hb1000.html
08 LC 36 1086S

The Senate Special Judiciary Committee offered the following substitute to HB 1000:

A BILL TO BE ENTITLED
AN ACT

To amend Title 52 of the Official Code of Georgia Annotated, relating to waters of the state, ports, and watercraft, so as to provide for the titling and registration of certain watercraft; to provide for related matters; to provide effective dates; to repeal conflicting laws; and for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

SECTION 1.
Title 52 of the Official Code of Georgia Annotated, relating to waters of the state, ports, and watercraft, is amended by adding a new Chapter 7A to read as follows:

"CHAPTER 7A

52-7A-1.
This chapter shall be known and may be cited as the 'Watercraft Certificate of Title Act.'

52-7A-2.
As used in this chapter, the term:
(1) 'Commissioner' means the state revenue commissioner.
(2) 'Dealer' means any person engaged in the business of manufacturing vessels or selling new or used vessels at an established place of business.
(3) 'Homemade vessel' means any vessel that is built by an individual for personal use from raw materials that does not require the assignment of a federal hull identification number by a manufacturer pursuant to federal law. A person furnishing raw materials under a contract may be considered the builder of a homemade vessel. Antique boats, boats reconstructed from existing boat hulls, and rebuilt or reconstructed vessels shall not be considered homemade vessels.
(4) 'Hull identification number' or 'HIN' means a number assigned to vessels by the manufacturer of the vessel or by the issuing authority of a state as required by the United States Coast Guard in accordance with federal law.
(5) 'Lien' means any lien created by operation of law and not by contract or agreement with respect to a vessel and includes all liens established in Code Section 44-14-320, other than liens in favor of mortgages, and all liens for taxes due the United States of America, constructive notice of which is given by filing notice thereof in the office designated by state law.
(6) 'Lienholder' means a person holding a lien created by operation of law on a vessel.
(7) To 'mail' means to deposit in the United States mail, properly addressed and with postage paid.
(8) 'Natural person' means an individual human being and does not include any firm, partnership, association, corporation, or trust.
(9) 'Security agreement' means a written agreement which reserves or creates a security interest.
(10) 'Security interest' means an interest in a vessel reserved or created by agreement which secures the payment or performance of an obligation, such as a conditional sales contract, chattel mortgage, bill of sale to secure debt, deed of trust, and the like. This term includes the interest of a lessor under a lease intended as security.
(11) 'Security interest holder' means the holder of a security interest in a vessel reserved or created by agreement and which secures payment or performance of an obligation.
(12) 'Vessel' means every description of watercraft, other than a seaplane on the water or a sailboard, used or capable of being used as a means of transportation on water and specifically includes, but is not limited to, inflatable rafts and homemade vessels.

52-7A-3.
(a) The commissioner is responsible for the administration of this chapter and may employ such clerical assistants and agents as may be necessary from time to time to enable the commissioner to speedily, completely, and efficiently perform the duties conferred on the commissioner by this chapter. The commissioner shall be authorized to delegate any administrative responsibility for retention of applications, certificates of title, notices of security interest, and any other forms or documents relating to the application and registration process to the appropriate authorized tag agent for the county in which the application is made or the registration is issued.
(b) The commissioner shall prescribe and provide suitable forms of applications, certificates of title, notices of security interest, and all other notices and forms necessary to carry out the provisions of this chapter.
(c) The commissioner may:
(1) Make necessary investigation to procure information required to carry out the provisions of this chapter; and
(2) Adopt and enforce reasonable rules and regulations to carry out the provisions of this chapter.

52-7A-4.
No certificate of title shall be obtained for:
(1) A vessel owned by the United States unless it is registered in this state;
(2) A vessel owned by a manufacturer of or dealer in vessels and held for sale, even though incidentally used on state waters or used for testing or demonstration; or a vessel used by a manufacturer solely for testing; except that all dealers acquiring new vessels after July 1, 2009, from a manufacturer for resale shall obtain such evidence of origin of title from the manufacturer as the commissioner shall by rule and regulation prescribe;
(3) A vessel owned by a nonresident of this state and not required by law to be registered in this state;
(4) A vessel regularly engaged in the interstate transportation of persons or property for which a currently effective certificate of title has been issued in another state;
(5) A vessel not motor propelled except for sailboats 12 feet or more in length;
(6) A vessel propelled by a motor rated at not more than ten horsepower;
(7) A boat trailer;
(8) A homemade trailer;
(9) A vessel which is not sold for the purpose of lawful use on the waters of this state; or
(10) A vessel with a model year prior to 2009, except as otherwise provided in this chapter.

52-7A-5.
(a) A peace officer who learns of the theft of a vessel not since recovered shall report the theft to the commissioner. A peace officer who learns of the recovery of a vessel whose theft or conversion he or she knows or has reason to believe has been reported to the commissioner shall forthwith report the recovery to the commissioner.
(b) An owner or a security interest holder or lienholder shall report the theft of a vessel, or its conversion if a crime, to the commissioner. A person who has so reported the theft or conversion of a vessel shall, after learning of its recovery, immediately report the recovery to the commissioner.
(c) The commissioner shall maintain appropriately indexed weekly and cumulative public records of stolen, converted, and recovered vessels reported pursuant to this Code section. The commissioner may make and distribute copies of the weekly records so maintained to peace officers upon request without fee and to others for the fee, if any, the commissioner prescribes.
(d) The commissioner may suspend the registration of a vessel whose theft or conversion is reported pursuant to this Code section; and until the commissioner learns of its recovery or that the report of its theft or conversion was erroneous, the commissioner shall not issue a certificate of title for the vessel.

52-7A-6.
(a) A person aggrieved by an act or omission to act of the commissioner under this chapter is entitled, upon request, to a hearing. The commissioner shall establish a board to hear complaints of persons aggrieved by an act or omission to act of the commissioner or any employee of the department pertaining to the administration of this chapter. The procedure established in this chapter for the handling of complaints and grievances shall be exclusive, and these procedures shall apply to all such complaints and grievances. The commissioner shall promulgate rules and regulations governing the membership of the board and the organization thereof.
(b) Hearings conducted under subsection (a) of this Code section shall be conducted under the terms and conditions of Chapter 13 of Title 50, the 'Georgia Administrative Procedure Act,' and court review of such hearings shall be as provided by that chapter.

52-7A-7.
(a) Except as provided in Code Section 52-7A-4, every owner of a vessel which is required by law to be registered in this state and for which no certificate of title has been issued by the commissioner shall make application to the commissioner or to the tag agent in the county wherein the owner resides for a certificate of title to the vessel. If a vessel is owned by and used in connection with an established business, application shall be made to the commissioner or to the tag agent in the county in which the business is located. All 2009 model vessels and all successive model vessels shall have a certificate of title.
(b) When the owner of a vessel is required to have a certificate of title, the Department of Natural Resources shall not register, transfer, or renew the registration of such vessel until a certificate of title has been issued or applied for.
(c) No application for a certificate of title for a vessel purchased outside the State of Georgia shall be accepted or processed unless the applicant shows, by a valid bill of sale or contract of purchase or by such other documentation satisfactory to the commissioner, that state and local sales and use tax has been paid or is not due. If state and local sales and use tax is owed on such vessel but has not been paid, the county tag agent shall return the unprocessed application to the applicant informing him or her of the requirements of this Code section.
(d) On and after July 1, 2010, owners of vessels of model years 2008 and earlier may voluntarily obtain certificates of title for such vessels pursuant to this chapter upon the submission of a title application, the required fees, and such other proof of ownership and vessel documentation as the commissioner shall require by rule and regulation.

