The Vermont Statutes Online
The Statutes below include the actions of the 2024 session of the General Assembly.
NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.
Title 23: Motor Vehicles
Chapter 036: Titling of Vessels, Snowmobiles, and All-Terrain Vehicles
§ 3801. Definitions
Except when the context otherwise requires, as used in this chapter:
(1) “All-terrain vehicle” or “ATV” means any nonhighway recreational vehicle, except snowmobiles, motor-assisted bicycles, or electric bicycles, when used for cross-country travel on trails or on any one of the following or a combination thereof: land, water, snow, ice, marsh, swampland, and natural terrain.
(2) “Commissioner” means the Commissioner of Motor Vehicles.
(3) “Dealer” means any person who engages in whole or in part in the business of buying, selling, or exchanging new and unused vessels, snowmobiles, or all-terrain vehicles, or used vessels, snowmobiles, or all-terrain vehicles, or any combination, either outright or on conditional sale, bailment, lease, chattel mortgage, or otherwise, and who has an established place of business for sale, trade, and display of vessels, snowmobiles, or all-terrain vehicles. A yacht broker is a dealer.
(4) “Identification number” means the numbers and letters, if any, on a vessel designated by the Commissioner for the purpose of identifying the vessel.
(5) “Lienholder” means a person holding a security interest in a vessel, snowmobile, or all-terrain vehicle.
(6) “Manufacturer” means any person engaged in the business of manufacturing or importing new and unused vessels, snowmobiles, or all-terrain vehicles for the purpose of sale or trade.
(7) “Manufacturer’s or importer’s certificate of origin” means the original written instrument or document required to be executed and delivered by the manufacturer to his or her agent or dealer, or a person purchasing direct from the manufacturer, certifying the origin of the vessel, snowmobile, or all-terrain vehicle.
(8) [Repealed.]
(9) “Operate” means to navigate or otherwise use a vessel, snowmobile, or all-terrain vehicle.
(10) “Operator” means the person who operates or has charge of the navigation or use of a vessel, snowmobile, or all-terrain vehicle.
(11) “Owner” means a person, other than a lienholder, having property in or title to a vessel, snowmobile, or all-terrain vehicle. The term includes a person entitled to use or possess a vessel, snowmobile, or all-terrain vehicle subject to an interest in another person, which is reserved or created by agreement and secures payment or performance of an obligation, but does not include a lessee under a lease not intended as security.
(12) “Security agreement” means a written agreement that reserves or creates a security interest.
(13) “Security interest” means an interest in a vessel, snowmobile, or all-terrain vehicle reserved or created by agreement and that secures payment or performance of an obligation. The term includes the interest of a lessor under a lease intended as security. The term also includes a nonpossessory attachment issued by a court of competent jurisdiction within this State. The term also includes liens obtained by the Commissioner of Taxes pursuant to the provisions of Title 32. A security interest is “perfected” when it is valid against third parties generally, subject only to specific statutory exceptions.
(14) “Serial number” means the numbers and letters designated by the snowmobile or all-terrain vehicle manufacturer for the purpose of identifying a snowmobile or all-terrain vehicle.
(15) “Snowmobile” means a self-propelled vehicle intended for off-road travel primarily on snow, having a curb weight of not more than 453.59 kg (1,000 lbs.), driven by track or tracks in contact with the snow and steered by a ski or skis in contact with the snow.
(16) “State” means a state, territory, or possession of the United States, the District of Columbia, the Commonwealth of Puerto Rico, or a province of the Dominion of Canada.
(17) “State of principal use” means the state on whose land, waters, snow, ice, marsh, swampland, or natural terrain a vessel, snowmobile, or all-terrain vehicle is used or to be used most during a calendar year.
(18) “Use” means to operate, navigate, or employ a vessel, snowmobile, or all-terrain vehicle. A vessel, snowmobile, or all-terrain vehicle is in use whenever it is upon land, water, snow, ice, marsh, swampland, or natural terrain.
(19) “Vessel” means every description of watercraft capable of being used as a means of transportation on water that is equipped with machinery capable of propelling the watercraft, whether or not such machinery is the principal source of propulsion, but shall not include a watercraft that has a valid marine document issued by U.S. Customs and Border Protection or any successor federal agency.
(20) “Title or certificate of title” means a written instrument or document that certifies ownership of a vessel and is issued by the Commissioner or equivalent official of another jurisdiction.
(21) “Secure assignment of title” means a form prescribed by the Commissioner that must be used to transfer ownership of a titled vessel, snowmobile, or all-terrain vehicle if all space for assignments upon the title itself has been used.
(22) “Salvage dealer” means any person who, in a single year, purchases or in any manner acquires at a minimum three vessels, snowmobiles, or all-terrain vehicles as salvage or who scraps, dismantles, or destroys at a minimum three vessels, snowmobiles, or all-terrain vehicles in a single year.
(23) “Rebuilt vessel, snowmobile, or all-terrain vehicle” means a vessel, snowmobile, or all-terrain vehicle upon which a salvage certificate of title, parts-only certificate, or other document indicating the vessel, snowmobile, or all-terrain vehicle is not sold for reregistration purposes, has been issued and that has been rebuilt and restored for operation.
(24) “Salvaged vessel, snowmobile, or all-terrain vehicle” means a vessel, snowmobile, or all-terrain vehicle that has been scrapped, dismantled, destroyed, or declared a total loss by an insurance company.
(25) “Totaled vessel, snowmobile, or all-terrain vehicle” means a vessel, snowmobile, or all-terrain vehicle that has been declared a total loss by an insurance company. (Added 1987, No. 152 (Adj. Sess.), § 1; amended 1991, No. 164 (Adj. Sess.), § 16; 2001, No. 107 (Adj. Sess.), § 2; 2009, No. 39, § 12; 2019, No. 14, § 65, eff. April 30, 2019; 2019, No. 131 (Adj. Sess.), § 248; 2021, No. 20, § 257; 2021, No. 40, § 9; 2021, No. 76, § 22.)
