§ 50–1541.20. Application for transfer of ownership or termination of security interest without certificate of title.

(a) Except as otherwise provided in § 50-1541.18 or § 50-1541.19, if the Harbor Master receives, unaccompanied by a signed certificate of title, an application for a new certificate of title that includes an indication of a transfer of ownership or a termination statement, the Harbor Master may create a new certificate of title under this section only if:

(1) All other requirements under §§ 50-1541.06 and 50-1541.07 are met;

(2) The applicant provides an affidavit stating facts showing the applicant is entitled to a transfer of ownership or termination statement;

(3) The applicant provides the Harbor Master with satisfactory evidence that notification of the application has been sent to the owner of record and all persons indicated in the files of the Harbor Master as having an interest, including a security interest, in the vessel, at least 45 days have passed since the notification was sent, and the Harbor Master has not received an objection from any of those persons; and

(4) The applicant submits any other information required by the Harbor Master as evidence of the applicant’s ownership or right to terminate the security interest, and the Harbor Master has no credible information indicating theft, fraud, or an undisclosed or unsatisfied security interest, lien, or other claim to an interest in the vessel.

(b) The Harbor Master may indicate in a certificate of title created under subsection (a) of this section that the certificate of title was created without submission of a signed certificate of title or termination statement. Unless credible information indicating theft, fraud, or an undisclosed or unsatisfied security interest, lien, or other claim to an interest in the vessel is delivered to the Harbor Master not later than one year after creation of the certificate of title, on request in a form and manner required by the Harbor Master, the Harbor Master shall remove the indication from the certificate of title.

(c) Unless the Harbor Master determines that the value of a vessel is less than $5,000, before the Harbor Master creates a certificate of title under subsection (a) of this section, the Harbor Master may require the applicant to post a bond or provide an equivalent source of indemnity or security. The bond, indemnity, or other security may not exceed twice the value of the vessel as determined by the Harbor Master. The bond, indemnity, or other security must be in a form required by the Harbor Master and provide for indemnification of any owner, purchaser, or other claimant for any expense, loss, delay, or damage, including reasonable attorney’s fees and costs, but not including incidental or consequential damages, resulting from creation or amendment of the certificate of title.

(d) Unless the Harbor Master receives a claim for indemnity not later than one year after creation of a certificate of title under subsection (a) of this section, on request in a form and manner required by the Harbor Master, the Harbor Master shall release any bond, indemnity, or other security.