14 Boating (2 documents)

FISH AND BOAT COMMISSION

[58 PA. CODE CH. 93]

Boating

[28 Pa.B. 34]

   The Fish and Boat Commission (Commission) by this order amends Chapter 93 (relating to registration and numbering). The Commission is publishing these regulations under the authority of 30 Pa.C.S. (relating to Fish and Boat Code) (code). The regulations relate to boat titling.

A.  Effective Date

   These regulations will go into effect on March 1, 1998.

B.  Contact Person

   For further information on the regulations, contact Laurie E. Shepler, Esq., [phone], P. O. Box 67000, Harrisburg, PA 17106-7000. This final rulemaking is available electronically through the Commission's Web site at http://www.fish.state.pa.us.

C.  Statutory Authority

   The regulations are published under the statutory authority of section 5325 of the code (relating to rules and regulations).

D.  Purpose and Background

   On July 2, 1996, Governor Ridge signed the act of July 2, 1996 (P. L. 467, No. 73) (Act 73) into law. The Act 73 authorized the Commission to issue certificates of title on or after the effective date of the regulations. The Commission will start issuing titles on March 1, 1998.

   In drafting the regulations on boat titling, the Commission reviewed parallel Department of Transportation regulations on titles for motor vehicles. The Commission also reviewed model State guidelines on boat titling and regulations and forms used for titling of snowmobiles and all-terrain vehicles. In addition, Commission staff received input from the Department of Transportation and the Department of Revenue.

   Although the Commission initially intended to issue titles on or after January 1, 1998, staff encountered difficulties in computer programming for implementation of the titling program. Staff therefore recommended to the Commission on final rulemaking that titles not be required and available until on or after March 1, 1998. On final rulemaking, staff also recommended that certain changes be made to the proposed regulations. The major changes address an issue raised by the Pennsylvania Bankers' Association (PBA) concerning security interests in motors attached to boats. The PBA indicated that their members would most likely continue to require the filing of a Uniform Commercial Code (UCC) security interest statement on a motor, even though the boat is titled. In the interests of addressing this concern and saving paperwork and costs for boaters who finance their purchases, staff suggested that the regulations make clear that an internal combustion outboard motor is part of the boat subject to the title requirements. Staff also proposed clarification of the procedures applicable to clearing the title on abandoned boats. Although the proposed regulations provided procedures for boats found abandoned on private property, they did not address procedures for boats found abandoned on the waters of this Commonwealth. Staff further suggested several other minor additions and corrections to the proposed regulations.

   Although suggested by several parties, one change that staff were unable to recommend was to extend the time period for dealers to submit moneys and applications to the Commission. Proposed § 93.104 states that a ''dealer shall forward all moneys and applications to the Commission within 10 days of transferring ownership.'' This regulatory scheme is consistent with the statutory time frame of section 5304(d) the code (relating to issuing agents) which provides that ''[e]very issuing agent shall forward all moneys collected, along with all appropriate forms, to the commission within ten days after receipt of each and every registration.'' Because this requirement is a statutory one, it can only be changed through Legislative action. Commission staff agree that the 10-day time frame is too stringent for both registration and titling and therefore will support legislation to amend the statute.

   Prior to consideration of these regulations on final rulemaking, the Commission sought input from the Boating Advisory Board (Board). The Board recommended final adoption by the Commission, and the Commission adopted the changes to the regulations consistent with staff's recommendations.

E.  Summary of Changes

   Under section 5325 of the code, the Commission promulgated rules and regulations on boat titling pertaining to:

   (1)  Application procedures for certificates of title.

   (2)  Contents of applications.

   (3)  Boats brought into this Commonwealth from outside this Commonwealth.

   (4)  Boats purchased from dealers.

   (5)  Boats sold or transferred privately.

   (6)  Specially constructed or reconstructed boats.

   (7)  Delivery of certificates of title.

   (8)  Duplicate or replacement titles.

   (9)  Transfer of ownership of boats.

   (10)  Transfers to or from manufacturers or dealers.

   (11)  Repossession of boats.

   (12)  Boats which are junked, destroyed, lost, stolen or abandoned.

   (13)  Voluntary titling of boats by owners prior to sale or transfer.

   (14)  Suspension or cancellation of certificates of title.

   (15)  Creation and perfection of security interests in boats.

   (16)  Assignments of security interests.

