself relieve the
1580 secured party of its duties under chapter 679.
1581 Section 25. Section 328.24, Florida Statutes, is created to
1582 read:
1583 328.24 Transfer by operation of law.—
1584 (1) In this section, “by operation of law” means pursuant
1585 to a law or judicial order affecting ownership of a vessel:
1586 (a) Because of death, divorce, or other family law
1587 proceeding, merger, consolidation, dissolution, or bankruptcy;
1588 (b) Through the exercise of the rights of a lien creditor
1589 or a person having a lien created by statute or rule of law; or
1590 (c) Through other legal process.
1591 (2) A transfer-by-law statement must contain:
1592 (a) The name and last known mailing address of the owner of
1593 record and the transferee and the other information required by
1594 s. 328.01;
1595 (b) Documentation sufficient to establish the transferee’s
1596 ownership interest or right to acquire the ownership interest;
1597 (c) A statement that:
1598 1. The certificate of title is an electronic certificate of
1599 title;
1600 2. The transferee does not have possession of the written
1601 certificate of title created in the name of the owner of record;
1602 or
1603 3. The transferee is delivering the written certificate to
1604 the department with the transfer-by-law statement; and
1605 (d) Except for a transfer described in paragraph (1)(a),
1606 evidence that notification of the transfer and the intent to
1607 file the transfer-by-law statement has been sent to all persons
1608 indicated in the department’s files as having an interest,
1609 including a security interest, in the vessel.
1610 (3) Unless the department rejects a transfer-by-law
1611 statement for a reason stated in s. 328.09(3) or because the
1612 statement does not include documentation satisfactory to the
1613 department as to the transferee’s ownership interest or right to
1614 acquire the ownership interest, not later than 20 days after
1615 delivery to the department of the statement and payment of fees
1616 and taxes payable under the law of this state other than this
1617 part in connection with the statement or with the acquisition or
1618 use of the vessel, the department shall:
1619 (a) Accept the statement;
1620 (b) Amend the files of the department to reflect the
1621 transfer; and
1622 (c) If the name of the owner whose ownership interest is
1623 being transferred is indicated on the certificate of title:
1624 1. Cancel the certificate even if the certificate has not
1625 been delivered to the department;
1626 2. Create a new certificate indicating the transferee as
1627 owner;
1628 3. Indicate on the new certificate any security interest
1629 indicated on the canceled certificate, unless a court order
1630 provides otherwise; and
1631 4. Deliver the new certificate or a record evidencing an
1632 electronic certificate.
1633 (4) This section does not apply to a transfer of an
1634 interest in a vessel by a secured party under part VI of chapter
1635 679.
1636 Section 26. Section 328.25, Florida Statutes, is created to
1637 read:
1638 328.25 Supplemental principles of law and equity.—Unless
1639 displaced by a provision of this part, the principles of law and
1640 equity supplement its provisions.
1641 Section 27. Section 409.2575, Florida Statutes, is amended
1642 to read:
1643 409.2575 Liens on motor vehicles and vessels.—
1644 (1) The director of the state IV-D program, or the
1645 director’s designee, may cause a lien for unpaid and delinquent
1646 support to be placed upon motor vehicles, as defined in chapter
1647 320, and upon vessels, as defined in chapter 327, that are
1648 registered in the name of an obligor who is delinquent in
1649 support payments, if the title to the property is held by a
1650 lienholder, in the manner provided in chapter 319 or, if
1651 applicable in accordance with s. 328.15(9), chapter 328. Notice
1652 of lien may shall not be mailed unless the delinquency in
1653 support exceeds $600.
1654 (2) If the first lienholder fails, neglects, or refuses to
1655 forward the certificate of title to the appropriate department
1656 as requested pursuant to s. 319.24 or, if applicable in
1657 accordance with s. 328.15(9), s. 328.15, the director of the IV
1658 D program, or the director’s designee, may apply to the circuit
1659 court for an order to enforce the requirements of s. 319.24 or
1660 s. 328.15, whichever applies.