§ 3802. Fees
(a) The Commissioner shall be paid the following fees:
(1) for filing an application for a first certificate of title, $27.00;
(2) for each security interest noted upon a certificate of title, $14.00;
(3) for a certificate of title after a transfer, $27.00;
(4) for each assignment of a security interest noted upon a certificate of title, $14.00;
(5) for a duplicate certificate of title, $27.00;
(6) for an ordinary certificate of title issued upon surrender of a distinctive certificate, $27.00;
(7) for filing a notice of security interest, $14.00;
(8) for a certificate of search of the records of the Department of Motor Vehicles for each vessel, snowmobile, or all-terrain vehicle searched against, $27.00;
(9) for filing an assignment of a security interest, $14.00;
(10) for a certificate of clear title after the security interest or interests have been released, $27.00;
(11) for a corrected certificate of title, $27.00.
(b) If an application, certificate of title, or other document required to be mailed or delivered to the Commissioner under any provision of this chapter is not delivered to the Commissioner within 10 days from the time it is required to be mailed or delivered, the Commissioner shall collect, as a penalty, an amount equal to the fee required for the transaction. (Added 1987, No. 152 (Adj. Sess.), § 1; amended 2001, No. 102 (Adj. Sess.), § 32, eff. May 15, 2002; 2001, No. 107 (Adj. Sess.), § 3; 2001, No. 143 (Adj. Sess.), § 68; 2005, No. 72, § 13; 2009, No. 50, § 54; 2011, No. 128 (Adj. Sess.), § 22; 2015, No. 159 (Adj. Sess.), § 53; 2023, No. 78, § G.138, eff. January 1, 2024.)
§ 3803. Power and duties of Commissioner
(a) The Commissioner shall prescribe and provide suitable forms of applications, certificates of title, notices of security interests, and all other notices and forms necessary to carry out the provisions of this chapter.
(b) The Commissioner may:
(1) make necessary investigations to procure information required to carry out the provisions of this chapter;
(2) adopt and enforce reasonable rules to carry out the provisions of this chapter. (Added 1987, No. 152 (Adj. Sess.), § 1.)
§ 3804. Hearing
A person aggrieved by the Commissioner’s act or omission to act by the Commissioner under this chapter is entitled, upon request, to a hearing in accordance with section 105 of this title. (Added 1987, No. 152 (Adj. Sess.), § 1.)
§ 3805. Appeal
A person aggrieved by the Commissioner’s act or omission to act by the Commissioner under this chapter may appeal to the Superior Court for Washington County in the same manner as is provided for in other civil actions. (Added 1987, No. 152 (Adj. Sess.), § 1.)
§ 3806. Certificate of origin
(a) When a new vessel, snowmobile, or all-terrain vehicle is delivered in this State by the manufacturer to his or her agent or his or her franchised dealer, the manufacturer shall execute and deliver to his or her agent or his or her franchised dealer a certificate of origin in the form prescribed by the Commissioner.
(b) No person shall bring into this State any new vessel, snowmobile, or all-terrain vehicle unless he or she has possession of the certificate of origin as prescribed by the Commissioner.
(c) The certificate of origin shall contain:
(1) for a vessel:
(A) the manufacturer’s hull identification number of the vessel;
(B) the name of the manufacturer;
(C) the make of the vessel;
(D) the model year;
(E) a description of the construction materials;
(F) the type of model; and
(G) the length of the vessel.
(2) for a snowmobile or all-terrain vehicle:
(A) the manufacturer’s serial number;
(B) the name of the manufacturer;
(C) the make of the snowmobile or all-terrain vehicle;
(D) the model year; and
(E) the type of model.
(d) When a new vessel, snowmobile, or all-terrain vehicle is sold in this State, the manufacturer, his or her agent, or his or her franchised dealer shall execute and deliver to the purchaser, in case of an absolute sale, assignment of the certificate of origin or if other than absolute sale, assignment of the certificate of origin subject to contract, signed or executed by the manufacturer, his or her agent, or his or her dealer, with the genuine names and business or residence addresses of both stated on the certificate, and certified to have been executed with full knowledge of the contents and with the consent of both purchaser and seller. For good cause shown, the Commissioner may accept any other satisfactory evidence of the information required in a certificate of origin pursuant to this section. (Added 1987, No. 152 (Adj. Sess.), § 1; amended 2001, No. 107 (Adj. Sess.), § 4; 2019, No. 131 (Adj. Sess.), § 249.)
§ 3807. Exempted vessels, snowmobiles, and all-terrain vehicles
No certificate of title need be obtained for:
(1) any vessel under 16 feet in length;
(2) any snowmobile or all-terrain vehicle of a model year prior to 2004 or that is more than 15 years old;
(3) any vessel that is a canoe, kayak, or similar watercraft designed to be manually propelled or equipped with a motor not to exceed 10 horsepower;
(4) a vessel, snowmobile, or all-terrain vehicle owned by the United States, unless it is registered in this State;
(5) a vessel, snowmobile, or all-terrain vehicle owned by a manufacturer or dealer and held for sale;
(6) a vessel owned by a nonresident of this State and not required by law to be registered in this State;
(7) a vessel regularly engaged in the interstate transportation of persons or property for which a currently effective certificate of title has been issued in another state;
(8) any snowmobile or all-terrain vehicle owned by a nonresident of this State whose state of residence does not require a certificate of title for any such snowmobile or all-terrain vehicle;
(9) any snowmobile or all-terrain vehicle owned by a nonresident of this State whose state of residence does require a certificate of title for any such snowmobile or all-terrain vehicle and the title has been issued or applied for;
(10) any vessels that are more than 15 years old. (Added 1987, No. 152 (Adj. Sess.), § 1; amended 2001, No. 107 (Adj. Sess.), § 5; 2007, No. 19, § 7; 2011, No. 46, § 12.)