   (17)  Satisfaction of security interests.

   (18)  Recordkeeping, documentation and information verification.

F.  Fiscal Impact

   Act 73 will result in estimated Boat Fund revenue in the amount of $225,000. The Commission estimates that the costs to implement the boat titling program will be approximately equal to the additional revenues generated. The final-form regulations will have no adverse fiscal impact on the Commonwealth or its political subdivisions. Nor will the amendments impose new costs on the private sector or the general public.

G.  Paperwork

   The final-form regulations implement a statute that requires some new paperwork. However, the final-form regulations will not increase paperwork and create no new paperwork requirements.

H.  Public Involvement

   A notice of proposed rulemaking containing the proposed regulations was published at 26 Pa.B. 6093 (December 21, 1996). The notice provided for a 45-day comment period. In addition to seeking public comment by publishing a notice of proposed rulemaking in the Pennsylvania Bulletin, staff sent copies of the proposal to marine trade and banking associations for specific comment and input. The Commission also convened a workgroup meeting with representatives of boat dealers and finance agencies to ensure maximum input on the proposed regulations. The workgroup met on December 16, 1996.

   After the public comment period, the Commission received two written comments from representatives of marine trades associations in addition to oral comments from representatives of the PBA. Copies of the written comments were provided to the Commissioners.

Findings

   The Commission finds that:

   (1)  Public notice of intention to adopt the regulations adopted by this order has been given under sections 201 and 202 of the act of July 31, 1968 (P. L. 769, No. 240) (45 P. S. §§ 1201 and 1202) and the regulations promulgated thereunder 1 Pa. Code §§ 7.1 and 7.2.

   (2)  A public comment period was provided and that all comments received were considered.

   (3)  The adoption of the regulations of the Commission in the manner provided in this order is necessary and appropriate for administration and enforcement of the authorizing statutes.

Order

   The Commission, acting under the authorizing statutes, orders that:

   (a)  The regulations of the Commission, 58 Pa. Code Chapter 93, are amended by adding §§ 93.101--93.119 to read as set forth in Annex A.

   (b)  The Executive Director will submit this order and Annex A to the Office of Attorney General for approval as to legality as required by law.

   (c)  The Executive Director shall certify this order and Annex A and deposit them with the Legislative Reference Bureau as required by law.

   (d)  This order shall take effect March 1, 1998.

PETER A. COLANGELO,   
Executive Director

   Fiscal Note:  Fiscal Note 48A-62 remains valid for the final adoption of the subject regulations.

Annex A

TITLE 58.  RECREATION

PART II.  FISH AND BOAT COMMISSION

Subpart C.  BOATING

CHAPTER 93.  REGISTRATION AND NUMBERING

Subchapter A.  REGISTRATION OF BOATS

Subchapter B.  TITLING OF BOATS

Sec.

93.101.	Definitions.
93.102.	Application procedure and contents of applications for certificates of title.
93.103.	Boats brought into this Commonwealth from outside this Commonwealth.
93.104.	Boats purchased from dealers/transfer to or from manufacter or dealer.
93.105.	Boats sold or transferred privately.
93.106.	Specially constructed or reconstructed boats.
93.107.	Delivery of certificate of title.
93.108.	Duplicate/replacement titles.
93.109.	Transfer or repossession of boat by operation of law.
93.110.	Boats that are junked, destroyed, lost, stolen or abandoned.
93.111.	Voluntary titling of boats.
93.112.	Suspension, revocation or cancellation of certificate of title.
93.113.	Creation and perfection of security interests in boats.
93.114.	Assignments of security interests.
93.115.	Satisfaction of security interests.
93.116.	Exemption.
93.117.	Recordkeeping, documentation and information verification regarding boats.
93.118.	Prohibited acts.
93.119.	Forms.

§ 93.101.  Definitions

   The following words and terms, when used in this subchapter, have the following meanings, unless the context clearly indicates otherwise:

   Dealer--A person who engages in whole or in part in the business of buying, selling or exchanging new and unused boats, or used boats, or both, either outright or on conditional sale, bailment, lease, chattel mortgage, or otherwise, and who has an established place of business for the sale, trade and display of boats. The term includes a yacht broker.

   Manufacturer--A person engaged in the business of manufacturing or importing new and unused boats, or new and unused outboard motors, for the purpose of sale or trade.