1661 Section 28. Subsection (2) of section 705.103, Florida
1662 Statutes, is amended to read:
1663 705.103 Procedure for abandoned or lost property.—
1664 (2) Whenever a law enforcement officer ascertains that an
1665 article of lost or abandoned property is present on public
1666 property and is of such nature that it cannot be easily removed,
1667 the officer shall cause a notice to be placed upon such article
1668 in substantially the following form:
1669
1670 NOTICE TO THE OWNER AND ALL PERSONS INTERESTED IN THE ATTACHED
1671 PROPERTY. This property, to wit: ...(setting forth brief
1672 description)... is unlawfully upon public property known as
1673 ...(setting forth brief description of location)... and must be
1674 removed within 5 days; otherwise, it will be removed and
1675 disposed of pursuant to chapter 705, Florida Statutes. The owner
1676 will be liable for the costs of removal, storage, and
1677 publication of notice. Dated this: ...(setting forth the date of
1678 posting of notice)..., signed: ...(setting forth name, title,
1679 address, and telephone number of law enforcement officer)....
1680
1681 Such notice shall be not less than 8 inches by 10 inches and
1682 shall be sufficiently weatherproof to withstand normal exposure
1683 to the elements. In addition to posting, the law enforcement
1684 officer shall make a reasonable effort to ascertain the name and
1685 address of the owner. If such is reasonably available to the
1686 officer, she or he shall mail a copy of such notice to the owner
1687 on or before the date of posting. If the property is a motor
1688 vehicle as defined in s. 320.01(1) or a vessel as defined in s.
1689 327.02, the law enforcement agency shall contact the Department
1690 of Highway Safety and Motor Vehicles in order to determine the
1691 name and address of the owner and any person who has filed a
1692 lien on the vehicle or vessel as provided in s. 319.27(2) or (3)
1693 or s. 328.15(1). On receipt of this information, the law
1694 enforcement agency shall mail a copy of the notice by certified
1695 mail, return receipt requested, to the owner and to the
1696 lienholder, if any, except that a law enforcement officer who
1697 has issued a citation for a violation of s. 823.11 to the owner
1698 of a derelict vessel is not required to mail a copy of the
1699 notice by certified mail, return receipt requested, to the
1700 owner. If, at the end of 5 days after posting the notice and
1701 mailing such notice, if required, the owner or any person
1702 interested in the lost or abandoned article or articles
1703 described has not removed the article or articles from public
1704 property or shown reasonable cause for failure to do so, the
1705 following shall apply:
1706 (a) For abandoned property, the law enforcement agency may
1707 retain any or all of the property for its own use or for use by
1708 the state or unit of local government, trade such property to
1709 another unit of local government or state agency, donate the
1710 property to a charitable organization, sell the property, or
1711 notify the appropriate refuse removal service.
1712 (b) For lost property, the officer shall take custody and
1713 the agency shall retain custody of the property for 90 days. The
1714 agency shall publish notice of the intended disposition of the
1715 property, as provided in this section, during the first 45 days
1716 of this time period.
1717 1. If the agency elects to retain the property for use by
1718 the unit of government, donate the property to a charitable
1719 organization, surrender such property to the finder, sell the
1720 property, or trade the property to another unit of local
1721 government or state agency, notice of such election shall be
1722 given by an advertisement published once a week for 2
1723 consecutive weeks in a newspaper of general circulation in the
1724 county where the property was found if the value of the property
1725 is more than $100. If the value of the property is $100 or less,
1726 notice shall be given by posting a description of the property
1727 at the law enforcement agency where the property was turned in.
1728 The notice must be posted for not less than 2 consecutive weeks
1729 in a public place designated by the law enforcement agency. The
1730 notice must describe the property in a manner reasonably
1731 adequate to permit the rightful owner of the property to claim
1732 it.
1733 2. If the agency elects to sell the property, it must do so
1734 at public sale by competitive bidding. Notice of the time and
1735 place of the sale shall be given by an advertisement of the sale
1736 published once a week for 2 consecutive weeks in a newspaper of
1737 general circulation in the county where the sale is to be held.
