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Federal Register / Vol. 86, No. 181 / Wednesday, September 22, 2021 / Proposed Rules
187.307 of this part and includes the title brand designation Hull Damaged;
or 2 Indicate on the certificate in the place designated for that purpose that the vessel is hull damaged and deliver the certificate to the transferee.
b Not later than 20 days after delivery to the office of the application under paragraph a1 of this section or the certificate of title under paragraph a2 of this section, the office must create a new certificate that indicates that the vessel is branded Hull Damaged.
c Before an insurer transfers an ownership interest in a hull-damaged vessel that is covered by a certificate of title created by the office, the insurer must deliver to the office an application for a new certificate that complies with 187.306 and includes the title brand designation Hull Damaged. Not later than 20 days after delivery of the application to the office, the office must create a new certificate that indicates that the vessel is branded Hull Damaged.
d An owner of record who fails to comply with paragraph a of this section, a person who solicits or colludes in a failure by an owner of record to comply with paragraph a, or an insurer that fails to comply with paragraph c of this section is subject to penalty as prescribed by state law.
187.311
files.

Maintenance of and access to
a For each record relating to a certificate of title submitted to the office, the office must 1 Ascertain or assign the hull identification number HIN for the vessel in accordance with 33 CFR part 181;
2 Maintain the HIN and all the information submitted with the application pursuant to 187.307b to which the record relates, including the date and time the record was delivered to the office;
3 Maintain the files for public inspection subject to paragraph e of this section; and 4 Index the files of the office as required by paragraph b of this section.
b The office must maintain in its files the information contained in all certificates of title created under this subpart. The information in the files of the office must be searchable by the HIN
of the vessel, the vessel number, the name of the owner of record, and any other method used by the office.
c The office must maintain in its files, for each vessel for which it has created a certificate of title, all title brands known to the office, the name of
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each secured party known to the office, the name of each person known to the office to be claiming an ownership interest, and all stolen-property reports the office has received.
d Upon request, for safety, security, or law-enforcement purposes, the office must provide to Federal, State, or local government the information in its files relating to any vessel for which the office has issued a certificate of title.
e Except as otherwise provided by laws of the titling State, the information required under 187.309 is a public record, but the information provided under 187.307b3 is not a public record.
187.312 Action required on creation of certificate of title.

a On creation of a written certificate of title, the office must promptly send the certificate to the secured party of record or, if none, to the owner of record, at the address indicated for that person in the files of the office. On creation of an electronic certificate of title, the office must promptly send a record evidencing the certificate to the owner of record and, if there is one, to the secured party of record, at the address indicated for that person in the files of the office. The office may send the record to the persons mailing address or, if indicated in the files of the office, an electronic address.
b If the office creates a written certificate of title, any electronic certificate of title for the vessel is canceled and replaced by the written certificate. The office must maintain in the files of the office the date and time of cancellation.
c Before the office creates an electronic certificate of title, any written certificate for the vessel must be surrendered to the office. If the office creates an electronic certificate, the office must destroy or otherwise cancel the written certificate for the vessel that has been surrendered to the office and maintain in the files of the office the date and time of destruction or other cancellation. If a written certificate being canceled is not destroyed, the office must indicate on the face of the certificate that it has been canceled.
187.313

Effect of certificate of title.

A certificate of title is prima facie evidence of the accuracy of the information in the record that constitutes the certificate.
187.314 Effect of possession of certificate of title; judicial process.

Possession of a certificate of title does not by itself provide a right to obtain possession of a vessel. Garnishment,
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attachment, levy, replevin, or other judicial process against the certificate is not effective to determine possessory rights to the vessel. This subpart does not prohibit enforcement under State law, other than this subpart 33 CFR
part 187 subpart D, of a security interest in, levy on, or foreclosure of a statutory or common-law lien on a vessel. Absence of an indication of a statutory or common-law lien on a certificate does not invalidate the lien.
187.315

Perfection of security interest.

a Except as otherwise provided in this section or a savings clause provided under state law, a security interest in a vessel may be perfected only by delivery to the office of an application for a certificate of title that identifies the secured party and otherwise complies with 33 CFR 187.307. The security interest is perfected on the later of delivery to the office of the application and the applicable fee or attachment of the security interest as prescribed by State law related to security interests in goods.
b If the interest of a person named as owner, lessor, consignor, or bailor in an application for a certificate of title delivered to the office is a security interest, the application sufficiently identifies the person as a secured party.
Identification on the application for a certificate of a person as owner, lessor, consignor, or bailor is not by itself a factor in determining whether the persons interest is a security interest.
c If the office has created a certificate of title for a vessel, a security interest in the vessel may be perfected by delivery to the office of an application, on a form the office may require, to have the security interest added to the certificate. The application must be signed by an owner of the vessel or by the secured party and must include 1 The name of the owner of record;
2 The name and mailing address of the secured party;
3 The hull identification number for the vessel; and 4 If the office has created a written certificate of title for the vessel, the certificate.
d A security interest perfected under paragraph c of this section is perfected on the later of delivery to the office of the application and all applicable fees or attachment of the security interest as prescribed by State law related to security interests in goods.
e On delivery of an application that complies with paragraph c of this section and payment of all applicable fees, the office must create a new certificate of title pursuant to 33 CFR

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