§ 46-22.1-3.1 - Registration without certificate of title.
SECTION 46-22.1-3.1
§ 46-22.1-3.1 Registration withoutcertificate of title. – If an applicant is unable to provide a valid certificate of title for a vesselrequired to be titled under the provisions of this chapter then:
(1) As a condition of issuing a certificate of title, thedepartment may accept a surety bond, in an amount equal to the value of theboat, which shall be conditioned to protect the department and all officers andemployees of the department, any subsequent purchaser of the boat, any personholding or acquiring a lien or security interest on the boat, and any successorin interest of said purchaser or person, against any loss or damage on accountof any defect in or undisclosed claim upon the right, title and interest of theapplicant or other person in and to the boat. Any aforementioned interestedperson shall have a right of action to recover on the bond for any breach ofits conditions, but the aggregate liability of the surety to all persons shallnot exceed the amount of the bond. The bond shall expire no later than three(3) years after the date it became effective.
(2) In the alternative, an applicant may apply to thesuperior court for a hearing to determine the title to the vessel. The superiorcourt shall require advertisement once a week for two (2) consecutive weeks ina paper of statewide circulation, and notice by certified mail return receiptrequested to: (i) the department of environmental management; and (ii) any andall registered owners, title or lien holders, at their last known address, atleast ten (10) days prior to the hearing date, together with any otherprovisions for notice the court may require. The burden shall be on theapplicant to demonstrate ownership of the boat to the court, by a preponderanceof the evidence, prior to the issuance of the title. After a hearing, thesuperior court shall issue an appropriate order. The superior court may orderthe department to title the vessel in the name of the applicant. Said orderissued by the court shall protect the department, all officers and employees ofthe department, any subsequent purchaser of the boat, any person holding oracquiring a lien or security interest on the boat, and any successor ininterest of said purchaser or person against any loss or damage on account ofany defect in or undisclosed claim upon the right, title and interest of theapplicant or other person in and to the boat.