   Reconstructed boat--One of the following:

   (i)  A boat for which a certificate of title (salvage/junk) has been issued, which is thereafter restored to operating condition and which is substantially in conformance with the specifications of the manufacturer.

   (ii)  A boat that has been materially altered by the removal, addition or substitution of essential parts derived from various other makes or models, or that the Commission has determined is readily recognizable as a boat of a generally recognized make or model.

   Specially constructed boat--One of the following:

   (i)  A boat not originally constructed by a generally recognized manufacturer of boats under a distinctive name and not materially altered from its original construction, but assembled from parts of various boats or kits, or both, and that would be commonly known as a ''homemade'' boat.

   (ii)  A boat that has been materially altered by the removal, addition or substitution of essential parts derived from various other makes and models and that the Commission determines cannot be readily identified as a boat of a generally recognized make or model.

§ 93.102.  Application procedure and contents of applications for certificates of title.

   (a)  Boat owners shall apply for a certificate of title on Form REV-336, provided by the Commission. The completed form shall be forwarded to the Commission at the address listed on the application.

   (b)  The applicant shall provide the following information on the application (REV-336) for a title:

   (1)  The name, mailing address, residence address, phone number and zip code of the owner. If there are co-owners, the applicants shall provide information relating to both owners and indicate whether the boat is owned as joint tenants with right of survivorship or as tenants in common.

   (2)  The date of birth of the primary purchaser.

   (3)  The name of the person from whom the boat was purchased.

   (4)  The State registration number, if any, currently assigned to the boat.

   (5)  The hull material, such as wood, steel, aluminum, plastic, fiberglass or other.

   (6)  The full Hull Identification Number (HIN).

   (7)  The make, model and year built, if known.

   (8)  The length of the boat in feet and inches.

   (9)  The type of propulsion, such as, outboard, inboard, sterndrive or unpowered.

   (10)  The type of fuel, such as, gas, diesel, electric or unpowered.

   (11)  Capacity plate information.

   (12)  The primary usage such as, pleasure, rental/livery, manufacturer/dealer/jobber, commercial passenger, and the like.

   (13)  For boats with outboard internal combustion motors, the serial number, the manufacturer's name and the horsepower rating. If there are two motors, the applicant shall provide information for both motors.

   (14)  The names and addresses of each lienholder (in the order of priority).

   (15)  The date of lien encumbrance.

   (16)  The date applicant completed the form.

   (17)  The signature of the owner.

   (18)  Complete Sales and Use Tax information.

   (c)  An outboard motor is an integral part of a boat and is subject to title and lien requirements. If any information pertaining to the outboard motor changes from that which the applicant provided in the original application, the applicant shall apply for a new title.

   (d)  The Commission will not process incomplete applications.

§ 93.103.  Boats brought into this Commonwealth from outside this Commonwealth.

   (a)  When the owner of a boat having a certificate of title from another state brings the boat into this Commonwealth as its state of principal use, the owner shall obtain a Pennsylvania certificate of title for the boat when the boat is registered in this Commonwealth or its ownership is transferred to another person, whichever occurs first.

   (b)  When the owner of a boat not having a certificate of title from another state brings the boats into this Commonwealth as its state of principal use, the owner shall obtain a Pennsylvania certificate of title when the boat is sold or is otherwise transferred to another owner. This provision does not apply to boats for which a title is not required under section 5322(a) of the code (relating to when certificate of title not required).

§ 93.104.  Boats purchased from dealers/transfer to or from manufacturer or dealer.

   (a)  A dealer may not purchase or acquire a new boat without obtaining from the seller a manufacturer's or importer's certificate of origin when provided by the manufacturer or importer.

   (b)  When certificates of origin are provided by the manufacturer or importer, a manufacturer or dealer may not transfer ownership of a new boat without supplying the transferee with the certificate of origin signed by the manufacturer's or importer's authorized agent.

   (c)  A dealer transferring a boat requiring title under this subchapter shall assign ownership to the new owner, in the case of a previously titled boat, by completing the appropriate assignment portion of the certificate of title, or in the case of a new boat, by completing the assignment portion of the certificate of origin.

   (d)  A dealer shall forward all moneys and applications to the Commission within 10 days of transferring ownership.