52-7A-8.
(a) The application for the first certificate of title of a vessel in this state shall be made by the owner to the commissioner or the commissioner´s duly authorized county tag agent on the prescribed form. Except as provided in subsection (b) of this Code section, the application must be submitted to the commissioner or the appropriate authorized county tag agent by the owner of the vessel within 30 days from the date of purchase of the vessel or from the date the owner is otherwise required by law to register the vessel in this state. If the owner does not submit the application within that time, the owner of the vessel shall be required to pay a penalty of $10.00 in addition to the ordinary title fee provided for by this chapter. If the documents submitted in support of the title application are rejected, the party submitting the documents shall have 60 days from the date of rejection to resubmit the documents required by the commissioner or the authorized county tag agent for the issuance of a certificate of title. Should the documents not be properly resubmitted within the 60 day period, there shall be an additional $10.00 penalty assessed, and the owner of the vessel shall be required to remove immediately the registration number of the vessel under Chapter 7 of this title. If the documents have not been resubmitted as required under this subsection, the registration number shall be deemed to have expired at 12:00 Midnight of the sixtieth day following the initial rejection of the documents submitted. Such application shall contain:
(1) The full legal name, residence, and mailing address of the owner;
(2) A description of the vessel, including, so far as the following data exist, its make, model, hull identification number, type of vessel, year built, length in feet and inches, and whether new, used, or a demonstrator;
(3) The date of purchase by the applicant and, except as provided in paragraph (2) of subsection (c) of this Code section, the name and address of the person from whom the vessel was acquired and the names and addresses of the holders of all security interests and liens in order of their priority; and
(4) Any further information the commissioner reasonably requires to identify the vessel and to enable the commissioner or the authorized county tag agent to determine whether the owner is entitled to a certificate of title and the existence or nonexistence of security interests in the vessel and liens on the vessel.
(b)(1) As used in this subsection, the term 'digital signature' means a digital or electronic method executed or adopted by a party with the intent to be bound by or to authenticate a record, which is unique to the person using it, is capable of verification, is under the sole control of the person using it, and is linked to data in such a manner that if the data are changed the digital or electronic signature is invalidated.
(2) If the application refers to a vessel purchased from a dealer, it shall contain the name and address of the holder of any security interest created or reserved at the time of the sale by the dealer. The application shall be signed by the owner and, unless the dealer´s signature appears on the certificate of title or manufacturer´s statement of origin submitted in support of the title application, the dealer, provided that as an alternative to a handwritten signature the commissioner may authorize use of a digital signature so long as appropriate security measures are implemented which assure security and verification of the digital signature process, in accordance with regulations promulgated by the commissioner. The dealer shall promptly mail or deliver the application to the commissioner or the county tag agent of the county in which the seller is located, of the county in which the sale takes place, of the county in which the vessel is delivered, or of the county wherein the vessel owner resides so as to have the application submitted to the commissioner or such authorized county tag agent within 30 days from the date of the sale of the vessel. If the application is not submitted within that time, the dealer, or in nondealer sales the transferee, shall be required to pay a penalty of $10.00 in addition to the ordinary title fee paid by the transferee provided for in this chapter. If the documents submitted in support of the title application are rejected, the dealer submitting the documents shall have 60 days from the date of initial rejection to resubmit the documents required by the commissioner or authorized county tag agent for the issuance of a certificate of title. Should the documents not be properly resubmitted within 60 days, there shall be an additional penalty of $10.00 assessed against the dealer.
(c)(1) If the application refers to a vessel last previously registered in another state or country, the application shall contain or be accompanied by:
(A) Any certificate of title issued by the other state or country; and
(B) Any other information and documents the commissioner or authorized county tag agent reasonably requires to establish the ownership of the vessel and the existence or nonexistence of security interests in it and liens against it.
(2) If the application refers to a vessel last previously registered in another state and if the applicant is the last previously registered owner in such state, the application need not contain the name and address of the person from whom the vessel was acquired.

52-7A-9.
(a) The commissioner or the commissioner´s duly authorized county tag agent, upon receiving application for a first certificate of title, shall check the hull identification number of the vessel shown on the application against the records of vessels required to be maintained by Code Section 52-7A-10 and against the record of stolen and converted vessels required to be maintained by Code Section 52-7A-5.
(b) Subsection (a) of this Code section shall not be applicable to an application for the first certificate of title of a new or demonstrator vessel when such application is accompanied by a manufacturer´s certificate of origin or similar document approved by the commissioner by rule or regulation.

52-7A-10.
(a) The commissioner or the commissioner´s duly authorized county tag agent shall file each application received and, when satisfied as to its genuineness and regularity and that the applicant is entitled to the issuance of a certificate of title, shall issue a certificate of title for the vessel.
(b) The commissioner or the commissioner´s duly authorized county tag agent shall maintain a record of all certificates of title issued:
(1) Under a distinctive title number assigned to the vessel;
(2) Under the hull identification number of the vessel;
(3) Alphabetically, under the name of the owner;
(4) Under the vessel registration number; and
(5) In the discretion of the commissioner, in any other method the commissioner determines.
(c) The commissioner or the commissioner´s duly authorized county tag agent is authorized and empowered to provide for photographic and photostatic recording of certificate of title records in such manner as the commissioner or the commissioner´s duly authorized county tag agent may deem expedient. The photographic or photostatic copies authorized in this subsection shall be sufficient as evidence in tracing of titles of the vessels designated therein and shall also be admitted in evidence in all actions and proceedings to the same extent that the originals would have been admitted.
(d) The vessel records which the commissioner or the commissioner´s duly authorized county tag agent is required to maintain under this Code section or any other provision are exempt from the provisions of any law of this state requiring that such records be open for public inspection; provided, however, that the records may be disclosed for use by the following:
(1) Any licensed dealer of new or used vessels;
(2) Any tax collector, tax receiver, or tax commissioner; and
(3) The Department of Natural Resources.
(e) In addition to any public inspection of records authorized under subsection (d) of this Code section, vessel records consisting of vessel description, title status, title brands, recorded liens, or recorded security interests which the commissioner or the commissioner´s duly authorized county tag agent is required to maintain under this Code section shall, in such manner and under such conditions as prescribed by the commissioner, be furnished individually or in bulk to any person upon payment of a reasonable fee, for any purpose not otherwise prohibited by law, including without limitation for the purpose of providing information to allow for informed vessel purchase and safety decisions. Records furnished in accordance with this subsection may be subsequently transferred to third parties. Personal information of any registrant, including name, address, date of birth, or social security number, shall not be furnished or transferred by or to any person pursuant to this subsection.
(f) Personal information furnished under subsection (d) of this Code section shall be limited to the natural person´s name and address. The personal information obtained by a business under this Code section shall not be resold or redisclosed for any purposes without the written consent of the individual. Furnishing of information to a business under this Code section shall be pursuant to a contract entered into by such business and the state which specifies the consideration to be paid by such business to the state for such information and the frequency of updates.

52-7A-11.
(a) Each certificate of title issued by the commissioner or the commissioner´s duly authorized county tag agent shall contain:
(1) The date issued;
(2) The name and address of the owner;
(3) The names and addresses of the holders of any security interest and of any lien as shown on the application or, if the application is based on a certificate of title, as shown on the certificate;
(4) The title number assigned to the vessel;
(5) A description of the vessel including, so far as the following data exist, its make, model, hull identification number, type of vessel, year built, length in feet and inches, whether new, used, or a demonstrator, and, if a new vessel or a demonstrator, the date of the first sale of the vessel for use; and
(6) Any other data the commissioner prescribes.
(b) The certificate of title shall contain forms for assignment and warranty of title by the owner, and for assignment and warranty of title by a dealer, and may contain forms for applications for a certificate of title by a transferee or naming of a security interest holder and of a lienholder and the assignment or release of the security interest and lien.
(c) A certificate of title issued by the commissioner or the commissioner´s duly authorized county tag agent is prima-facie evidence of the facts appearing on it.
(d) A certificate of title for a vessel is not subject to garnishment, attachment, execution, or other judicial process, but this subsection does not prevent a lawful levy upon the vessel.

52-7A-12.
(a)(1) The certificate of title shall be mailed or delivered to the holder of the first security interest or lien named in it. In the event there is no security interest holder or lienholder named in such certificate, the certificate of title shall be mailed or delivered directly to the owner.
(2) The commissioner may enter into agreements with any such security interest holder or lienholder to provide a means of delivery by secure electronic measures of a notice of the recording of such security interest or lien. Such security interest or lien shall remain on the official records of the department until such time as the security interest or lien is released by secure electronic measures or affidavit of lien or security interest release; after which release or at the request of the lienholder or security interest holder, the certificate of title may be printed and mailed or delivered to the next lienholder or security interest holder or as otherwise provided by paragraph (1) of this subsection without payment of any fee required by Code Section 52-7A-22.
(b) If the certificate of title is mailed to a security interest holder or lienholder, such person shall notify by mail all other security interest or lien holders that such person has received the certificate of title. The notice shall inform the security interest holder or lienholder of the contents and information reflected on such certificate of title. Such mailing or delivery shall be within five days, exclusive of holidays, after the receipt of the certificate by the holder of any security interest or lien.
(c) The security interest holder or lienholder may retain custody of the certificate of title until such security interest holder´s or lienholder´s claim has been satisfied. The security interest holder or lienholder having custody of a certificate of title must deliver the certificate of title to the next lienholder or security interest holder within ten days after such custodial security interest holder´s or lienholder´s security interest or lien has been satisfied and, if there is no other security interest holder or lienholder, such custodial security interest holder or lienholder must deliver the certificate of title to the owner.
(d) If a security interest or lien has been electronically recorded, the release of such security interest or lien will require the security interest holder or lienholder to notify the commissioner and the owner of the vessel, on a form prescribed by the commissioner, or by electronic means approved by the commissioner, of the release of the security interest or lien. Such notice shall inform the owner that such owner may request a title free of lien, upon verification of such owner´s current mailing address, from the commissioner as provided in Code Section 52-7A-34.

