March 3, 2005, Introduced by Rep. Green and referred to the Committee on Banking and Financial Services.
A bill to amend 1994 PA 451, entitled
"Natural resources and environmental protection act,"
by amending section 80320 (MCL 324.80320), as added by 1995 PA 58.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
80320. (1) A security agreement covering a security
interest
in a watercraft, if the instrument is accompanied by
delivery
of a manufacturer's or importer's certificate and followed
by
actual and continued possession of the certificate by the holder
of
the instrument, or, in the case of a certificate of title, if a
notation
of the instrument is made by the secretary of state on the
face
of the certificate, shall be valid as against the creditors of
the
debtor, whether armed with process or not, and against
subsequent
purchasers, secured parties, and other lienholders or
claimants.
Liens, mortgages, and encumbrances noted upon a
certificate
of title shall take priority according to the order of
time
in which they are noted on the certificate of title by the
secretary
of state. Exposure for sale of a watercraft by the owner
of
the watercraft, with the knowledge or with the knowledge and
consent
of the holder of a lien, mortgage, or encumbrance on the
watercraft,
shall not render the lien, mortgage, or encumbrance
ineffective
as against the creditors of the owner, or against
holders
of subsequent liens, mortgages, or encumbrances upon the
watercraft.
(1) (2)
The secured A party
with a secured interest in a
watercraft, upon presentation of a properly completed application
for certificate of title to the secretary of state, together with
the
fee prescribed by section 80311, may have a notation of the
lien
security interest made on
the face of the certificate of
title to be issued by the secretary of state. The secretary of
state
shall enter the notation and the date and shall note the
lien
security interest and the
date in his or her files.
(2) (3)
When the lien security interest is discharged, the
holder shall note the discharge on the certificate of title over
his or her signature.
(3) Receipt by the secretary of state of a properly tendered
application for a certificate of title on which a security interest
in a watercraft is to be indicated is perfection of a security
interest in the watercraft and is equivalent to filing a financing
statement under the uniform commercial code, 1962 PA 174, MCL
440.1101 to 440.11102, with respect to the watercraft. When a
security interest in a watercraft is perfected, it has priority
over the rights of a lien creditor.