   (e)  Except as otherwise provided in this subsection, a dealer buying or acquiring a used boat for resale need not obtain a certificate of title for the used boat if the dealer reports the acquisition to the Commission within 20 days. In lieu of submitting a report of acquisition, the dealer may apply for and obtain a certificate of title as provided in this subchapter. If a dealer buys or acquires a used unnumbered boat that is otherwise required to be titled, the dealer shall apply for a certificate of title in the dealer's name within 20 days. If a dealer buys or acquires a new boat for resale, the dealer may, but is not required to, apply for a certificate of title for the boat in the dealer's name.

   (f)  Every dealer shall maintain for 3 years a record of any boat the dealer's bought, sold, brokered, exchanged or received for sale or exchange. This record shall be open to inspection by Commission representatives during reasonable business hours.

   (g)  A dealer/lessor who leases a boat for more than 30 consecutive days shall obtain a certificate of title for the boat unless exempt under section 5322(a) of the code (relating to when certificate of title not required). The lessor shall maintain the certificate of title of a leased boat.

§ 93.105.  Boats sold or transferred privately.

   (a)  A person transferring a boat requiring title under this subchapter shall assign ownership to the new owner, in the case of a previously titled boat, by completing the appropriate assignment portion of the certificate of title, or in the case of a new boat, by completing the assignment portion of the certificate of origin.

   (b)  Moneys and applications shall be forwarded to the Commission within 10 days of transferring ownership.

   (c)  The lessor shall maintain the certificate of title of a leased boat.

§ 93.106.  Specially constructed or reconstructed boats

   (a)  The owner of a specially constructed or reconstructed boat shall apply for a certificate of title as required by this subchapter.

   (b)  The application for certificate of title shall be accompanied by one of the following:

   (1)  The outstanding certificates of title.

   (2)  The manufacturer's certificates of origin or certificates of title (salvage/junk), issued for boats, the parts of which were used in construction of the boat, if the boats are no longer operable or able to be registered.

   (3)  The bills of sale for the major components of the boat for which no other proof of ownership is available.

   (4)  A photograph of the boat, upon the request of the Commission.

   (c)  The certificate of title issued for every specially constructed boat and reconstructed boat, as defined in this subchapter, shall clearly describe the boat by type as follows:

   (1)  The certificate of title for every specially constructed boat shall describe the make of boat as ''specially constructed.''

   (2)  The certificate of title for every reconstructed boat shall describe the boat by its original make or trade name but shall be coded to designate it as a reconstructed boat.

§ 93.107.  Delivery of certificate of title.

   The Commission will mail the original certificate of title to the first lienholder named therein, or if there is none, to the owner named therein. The Commission will retain the data necessary to generate a copy of the certificate of title.

§ 93.108.  Duplicate/replacement titles.

   (a)  If a title is lost, stolen, mutilated, destroyed or becomes illegible, the lienholder in possession of the title or, if there is none, the owner named on the title, as shown by the Commission's records, may obtain a duplicate/replacement by applying to the Commission. The applicant shall furnish information concerning the original title and the circumstances of its loss, theft, mutilation or destruction. Applications for replacement titles shall be filed within 30 days of the loss, theft, mutilation or destruction. Mutilated or illegible titles shall be returned to the Commission with the application for a duplicate/replacement.

   (b)  The duplicate/replacement title shall be marked ''duplicate'' on its face and shall be mailed or delivered to the applicant.

   (c)  If a lost or stolen original title for which a duplicate/replacement has been issued is recovered, the original shall be surrendered to the Commission for cancellation within 20 days of its recovery.

§ 93.109.  Transfer or repossession of boat by operation of law.

   (a)  If ownership of a boat is transferred by operation of law, such as by inheritance, divorce, order in bankruptcy, insolvency, replevin or executive sale, the transferee, within 30 days after acquiring the right to possession of the boat by operation of law, shall mail or deliver to the Commission a court order or other document evidencing the transfer by operation of law, together with the application for a new title and the required fee.

   (b)  If a lienholder repossesses a boat by operation of law and holds it for resale, the lienholder shall secure a new title and shall pay the required fee.

   (c)  Issuance of a certificate of title does not constitute an adjudication of issues relating to ownership of boats.

§ 93.110.  Boats that are junked, destroyed, lost, stolen or abandoned.

   (a)  Reporting requirements. The destruction, loss, theft or abandonment of a boat titled under this subchapter shall be reported to the Commission within 5 days. The recovery of a boat that is lost, stolen or abandoned shall be reported to the Commission within 5 days of recovery.