52-7A-13.
(a) Whenever the certificate of title is in the possession of a security interest holder or lienholder as allowed by this chapter and some other person, including the owner, who has an interest in a transaction concerning a security interest or lien shown on the certificate of title desires to have that transaction reflected on the certificate of title, such security interest holder or lienholder may execute a notice of that transaction in the form prescribed by the commissioner, setting forth the details of the transaction such security interest holder or lienholder desires to be reflected on the certificate of title. The notice, a fee as provided by Code Section 52-7A-22, and the title application shall be mailed by certified mail or statutory overnight delivery, return receipt requested, by the person desiring the change to the first security interest holder or lienholder having possession of the certificate of title. The notice shall contain on its face instructions to the security interest holder or lienholder having custody of the certificate of title directing such security interest holder or lienholder within ten days to forward the notice, the fee, the title application, and the certificate of title to the commissioner or the commissioner´s duly authorized county tag agent. The first security interest holder or lienholder having possession of the certificate of title shall comply with the instructions contained in the notice. The commissioner or the authorized county tag agent, upon receipt of such a notice and title application, together with the fee and certificate of title, shall enter the transaction shown on the notice on such commissioner´s or authorized county tag agent´s records and on the certificate of title or issue a new certificate of title and shall then deliver the certificate of title as provided for in this chapter. The person desiring the change shall retain the return certified mail or statutory overnight delivery receipt as proof of such person´s compliance with this Code section.
(b) In the event the first security interest holder or lienholder holding the certificate of title fails, refuses, or neglects to forward the title application, notice, fee, and original certificate of title to the commissioner or the commissioner´s duly authorized county tag agent, as required by this Code section, the person desiring the change may, on a form prescribed by the commissioner, make direct application to the commissioner or the authorized county tag agent. Such direct application to the commissioner or the authorized county tag agent shall have attached to it the return registered or certified mail or statutory overnight delivery receipt showing the previous mailing of the title application, fee, and notice to the first security interest holder or lienholder. Upon receipt of such a direct application, the commissioner or the authorized county tag agent shall order the first security interest holder or lienholder having custody of the certificate of title to forward the certificate of title to the commissioner or the authorized county tag agent for the purpose of having the subsequent transaction entered thereon or a new certificate of title issued. If, after a direct application to the commissioner or the authorized county tag agent and the order of the commissioner or authorized county tag agent, the first security interest holder or lienholder continues to fail, refuse, or neglect to forward the certificate of title as provided in this Code section, the commissioner or authorized county tag agent may cancel the outstanding certificate of title and issue a new certificate of title reflecting all security interests and liens, including the subsequent security interest; and this new certificate of title shall be delivered as provided for in this chapter.
(c) As an alternative to mailing notices of transactions concerning a security interest or lien on the certificate of title to the commissioner or the commissioner´s appropriate authorized county tag agent in accordance with this Code section, the commissioner shall be authorized to permit the transaction to be made by electronic means in accordance with regulations promulgated by the commissioner.
(d) No first security interest holder or lienholder having possession of a certificate of title shall have the validity of that security interest or lien affected by surrendering the certificate of title as provided by this Code section.

52-7A-14.
If the commissioner or the commissioner´s duly authorized county tag agent is not satisfied as to the ownership of the vessel or that there are no undisclosed security interests in it, the commissioner or authorized county tag agent shall either: (1) withhold issuance of a certificate of title until the applicant presents documents reasonably sufficient to satisfy the commissioner or authorized county tag agent as to the applicant´s ownership of the vessel and that there are no undisclosed security interests in it; or (2) as a condition of issuing a certificate of title, require the applicant to file with the commissioner or authorized county tag agent a bond in the form prescribed by the commissioner and executed by the applicant and by a bonding, surety, or insurance company licensed to do business in Georgia. The bond shall be in an amount equal to the value of the vessel as determined by the commissioner or authorized county tag agent and payable to the commissioner for the benefit of any prior owner, security interest holder, or lienholder and any subsequent purchaser of the vessel or person acquiring any security interest or lien on it; and their respective successors in interest against any expense, loss, or damage by reason of the issuance of the certificate of title of the vessel or on account of any defect in or undisclosed security interest upon the right, title, and interest of the applicant in and to the vessel. The commissioner shall have a right of action to recover on the bond for any breach of its conditions, but the aggregate liability of the surety to all persons shall not exceed the amount of the bond. The bond shall expire at the end of four years unless the commissioner or authorized county tag agent has been notified of a breach of a condition of the bond.

52-7A-15.
(a) The commissioner or the commissioner´s duly authorized county tag agent shall refuse issuance of a certificate of title only if any required fee is not paid or if the commissioner or the commissioner´s duly authorized county tag agent has reasonable grounds to believe that:
(1) The applicant is not the owner of the vessel;
(2) The application contains a false or fraudulent statement;
(3) The applicant fails to furnish required information or documents or any additional information the commissioner or authorized county tag agent reasonably requires; or
(4) The registration of the vessel stands suspended or revoked for any reason provided in the laws of this state.
(b) If the application for first certificate of title is rejected, the application shall be returned to the holder of the first security interest or lien named in the application or to the owner if there is no security interest holder or lienholder.

52-7A-16.
If a certificate of title is lost, stolen, mutilated, or destroyed or becomes illegible, the owner or the legal representative of the owner named in the certificate, as shown by the records of the commissioner or the commissioner´s duly authorized county tag agent, shall promptly make application for and may obtain a replacement upon furnishing information satisfactory to the commissioner or authorized county tag agent. The replacement shall be issued on the following terms and conditions:
(1) If the replacement title is issued to the owner named in the lost, stolen, mutilated, or destroyed certificate, as shown by the records of the commissioner or authorized county tag agent, the replacement certificate of title shall contain the legend 'This is a replacement certificate and may be subject to the rights of a person under the original certificate.';
(2) When the vessel for which a replacement certificate of title has been issued is transferred to a new owner, the certificate of title issued to the transferee shall continue to contain the legend 'This is a replacement certificate and may be subject to the rights of a person under the original certificate.' After a replacement certificate has been issued and the records of the commissioner or authorized county tag agent show that the owner has held record title continuously for a period of not less than six calendar months and the record title of the owner has not been challenged, the commissioner or authorized county tag agent may, upon proper application, issue a replacement title, which shall simply contain the legend 'Replacement Title';
(3) A person recovering an original certificate of title for which a replacement has been issued shall promptly surrender the original certificate to the commissioner or authorized county tag agent. Where the owner named in a replacement certificate of title, or a transferee, recovers the original certificate, such owner or transferee may surrender the original certificate together with the replacement title and if such owner or transferee is otherwise entitled to a certificate the commissioner or authorized county tag agent may issue such owner or transferee a new certificate of title with no legend thereon;
(4) If two or more innocent persons are the victims of the fraud or mistake of another and none of the victims could have reasonably taken steps to detect or prevent the fraud or mistake, the victim who first acquired an interest in a vessel through any certificate of title shall have such victim´s interest protected; and
(5) A replacement title when the original has been lost in the mail prior to receipt by the registered owner shall be issued by the commissioner without charge upon application and completion of the form and affidavit prescribed by the commissioner setting forth the circumstances of nonreceipt of the title. The owner shall report the nonreceipt or loss and apply for replacement of the title to the commissioner within 60 days of the issuance of such title by the commissioner. An applicant shall provide an affidavit of nonreceipt and verify his or her current mailing address.

52-7A-17.
(a) If an owner transfers his or her interest in a vessel other than by the creation of a security interest, such owner shall, at the time of delivery of the vessel, execute an assignment and warranty of title to the transferee in the space provided therefor on the certificate of title or as the commissioner prescribes and cause the certificate and assignment to be delivered to the transferee. If the transferor willfully fails to deliver the properly assigned certificate of title to the transferee, the transferor shall be guilty of a misdemeanor. In addition, the transferor shall be civilly liable to the transferee for all damages, including reasonable attorney´s fees, occasioned by the transferor´s failure to comply with this subsection.
(b) Except as provided in Code Section 52-7A-18, the transferee, promptly after delivery of the vessel and certificate of title, shall execute the application for a new certificate of title on the form the commissioner prescribes and cause the application and the certificate of title to be mailed or delivered to the commissioner or the appropriate authorized county tag agent at the same time as the application for change of registration for the vessel is submitted so that the title application shall be received within 30 days from the date of the transfer of the vessel. If the title application is not received within that time, the owner shall be required to pay a penalty of $10.00 in addition to the ordinary title fee required by this chapter. If the documents submitted in support of the title application are rejected, the party submitting the documents shall have 60 days from the date of initial rejection to resubmit the documents required by the commissioner for the issuance of title. If the documents are not properly resubmitted within 60 days, there shall be an additional $10.00 penalty assessed, and the owner of the vessel shall be required to remove immediately the registration number of the vessel under Chapter 7 of this title. If the documents have not been resubmitted as required under this subsection, the registration number shall be deemed to have expired at 12:00 Midnight of the sixtieth day following the initial rejection of the documents.
(c) If a security interest is reserved or created at the time of the transfer, the certificate of title shall be retained by or delivered to the person who becomes the security interest holder, and the parties shall comply with Code Section 52-7A-29.
(d) Except as provided in Code Section 52-7A-18 and as between the parties, a transfer by an owner is not effective until this Code section and Code Section 52-7A-18 have been complied with; and no purchaser or transferee shall acquire any right, title, or interest in and to a vessel purchased by him or her unless and until he or she shall obtain from the transferor the certificate of title thereto, duly transferred in accordance with this Code section.
(e) The commissioner shall promulgate procedures and provide forms whereby a prospective purchaser may, if such prospective purchaser desires, have the commissioner´s or the commissioner´s duly authorized county tag agent´s records searched for undisclosed certificates of title and security interests.