1738 The notice shall include a statement that the sale shall be
1739 subject to any and all liens. The sale must be held at the
1740 nearest suitable place to that where the lost or abandoned
1741 property is held or stored. The advertisement must include a
1742 description of the goods and the time and place of the sale. The
1743 sale may take place no earlier than 10 days after the final
1744 publication. If there is no newspaper of general circulation in
1745 the county where the sale is to be held, the advertisement shall
1746 be posted at the door of the courthouse and at three other
1747 public places in the county at least 10 days prior to sale.
1748 Notice of the agency’s intended disposition shall describe the
1749 property in a manner reasonably adequate to permit the rightful
1750 owner of the property to identify it.
1751 Section 29. Paragraph (c) of subsection (2) of section
1752 721.08, Florida Statutes, is amended to read:
1753 721.08 Escrow accounts; nondisturbance instruments;
1754 alternate security arrangements; transfer of legal title.—
1755 (2) One hundred percent of all funds or other property
1756 which is received from or on behalf of purchasers of the
1757 timeshare plan or timeshare interest prior to the occurrence of
1758 events required in this subsection shall be deposited pursuant
1759 to an escrow agreement approved by the division. The funds or
1760 other property may be released from escrow only as follows:
1761 (c) Compliance with conditions.—
1762 1. Timeshare licenses.—If the timeshare plan is one in
1763 which timeshare licenses are to be sold and no cancellation or
1764 default has occurred, the escrow agent may release the escrowed
1765 funds or other property to or on the order of the developer upon
1766 presentation of:
1767 a. An affidavit by the developer that all of the following
1768 conditions have been met:
1769 (I) Expiration of the cancellation period.
1770 (II) Completion of construction.
1771 (III) Closing.
1772 (IV) Either:
1773 (A) Execution, delivery, and recordation by each
1774 interestholder of the nondisturbance and notice to creditors
1775 instrument, as described in this section; or
1776 (B) Transfer by the developer of legal title to the subject
1777 accommodations and facilities, or all use rights therein, into a
1778 trust satisfying the requirements of subparagraph 4. and the
1779 execution, delivery, and recordation by each other
1780 interestholder of the nondisturbance and notice to creditors
1781 instrument, as described in this section.
1782 b. A certified copy of each recorded nondisturbance and
1783 notice to creditors instrument.
1784 c. One of the following:
1785 (I) A copy of a memorandum of agreement, as defined in s.
1786 721.05, together with satisfactory evidence that the original
1787 memorandum of agreement has been irretrievably delivered for
1788 recording to the appropriate official responsible for
1789 maintaining the public records in the county in which the
1790 subject accommodations and facilities are located. The original
1791 memorandum of agreement must be recorded within 180 days after
1792 the date on which the purchaser executed her or his purchase
1793 agreement.
1794 (II) A notice delivered for recording to the appropriate
1795 official responsible for maintaining the public records in each
1796 county in which the subject accommodations and facilities are
1797 located notifying all persons of the identity of an independent
1798 escrow agent or trustee satisfying the requirements of
1799 subparagraph 4. that shall maintain separate books and records,
1800 in accordance with good accounting practices, for the timeshare
1801 plan in which timeshare licenses are to be sold. The books and
1802 records shall indicate each accommodation and facility that is
1803 subject to such a timeshare plan and each purchaser of a
1804 timeshare license in the timeshare plan.
1805 2. Timeshare estates.—If the timeshare plan is one in which
1806 timeshare estates are to be sold and no cancellation or default
1807 has occurred, the escrow agent may release the escrowed funds or
1808 other property to or on the order of the developer upon
1809 presentation of:
1810 a. An affidavit by the developer that all of the following
1811 conditions have been met:
1812 (I) Expiration of the cancellation period.
1813 (II) Completion of construction.
1814 (III) Closing.
1815 b. If the timeshare estate is sold by agreement for deed, a
1816 certified copy of the recorded nondisturbance and notice to
1817 creditors instrument, as described in this section.