   (b)  Acquiring title to boats abandoned on private property.

   (1)  Subject to the provisions of this subsection, a landowner, a lessee or an agent may acquire title to any boat abandoned on his land or waters immediately adjacent to it. This subsection applies only to boats that have been abandoned on the property of a person other than the owner of the boat for at least 3 months.

   (2)  A person desiring to obtain a certificate of title for an abandoned boat shall provide written notice to the Commission of intent to obtain title to the boat. The notice shall, at a minimum, set forth the date and place the boat was abandoned, a description of the boat, including the make, model and year, and, if known, the Hull Identification Number, registration number, temporary decal number and other identifying data.

   (3)  If a boat abandoned on a person's lands or waters has a Hull Identification Number, registration number, temporary decal number or other identifying indicia, the Commission will notify the boat's owner and lienholder, if any, that the boat has been abandoned and that the requester desires to acquire title to it.

   (4)  Upon receipt of the written request, the Commission will notify the owner and the lienholder by certified mail that someone desires to acquire title to the boat and if ownership is not claimed and the boat removed within 30 days, the Commission may, upon proper application and payment of fees, issue a certificate of title in the name of the person desiring to acquire title. If the owner does not respond, the Commission may notify the requester to proceed under paragraph (5). The Commission is not required to send a letter if it cannot identify a boat's owner or lienholder or ascertain an address. If the abandoned boat has a registration number, temporary decal number or other identifying indicia, evidencing that the boat is registered in another state, the Commission will notify the other state and ask it to notify the boat's owner and lienholder by certified mail that someone desires to acquire title to the boat. The other state's notice shall provide that if ownership is not claimed and the boat removed within 30 days, the Commission may, upon proper application and payment of fees, issue a certificate of title in the name of the person desiring to acquire title. The other state is not required to send a letter if it cannot identify a boat's owner or lienholder or ascertain an address. When the other state notifies the owner and lienholder, if known, as provided in this section and advises the Commission that the transfer of title to the requester is unobjectionable to the other state, the Commission may notify the requester to proceed under paragraph (5).

   (5)  Regardless of whether the abandoned boat has a Hull Identification Number, registration number, temporary decal number or other identifying indicia, the person desiring to acquire title shall place a notice in a newspaper of general circulation published in the county where the boat is located for 3 consecutive days, describing the boat, its location, the date it was abandoned and any identifying number. The person shall state in the notice that if the boat is not claimed and removed within 30 days after publication in the newspaper, he will apply for title to the boat in his name.

   (6)  After the notices described in paragraphs (4) and (5) have expired, but no earlier than 60 days after the person desiring to obtain title has first notified the Commission, the person may apply to the Commission for a certificate of title to the boat in his name as required by this subchapter and accompanied by the following affidavits:

   (i)  A statement made under penalty of law that the boat has been abandoned for at least 3 months.

   (ii)  Proof that the applicant provided notice as set forth in paragraphs (2)--(4).

   (iii)  Proof that a notice was published in a newspaper as required by paragraph (5).

   (7)  In cases involving boats registered in other states, the Commission may extend the 60-day period described in paragraph (6) to 180 days.

   (8)  Upon receipt of the material required by this subsection and the payment of any fees required by law, the Commission will issue a certificate of title to the boat to the applicant. Issuance of a certificate of title divests any other person of any interest in the boat.

   (9)  The Commonwealth, its agencies and political subdivisions may acquire title to any boat abandoned on areas under their ownership by proceeding in the manner set forth in this subsection.

   (c)  Acquiring title to boats abandoned on Commonwealth waters.

   (1)  A person finding a boat abandoned on the waters of the Commonwealth (not private property) shall notify the Commission of the description and location of the found boat as well as the date on which it was found.

   (2)  The Commission may take possession of a boat abandoned on the waters of this Commonwealth or may authorize a salvor to take possession if the salvor complies with this section, is a vehicle salvage dealer as defined in section 1337 of the code (relating to use of ''miscellaneous motor vehicle business'' registration plates) and holds a current, valid certificate of authorization issued by the Department of Transportation under section 7302 of the code (relating to certification of authorization).

   (3)  A salvor taking possession of a boat under this section shall notify the Commission in writing within 48 hours after taking possession.

