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Federal Register / Vol. 86, No. 181 / Wednesday, September 22, 2021 / Proposed Rules c A replacement certificate of title created by the office must comply with 33 CFR 187.309 and indicate on the face of the certificate that it is a replacement certificate.
d If a person receiving a replacement certificate of title subsequently obtains possession of the original written certificate, the person must promptly destroy the original certificate of title.
187.323 Rights of purchaser other than secured party.

a A buyer in ordinary course of business has the protections afforded by State law even if an existing certificate of title was not signed and delivered to the buyer or a new certificate listing the buyer as owner of record was not created.
b Except as otherwise provided in 33
CFR 187.317 and 187.324, the rights of a purchaser of a vessel who is not a buyer in ordinary course of business or a lien creditor are governed by State law.
187.324

Rights of secured party.

a Subject to paragraph b of this section, the effect of perfection and nonperfection of a security interest and the priority of a perfected or unperfected security interest with respect to the rights of a purchaser or creditor, including a lien creditor, is governed by State law.
b If, while a security interest in a vessel is perfected by any method under this subpart, the office creates a certificate of title that does not indicate that the vessel is subject to the security interest or contain a statement that it may be subject to security interests not indicated on the certificate 1 A buyer of the vessel, other than a person in the business of selling or
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leasing vessels of that kind, takes free of the security interest if the buyer, acting in good faith and without knowledge of the security interest, gives value and receives possession of the vessel; and 2 The security interest is subordinate to a conflicting security interest in the vessel that is perfected under 33 CFR 187.315 after creation of the certificate and without the conflicting secured partys knowledge of the security interest.
187.325

Duties and operation of office.

a The office must retain the evidence used to establish the accuracy of the information in its files relating to the current ownership of a vessel and the information on the certificate of title.
b The office must retain in its files all information regarding a security interest in a vessel for at least 10 years after the office receives a termination statement regarding the security interest. The information must be accessible by the hull identification number HIN for the vessel and any other methods provided by the office.
c If a person submits a record to the office, or submits information that is accepted by the office, and requests an acknowledgment of the filing or submission, the office must send to the person an acknowledgment showing the HIN of the vessel to which the record or submission relates, the information in the filed record or submission, and the date and time the record was received or the submission accepted. A request under this section must contain the HIN
and be delivered by means authorized by the office.
d The office must send or otherwise make available in a record the following information to any person that requests it and pays the applicable fee:

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1 Whether the files of the office indicate, as of a date and time specified by the office, but not a date earlier than 3 days before the office received the request, any certificate of title, security interest, termination statement, or title brand that relates to a vessel i Identified by a HIN designated in the request;
ii Identified by a vessel number designated in the request; or iii Owned by a person designated in the request.
2 With respect to the vessel i The name and address of any owner as indicated in the files of the office or on the certificate of title;
ii The name and address of any secured party as indicated in the files of the office or on the certificate, and the effective date of the information; and iii A copy of any termination statement indicated in the files of the office and the effective date of the termination statement.
3 With respect to the vessel, a copy of any certificate of origin, secured party transfer statement, transfer-by-law statement under 33 CFR 187.320, and other evidence of previous or current transfers of ownership.
e In responding to a request under this section, the office may provide the requested information in any medium.
On request, the office must send the requested information in a record that is in keeping with State rules of evidence.
Dated: September 10, 2021.
J.W. Mauger, Rear Admiral, U.S. Coast Guard, Assistant Commandant for Prevention Policy.
FR Doc. 202120095 Filed 92121; 8:45 am BILLING CODE 911004P

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