1818 c. Evidence that each accommodation and facility:
1819 (I) Is free and clear of the claims of any interestholders,
1820 other than the claims of interestholders that, through a
1821 recorded instrument, are irrevocably made subject to the
1822 timeshare instrument and the use rights of purchasers made
1823 available through the timeshare instrument;
1824 (II) Is the subject of a recorded nondisturbance and notice
1825 to creditors instrument that complies with subsection (3) and s.
1826 721.17; or
1827 (III) Has been transferred into a trust satisfying the
1828 requirements of subparagraph 4.
1829 d. Evidence that the timeshare estate:
1830 (I) Is free and clear of the claims of any interestholders,
1831 other than the claims of interestholders that, through a
1832 recorded instrument, are irrevocably made subject to the
1833 timeshare instrument and the use rights of purchasers made
1834 available through the timeshare instrument; or
1835 (II) Is the subject of a recorded nondisturbance and notice
1836 to creditors instrument that complies with subsection (3) and s.
1837 721.17.
1838 3. Personal property timeshare interests.—If the timeshare
1839 plan is one in which personal property timeshare interests are
1840 to be sold and no cancellation or default has occurred, the
1841 escrow agent may release the escrowed funds or other property to
1842 or on the order of the developer upon presentation of:
1843 a. An affidavit by the developer that all of the following
1844 conditions have been met:
1845 (I) Expiration of the cancellation period.
1846 (II) Completion of construction.
1847 (III) Closing.
1848 b. If the personal property timeshare interest is sold by
1849 agreement for transfer, evidence that the agreement for transfer
1850 complies fully with s. 721.06 and this section.
1851 c. Evidence that one of the following has occurred:
1852 (I) Transfer by the owner of the underlying personal
1853 property of legal title to the subject accommodations and
1854 facilities or all use rights therein into a trust satisfying the
1855 requirements of subparagraph 4.; or
1856 (II) Transfer by the owner of the underlying personal
1857 property of legal title to the subject accommodations and
1858 facilities or all use rights therein into an owners’ association
1859 satisfying the requirements of subparagraph 5.
1860 d. Evidence of compliance with the provisions of
1861 subparagraph 6., if required.
1862 e. If a personal property timeshare plan is created with
1863 respect to accommodations and facilities that are located on or
1864 in an oceangoing vessel, including a “documented vessel” or a
1865 “foreign vessel,” as defined and governed by 46 U.S.C. chapter
1866 301:
1867 (I) In making the transfer required in sub-subparagraph c.,
1868 the developer shall use as its transfer instrument a document
1869 that establishes and protects the continuance of the use rights
1870 in the subject accommodations and facilities in a manner that is
1871 enforceable by the trust or owners’ association.
1872 (II) The transfer instrument shall comply fully with the
1873 provisions of this chapter, shall be part of the timeshare
1874 instrument, and shall contain specific provisions that:
1875 (A) Prohibit the vessel owner, the developer, any manager
1876 or operator of the vessel, the owners’ association or the
1877 trustee, the managing entity, or any other person from incurring
1878 any liens against the vessel except for liens that are required
1879 for the operation and upkeep of the vessel, including liens for
1880 fuel expenditures, repairs, crews’ wages, and salvage, and
1881 except as provided in sub-sub-subparagraphs 4.b.(III) and
1882 5.b.(III). All expenses, fees, and taxes properly incurred in
1883 connection with the creation, satisfaction, and discharge of any
1884 such permitted lien, or a prorated portion thereof if less than
1885 all of the accommodations on the vessel are subject to the
1886 timeshare plan, shall be common expenses of the timeshare plan.
1887 (B) Grant a lien against the vessel in favor of the owners’
1888 association or trustee to secure the full and faithful
1889 performance of the vessel owner and developer of all of their
1890 obligations to the purchasers.
1891 (C) Establish governing law in a jurisdiction that
1892 recognizes and will enforce the timeshare instrument and the
1893 laws of the jurisdiction of registry of the vessel.