52-7A-18.
(a)(1) Except as provided in paragraph (2) of this subsection, a dealer who buys a vessel and holds it for resale need not apply to the commissioner for a new certificate of title but may retain the certificate delivered to him or her. Upon transferring the vessel to another person other than by the creation of a security interest, such dealer shall promptly execute the assignment and warranty of title by a dealer. Such assignment and warranty shall show the names and addresses of the transferee and any holder of a security interest created or reserved at the time of the resale and the date of his or her security agreement in the spaces provided therefor on the certificate or as the commissioner prescribes. Transfers of vessels under this Code section shall otherwise conform with Code Section 52-7A-17. A dealer selling a previously registered vessel which under this chapter need not have a certificate of title need not furnish a purchaser of such a vessel a certificate of title. After a previously registered vessel has been brought under the terms of this chapter, a dealer, when selling that vessel, shall conform to all provisions of this chapter.
(2)(A) As used in this paragraph, the term 'franchise dealer' means a dealer who under a contract or franchise agreement with a manufacturer, distributor, wholesaler, or importer is authorized to sell new vessels of or for such manufacturer, distributor, wholesaler, or importer and who is authorized to use trademarks or service marks associated with one or more makes of vessels in connection with such sales.
(B) A dealer who is not a franchise dealer who acquires a vessel for which the original certificate of title has not been issued and who holds such vessel for resale shall not be exempt from the requirement to obtain a certificate of title in such dealer´s name as provided in paragraph (1) of this subsection. Such dealer shall, as provided in Code Section 52-7A-17, obtain a certificate of title in such dealer´s name prior to selling or otherwise transferring said vessel to any other person or dealer.
(b) Every dealer shall maintain a record, in the form the commissioner prescribes, of every vessel bought, sold, or exchanged by such dealer or received by such dealer for sale or exchange. Such record shall be kept for three years and shall be open to inspection by a representative of the commissioner during reasonable business hours.
(c) Except as otherwise provided for in subsection (c) of Code Section 52-7A-17, the dealer shall submit a properly completed certificate of title application and proper supporting documents to the commissioner or to the appropriate authorized county tag agent so that the application and supporting documents shall be submitted to the commissioner or the appropriate authorized county tag agent within 30 days from the date of the transfer of the vessel. If the application and supporting documents are not submitted within that time, the dealer shall be required to pay a penalty of $10.00 in addition to the ordinary title fee required by this chapter. If the documents submitted in support of the title application are rejected, the dealer submitting the documents shall have 60 days from the date of initial rejection to resubmit the documents required by the commissioner for the issuance of title. If the documents are not properly resubmitted within 60 days, there shall be an additional penalty of $10.00 assessed against the dealer.

52-7A-19.
(a) If the interest of an owner in a vessel passes to another other than by voluntary transfer, the transferee shall, except as provided in subsection (b) of this Code section, mail or deliver to the commissioner or the appropriate authorized county tag agent the last certificate of title, if available; proof of the transfer; and his or her application for a new certificate in the form the commissioner prescribes at the same time as the application for change of registration for the vessel is submitted so that the title application and other documents shall be received by the commissioner or the appropriate authorized county tag agent no later than 30 days from the date that the transferee acquired the interest in the vessel. If the title application and other documents are not received within that time, the transferee shall be required to pay a penalty of $10.00 in addition to the ordinary title fee provided for by this chapter. If the documents submitted in support of the title application are rejected, the party submitting the documents shall have 60 days from the date of initial rejection to resubmit the documents required by the commissioner for the issuance of title. Should the documents not be properly resubmitted within the 60 day period, there shall be an additional $10.00 penalty assessed, and the owner of the vessel shall be required to remove immediately the registration number of the vessel issued pursuant to Chapter 7 of this title. If the documents have not been resubmitted as required in this subsection, the registration number shall be deemed to have expired at 12:00 Midnight of the sixtieth day following the initial rejection of the documents. If the last certificate of title is not available for transfer under this Code section, then the transferee shall forward such proof of transfer as the commissioner may by regulation prescribe.
(b) If the interest of the owner is terminated, whether the vessel is sold pursuant to a power contained in a security agreement or by legal process at the instance of the holder either of a security interest or a lien, the transferee shall promptly mail or deliver to the commissioner or the appropriate authorized county tag agent the last certificate of title, if available; proof of transfer; his or her application for a new certificate, in the form prescribed by the commissioner; and an affidavit made by or on behalf of the holder of a security interest in or lien on the vessel with respect to the termination of the interest of the owner, so as to have the application and supporting documents submitted to the commissioner or the appropriate authorized county tag agent within 30 days from the date the transferee acquired the interest in the vessel. If the application and supporting documents are not submitted within that time, the transferee shall be required to pay a penalty of $10.00 in addition to the ordinary title fee prescribed by this chapter. If the documents submitted in support of the title application are rejected, the transferee submitting the documents shall have 60 days from the date of initial rejection to resubmit the documents required by the commissioner for the issuance of title. If the documents are not properly resubmitted within 60 days, there shall be an additional $10.00 penalty assessed, and the owner of the vessel shall be required to remove immediately the registration number of the vessel issued pursuant to Chapter 7 of this title. If the documents have not been resubmitted as required under this subsection, the registration number shall be deemed to have expired at 12:00 Midnight of the sixtieth day following the initial rejection of the documents. If the holder of a security interest or lien succeeds to the interest of the owner and holds the vessel for resale, such person need not secure a new certificate of title but, upon transfer, shall promptly deliver to the transferee the last certificate of title, if available, and such other documents as the commissioner may require by rule or regulation.
(c) A person holding a certificate of title whose interest in the vessel has been extinguished or transferred other than by voluntary transfer shall mail or deliver the certificate to the commissioner or the commissioner´s duly authorized county tag agent upon request of the commissioner or authorized county tag agent. The delivery of the certificate pursuant to the request of the commissioner or authorized tag agent shall not affect the rights of the person surrendering the certificate; and the action of the commissioner or authorized tag agent in issuing a new certificate of title as provided in this chapter shall not be conclusive upon the rights of an owner or lienholder named in the old certificate.
(d) In the event of transfer as upon inheritance, devise, or bequest, upon receipt of an application for a new certificate of title with the required fee, the last certificate of title, if available, and a certified copy of a will or letters of administration or, if no administration is to be had on the estate, an affidavit by the applicant to the effect that the estate is not indebted and the surviving spouse, if any, and the heirs, if any, have amicably agreed among themselves upon a division of the estate or a certificate from the judge of the probate court showing that the vessel registered in the name of the decedent owner has been assigned to the decedent´s survivors as part of their year´s support, the commissioner shall issue to the person or persons shown by such evidence to be entitled thereto the certificate of title for the vessel.
(e)(1) In the event of transfer under a will when the vessel was the decedent´s only asset, upon receipt of an application for a new certificate of title accompanied by the required fee, the last certificate of title, if available, and an affidavit by the applicant to the effect that the vessel was owned by the decedent and was the decedent´s only asset and was not encumbered, that under the will the applicant is entitled to receive title to such vessel, that no application for the administration of the estate of the deceased or the probate of such will is to be had, and that the estate is not indebted and the surviving spouse, if any, and the heirs, if any, are sui juris and have amicably agreed that title to said vessel be issued to the applicant, the commissioner shall issue to the person or persons shown by such evidence to be entitled thereto the certificate of title for the vessel.
(2) The commissioner shall prescribe the form of the affidavit to be used in paragraph (1) of this subsection.
(f) A joint interest in a vessel with survivorship in two or more persons may be created in the manner provided by subsection (a) of Code Section 44-6-190; and, if a certificate of title has been issued to two or more persons having such a joint interest with survivorship, then, in the event of the death of such a joint owner, the surviving such owner or owners, if any, need not secure a new certificate of title.