§ 3808. Application for certificate
(a) The application for the first certificate of title of a vessel, snowmobile, or all-terrain vehicle in this State shall be made by the owner to the Commissioner on the form the Commissioner prescribes and shall contain:
(1) the name, residence, and mail address of the owner;
(2) a description of the vessel, snowmobile, or all-terrain vehicle, including information required by subsection 3806(c) of this title if these data exist, and an indication whether the vessel, snowmobile, or all-terrain vehicle is new or used;
(3) the date of purchase by the applicant; the name and address of the person from whom the vessel, snowmobile, or all-terrain vehicle was acquired; the names and addresses of any lienholders in the order of their priority and the dates of their security agreements; and, if a new vessel, snowmobile, or all-terrain vehicle, the manufacturer’s or importer’s certificate of origin; and
(4) any further information the Commissioner reasonably requires to identify the vessel, snowmobile, or all-terrain vehicle and to enable him or her to determine whether the owner is entitled to a certificate of title and to determine the existence or nonexistence of security interests in the vessel, snowmobile, or all-terrain vehicle.
(5) [Repealed.]
(b) If the application refers to a vessel, snowmobile, or all-terrain vehicle purchased from a dealer, it shall contain the name and address of any lienholder holding a security interest created or reserved at the time of the sale and the date of his or her security agreement and be signed by the dealer as well as the owner, and the dealer shall promptly mail or deliver the application to the Commissioner.
(c) If the application refers to a vessel, snowmobile, or all-terrain vehicle last previously registered in another state or country, the application shall contain or be accompanied by:
(1) any certificate of title issued by the other state or country; and
(2) any other information and documents the Commissioner reasonably requires to establish the ownership of the vessel, snowmobile, or all-terrain vehicle and the existence or nonexistence of security interests in it. (Added 1987, No. 152 (Adj. Sess.), § 1; amended 2001, No. 107 (Adj. Sess.), § 6; 2011, No. 164 (Adj. Sess.), § 5.)
§ 3809. Commissioner to check identification number
The Commissioner, upon receiving application for a first certificate of title, shall check the identification number of the vessels, snowmobiles, or all-terrain vehicles shown in the application against the records of vessels, snowmobiles, or all-terrain vehicles required to be maintained by section 3810 of this title and against the record of stolen and converted vessels, snowmobiles, or all-terrain vehicles required to be maintained by section 3831 of this title. (Added 1987, No. 152 (Adj. Sess.), § 1; amended 2001, No. 107 (Adj. Sess.), § 7.)
§ 3810. Issuance of certificate; records
(a) The Commissioner shall file each application received and, when satisfied as to its genuineness and regularity and that the applicant is entitled to the issuance of a certificate of title, shall issue a certificate of title of the vessel, snowmobile, or all-terrain vehicle.
(b)(1) The Commissioner shall maintain a record of all certificates of title issued by the Commissioner pursuant to section 117 of this title.
(2) [Repealed.] (Added 1987, No. 152 (Adj. Sess.), § 1; amended 2001, No. 107 (Adj. Sess.), § 8; 2011, No. 46, § 21; 2023, No. 165 (Adj. Sess.), § 8, eff. July 1, 2024.)
§ 3811. Information on certificate
(a) Each certificate of title issued by the Commissioner shall contain:
(1) The date issued.
(2) The name and address of the owner.
(3) The names and addresses of any lienholders, in the order of priority as shown on the application or, if the application is based on a certificate of title, as shown on the certificate; however, no more than two lienholders may appear on a certificate. In the event that there are more than two lienholders on the vessel, snowmobile, or all-terrain vehicle, the certificate of title shall contain an appropriate legend as determined by the Commissioner.
(4) The title number assigned to the vessel, snowmobile, or all-terrain vehicle.
(5) A description of the vessel, snowmobile, or all-terrain vehicle including, so far as the following data exist:
(A) its make, model, identification, or serial number;
(B) for a vessel, its construction materials and length, whether new or used;
(C) if a new vessel, snowmobile, or all-terrain vehicle, the date of the first sale of the vessel, snowmobile, or all-terrain vehicle for use.
(6) Any other data the Commissioner prescribes.
(b) Unless a bond is filed as provided in subdivision 3813(2) of this title, a distinctive certificate of title shall be issued for a vessel, snowmobile, or all-terrain vehicle last previously registered in another state or country the laws of which do not require that lienholders be named on a certificate of title to perfect their security interests, or for which a title had not been issued by such other state or country. The certificate shall contain an appropriate legend as determined by the Commissioner and may contain any other information the Commissioner prescribes. If no notice of a security interest in the vessel, snowmobile, or all-terrain vehicle is received by the Commissioner within four months from the issuance of the distinctive certificate of title, he or she shall, upon application and surrender of the distinctive certificate, issue a certificate of title in ordinary form.
(c) The certificate of title shall contain forms for assignment and warranty of title by the owner and for assignment and warranty of title by a dealer, and may contain forms for applications for a certificate of title by a transferee, the naming of a lienholder, and the assignment or release of the security interest of a lienholder.
(d) A certificate of title issued by the Commissioner is prima facie evidence of the facts appearing on it.
(e) A certificate of title for a vessel, snowmobile, or all-terrain vehicle is not subject to garnishment, attachment, execution, or other judicial process, but this subsection does not prevent a lawful levy upon the vessel, snowmobile, or all-terrain vehicle. (Added 1987, No. 152 (Adj. Sess.), § 1; amended 2001, No. 107 (Adj. Sess.), § 9; 2015, No. 50, § 20.)