1894 (D) Require that a description of the use rights of
1895 purchasers be posted and displayed on the vessel in a manner
1896 that will give notice of such rights to any party examining the
1897 vessel. This notice must identify the owners’ association or
1898 trustee and include a statement disclosing the limitation on
1899 incurring liens against the vessel described in sub-sub-sub
1900 subparagraph (A).
1901 (E) Include the nondisturbance and notice to creditors
1902 instrument for the vessel owner and any other interestholders.
1903 (F) The owners’ association created under subparagraph 5.
1904 or trustee created under subparagraph 4. shall have access to
1905 any certificates of classification in accordance with the
1906 timeshare instrument.
1907 (III) If the vessel is a foreign vessel, the vessel must be
1908 registered in a jurisdiction that permits a filing evidencing
1909 the use rights of purchasers in the subject accommodations and
1910 facilities, offers protection for such use rights against
1911 unfiled and inferior claims, and recognizes the document or
1912 instrument creating such use rights as a lien against the
1913 vessel.
1914 (IV) In addition to the disclosures required by s.
1915 721.07(5), the public offering statement and purchase contract
1916 must contain a disclosure in conspicuous type in substantially
1917 the following form:
1918
1919 The laws of the State of Florida govern the offering of this
1920 timeshare plan in this state. There are inherent risks in
1921 purchasing a timeshare interest in this timeshare plan because
1922 the accommodations and facilities of the timeshare plan are
1923 located on a vessel that will sail into international waters and
1924 into waters governed by many different jurisdictions. Therefore,
1925 the laws of the State of Florida cannot fully protect your
1926 purchase of an interest in this timeshare plan. Specifically,
1927 management and operational issues may need to be addressed in
1928 the jurisdiction in which the vessel is registered, which is
1929 (insert jurisdiction in which vessel is registered). Concerns of
1930 purchasers may be sent to (insert name of applicable regulatory
1931 agency and address).
1932 4. Trust.—
1933 a. If the subject accommodations or facilities, or all use
1934 rights therein, are to be transferred into a trust in order to
1935 comply with this paragraph, such transfer shall take place
1936 pursuant to this subparagraph. If the accommodations or
1937 facilities included in such transfer are subject to a lease, the
1938 unexpired term of the lease must be disclosed as the term of the
1939 timeshare plan pursuant to s. 721.07(5)(f)4.
1940 b. Prior to the transfer of the subject accommodations and
1941 facilities, or all use rights therein, to a trust, any lien or
1942 other encumbrance against such accommodations and facilities, or
1943 use rights therein, shall be made subject to a nondisturbance
1944 and notice to creditors instrument pursuant to subsection (3).
1945 No transfer pursuant to this subparagraph shall become effective
1946 until the trustee accepts such transfer and the responsibilities
1947 set forth herein. A trust established pursuant to this
1948 subparagraph shall comply with the following provisions:
1949 (I) The trustee shall be an individual or a business entity
1950 authorized and qualified to conduct trust business in this
1951 state. Any corporation authorized to do business in this state
1952 may act as trustee in connection with a timeshare plan pursuant
1953 to this chapter. The trustee must be independent from any
1954 developer or managing entity of the timeshare plan or any
1955 interestholder of any accommodation or facility of such plan.
1956 (II) The trust shall be irrevocable so long as any
1957 purchaser has a right to occupy any portion of the timeshare
1958 property pursuant to the timeshare plan.
1959 (III) The trustee shall not convey, hypothecate, mortgage,
1960 assign, lease, or otherwise transfer or encumber in any fashion
1961 any interest in or portion of the timeshare property with
1962 respect to which any purchaser has a right of use or occupancy
1963 unless the timeshare plan is terminated pursuant to the
1964 timeshare instrument, or such conveyance, hypothecation,
1965 mortgage, assignment, lease, transfer, or encumbrance is
1966 approved by a vote of two-thirds of all voting interests of the
1967 timeshare plan. Subject to s. 721.552, a vote of the voting
1968 interests of the timeshare plan is not required for substitution
1969 or automatic deletion of accommodations or facilities.
