33 C.F.R. Subpart D—Guidelines for State Vessel Titling Systems
Title 33 - Navigation and Navigable Waters
The Commandant, under 46 U.S.C. 31322(d)(1)(A) and §187.13, may certify a State vessel titling system that meets the requirements of this subpart as complying with the guidelines for vessel titling systems. This certification is for the purpose of conferring preferred mortgage status on a mortgage, instrument, or agreement granting a security interest perfected under State law, covering the whole of a vessel titled in that State. The State must also comply with the VIS participation requirements of §187.11 and subpart C of this part and make vessel information it collects available to VIS. A State must define the terms “certificate of origin”, “dealer”, “documented vessel”, “issuing authority”, “manufacturer”, “owner”, “person”, “secured party”, “security interest”, “titling authority”, and “vessel” substantially as defined in §187.7. A State must require that all vessels required to be numbered in the State under 46 U.S.C. chapter 123 be titled only in that State, if that State issues titles to that class of vessels. (a) A State must require application for a title within a specified period of time, not to exceed 60 days, after a vessel required to be titled is first purchased, ownership is transferred, or there is a change in vessel data listed on the certificate of title. (b) A State must require disclosure in its titling application form of any secured party holding an unsatisfied security interest in the vessel. (c) The application must include an entry for identification of the State or country in which the vessel was last numbered, titled, documented, or registered under the laws of a foreign country. (d) A State must require that a COO for a vessel be submitted together with the application for any new vessel not previously numbered, titled, documented, or registered under the laws of a foreign country. (e) A State must require that the application include a signed certification that the statements made are true and correct to the best of the applicant's knowledge, information, and belief, under penalty of perjury or similar penalties as prescribed by State law. A State must include the following provisions applicable to any dealer or manufacturer building, buying, acquiring, selling, or transferring a vessel in that State: (a) Dealers or manufacturers must not be allowed to apply for a certificate of title for a vessel not required to be numbered. Dealers or manufacturers owning a new or used vessel primarily used in their business, held for sale or lease, and required to be numbered may be permitted or required to apply for a certificate of title for the vessel. The State may impose other reporting requirements on dealers or manufacturers. (b) Dealers or manufacturers transferring a vessel required to be titled in the name of the dealer or manufacturer must be required to assign the title to the new owner or, for a new vessel, assign a COO for a new vessel. Dealers or manufacturers transferring a vessel permitted to be titled in their name must be required to assign to the new owner any certificate of title which has been issued and not surrendered. (c) Dealers or manufacturers must not be permitted to provide a redundant COO if VIS contains information concerning the vessel. (d) Dealers or manufacturers must be permitted to provide a redundant COO to the vessel owner only upon receipt of information concerning the original certificate and the circumstances of its loss, theft, mutilation, or destruction and receipt of any recovered original COO or remains from the vessel owner. This information must be declared under penalty of perjury or similar penalties as prescribed by State law. The term “REDUNDANT” must be clearly and permanently marked on the face of a redundant COO. (e) Dealers or manufacturers must be required to maintain for at least 3 years a record of any vessel bought, sold, exchanged, or received for sale or exchange, and open such records for inspection by the State. To complete the sale, assignment, or transfer of a titled vessel, a State must require that a manufacturer, dealer, or individual must deliver the vessel's certificate of title to the new owner or new owner's designee, except for transfers by operation of law or order of court. A State must require a new owner to apply for a certificate of title within a specified period of time, not to exceed 60 days, after ownership of a vessel is transferred by operation of law or order of court. This application must include an original or authenticated copy of the legal transfer document. (a) A State must honor a title issued by another State as proof of ownership for transfer or sale of a vessel and for applying for a certificate of number or title in the new State of principal operation. (b) A State must honor a Coast Guard-issued Certificate of Ownership or a Certificate of Deletion as proof of ownership and deletion from documentation. (c) A State must honor an authenticated copy of a foreign registry, or evidence of deletion from the foreign registry, as proof of ownership and deletion from the foreign registry. A State title is invalid when it is surrendered to the Coast Guard in exchange for a Certificate of Documentation. Upon notification from the Coast Guard of the surrender of a title, a State must process the cancellation of the title. (a) A certificate of title must contain the following information concerning the vessel: (1) Names of all owners (individuals, businesses, and organizations). (2) Address of one individual, business, or organization owning the vessel. (3) Title number. (4) Date of issuance of title. (5) Vessel identifier under §187.9. (6) Name of manufacturer, builder, or make. (7) Model year, manufacture year, or year built. (8) Overall length. (9) Vessel type. Authorized terms are “open motorboat”, “cabin motorboat”, “auxiliary sail”, “sail only”, “personal watercraft”, “pontoon”, “houseboat”, “rowboat”, “canoe/kayak”, or “other”. (10) Hull material. Authorized terms are “wood”, “aluminum”, “steel”, “fiberglass”, “rigid hull inflatable”, “rubber/vinyl/canvas”, or “other”. (11) Propulsion type. Authorized terms are “propeller”, “sail”, “water jet”, “air thrust”, or “manual”. (12) Engine drive type. Authorized terms are “outboard”, “inboard”, or “inboard/stern drive”. (13) Name