§ 3812. Mailing certificate
The certificate of title shall be mailed or personally delivered, upon proper identification of the individual, to the first lienholder named in it or, if none, to the owner. (Added 1987, No. 152 (Adj. Sess.), § 1.)
§ 3813. Withholding of certificate; bond required
If the Commissioner is not satisfied as to the ownership of the vessel, snowmobile, or all-terrain vehicle or that there are no undisclosed security interests in it, the Commissioner may register the vessel, snowmobile, or all-terrain vehicle, but shall either:
(1) withhold issuance of a certificate of title until the applicant presents documents reasonably sufficient to satisfy the Commissioner as to the applicant’s ownership of the vessel, snowmobile, or all-terrain vehicle and that there are no undisclosed security interests in it; or
(2) as a condition of issuing a certificate of title, require the applicant to file with the Commissioner a bond in the form prescribed by the Commissioner and executed by the applicant, and either accompanied by the deposit of cash with the Commissioner or also executed by a person authorized to conduct a surety business in this State. The bond shall be in an amount equal to one and one-half times the value of the vessel, snowmobile, or all-terrain vehicle as determined by the Commissioner and conditioned to indemnify any prior owner and lienholder and any subsequent purchaser of the vessel, snowmobile, or all-terrain vehicle or person acquiring any security interest in it, and their respective successors in interest, against any expense, loss, or damage, including reasonable attorney’s fees, by reason of the issuance of the certificate of title of the vessel, snowmobile, or all-terrain vehicle or on account of any defect in or undisclosed security interest upon the right, title, and interest of the applicant in and to the vessel, snowmobile, or all-terrain vehicle. Any such interested person has a right of action to recover on the bond for any breach of its conditions, but the aggregate liability of the surety to all persons shall not exceed the amount of the bond. The bond, and any deposit accompanying it, shall be returned at the end of three years or earlier if the vessel, snowmobile, or all-terrain vehicle is no longer registered in this State and the currently valid certificate of title is surrendered to the Commissioner, unless the Commissioner has been notified of the pendency of an action to recover on the bond. (Added 1987, No. 152 (Adj. Sess.), § 1; amended 2001, No. 107 (Adj. Sess.), § 10; 2019, No. 131 (Adj. Sess.), § 250.)
§ 3814. Refusal of certificate
The Commissioner shall refuse issuance of a certificate of title if any required fee is not paid or if he or she has reasonable grounds to believe that:
(1) the applicant is not the owner of the vessel, snowmobile, or all-terrain vehicle;
(2) the application contains a false or fraudulent statement; or
(3) the applicant fails to furnish required information or documents or any additional information the Commissioner reasonably requires. (Added 1987, No. 152 (Adj. Sess.), § 1; amended 2001, No. 107 (Adj. Sess.), § 11.)
§ 3815. Duplicate certificate
(a) If a certificate is lost, stolen, mutilated, or destroyed or becomes illegible, the first lienholder or, if none, the owner or legal representative of the owner named in the certificate, as shown by the records of the Commissioner, shall promptly make application for and may obtain a duplicate upon furnishing information satisfactory to the Commissioner. It shall be mailed to the first lienholder named in it or, if none, to the owner.
(b) A person recovering an original certificate of title for which a duplicate has been issued shall promptly surrender the original certificate to the Commissioner.
(c) When a duplicate certificate of title is issued, the Commissioner shall cause the original certificate of title for that vessel, snowmobile, or all-terrain vehicle to be revoked. (Added 1987, No. 152 (Adj. Sess.), § 1; amended 2001, No. 107 (Adj. Sess.), § 12; 2015, No. 50, § 21.)
§ 3816. Transfer of interest in vessel, snowmobile, or all-terrain vehicle
(a) If an owner transfers his or her interest in a vessel, snowmobile, or all-terrain vehicle, other than by the creation of a security interest, he or she shall, at the time of delivery of the vessel, snowmobile, or all-terrain vehicle, execute an assignment and warranty of title to the transferee in the space provided on the certificate or as the Commissioner prescribes, and cause the certificate and assignment to be mailed or delivered to the transferee or to the Commissioner. Where title to a vessel, snowmobile, or all-terrain vehicle is in the name of more than one person, the nature of the ownership must be indicated by one of the following on the certificate of title:
(1) TEN ENT (tenants by the entirety);
(2) JTEN (joint tenants);
(3) TEN COM (tenants in common); or
(4) PTNRS (partners).
(b) Upon request of the owner or transferee, a lienholder in possession of the certificate of title shall, unless the transfer was a breach of his or her security agreement, either deliver the certificate to the transferee for delivery to the Commissioner or, upon receipt from the transferee of the owner’s assignment, the transferee’s application for a new certificate, and the required fee, mail or deliver them to the Commissioner. The delivery of the certificate does not affect the rights of the lienholder under his or her security agreement.
(c) If a security interest is reserved or created at the time of the transfer, the certificate of title shall be retained by or delivered to the person who becomes the lienholder, and the parties shall comply with the provisions of section 3824 of this title.
(d) Except as provided in section 3817 of this title and as between the parties, a transfer by an owner is not effective until the provisions of this section and section 3819 of this title have been complied with; however, an owner who has delivered possession of the vessel, snowmobile, or all-terrain vehicle to the transferee and has complied with the provisions of this section and section 3819 of this title requiring action by him or her is not liable as owner for any damages thereafter resulting from operation of the vessel, snowmobile, or all-terrain vehicle.