52-7A-20.
(a) The commissioner or the commissioner´s duly authorized county tag agent, upon receipt of a properly assigned certificate of title, with an application for a new certificate of title, the required fee, and any other documents required by law, shall issue a new certificate of title in the name of the transferee as owner and mail the certificate to the first lienholder named in the application or, if none, to the owner.
(b) The commissioner or the commissioner´s duly authorized county tag agent, upon receipt of an application for a new certificate of title by a transferee other than by voluntary transfer, with proof of the transfer, the required fee, and any other documents required by law, shall issue a new certificate of title in the name of the transferee as owner. If the outstanding certificate of title is not delivered to the commissioner or the authorized county tag agent, the commissioner or authorized county tag agent shall make demand for such title from the title holder.
(c) The commissioner or the commissioner´s duly authorized county tag agent shall file and retain for five years every surrendered certificate of title, the file to be maintained so as to permit the tracing of title of the vessel designated on such title.

52-7A-21.
(a)(1) Any registered owner or authorized agent of a registered owner who in any manner sells or disposes of any vessel as scrap metal or parts only or who scraps, dismantles, or demolishes a vessel shall within 72 hours mail or deliver the certificate of title to the commissioner for cancellation.
(2) Notwithstanding any other provision of this chapter to the contrary, if the owner or authorized agent of the owner has not obtained a title in his or her name for the vessel to be transferred, or has lost the title for the vessel to be transferred, he or she may sign a statement swearing that, in addition to the foregoing conditions, the vessel is worth $750.00 or less and is at least 12 years old. The department shall promulgate a form for the statement which shall include, but not be limited to:
(A) A statement that the vessel shall never be titled again; it must be dismantled or scrapped;
(B) A description of the vessel including the year, make, model, hull identification number, and color;
(C) The name and address of the owner;
(D) A certification that the owner:
(i) Never obtained a title to the vessel in his or her name; or
(ii) Was issued a title for the vessel, but the title was lost or stolen;
(E) A certification that the vessel:
(i) Is worth $750.00 or less;
(ii) Is at least 12 years old; and
(iii) Is not subject to any security interest or lien;
(F) An acknowledgment that the owner realizes the form will be filed with the commissioner and that it is a felony, punishable by imprisonment for not fewer than one nor more than three years or a fine of not less than $1,000.00 nor more than $5,000.00, or both, to knowingly falsify any information on such statement;
(G) The owner´s signature and the date of the transaction;
(H) The name and address of the business acquiring the vessel;
(I) A certification by the business that $750.00 or less was paid to acquire the vessel; and
(J) The business agent´s signature and date along with a printed name and title if the agent is signing on behalf of a corporation.
(3) The person taking possession of the vessel for scrap metal or parts only or to scrap, dismantle, or demolish a vessel shall mail or otherwise deliver the statement required under paragraph (2) of this subsection to the commissioner within 72 hours of the completion of the transaction, requesting that the commissioner cancel the Georgia certificate of title and registration.
(4) Any insurance company which acquires a damaged vessel by virtue of having paid a total loss claim shall mail or deliver the certificate of title to the commissioner for cancellation. In every case in which a total loss claim is paid and the insurance company does not acquire such damaged vessel, the vessel owner shall mail or deliver the certificate of title to the commissioner for cancellation. If the certificate of title has been lost, destroyed, or misplaced, the vessel owner shall, prior to payment of the claim on such vessel, obtain a replacement title. If the security interest holder or lienholder has possession of the certificate of title, the insurance company shall thereafter mail or deliver notification to the commissioner of the payment of the total loss claim and the name and address of the security interest holder or lienholder in possession of the title. The commissioner shall mail notice to the security interest holder or lienholder that a total loss claim has been paid on the vessel and that the title to such vessel has been canceled, provided that the validity of the security interest shall not be affected by issuance of a salvage certificate of title. The security interest holder or lienholder shall, within ten days after receipt of such notice of total loss claim and cancellation of the original certificate of title, mail or deliver the canceled original certificate of title to the commissioner.
(b) Except as provided in subsection (a) of this Code section, any person, firm, or corporation which purchases or otherwise acquires a salvage vessel shall apply to the commissioner for a salvage certificate of title for such vessel within 30 days of the purchase or acquisition of the vessel if the person, firm, or corporation intends to operate or to sell, convey, or transfer the vessel for any purpose other than scrapping, dismantling, or demolition; and no such person, firm, or corporation shall sell, transfer, or convey a salvage vessel until such person, firm, or corporation has applied for and obtained a salvage certificate of title. The application for a salvage certificate of title shall be made in a manner to be prescribed by the commissioner. Any certificate of title which is issued to a salvage vessel, as provided for in this Code section, shall contain the word 'salvage' on the face of the certificate in such a manner as the commissioner may prescribe, so as to indicate clearly that the vessel described is a salvage vessel.
(c) As an alternative to criminal or other civil enforcement, the commissioner, in order to enforce this Code section or any orders, rules, and regulations promulgated pursuant to this Code section, may issue an administrative fine not to exceed $1,000.00 for each violation whenever the commissioner, after a hearing, determines that any person has violated any provisions of this Code section or any regulations or orders promulgated under this Code section. The hearing and any administrative review thereof shall be conducted in accordance with the procedure for contested cases under Chapter 13 of Title 50, the 'Georgia Administrative Procedure Act.' Any person who has exhausted all administrative remedies available and who is aggrieved or adversely affected by a final order or action of the commissioner shall have the right of judicial review thereof in accordance with Chapter 13 of Title 50. All fines recovered under this subsection shall be paid into the state treasury. The commissioner may file in the superior court (1) of the county wherein the person under order resides; (2) if such person is a corporation, of the county wherein the corporation maintains its principal place of business; or (3) of the county wherein the violation occurred a certified copy of a final order of the commissioner, whether unappealed from or affirmed upon appeal, whereupon the court shall render judgment in accordance with the final order and notify the parties. Such judgment shall have the same effect and proceedings in relation thereto shall thereafter be the same as though the judgment had been rendered in an action duly heard and determined by the court. The penalty prescribed in this Code section shall be concurrent, alternative, and cumulative with any and all other civil, criminal, or alternative rights, remedies, forfeitures, or penalties provided, allowed, or available to the commissioner with respect to any violation of this Code section or any order, rules, or regulations promulgated pursuant thereto.
(d) The Commissioner of Insurance is authorized to enforce the provisions of this Code section to the extent such provisions are applicable to insurers under the jurisdiction of the Insurance Department. The Commissioner of Insurance is also authorized to cooperate with the commissioner in enforcing this Code section and to provide the commissioner with any information acquired by the Commissioner of Insurance during any investigation or proceeding involving this Code section. Nothing in this subsection shall be construed to limit the powers and duties of the commissioner to enforce the provisions of this Code section as such provisions apply to insurers.
(e) It shall be unlawful for any person, firm, or corporation to violate the provisions of subsection (a) or (b) of this Code section; and any person, firm, or corporation convicted of violating such provisions shall be guilty of a misdemeanor. Any owner of a salvage vessel who transfers or attempts to transfer such vessel without obtaining a salvage certificate of title for such vessel shall be guilty of a misdemeanor of a high and aggravated nature, punishable by a fine not to exceed $5,000.00. Any security interest holder or lienholder who, after notice by the commissioner of payment of a total loss claim and cancellation of the title of a vessel, fails or refuses to return the title to the commissioner or who surrenders the title to anyone other than the commissioner shall be guilty of a misdemeanor of a high and aggravated nature, punishable by a fine not to exceed $5,000.00.
(f) The registered owner who retains possession of a salvage vessel to whom a total loss claim has been paid shall promptly remove the registration number from such vessel. An insurer which pays a total loss claim shall, on a form prescribed by the commissioner, notify the owner of the duty to remove such registration number.

52-7A-22.
(a) An application for a certificate of title shall be accompanied by the required fee when mailed or delivered to the commissioner or a designated agent.
(b) An application for the naming of a lienholder on a certificate of title shall be accompanied by the required fee when mailed or delivered to the commissioner or a designated agent.
(c) The commissioner shall be paid a fee of $18.00 for the filing of an application for any certificate of title. The commissioner may, by appropriate regulation, provide for additional fees not to exceed $18.00 for the special handling of applications for certificates of title and related documents. The commissioner shall be paid a fee of $8.00 for the filing of an application for a replacement certificate of title. The fee for issuance of a replacement certificate of title shall be the same whether mailed or delivered to the commissioner or an agent.
(d) The above fees shall be required of all applicants except the State of Georgia and the United States of America.

52-7A-23.
The commissioner is authorized to utilize the services of persons appointed as county tag agents under Code Section 40-2-23. The county tag agents shall retain a fee of $7.00 for each application handled, such fee to be disposed of as other tag fees retained by him or her as tag agent are disposed of in his or her county. Any applicant for a title shall have the right to mail the application directly to the department.