   (4)  The Commission, after taking possession of an abandoned boat or after receiving notice that a salvor has taken possession of an abandoned boat, shall notify by certified mail, return receipt requested the last known registered owner of the boat and all lienholders of record. The notice shall:

   (i)  Describe the make, model, HIN number and registration number of the boat.

   (ii)  State the location where the boat is being held.

   (iii)  Inform the owner and any lienholders of their right to reclaim the boat within 30 days after the date of the notice upon payment of all towing and storage charges and all applicable title and registration fees.

   (iv)  State that failure of the owner or lienholder to reclaim the boat is deemed consent to the destruction, sale or other disposition of the abandoned boat with dissolution of all interests of the owner and lienholders.

   (5)  If the identity of the last registered owner and all lienholders cannot be determined, the contents of the notice described in paragraph (4) shall be published one time in a newspaper of general circulation in the area where the boat was found abandoned. If the boat is in possession of a salvor, publication of the notice shall be the responsibility of the salvor. If the boat is in possession of the Commission, publication of the notice is the responsibility of the Commission. Publication of the notice shall have the same effect as the notice sent by certified mail.

   (6)  The Commission, after 45 days of the date of notice sent by certified mail described in paragraph (4) or publication of the notice described in paragraph (5), may dispose of the boat if it is in its possession or may authorize the salvor to dispose of the boat in its possession as provided in paragraph (7) or (8).

   (7)  The Commission, if in possession of the unclaimed abandoned boat, or the salvor, if in possession of the unclaimed abandoned boat, may sell the boat at public auction if it has value. The purchaser may apply to the Commission for a title, which shall be free and clear from all previous liens and claims of ownership. From the proceeds of the sale of the abandoned boat, the Commission or the salvor, as applicable, shall be reimbursed for the cost of towing, storage, notice, publication, mailing and costs of the auction. The remainder of the proceeds of the sale shall be forwarded to the Commission, which shall hold them for 60 days from the date of sale for claim by the registered owner or lienholder. If the proceeds are not claimed, they shall be deposited in the Boat Fund for use of the Commonwealth.

   (8)  If an unclaimed abandoned boat is valueless except for salvage, the salvor in possession shall apply to the Commission for a salvor's certificate of title, and, upon issuance of the same, the salvor may destroy, dismantle, salvage or recycle the boat and retain any proceeds realized therefrom to offset the costs of towing, storage, notice, publication and mailing. Issuance by the Commission of a salvor's certificate of title shall divest all rights, title and interest in the boat of the registered owner and all lienholders.

§ 93.111.  Voluntary titling of boats.

   (a)  An owner of a boat may voluntarily apply for a certificate of title by applying at any time and paying the fees required under section 5327 of the code (relating to fees). Once an owner voluntarily acquires a certificate of title, titling for the boat is thereafter mandatory.

   (b)  A boat owner who voluntarily applies for a certificate of title shall certify under penalty of law that there are no outstanding liens or encumbrances. See 18 Pa.C.S. § 4904 (relating to unsworn falsification to authorities).

§ 93.112.  Suspension, revocation or cancellation of certificate of title.

   (a)  The Commission will initiate an action to suspend or revoke a certificate of title by filing an order to show cause under 1 Pa. Code § 35.14 (relating to orders to show cause), when authorized by statutory or other authority, or if the Commission determines that the certificate of title was fraudulently procured.

   (b)  The Commission has the authority to cancel a certificate of title when the Commission determines that one of the following applies:

   (1)  The certificate of title was erroneously issued.

   (2)  The boat was junked, destroyed, lost, stolen or abandoned.

   (c)  Suspension, revocation or cancellation of a certificate of title does not, in itself, affect the validity of a security interest noted on it.

   (d)  When the Commission suspends, revokes or cancels a certificate of title, the owner or person in possession of the certificate shall, upon receiving notice of the suspension, revocation or cancellation, immediately mail or deliver the certificate of title to the Commission.

   (e)  The Commission may seize, in accordance with the law, a certificate of title that it has suspended, revoked or canceled.

§ 93.113.  Creation and perfection of security interests in boats.

   (a)  An owner creates a security interest in a boat when the owner signs a note, agreement or other instrument containing terms that create a security interest. When an owner creates a security interest in a boat:

   (1)  The owner shall provide lienholder information on the space on the title or on a separate form that the Commission prescribes. The information provided shall include the name and address of the secured party and the date of the security agreement. The owner shall have the title, application and fee to be delivered to the Commission.