(e)(1) Pursuant to the provisions of 14 V.S.A. § 313, whenever the estate of an individual who dies intestate consists principally of a vessel, snowmobile, or all-terrain vehicle, the surviving spouse shall be deemed to be the owner of the vessel, snowmobile, or all-terrain vehicle and title to the vessel, snowmobile, or all-terrain vehicle shall automatically pass to the surviving spouse. Upon request, the Department shall register and title the vessel, snowmobile, or all-terrain vehicle in the name of the surviving spouse, and no fee shall be assessed.
(2) Notwithstanding any contrary provision of law, and except as provided in subdivision (3) of this subsection, whenever the estate of an individual consists in whole or in part of a vessel, snowmobile, or all-terrain vehicle, and the person’s will or other testamentary document does not specifically address disposition of the same, the surviving spouse shall be deemed to be the owner and title to the vessel, snowmobile, or all-terrain vehicle shall automatically pass to the surviving spouse. Upon request, the Department shall register and title the vessel, snowmobile, or all-terrain vehicle in the name of the surviving spouse, and no fee shall be assessed.
(3) This subsection shall not apply if the vessel, snowmobile, or all-terrain vehicle is titled in the name of one or more persons other than the decedent and the surviving spouse. (Added 1987, No. 152 (Adj. Sess.), § 1; amended 2001, No. 107 (Adj. Sess.), § 13; 2009, No. 55, § 7; 2017, No. 71, § 17.)
§ 3817. Resale by dealer
If a dealer buys a vessel, snowmobile, or all-terrain vehicle and holds it for resale and obtains the certificate of title from the owner or the lienholder within 10 days after receiving the vessel, snowmobile, or all-terrain vehicle, the certificate need not be sent to the Commissioner. When the dealer transfers the vessel, snowmobile, or all-terrain vehicle to a person, other than by the creation of a security interest, he or she shall simultaneously execute the assignment and warranty of title by filling in the spaces on the certificate of title or as prescribed by the Commissioner. The certificate shall be mailed or delivered to the Commissioner with the transferee’s application for a new certificate. (Added 1987, No. 152 (Adj. Sess.), § 1; amended 2001, No. 107 (Adj. Sess.), § 14.)
§ 3818. Involuntary transfers
(a) If the interest of an owner in a vessel, snowmobile, or all-terrain vehicle passes to another person, other than by voluntary transfer, the transferee shall, except as provided in subsection (b) of this section, promptly mail or deliver to the Commissioner the last certificate of title, if available, proof of the transfer, and his or her application for a new certificate in the form the Commissioner prescribes.
(b) If the interest of the owner is terminated or the vessel, snowmobile, or all-terrain vehicle is sold under a security agreement by a lienholder named in the certificate of title, the transferee shall promptly mail or deliver to the Commissioner the last certificate of title, his or her application for a new certificate in the form the Commissioner prescribes, and an affidavit, made by or on behalf of the lienholder, that the vessel, snowmobile, or all-terrain vehicle was repossessed and that the interest of the owner was lawfully terminated or sold pursuant to the terms of the security agreement. If the lienholder succeeds to the interest of the owner and holds the vessel, snowmobile, or all-terrain vehicle for resale, he or she need not secure a new certificate of title but, upon transfer to another person, shall promptly mail or deliver to the transferee or to the Commissioner the certificate, affidavit, and other documents required to be sent to the Commissioner by the transferee.
(c) A person holding a certificate of title whose interest in the vessel, snowmobile, or all-terrain vehicle has been extinguished or transferred other than by voluntary transfer shall mail or deliver the certificate to the Commissioner upon request of the Commissioner. The delivery of the certificate pursuant to the request of the Commissioner does not affect the rights of the person surrendering the certificate, and the action of the Commissioner in issuing a new certificate of title is not conclusive upon the rights of an owner or lienholder named in the old certificate. (Added 1987, No. 152 (Adj. Sess.), § 1; amended 2001, No. 107 (Adj. Sess.), § 15; 2019, No. 131 (Adj. Sess.), § 251.)
§ 3819. Fee to accompany applications
(a) An application for a certificate of title shall be accompanied by the required fee when mailed or delivered to the Commissioner.
(b) An application for the naming of a lienholder or his or her assignee on a certificate of title shall be accompanied by the required fee when mailed or delivered to the Commissioner. (Added 1987, No. 152 (Adj. Sess.), § 1.)
§ 3820. Issuance of new certificate
(a) The Commissioner, upon receipt of a properly assigned certificate of title, with an application for a new certificate of title, the required fee, and any other documents required by law, shall issue a new certificate of title in the name of the transferee as owner and mail to the first lienholder named in it or, if none, to the owner.
(b) The Commissioner, upon receipt of an application for a new certificate of title by a transferee other than by voluntary transfer, with proof of the transfer, the required fee, and any other documents required by law, shall issue a new certificate of title in the name of the transferee as owner. If the outstanding certificate of title is not delivered to him or her, the Commissioner shall make demand from the holder.
(c) The Commissioner shall file and retain every surrendered certificate of title pursuant to section 117 of this title. (Added 1987, No. 152 (Adj. Sess.), § 1; amended 2001, No. 107 (Adj. Sess.), § 16; 2011, No. 46, § 22; 2023, No. 165 (Adj. Sess.), § 9, eff. July 1, 2024.)
§ 3821. Suspension or revocation of certificate
(a) The Commissioner shall suspend or revoke a certificate of title, upon notice and reasonable opportunity to be heard in accordance with section 3804 of this chapter, if he or she finds:
(1) the certificate of title was fraudulently procured or erroneously issued; or
(2) the vessel, snowmobile, or all-terrain vehicle has been scrapped, dismantled, or destroyed.
(b) Suspension or revocation of a certificate of title does not, in itself, affect the validity of a security interest noted on it.
(c) When the Commissioner suspends or revokes a certificate of title, the owner or person in possession of it shall, immediately upon receiving notice of the suspension or revocation, mail or deliver the certificate to the Commissioner.