52-7A-24.
(a) All county tag agents accepting and handling title applications shall endeavor to submit such applications and related sums of money to which the department is entitled to the commissioner on a daily basis. All reports of title applications handled and related sums of money collected to which the department is entitled must be submitted to the commissioner within seven calendar days from the close of the business day during which such applications were handled and related sums of money collected.
(b) Funds received as a result of handling title applications shall be considered trust funds in the hands of the tag agents until such time as they are paid over to the commissioner.
(c) Failure to submit the reports or remit the funds within the seven-calendar-day period from the close of the business day as required by this Code section shall result in the penalties imposed by Code Section 48-2-44.
(d) Before the expiration of the time period within which a title report is required to be filed with the commissioner or funds remitted to the commissioner, application may be made to the commissioner for an extension. The commissioner is authorized, upon a showing of justifiable cause, to grant up to a ten-day extension from the deadline provided for the performance of the above duties. Only one such extension may be granted with regard to any reports or funds due the commissioner for a specific business day.
(e) Proof of mailing within the appropriate time period provided for in this Code section, as evidenced by a United States Postal Service postmark, shall be prima-facie proof that the county tag agent has complied in a timely manner with the duties enumerated by this Code section.

52-7A-25.
(a) The commissioner shall suspend or revoke a certificate of title, upon notice and reasonable opportunity to be heard in accordance with Code Section 52-7A-6, when authorized by any other provision of law or if the commissioner finds:
(1) The certificate of title was fraudulently procured or erroneously issued; or
(2) The vessel has been scrapped, dismantled, or destroyed.
(b) Suspension or revocation of a certificate of title does not, in itself, affect the validity of a security interest noted on it.
(c) When the commissioner suspends or revokes a certificate of title, the owner or person in possession of it shall, immediately upon receiving notice of the suspension or revocation, mail or deliver the certificate to the commissioner.
(d) The commissioner may seize and impound any certificate of title which has been suspended or revoked.

52-7A-26.
In instances when an application for title is required to be submitted within a certain time period, proof of mailing within the designated period allowed for submission of the documents, as evidenced by a United States Postal Service postmark, shall be prima-facie proof that the application was timely submitted. Additionally, when the law provides for a penalty for the untimely submission of a title application, the responsibility for the collection of such penalty shall be that of the commissioner.

52-7A-27.
(a) Any person, firm, or corporation which pays a total loss claim on a vessel as a result of such vessel´s being stolen shall within 15 days of the payment of such total loss claim apply to the commissioner for a transfer of the certificate of title into such person´s, firm´s, or corporation´s name. No person, firm, or corporation shall sell, transfer, or convey such vessel until the requirements of this Code section have been met.
(b) As an alternative to criminal or other civil enforcement, the commissioner, in order to enforce this Code section or any orders, rules, and regulations promulgated pursuant to this Code section, may issue an administrative fine not to exceed $1,000.00 for each violation whenever the commissioner, after a hearing, determines that any person has violated any provisions of this Code section or any regulations or orders promulgated under this Code section. The hearing and any administrative review thereof shall be conducted in accordance with the procedure for contested cases under Chapter 13 of Title 50, the 'Georgia Administrative Procedure Act.' Any person who has exhausted all administrative remedies available and who is aggrieved or adversely affected by a final order or action of the commissioner shall have the right of judicial review thereof in accordance with Chapter 13 of Title 50. All fines recovered under this subsection shall be paid into the state treasury. The commissioner may file in the superior court (1) of the county wherein the person under order resides; (2) if such person is a corporation, of the county wherein the corporation maintains its principal place of business; or (3) of the county wherein the violation occurred a certified copy of a final order of the commissioner, whether unappealed from or affirmed upon appeal, whereupon the court shall render judgment in accordance with the final order and notify the parties. Such judgment shall have the same effect and proceedings in relation thereto shall thereafter be the same as though the judgment had been rendered in an action duly heard and determined by the court. The penalty prescribed in this Code section shall be concurrent, alternative, and cumulative with any and all other civil, criminal, or alternative rights, remedies, forfeitures, or penalties provided, allowed, or available to the commissioner with respect to any violation of this Code section or any order, rules, or regulations promulgated pursuant thereto.
(c) The Commissioner of Insurance is authorized to enforce the provisions of this Code section to the extent such provisions are applicable to insurers under the jurisdiction of the Insurance Department. The Commissioner of Insurance is also authorized to cooperate with the commissioner in enforcing this Code section and to provide the commissioner with any information acquired by the Commissioner of Insurance during any investigation or proceeding involving this Code section. Nothing in this subsection shall be construed to limit the powers and duties of the commissioner to enforce the provisions of this Code section as such provisions apply to insurers.

52-7A-28.
(a) Except as provided in Code Sections 11-9-303, 11-9-316, and 11-9-337, the security interest in a vessel of the type for which a certificate of title is required shall be perfected and shall be valid against subsequent creditors of the owner, subsequent transferees, and the holders of security interests and liens on the vessel by compliance with this chapter.
(b)(1) A security interest is perfected by delivery to the commissioner or to the county tag agent of the county in which the seller is located, the county in which the sale takes place, the county in which the vessel is delivered, or the county wherein the vessel owner resides of the required fee and:
(A) The existing certificate of title, if any, and an application for a certificate of title containing the name and address of a security interest holder; or
(B) A notice of security interest on forms prescribed by the commissioner.
(2) The security interest is perfected as of the time of its creation if the initial delivery of the application or notice to the commissioner or local tag agent is completed within 20 days thereafter, regardless of any subsequent rejection of the application or notice for errors; otherwise, as of the date of the delivery to the commissioner or local tag agent. The local tag agent shall issue a receipt or other evidence of the date of filing of such application or notice. When the security interest is perfected as provided for in this subsection, it shall constitute notice to everybody of the security interest of the holder.

52-7A-29.
If the owner creates a security interest in a vessel:
(1) The owner shall immediately execute the application in the space provided therefor on the certificate of title or on a separate form that the commissioner prescribes, showing the name and address of the security interest holder, and shall deliver the certificate, the application, and the required fee to the security interest holder;
(2) The security interest holder shall immediately mail or deliver the certificate of title and application and the required fee to the commissioner or the commissioner´s appropriate authorized county tag agent within 90 days of the date of creation of the security interest or lien. If the certificate of title and application and the required fee are not mailed or delivered within such time, the security interest holder or lienholder shall be required to pay a $10.00 penalty in addition to the ordinary title fee provided for by this chapter. If the documents submitted in support of the title application are rejected, the party submitting the documents shall have 60 days from the date of initial rejection to resubmit the documents required by the commissioner or the authorized county tag agent for the issuance of title. If the documents are not properly resubmitted within the 60 day period, there shall be an additional $10.00 penalty assessed, and the owner of the vessel shall be required to remove immediately the registration number required pursuant to Chapter 7. If the documents have not been resubmitted as required under this paragraph, the registration number shall be deemed to have expired at 12:00 Midnight of the sixtieth day following the initial rejection of the documents; and
(3) Upon receipt of the certificate of title, the application, and the required fee, the commissioner or the commissioner´s duly authorized county tag agent shall issue a new certificate containing the name and address of the security interest holder and of holders of previous unreleased security interests and liens, if any, and shall mail the certificate to the first holder on it. If more than one holder is named on the certificate, the first holder shall comply with subsection (b) of Code Section 52-7A-12 in regard to notifying other holders of the content of the certificate.
52-7A-30.
(a) If the owner of a vessel desires to place a second or subsequent security interest against the vessel and the certificate of title on that vessel is being held by a security interest holder or lienholder, the owner shall, on the form prescribed by the commissioner, execute a title application and a notice of the second or subsequent security interest; and the holder of the second or subsequent security interest shall forward such notice and title application, together with a fee as provided by Code Section 52-7A-22, by certified mail or statutory overnight delivery, return receipt requested, to the first holder of a security interest or lien who has custody of the certificate of title. The notice of such second or subsequent security interest shall contain on its face instructions to the security interest holder or lienholder having custody of the certificate of title directing such custodial security interest holder or lienholder within ten days to forward the notice, title application, and fee, together with the certificate of title, to the commissioner or the commissioner´s duly authorized county tag agent in order that the commissioner or authorized county tag agent may issue a new certificate of title and reflect on the certificate of title the subsequent security interest. The first security interest holder or lienholder having possession of the certificate of title shall comply with the instructions contained in the notice. The commissioner or authorized county tag agent, upon receipt of a properly executed application notice, the fee, and the original certificate of title, shall enter the subsequent security interest on such commissioner´s or authorized county tag agent´s records and shall issue a new certificate of title and shall then deliver the certificate of title as provided for in this chapter.
(b) If the holder of the second or subsequent security interest forwards by registered or certified mail or statutory overnight delivery the title application, notice of the second or subsequent security interest, and fee to the first security interest holder or lienholder who has custody of the certificate of title within ten days of the execution of that second or subsequent security interest, it shall be perfected as of the date it was executed; otherwise, as of the date the notice was forwarded to the first security interest holder or lienholder holding the certificate of title. The second or subsequent security interest holder shall retain the return registered or certified mail or statutory overnight delivery receipt as proof of perfection of the security interest under this Code section.
(c) In the event the first security interest holder or lienholder holding the certificate of the title fails, refuses, or neglects to forward the title application, notice, fee, and original certificate of title to the commissioner or the commissioner´s duly authorized county tag agent as required by this Code section, the holder of the second or subsequent security interest may, on a form prescribed by the commissioner, make direct application to the commissioner or authorized county tag agent. Such direct application to the commissioner or authorized county tag agent shall have attached to it the return registered or certified mail or statutory overnight delivery receipt showing the previous mailing of the title application, fee, and notice to the first security interest holder or lienholder. Upon receipt of such a direct application, the commissioner or authorized county tag agent shall order the first security interest holder or lienholder having custody of the certificate of title to forward the certificate of title to the commissioner or the authorized county tag agent for the purpose of having the second or subsequent security interest entered and a new certificate of title issued. If, after a direct application to the commissioner or authorized county tag agent and the order of the commissioner or authorized county tag agent the first security interest holder or lienholder continues to fail, refuse, or neglect to forward the certificate of title as provided in this Code section, the commissioner or authorized county tag agent may cancel the outstanding certificate of title and issue a new certificate of title reflecting all security interests and liens, including the second or subsequent security interest; and this new certificate of title shall be delivered as provided for in this chapter.
(d) As an alternative to mailing notices concerning a second or subsequent security interest; to the commissioner or the commissioner´s duly authorized county tag agent in accordance with this Code section, the commissioner shall be authorized to permit the transaction to be made by electronic means in accordance with regulations promulgated by the commissioner.
(e) No first security interest holder or lienholder having possession of the certificate of title shall have the validity of that security interest or lien affected by surrendering the certificate of title as provided for by this Code section.

