§ 46-22.1-10 - Perfection generally.
SECTION 46-22.1-10
§ 46-22.1-10 Perfection generally. –(a) Unless excepted by § 46-22.1-9, a security interest in a vessel is notvalid against creditors of the owners or subsequent transferees or securedparties of the vessel unless perfected as provided under §§46-22.1-10 – 46-22.1-17.
(b) A security interest is perfected by the delivery to thedepartment of the existing certificate of title, if any, or if there is nocertificate of title, an application for certificate of title on a formprovided and approved by the department containing information regarding thesecurity interest, and upon payment of a filing fee of fifteen dollars($15.00).
(c) If a vessel is already subject to a security interestwhen it is brought into this state, the validity of the security interest inthis state is to be determined by the law (including conflict of law rules) ofthe jurisdiction where the vessel was when the security interest attached,subject to the following:
(1) If the parties to the transaction understood at the timethe security interest attached to that the vessel would be kept in this state,and it was brought into this state within thirty (30) days after the securityinterest attached for a purpose other than transportation through this state,the validity of the security interest in this state is to be determined by thelaw of this state.
(2) If the security interest was already affected under thelaws of the jurisdiction where the vessel was when the security interestattached and before being brought into this state:
(i) If the name of the secured party is shown on an existingcertificate of title issued by that jurisdiction or the security interestcontinues perfected in this state;
(ii) If the name of the secured party is not shown on theexisting certificate of title issued by that jurisdiction, and if the law ofthat jurisdiction does not provide for a certificate of title disclosingsecurity interests, the security interest continues perfected in this state forfour (4) months, and thereafter, if within the four (4) month period it isperfected in this state. This security interest may also be perfected in thisstate after the expiration of the four (4) month period in which caseperfection dates from the time of perfection in this state; or
(iii) If the security interest was not perfected under thelaw of the jurisdiction in which the vessel was when the security interestattached before being brought into this state, it may be perfected in thisstate; in which case perfection dates from the time of perfection in this state.