(d) The Commissioner may seize and impound any certificate of title that has been suspended or revoked. (Added 1987, No. 152 (Adj. Sess.), § 1; amended 2001, No. 107 (Adj. Sess.), § 17.)
§ 3822. Certain liens and security interests not affected
This chapter does not apply to or affect:
(1) a lien given by statute or rule of law to a supplier of services or materials for the vessel, snowmobile, or all-terrain vehicle;
(2) a lien given by statute to the United States, this State, or any political subdivision of this State;
(3) a security interest in a vessel, snowmobile, or all-terrain vehicle created by a manufacturer or dealer who holds the vessel, snowmobile, or all-terrain vehicle for sale, but a buyer in the ordinary course of trade from the manufacturer or dealer takes free of the security interest. (Added 1987, No. 152 (Adj. Sess.), § 1; amended 2001, No. 107 (Adj. Sess.), § 18.)
§ 3823. Perfecting security interest
(a) Unless excepted by section 3822 of this title, a security interest in a vessel, snowmobile, or all-terrain vehicle of a type for which a certificate of title is required is not valid against creditors of the owner or subsequent transferees or lienholders of the vessel, snowmobile, or all-terrain vehicle unless perfected as provided in this chapter.
(b) A security interest is perfected by the delivery to the Commissioner of the existing certificate of title, if any, an application for a certificate of title containing the name and address of the lienholder and the date of the lienholder’s security agreement, and the required fee. It is perfected as of the time of its creation if delivery is completed within 20 days after the time of its creation, otherwise as of the time of the delivery.
(c) If a vessel, snowmobile, or all-terrain vehicle is subject to a security interest when brought into this State, the validity of the security interest is determined by the law of the jurisdiction where the vessel, snowmobile, or all-terrain vehicle was when the security interest attached, subject to the following:
(1) If the parties understood at the time the security interest attached that the vessel, snowmobile, or all-terrain vehicle would be kept in this State and it was brought into this State within 30 days after the time the security interest attached for purposes other than transportation through this State, the validity of the security interest in this State is determined by the law of this State.
(2) If the security interest was perfected under the law of the jurisdiction where the vessel, snowmobile, or all-terrain vehicle was when the security interest attached, the following rules apply:
(A) If the name of the lienholder is shown on an existing certificate of title issued by that jurisdiction, his or her security interest continues perfected in this State.
(B) If the name of the lienholder is not shown on an existing certificate of title issued by that jurisdiction, the security interest continues perfected in this State for four months after a first certificate of title of the vessel, snowmobile, or all-terrain vehicle is issued in this State, and also thereafter if, within the four-month period, it is perfected in this State. The security interest may also be perfected in this State after the expiration of the four-month period; in that case perfection dates from the time of perfection in this State.
(3) If the security interest was not perfected under the law of the jurisdiction where the vessel, snowmobile, or all-terrain vehicle was when the security interest attached, it may be perfected in this State; in that case, perfection dates from the time of perfection in this State.
(4) A security interest may be perfected under subdivision (2)(B) or subdivision (3) of this subsection either as provided in subsection (b) of this section or by the lienholder delivering to the Commissioner a notice of security interest in the form the Commissioner prescribes and the required fee. (Added 1987, No. 152 (Adj. Sess.), § 1; amended 2001, No. 107 (Adj. Sess.), § 19; 2023, No. 85 (Adj. Sess.), §§ 321, 322, eff. July 1, 2024.)
§ 3824. Duties on creation of security interest
If an owner creates a security interest in a vessel, snowmobile, or all-terrain vehicle:
(1) The owner shall immediately execute the application, in the space provided on the certificate of title or on a separate form the Commissioner prescribes, to name the lienholder on the certificate, showing the name and address of the lienholder and the date of his or her security agreement, and cause the certificate, the application, and the required fee to be delivered to the lienholder.
(2) The lienholder shall immediately cause the certificate, the application, and the required fee to be mailed or delivered to the Commissioner.
(3) Upon request of the owner or subordinate lienholder, a lienholder in possession of the certificate of title shall either mail or deliver the certificate to the subordinate lienholder for delivery to the Commissioner or, upon receipt from the subordinate lienholder of the owner’s application and the required fee, mail or deliver them to the Commissioner with the certificate. The delivery of the certificate does not affect the rights of the first lienholder under his or her security agreement.
(4) Upon receipt of the certificate of title, the application, and the required fee, the Commissioner shall either endorse the certificate or issue a new certificate containing the name and address of the new lienholder, and mail the certificate to the first lienholder named in it. (Added 1987, No. 152 (Adj. Sess.), § 1; amended 2001, No. 107 (Adj. Sess.), § 20.)
§ 3825. Assignment of security interest
(a) A lienholder may assign, absolutely or otherwise, his or her security interest in the vessel, snowmobile, or all-terrain vehicle to a person other than the owner without affecting the interest of the owner or the validity of the security interest, but any person without notice of the assignment is protected in dealing with the lienholder as the holder of the security interest and the lienholder remains liable for any obligations as lienholder until the assignee is named as lienholder on the certificate.
(b) The assignee may, but need not to perfect the assignment, have the certificate of title endorsed or issued with the assignee named as lienholder, upon delivering to the Commissioner the certificate and an assignment by the lienholder named in the certificate in the form the Commissioner prescribes. (Added 1987, No. 152 (Adj. Sess.), § 1; amended 2001, No. 107 (Adj Sess.), § 21.)