52-7A-31.
(a) If the lienholder, except the holder of a mechanic´s lien, perfection of which is prescribed in Code Section 52-7A-32, desires to perfect such lien against a vessel, the lienholder shall, on the form prescribed by the commissioner, execute a title application and a notice of lien stating the type of lien and the specific vessel against which the lien is claimed and shall forward such notice and title application, together with a fee as provided by Code Section 52-7A-22, either personally or by certified mail or statutory overnight delivery, return receipt requested, to the person who has custody of the current certificate of title at the address shown on such certificate of title. If someone other than the owner is holding the certificate of title, a copy of the notice shall also be forwarded to the owner. The lien claimant shall retain the certified mail or statutory overnight delivery receipt as proof of compliance with this Code section.
(b) After receipt of the notice of lien, as specified in this Code section, neither the owner nor any other person shall take any action affecting the title other than as provided in this Code section. After receipt of the notice of lien, the person holding the certificate of title shall hold the notice of lien and attachments and the title for ten days. If, during the ten-day period following receipt of the notice, the claimed lien is satisfied, the lien claimant shall, on the form prescribed by the commissioner, notify the owner and the person holding the certificate of title of such satisfaction. The notice of satisfaction shall serve as a release and withdrawal of the pending notice of lien. If the owner or person holding the certificate of title chooses to contest the claimed lien, such owner or person holding the certificate of title shall so indicate on the notice of lien form and shall notify the other interested parties. If the notice contesting the lien is given, or if ten days have elapsed without the lien being satisfied, the person holding the certificate of title shall forward the certificate of title together with the notice of lien and attachments thereto to the commissioner or the commissioner´s duly authorized county tag agent in order that the commissioner or authorized county tag agent shall issue a new certificate of title and reflect on the new certificate of title the lien on the vessel. The owner or the person who has custody of the current certificate of title shall comply with the instructions contained in the notice; and in the event such owner or person having custody of the current title cannot do so, such owner or person having custody of the current title shall notify the lien claimant. The commissioner or authorized county tag agent, upon receipt of a properly executed title application, notice, fee, and the current certificate of title, shall enter the lien on the commissioner´s or authorized county tag agent´s records and shall issue a new certificate of title reflecting the lien and shall then deliver the certificate of title as provided for in this chapter. The lien shall be perfected at the time the lien notice, application for title, fee, and current certificate of title are received by the commissioner or authorized county tag agent.
(c) In the event that the person who has custody of the current certificate of title fails, refuses, or neglects to forward the title application, notice, fee, and current certificate of title to the commissioner or the commissioner´s duly authorized county tag agent as required by this Code section, the lien claimant may, if such lien claimant´s lien has not been satisfied, on a form prescribed by the commissioner, make direct application to the commissioner or authorized county tag agent. Such direct application to the commissioner or authorized county tag agent shall have attached to it the return registered or certified mail or statutory overnight delivery receipt showing the previous mailing of the title application, fee, and notice to the person who has custody of the current certificate of title. Upon receipt of such a direct application, the commissioner or authorized county tag agent shall order the person who has custody of the current certificate of title to forward the certificate of title to the commissioner or authorized county tag agent for the purpose of having the lien entered and a new certificate of title reflecting the lien issued. If, after a direct application to the commissioner or authorized county tag agent and after the order of the commissioner or authorized county tag agent, the person who has custody of the current certificate of title continues to fail, refuse, or neglect to forward the certificate of title as provided in this Code section, the commissioner or authorized county tag agent may cancel the current certificate of title and issue a new certificate of title reflecting all security interests and liens; and this new certificate of title shall be delivered as provided for in this chapter. In the event a direct application is made, the lien shall be perfected as of the date the outstanding certificate of title is canceled.
(d) No security interest holder or lienholder having custody of the certificate of title shall have the validity of such security interest holder´s or lienholder´s security interest or lien affected by surrendering the certificate of title as provided by this Code section. The first security interest holder or lienholder shall have the responsibility to advise a prospective transferee or security interest holder, upon inquiry, that a notice of subsequent lien has been received. Upon the issuing of a new certificate of title, the commissioner or the commissioner´s duly authorized county tag agent shall cancel the old certificate of title.
(e) A lien perfected under this Code section shall be a lien only against the specific vessel identified in the application for a new certificate.
(f) A lien on a vessel for which a certificate of title is required shall be perfected and shall be valid against subsequent transferees and holders of security interests and liens only through compliance with this Code section. The procedure contained in this chapter shall be the exclusive method for the perfection of liens on vessels required to have certificates of title, and no lien shall be effective against such a vessel unless so perfected.

52-7A-32.
(a) All mechanics of every sort shall have a special lien on any vessel required to have a certificate of title by Code Section 52-7A-7 for work done, for work done and materials furnished, or for materials furnished in repairing or servicing such vessel. Perfection of the lien by recording shall be as provided in Code Section 52-7A-31. The lien may be asserted by retention of the vessel, and all contracts for repairs or service to vessels shall be deemed to incorporate a right of retention by the mechanic to protect this lien until it is paid or satisfied through foreclosure as provided in this Code section. The lien may also be asserted by surrendering the vessel, giving credit, and foreclosing the lien claim in the manner provided in this Code section. If the mechanic surrenders possession of the vessel to the debtor, the mechanic shall record the claim of lien as provided in Code Section 52-7A-31. Such special lien shall be superior to all liens except for taxes and such other security interests and liens of which the mechanic had actual or constructive notice before the work was done or material furnished. The validity of the lien against third parties shall be determined in accordance with this chapter.
(b) If possession is retained or the lien recorded, the owner-debtor may contest the validity of the amount claimed to be due by making written demand upon the lienholder. If upon receipt of such demand the lienholder fails to institute foreclosure proceedings within ten days where possession has been retained, or within 30 days where possession has been surrendered, the lien is forfeited.
(c) The lien shall be foreclosed in the following manner:
(1) A person asserting the lien, either for himself or herself or as a guardian, administrator, executor, or trustee, may move to foreclose it by making an affidavit to a court of competent jurisdiction showing all the facts necessary to constitute a lien under this Code section and the amount claimed to be due;
(2) Upon such affidavit being filed, the clerk or a judge of the court shall serve notice upon the owner, the recorded security interest holders and lienholders, and the lessee, if any, of the vessel of a right to a hearing to determine if reasonable cause exists to believe that a valid debt exists, and that such hearing must be petitioned for within five days after receipt of the notice and that, if no petition for such hearing is filed within the time allowed, the lien will conclusively be deemed a valid one and foreclosure thereof allowed;
(3) If a petition for a hearing is filed within the time allowed, the court shall set a probable cause hearing within ten days of the filing of the petition. If, at the probable cause hearing, the court determines that reasonable cause exists to believe that a valid debt exists, the mechanic shall be given possession of the vessel or the court shall obtain possession of the vessel, as ordered by the court; provided, however, the owner-debtor may retain possession of the vessel by giving bond and security in the amount determined to be probably due and the costs of the action;
(4) Within five days of the probable cause hearing, a defendant shall petition the court for a full hearing on the validity of the debt if a further determination of the validity of the debt is desired. If no such petition is filed, the lien on the amount determined reasonably due shall be conclusively deemed valid and foreclosure allowed; if such a petition is filed, the court shall set a full hearing thereon within 30 days of the filing of the petition. Upon the filing of such petition by the defendant, neither the prosecuting mechanic nor the court may sell the vessel, although possession of the vessel may be retained;
(5) If, after a full hearing, the court finds that a valid debt exists, then the court shall authorize foreclosure upon and sale of the vessel subject to the lien to satisfy the debt if the debt is not otherwise immediately paid;
(6) If the court finds the actions of the mechanic in retaining or seeking possession of the vessel were not taken in good faith, the court, in its discretion, may award damages to the owner, the lessee, or any person deprived of the rightful use of the vessel due to the deprivation of the use of the vessel; and
(7) Any proceeding to foreclose a mechanic´s lien on a vessel must be instituted within one year from the time the lien is recorded or is asserted by retention.