of each secured party. (14) Address (city and State) of each secured party. (15) Recording or perfection date of new security interest and original recording or perfection date of any security interest outstanding. (b) Space must be provided on the title form for assignment of interests in the vessel, with a signed certification that the statements made are true and correct to the best of the owner's knowledge, information, and belief, under penalty of perjury or similar penalties as prescribed by State law. (a) A State must require the holder (owner or secured party) of an original title to apply for a redundant title after the discovery of the loss, theft, mutilation, or destruction of the original. (b) The holder must provide information, declared under penalty of perjury or similar penalties as prescribed by State law, concerning the original certificate and the circumstances of its loss, theft, mutilation, or destruction. (c) The holder must surrender to the State any recovered original title or remains. (d) The State must clearly and permanently mark the face of a redundant certificate of title with the term “REDUNDANT.” A State must— (a) Upon proof of ownership, assign an HIN and require that it be affixed to a vessel that does not have an HIN at the time of application for certificate of number or title; and (b) Prohibit removal or alteration of an HIN without authorization from the Commandant. (a) A State must specify, at a minimum, the following procedures for perfection of a security interest in a vessel titled in that State: (1) Submission of an application for new or amended certificate of title on which the secured party must be noted. (2) Surrender of any outstanding certificate of number and any outstanding title issued by another State. (3) Surrender of the Certificate of Documentation of any documented vessel that is to be numbered and titled by the State. (4) Submission of an authenticated copy of any foreign registry of the vessel and evidence of deletion from the foreign registry of the vessel that is to be numbered and titled by the State. (5) Determination of the date of perfection. (b) A State must recognize, under 46 U.S.C. 31322(e)(1), that, if a vessel is covered by a preferred mortgage when an application for a certificate of title is filed in that State, then the status of the preferred mortgage covering the vessel is determined by the law of the jurisdiction in which the vessel is currently titled or documented. (c) A State must recognize, under 46 U.S.C. 31322(d)(2), that, if a vessel titled in a State is covered by a preferred mortgage, that mortgage will continue to be a preferred mortgage even if the vessel is no longer titled in the State where the mortgage, instrument, or agreement granting a security interest perfected under State law became a preferred mortgage. (d) A State must recognize, under 46 U.S.C. 31322(d)(1), the preferred status of a mortgage, instrument, or agreement granting a security interest perfected under State law covering the whole of a vessel titled in a State after the Commandant has certified that State's titling system and the State participates in VIS with respect to the vessel. (e) The State must provide that the perfection procedures required to be established under this section do not apply to— (1) A lien given by statute or rule of law to a supplier of services or materials for the vessel; (2) A lien given by statute to the United States, a State, or a political subdivision thereof; (3) A lien arising out of an attachment of a vessel; (4) A security interest in a vessel created by a dealer or manufacturer who holds the vessel for sale, irrespective of whether the vessel is titled; (5) A security interest claimed in a vessel's proceeds, as defined in the Uniform Commercial Code in effect in the State, if the security interest in the vessel did not have to be noted on a vessel's title in order to be perfected; or (6) Any vessel for which a certificate of title is not required in the State. Yes, a State must specify the procedures that apply to the assignment of a security interest in a vessel titled in that State. A State must specify the evidence and information that a secured party is required to submit regarding discharge of a security interest and establish procedures for its submission. A State must prescribe and provide the forms needed to comply with the titling system. A State must retain the evidence used to establish the accuracy of the information required for vessel titling purposes and make it available on request to the Coast Guard, participating States, and law enforcement authorities. The following States comply with the requirements for participating in VIS: [Reserved] The following States comply with the requirements for participating in VIS and have a certified titling system: [Reserved]
Title 33: Navigation and Navigable Waters
PART 187—VESSEL IDENTIFICATION SYSTEM
Subpart D—Guidelines for State Vessel Titling Systems
§ 187.301 What are the eligibility requirements for certification of a State titling system to confer preferred mortgage status?
§ 187.303 What terms must a State define?
§ 187.304 What vessels must be titled?
§ 187.305 What are the requirements for applying for a title?
§ 187.307 What are dealer and manufacturer provisions?
§ 187.309 What are the requirements for transfer of title?
§ 187.311 What are the application requirements for a certificate of title because of a transfer by operation of law or order of court?
§ 187.313 Must a State honor a prior State title, Coast Guard documentation, and foreign registry?
§ 187.315 What happens when a title is surrendered for the purposes of documentation?
§ 187.317 What information must be on a certificate of title?
§ 187.319 What are the requirements for applying for a redundant title?
§ 187.321 What are the hull identification number (HIN) provisions?
§ 187.323 What are the procedures for perfection of security interests?
§ 187.325 Is a State required to specify procedures for the assignment of a security interest?
§ 187.327 What are a State's responsibilities concerning a discharge of security interests?
§ 187.329 Who prescribes and provides the forms to be used?
§ 187.331 What information is to be retained by a State?
Appendix A to Part 187—Participating Authorities
Appendix B to Part 187—Participating and Certified Titling Authorities