§ 3826. Release of security interest
(a) Upon the satisfaction of a security interest in a vessel, snowmobile, or all-terrain vehicle for which the certificate of title is in the possession of the lienholder, he or she shall, within 10 days after demand and, in any event, within 30 days, execute a release of his or her security interest, in the space provided on the certificate or as the Commissioner prescribes, and mail or deliver the certificate and release to the next lienholder named, or, if none, to the owner or any person who delivers to the lienholder an authorization from the owner to receive the certificate. The owner, other than a dealer holding the vessel, snowmobile, or all-terrain vehicle for resale, shall promptly cause the certificate and release to be mailed or delivered to the Commissioner, who shall release the lienholder’s rights on the certificate or issue a new certificate.
(b) Upon the satisfaction of a security interest in a vessel, snowmobile, or all-terrain vehicle for which the certificate of title is in the possession of a prior lienholder, the lienholder whose security interest is satisfied shall within 10 days after demand and, in any event, within 30 days execute a release in the form the Commissioner prescribes and deliver the release to the owner or any person who delivers to the lienholder an authorization from the owner to receive it. The lienholder in possession of the certificate of title shall either deliver the certificate to the owner, or the person authorized by him or her, for delivery to the Commissioner or, upon receipt of the release, mail or deliver it with the certificate to the Commissioner, who shall release the subordinate lienholder’s rights on the certificate or issue a new certificate. (Added 1987, No. 152 (Adj. Sess.), § 1; amended 2001, No. 107 (Adj. Sess.), § 22.)
§ 3827. Lienholder to furnish information
A lienholder named in a certificate of title shall, upon written request of the owner or of another lienholder named on the certificate, disclose any pertinent information as to his or her security agreement and the indebtedness secured by it. (Added 1987, No. 152 (Adj. Sess.), § 1.)
§ 3828. Method of perfecting security interest exclusive
The method provided in this chapter of perfecting and giving notice of security interests subject to this chapter is exclusive. Security interests subject to this chapter are exempted from the provisions of law that otherwise require or relate to the filing of instruments creating or evidencing security interests. (Added 1987, No. 152 (Adj. Sess.), § 1.)
§ 3829. Altering, forging, or counterfeiting certificates
(a) No person shall with fraudulent intent:
(1) alter, forge, or counterfeit a certificate of title;
(2) alter or forge an assignment of a certificate of title, or an assignment or release of a security interest, on a certificate of title or a form the Commissioner prescribes;
(3) possess or use a certificate of title knowing it to have been altered, forged, or counterfeited; or
(4) use a false or fictitious name or address, or make a material false statement, or fail to disclose a security interest, or conceal any other material fact, in an application for a certificate of title or a duplicate certificate of title.
(b) A person convicted under this section shall be fined not less than $500.00 nor more than $5,000.00 or be imprisoned for not less than one year or for more than five years, or both. (Added 1987, No. 152 (Adj. Sess.), § 1; amended 1991, No. 164 (Adj. Sess.), § 17.)
§ 3830. Other offenses
(a) No person shall:
(1) with fraudulent intent, permit another, not otherwise entitled, to use or have possession of a certificate of title;
(2) willfully fail to mail or deliver a certificate of title or application to the Commissioner within 10 days after the time required by this chapter;
(3) willfully fail to deliver to his or her transferee a certificate of title within 10 days after the time required by this chapter; or
(4) willfully violate any provision of this chapter, except as provided in section 3829 of this title.
(b) A person convicted under this section shall be fined not more than $1,000.00 or imprisoned for not more than one year, or both. (Added 1987, No. 152 (Adj. Sess.), § 1; amended 1991, No. 164 (Adj. Sess.), § 18; 2019, No. 131 (Adj. Sess.), § 252.)
§ 3831. Report of theft; recovery of unclaimed vessel, snowmobile, or all-terrain vehicle
(a) An enforcement officer, sheriff, or constable who learns of the theft of a vessel, snowmobile, or all-terrain vehicle not since recovered, or of the recovery of a vessel, snowmobile, or all-terrain vehicle whose theft or conversion the enforcement officer, sheriff, or constable knows or has reason to believe has been reported to the Commissioner, shall immediately report the theft or recovery to the Commissioner.
(b) An owner or a lienholder may report the theft of a vessel, snowmobile, or all-terrain vehicle, or its conversion if a crime, to the Commissioner, but the Commissioner may disregard the report of a conversion unless a warrant has been issued for the arrest of an individual charged with the conversion. An individual who has reported the theft or conversion of a vessel, snowmobile, or all-terrain vehicle shall, immediately after learning of its recovery, report the recovery to the Commissioner.
(c) An operator of a place of business for garaging, repairing, parking, or storing vessels, snowmobiles, or all-terrain vehicles for the public, in which a vessel, snowmobile, or all-terrain vehicle remains unclaimed for a period of 30 days, shall, within five days after the expiration of that period, report the vessel, snowmobile, or all-terrain vehicle as unclaimed, to the Commissioner. A vessel, snowmobile, or all-terrain vehicle left by its owner whose name and address are known to the operator or the operator’s employee is not considered unclaimed. An individual who fails to report a vessel, snowmobile, or all-terrain vehicle as unclaimed in accordance with this subsection forfeits all claims and liens for its garaging, parking, or storing and shall be fined not more than $25.00 for each day the individual’s failure to report continues. (Added 1987, No. 152 (Adj. Sess.), § 1; 2001, No. 107 (Adj. Sess.), § 23; amended 2023, No. 85 (Adj. Sess.), § 323, eff. July 1, 2024.)
§ 3832. False report
A person who knowingly makes a false report of the theft or conversion of a vessel, snowmobile, or all-terrain vehicle to an enforcement officer or to the Commissioner shall be fined not more than $500.00 or imprisoned for not more than six months, or both. (Added 1987, No. 152 (Adj. Sess.), § 1; amended 2001, No. 107 (Adj. Sess.), § 24.)