1970 (IV) All purchasers of the timeshare plan or the owners’
1971 association of the timeshare plan shall be the express
1972 beneficiaries of the trust. The trustee shall act as a fiduciary
1973 to the beneficiaries of the trust. The personal liability of the
1974 trustee shall be governed by ss. 736.08125, 736.08163, 736.1013,
1975 and 736.1015. The agreement establishing the trust shall set
1976 forth the duties of the trustee. The trustee shall be required
1977 to furnish promptly to the division upon request a copy of the
1978 complete list of the names and addresses of the owners in the
1979 timeshare plan and a copy of any other books and records of the
1980 timeshare plan required to be maintained pursuant to s. 721.13
1981 that are in the possession, custody, or control of the trustee.
1982 All expenses reasonably incurred by the trustee in the
1983 performance of its duties, together with any reasonable
1984 compensation of the trustee, shall be common expenses of the
1985 timeshare plan.
1986 (V) The trustee shall not resign upon less than 90 days’
1987 prior written notice to the managing entity and the division. No
1988 resignation shall become effective until a substitute trustee,
1989 approved by the division, is appointed by the managing entity
1990 and accepts the appointment.
1991 (VI) The documents establishing the trust arrangement shall
1992 constitute a part of the timeshare instrument.
1993 (VII) For trusts holding property in a timeshare plan
1994 located outside this state, the trust and trustee holding such
1995 property shall be deemed in compliance with the requirements of
1996 this subparagraph if such trust and trustee are authorized and
1997 qualified to conduct trust business under the laws of such
1998 jurisdiction and the agreement or law governing such trust
1999 arrangement provides substantially similar protections for the
2000 purchaser as are required in this subparagraph for trusts
2001 holding property in a timeshare plan in this state.
2002 (VIII) The trustee shall have appointed a registered agent
2003 in this state for service of process. In the event such a
2004 registered agent is not appointed, service of process may be
2005 served pursuant to s. 721.265.
2006 5. Owners’ association.—
2007 a. If the subject accommodations or facilities, or all use
2008 rights therein, are to be transferred into an owners’
2009 association in order to comply with this paragraph, such
2010 transfer shall take place pursuant to this subparagraph.
2011 b. Before the transfer of the subject accommodations and
2012 facilities, or all use rights therein, to an owners’
2013 association, any lien or other encumbrance against such
2014 accommodations and facilities, or use rights therein, shall be
2015 made subject to a nondisturbance and notice to creditors
2016 instrument pursuant to subsection (3). No transfer pursuant to
2017 this subparagraph shall become effective until the owners’
2018 association accepts such transfer and the responsibilities set
2019 forth herein. An owners’ association established pursuant to
2020 this subparagraph shall comply with the following provisions:
2021 (I) The owners’ association shall be a business entity
2022 authorized and qualified to conduct business in this state.
2023 Control of the board of directors of the owners’ association
2024 must be independent from any developer or managing entity of the
2025 timeshare plan or any interestholder.
2026 (II) The bylaws of the owners’ association shall provide
2027 that the corporation may not be voluntarily dissolved without
2028 the unanimous vote of all owners of personal property timeshare
2029 interests so long as any purchaser has a right to occupy any
2030 portion of the timeshare property pursuant to the timeshare
2031 plan.
2032 (III) The owners’ association shall not convey,
2033 hypothecate, mortgage, assign, lease, or otherwise transfer or
2034 encumber in any fashion any interest in or portion of the
2035 timeshare property with respect to which any purchaser has a
2036 right of use or occupancy, unless the timeshare plan is
2037 terminated pursuant to the timeshare instrument, or unless such
2038 conveyance, hypothecation, mortgage, assignment, lease,
2039 transfer, or encumbrance is approved by a vote of two-thirds of
2040 all voting interests of the association and such decision is
2041 declared by a court of competent jurisdiction to be in the best
2042 interests of the purchasers of the timeshare plan. The owners’
2043 association shall notify the division in writing within 10 days
2044 after receiving notice of the filing of any petition relating to
2045 obtaining such a court order. The division shall have standing
2046 to advise the court of the division’s interpretation of the
2047 statute as it relates to the petition.