   (2)  The security interest is perfected as of the time of its creation if delivery and payment to the Commission are completed within 20 days of the date of its creation; otherwise, perfection shall be as of the time of its delivery and payment.

   (3)  Upon receipt of the title, application and the required filing fee, the Commission will endorse on the existing title or on a new title that it then issues, the name and address of all secured parties, and mail or deliver the title to the secured party.

   (b)  A security interest in a boat is not valid against creditors of the owner or subsequent transferees or secured parties of the boat until perfected as provided by this subchapter.

   (c)  The issuance of a title, other than in the case of the initial issuance to a purchaser from a dealer, does not invalidate a previously perfected security interest under 13 Pa.C.S. (relating to Uniform Commercial Code), other than a dealer's security interest in inventory.

§ 93.114.  Assignments of security interests.

   (a)  A secured party may assign, absolutely or otherwise, all or part of his security interest in the boat to a person other than the owner without affecting the interest of the owner or the validity of the security interest.

   (b)  The assignee shall deliver to the Commission the title, if available, and an assignment by the secured party named in the title in the form the Commission may prescribe, accompanied by the filing fee required by law. The assignee's security interest is perfected as of the time of its creation if delivery and payment to the Commission are completed within 20 days of the date of its creation; otherwise, perfection is as of the time of its delivery and payment.

§ 93.115.  Satisfaction of security interests.

   (a)  Within 20 days of the satisfaction of a security interest in a boat, the secured party shall mail or deliver the title with the release to the owner and notify the Commission of the release of security interest.

   (b)  A lien shall be deemed satisfied within 10 years of issuance, unless the lienholder otherwise notifies the Commission.

§ 93.116.  Exemptions.

   The provisions of this subchapter relating to procedures for creating, perfecting, assigning and satisfying security interests do not apply to the following:

   (1)  A lien given by statute or rule of law to a supplier of services or materials for the boat.

   (2)  A lien given by statute to the United States, the Commonwealth or a political subdivision of this Commonwealth.

   (3)  A security interest in a boat created by a manufacturer or dealer who holds the boat for sale, but a buyer in the ordinary course of trade from the manufacturer or dealer takes free of the security interest.

   (4)  A lien arising out of an attachment of a boat.

   (5)  A security interest claimed on proceeds, if the original security interest did not have to be noted on the title in order to be perfected.

   (6)  A boat for which a title is not issued under this subchapter.

§ 93.117.  Recordkeeping, documentation and information verification regarding boats.

   (a)  The Commission will maintain a record of any title it issues.

   (b)  Upon written request specifically identifying a particular boat, the Commission will provide the following information about a boat having a certificate of title:

   (1)  The name of the owner.

   (2)  The name and address of a lienholder.

   (3)  The date the certificate of title was issued.

   (4)  The make, model and year of the boat.

   (c)  The Commission will not release the home address of a title holder, except with the consent of the title holder or upon court order or subpoena.

   (d)  The Commission will not release mailing lists or records of title holders, except to agencies of the Federal, State and local government for official purposes.

   (e)  Nothing in this section affects the authority of the Commission and other agencies of Federal, State and local government to use information contained in certificates of title for official purposes.

§ 93.118.  Prohibited acts.

   (a)  A person may not sell, assign or transfer a boat titled by the Commonwealth without delivering to the purchaser or transferee a title with an assignment on it showing title in the purchaser or transferee.

   (b)  A person may not purchase or otherwise acquire a boat required to be titled by the Commonwealth without obtaining a title for it in his name.

   (c)  A person may not obtain or attempt to obtain title to a boat under this subchapter through fraudulent means or provide false or misleading information in connection with an application for a certificate of title.

§ 93.119.  Forms.

   (a)  The Commission will provide suitable forms of applications, title, notice of security interests, and other notices and forms necessary to carry out this subchapter.

   (b)  Except as otherwise provided in this subchapter, all forms and notices required in this subchapter shall be forwarded to the Fish and Boat Commission, Licensing and Registration Section, Post Office 68900, Harrisburg, Pennsylvania 17106-8900.

[Pa.B. Doc. No. 98-14. Filed for public inspection January 2, 1998, 9:00 a.m.]