§ 46-22.1-10. Perfection generally. (a) Unless excepted by § 46-22.1-9, a security interest in a vessel is not valid against creditors of the owners or subsequent transferees or secured parties of the vessel unless perfected as provided under §§ 46-22.1-10 - 46-22.1-17.

(b) A security interest is perfected by the delivery to the department of the existing certificate of title, if any, or if there is no certificate of title, an application for certificate of title on a form provided and approved by the department containing information regarding the security interest, and upon payment of a filing fee of fifteen dollars ($15.00).

(c) If a vessel is already subject to a security interest when it is brought into this state, the validity of the security interest in this state is to be determined by the law (including conflict of law rules) of the jurisdiction where the vessel was when the security interest attached, subject to the following:

(1) If the parties to the transaction understood at the time the security interest attached to that the vessel would be kept in this state, and it was brought into this state within thirty (30) days after the security interest attached for a purpose other than transportation through this state, the validity of the security interest in this state is to be determined by the law of this state.

(2) If the security interest was already affected under the laws of the jurisdiction where the vessel was when the security interest attached and before being brought into this state:

(i) If the name of the secured party is shown on an existing certificate of title issued by that jurisdiction or the security interest continues perfected in this state;

(ii) If the name of the secured party is not shown on the existing certificate of title issued by that jurisdiction, and if the law of that jurisdiction does not provide for a certificate of title disclosing security interests, the security interest continues perfected in this state for four (4) months, and thereafter, if within the four (4) month period it is perfected in this state. This security interest may also be perfected in this state after the expiration of the four (4) month period in which case perfection dates from the time of perfection in this state; or

(iii) If the security interest was not perfected under the law of the jurisdiction in which the vessel was when the security interest attached before being brought into this state, it may be perfected in this state; in which case perfection dates from the time of perfection in this state.

History of Section. (P.L. 1988, ch. 555, § 1; P.L. 2000, ch. 182, § 12; P.L. 2000, ch. 420, § 12.)