§ 3833. Dismantling or destruction of vessels, snowmobiles, or all-terrain vehicles
(a) Except for vessels, snowmobiles, or all-terrain vehicles for which no certificate of title is required pursuant to section 3807 of this title, any person who purchases or in any manner acquires a vessel, snowmobile, or all-terrain vehicle as salvage who scraps, dismantles, or destroys a vessel, snowmobile, or all-terrain vehicle, or any insurance company or representative of an insurance company who declares a vessel, snowmobile, or all-terrain vehicle to be a total loss, shall make application for a salvage certificate of title within 15 days of the time the vessel, snowmobile, or all-terrain vehicle is purchased or otherwise acquired as salvage, scrapped, dismantled, or destroyed, or declared a total loss. The application shall be accompanied by:
(1) any certificate of title; and
(2) any other information or documents that the Commissioner may reasonably require to establish ownership of the vessel, snowmobile, or all-terrain vehicle and the existence or nonexistence of any security interest in the vessel, snowmobile, or all-terrain vehicle.
(b) When a vessel, snowmobile, or all-terrain vehicle is destroyed by crushing for scrap, the person causing the destruction shall immediately mail or deliver to the Commissioner the certificate of title, if any, endorsed “crushed” and signed by the person, accompanied by the original plate showing the original identification number. The plate shall not be removed until such time as the vessel, snowmobile, or all-terrain vehicle is crushed.
(c) This section shall not apply to, and salvage certificates shall not be required for, unrecovered stolen vessels, snowmobiles, or all-terrain vehicles or vessels, snowmobiles, or all-terrain vehicles stolen and recovered in an undamaged condition, provided that the original vessel, snowmobile, or all terrain vehicle identification number plate has not been removed, altered, or destroyed, and the number on the vessel, snowmobile, or all-terrain vehicle is identical with that on the original title certificate. (Added 2009, No. 39, § 7.)
§ 3834. Issuance of salvage title
The Commissioner shall file and maintain in the manner provided in section 3010 of this title each application received and when satisfied as to its genuineness and regularity and that the applicant is entitled to the issuance of a salvage certificate of title, shall issue a salvage certificate of title to the vessel, snowmobile, or all-terrain vehicle. (Added 2009, No. 39, § 8.)
§ 3835. Salvaged, totaled, and rebuilt vessels, snowmobiles, or all-terrain vehicles
(a) If a vessel, snowmobile, or all-terrain vehicle upon which a salvage certificate of title, a parts-only certificate, or other document indicating the vessel, snowmobile, or all-terrain vehicle is not sold for reregistration purposes has been or should have been issued by the Commissioner or by any other jurisdiction or person, or if a vessel, snowmobile, or all-terrain vehicle that has been declared totaled is rebuilt and restored for operation, the owner shall not apply for a certificate of title or registration, and none shall be issued, until the vessel, snowmobile, or all-terrain vehicle has been inspected by the Commissioner or his or her authorized representative. The inspection of the vessel, snowmobile, or all-terrain vehicle shall be conducted in the manner prescribed by the Commissioner and shall include verification of the identification number and bills of sale or titles for major component parts used to rebuild the vessel, snowmobile, or all-terrain vehicle. When necessary, a new identification number shall be attached to the vessel, snowmobile, or all-terrain vehicle as provided by section 2003 of this title. Any new title issued for these vessels, snowmobiles, or all-terrain vehicles shall contain the legend “rebuilt.”
(b) Any person who sells, trades, or offers for sale or trade to a prospective purchaser any interest in a salvaged, salvaged and rebuilt, or totaled vessel, snowmobile, or all-terrain vehicle shall disclose the fact that the vessel, snowmobile, or all-terrain vehicle has been salvaged, salvaged and rebuilt, or totaled both orally and in writing before a sale, trade, or transfer is made. Written disclosure that the vessel, snowmobile, or all-terrain vehicle has been salvaged, salvaged and rebuilt, or totaled, in addition to being disclosed on the certificate of title as required by this subchapter, shall also be conspicuously disclosed on any bill of sale, transfer, purchase, or other agreement.
(c) Failure of the seller to provide the notices required by this section shall result in the seller being required, at the option of the buyer, to refund to the buyer the purchase price, including taxes, license fees, and similar governmental charges. (Added 2009, No. 39, § 9; amended 2015, No. 50, § 22.)
§ 3836. Records; inspection
(a) Each person who purchases or in any manner acquires a vessel, snowmobile, or all-terrain vehicle as salvage shall keep and maintain for a period of not less than five years such records as may be prescribed by the Commissioner that are reasonably necessary to substantiate the information contained in the application required by sections 3833 and 3835 of this title. These records shall include parts and accessories obtained and used for the repair or rebuilding, or both, of a vessel, snowmobile, or all-terrain vehicle, and such financial records that will allow the Commissioner to determine if the person qualifies to become or remain licensed as a “salvage dealer.”
(b) The Commissioner, or his or her agents, may inspect and examine the books, records, premises, and vehicles on the premises of any salvage dealer during the usual business hours of the day to verify the truth and accuracy of any information furnished in connection with the provisions of this section and section 3833 of this chapter.
(c) Any salvage dealer who in any manner receives a vessel, snowmobile, or all-terrain vehicle that does not have a plate attached to the vessel, snowmobile, or all-terrain vehicle bearing the vehicle identification number shall notify the Commissioner in writing that such a vessel, snowmobile, or all terrain vehicle has been received within seven days. (Added 2009, No. 39, § 10; amended 2021, No. 76, § 32.)
§ 3837. Penalty
(a) A person who violates any provision of section 3836 of this chapter shall be fined not more than $500.00 or imprisoned for not more than six months, or both.
(b) A person who violates section 3833 or 3835 of this chapter shall be fined not more than $1,000.00 or imprisoned for not more than one year, or both. (Added 2009, No. 39, § 11.)