2048 (IV) All purchasers of the timeshare plan shall be members
2049 of the owners’ association and shall be entitled to vote on
2050 matters requiring a vote of the owners’ association as provided
2051 in this chapter or the timeshare instrument. The owners’
2052 association shall act as a fiduciary to the purchasers of the
2053 timeshare plan. The articles of incorporation establishing the
2054 owners’ association shall set forth the duties of the owners’
2055 association. All expenses reasonably incurred by the owners’
2056 association in the performance of its duties, together with any
2057 reasonable compensation of the officers or directors of the
2058 owners’ association, shall be common expenses of the timeshare
2059 plan.
2060 (V) The documents establishing the owners’ association
2061 shall constitute a part of the timeshare instrument.
2062 (VI) For owners’ associations holding property in a
2063 timeshare plan located outside this state, the owners’
2064 association holding such property shall be deemed in compliance
2065 with the requirements of this subparagraph if such owners’
2066 association is authorized and qualified to conduct owners’
2067 association business under the laws of such jurisdiction and the
2068 agreement or law governing such arrangement provides
2069 substantially similar protections for the purchaser as are
2070 required in this subparagraph for owners’ associations holding
2071 property in a timeshare plan in this state.
2072 (VII) The owners’ association shall have appointed a
2073 registered agent in this state for service of process. In the
2074 event such a registered agent cannot be located, service of
2075 process may be made pursuant to s. 721.265.
2076 6. Personal property subject to certificate of title.—If
2077 any personal property that is an accommodation or facility of a
2078 timeshare plan is subject to a certificate of title in this
2079 state pursuant to chapter 319 or chapter 328, the following
2080 notation must be made on such certificate of title pursuant to
2081 s. 319.27(1) or s. 328.15 s. 328.15(1):
2082
2083 The further transfer or encumbrance of the property subject to
2084 this certificate of title, or any lien or encumbrance thereon,
2085 is subject to the requirements of section 721.17, Florida
2086 Statutes, and the transferee or lienor agrees to be bound by all
2087 of the obligations set forth therein.
2088
2089 7. If the developer has previously provided a certified
2090 copy of any document required by this paragraph, she or he may
2091 for all subsequent disbursements substitute a true and correct
2092 copy of the certified copy, provided no changes to the document
2093 have been made or are required to be made.
2094 8. In the event that use rights relating to an
2095 accommodation or facility are transferred into a trust pursuant
2096 to subparagraph 4. or into an owners’ association pursuant to
2097 subparagraph 5., all other interestholders, including the owner
2098 of the underlying fee or underlying personal property, must
2099 execute a nondisturbance and notice to creditors instrument
2100 pursuant to subsection (3).
2101 Section 30. (1) The rights, duties, and interests flowing
2102 from a transaction, certificate of title, or record relating to
2103 a vessel which was validly entered into or created before
2104 October 1, 2019, and would be subject to this act if it had been
2105 entered into or created on or after October 1, 2019, remain
2106 valid on and after October 1, 2019.
2107 (2) This act does not affect an action or proceeding
2108 commenced before October 1, 2019.
2109 (3) Except as otherwise provided in subsection (4), a
2110 security interest that is enforceable immediately before October
2111 1, 2019, and that would have priority over the rights of a
2112 person who becomes a lien creditor at such time is a perfected
2113 security interest under this act.
2114 (4) A security interest perfected immediately before
2115 October 1, 2019, remains perfected until the earlier of:
2116 (a) The time perfection would have ceased under the law
2117 under which the security interest was perfected; or
2118 (b) October 1, 2022.
2119 (5) This act does not affect the priority of a security
2120 interest in a vessel if immediately before October 1, 2019, the
2121 security interest is enforceable and perfected, and that
2122 priority is established.
2123 Section 31. Subject to s. 328.24, as created by this act,
2124 this act applies to any transaction, certificate of title, or
2125 record relating to a vessel, even if the transaction,
2126 certificate of title, or record was entered into or created
2127 before October 1, 2019.
2128 Section 32. This act shall take effect October 1, 2019.