52-7A-33.
(a) The holder of any security interest in or lien on a vessel may assign, absolutely or otherwise, such holder´s security interest or lien to a person other than the owner without affecting the interest of the owner or the validity of the security interest or lien; but any person without notice of the assignment is protected in dealing with the holder of the security interest or lien, and the holder of the security interest or lien remains liable for any obligations as such holder until the assignee is named as the holder of the security interest or lien on the certificate of title.
(b) The assignee may, but need not to perfect the assignment, have the certificate of title endorsed or issued with the assignee named as holder of a security interest or lien upon delivering to the commissioner or the commissioner´s duly authorized county tag agent the certificate and assignment by the holder of a security interest or lien named in the certificate in the form the commissioner prescribes, provided that as an alternative to a handwritten signature, the commissioner may authorize use of a digital signature so long as appropriate security measures are implemented which assure security and verification of the digital signature process, in accordance with regulations promulgated by the commissioner. If the assignment refers to a security interest or lien which is reflected on the certificate of title and the certificate of title is in the possession of the first security interest holder or lienholder as provided by this chapter, the assignee may, but need not to perfect the assignment, have the certificate of title endorsed, or a new certificate of title issued, by complying with Code Section 52-7A-13.

52-7A-34.
(a)(1) If any security interest or lien listed on a certificate of title is satisfied, the holder thereof shall, within ten days after demand, execute a release in the form the commissioner prescribes and mail or deliver the release to the owner, provided that as an alternative to a handwritten signature, the commissioner may authorize use of a digital signature so long as appropriate security measures are implemented which assure security and verification of the digital signature process, in accordance with regulations promulgated by the commissioner. For the purposes of the release of a security interest or lien, the 'holder' of the security interest or lien is the parent bank or other lending institution; and any branch or office of the parent institution may execute such release.
(2) If the commissioner has entered into an agreement with such a security interest holder or lienholder to provide a means of delivery by secure electronic measures of a notice of the recording of such security interest or lien, at such time as the security interest or lien is released, by secure electronic measures, the certificate of title may be printed and mailed or delivered to the next security interest holder or lienholder or, if there is no other security interest holder or lienholder, to the owner without payment of any fee required by Code Section 52-7A-22.
(b) The owner may then forward the certificate of title, the release, the properly executed title application, and title application fee to the commissioner or the commissioner´s duly authorized county tag agent, and the commissioner or authorized county tag agent shall release the security interest or lien on the certificate or issue a new certificate and mail or deliver the certificate to the owner. If the satisfied security interest or lien is one reflected on the certificate of title but the certificate of title is in the custody of the first security interest holder or lienholder as provided by this chapter, the release may be handled as provided in Code Section 52-7A-13, and Code Section 52-7A-12 shall otherwise be complied with. In the event that the security interest holder or lienholder is no longer in business, an individual shall not be required to submit a release to secure a new certificate of title. The owner shall be required to present to the commissioner or authorized county tag agent certification from the appropriate regulatory agency that such security interest holder or lienholder is no longer in business.
(c) Any lien or security interest shall be considered satisfied and release shall not be required after ten years from the date of issuance of a title on which such security interest or lien is listed. None of the provisions of this Code section shall preclude the perfection of a new security agreement or lien, or the perfection of an extension of a security agreement or lien beyond a period of ten years, by application for a new certificate of title on which such security agreement or lien is listed. In order to provide for the continuous perfection of a security interest or lien originally entered into for a period of more than ten years, an application for a second title on which the security interest or lien is listed must be submitted to the commissioner or the commissioner´s duly authorized tag agent before ten years from the date of the original title on which such security interest or lien is listed. Otherwise the security interest or lien shall be perfected as of the date of receipt of the application by the commissioner or the commissioner´s duly authorized county tag agent.

52-7A-35.
The holder of any security interest or lien named in a certificate of title shall, on written request of the owner, another holder of any security interest or lien named in the certificate, an interested third party, or the commissioner, disclose any information pertinent to the security interest, the security agreement, and the debt secured thereby and the lien and the amount for which it is claimed.

52-7A-36.
The method provided in this chapter of perfecting and giving notice of security interests and liens with respect to vessels for which certificates of title must be obtained under this chapter is exclusive, and such security interests and liens are exempt from the provisions of law which otherwise require or relate to the recording or filing of security interests or liens, claims of lien executions, and other like instruments with respect to such vessels.

52-7A-37.
This chapter shall not apply to or affect a security interest in a vessel created by a manufacturer or dealer who holds the vessel for sale. A buyer in the ordinary course of trade with the manufacturer or dealer takes free of such security interest.

52-7A-38.
Notwithstanding any other provision of law, a transaction does not create a sales or security interest merely because it provides that the rental price is permitted or required to be adjusted under the agreement either upward or downward by reference to the amount realized upon sale or other disposition of the vessel.

52-7A-39.
Notwithstanding any other provision of law to the contrary, in any claim involving the total loss of a vessel which is subject to more than one perfected security interest or lien as recorded on the title of the vessel, the proceeds of the insurance policy shall be first applied to the debt owed to the first lienholder. In the event that there are proceeds remaining after satisfying the first lienholder, the proceeds shall be then applied to the debt owed to the second and subsequent lienholders in order of priority and any proceeds remaining after the satisfaction of all such recorded liens shall be paid to the insured. If the amount of debt secured by such security interests or liens or the seniority of such security interests or liens is in doubt, any remaining funds shall be deposited with the court and a complaint for interpleader shall be filed in accordance with Code Section 9-11-22.

52-7A-40.
A person who, with fraudulent intent:
(1) Alters, forges, or counterfeits a certificate of title under this chapter;
(2) Alters or forges an assignment of a certificate of title or an assignment or release of a security interest on a certificate of title or a form the commissioner prescribed under this chapter;
(3) Has possession of or uses a certificate of title under this chapter knowing it to have been altered, forged, or counterfeited;
(4) Uses a false or fictitious name or address or makes a material false statement, fails to disclose a security interest, or conceals any other material fact in an application for a certificate of title under this chapter;
(5) Alters or forges a notice of a transaction concerning a security interest or lien reflected on the certificate of title as provided by Code Section 52-7A-13; or
(6) Willfully violates any other provision of this chapter after having previously violated the same or any other provision of this chapter and having been convicted of that act in a court of competent jurisdiction
shall be guilty of a felony.

52-7A-41.
(a) A person who:
(1) With fraudulent intent permits another, not entitled thereto, to use or have possession of a certificate of title under this chapter;
(2) Willfully fails to mail or deliver a certificate of title to the commissioner or to the purchaser of the vessel or a release of security interest or lien to the owner within ten days of the time required by this chapter, except as provided in Code Section 52-7A-40;
(3) Willfully fails or refuses to mail or deliver the certificate of title to the commissioner within ten days after having received a notice, as provided for in Code Section 52-7A-13 or 52-7A-30; or
(4) Willfully violates any other provision of this chapter
shall be guilty of a misdemeanor.
(b) Any person, firm, or corporation which knowingly makes any false statement in any title application concerning the date a vessel was sold or acquired or the date of creation of a security interest or lien shall be guilty of a misdemeanor and, upon conviction thereof, shall be fined not more than $100.00 or imprisoned for a period not to exceed 30 days.
(c) Any person, firm, or corporation which delivers or accepts a certificate of title assigned in blank shall be guilty of a misdemeanor and, upon conviction thereof, shall be fined not more than $100.00 or imprisoned for a period not to exceed 30 days for the acceptance or delivery of each certificate of title assigned in blank.

52-7A-42.
A person who knowingly makes a false report to a peace officer or the commissioner of the theft or conversion of a vessel shall be guilty of a misdemeanor of a high and aggravated nature.

52-7A-43.
In a prosecution for a crime specified in this chapter, evidence tha