§ 37-1282 — Department of Motor Vehicles; implement electronic title and lien system for motorboats; security interest; financing instruments; provisions applicable; priority; notation of liens; cancellation

Nebraska § 37-1282

• Jurisdiction: Nebraska
• Ch. 37: Game and Parks

Text

(1) The Department of Motor Vehicles
shall implement an electronic title and lien system for motorboats no later
than January 1, 2011. The Director of Motor Vehicles shall designate the date
for the implementation of the system. Beginning on the implementation date,
the holder of a security interest, trust receipt, conditional sales contract,
or similar instrument regarding a motorboat may file a lien electronically
as prescribed by the department. Beginning on the implementation date, upon
receipt of an application for a certificate of title for a motorboat, any
lien filed electronically shall become part of the electronic certificate
of title record created by the county treasurer or
department maintained on the electronic title and lien system. Beginning on
the implementation date, if an application for a certificate of title indicates
that there is a lien or encumbrance on a motorboat or if a lien or notice
of lien has been filed electronically, the department shall retain an electronic
certificate of title record and shall note and cancel such liens electronically
on the system. The department shall provide access to the electronic certificate
of title records for motorboat dealers and lienholders who participate in
the system by a method determined by the director.
(2) The provisions of article 9, Uniform Commercial Code, shall not
be construed to apply to or to permit or require the deposit, filing, or other
record whatsoever of a security agreement, conveyance intended to operate
as a mortgage, trust receipt, conditional sales contract, or similar instrument
or any copy of the same covering a motorboat. Any mortgage, conveyance intended
to operate as a security agreement as provided by article 9, Uniform Commercial
Code, trust receipt, conditional sales contract, or other similar instrument
covering a motorboat, if such instrument is accompanied by delivery of such
manufacturer's or importer's certificate and followed by actual and continued
possession of same by the holder of the instrument or, in the case of a certificate
of title, if a notation of same has been made electronically as prescribed
in subsection (1) of this section or by the county treasurer or the department
on the face of the certificate of title or on the electronic certificate of
title record, shall be valid as against the creditors of the debtor, whether
armed with process or not, and subsequent purchasers, secured parties, and
other lienholders or claimants, but otherwise shall not be valid against them,
except that during any period in which a motorboat is inventory, as defined
in section 9-102 , Uniform Commercial Code, held for sale by a person or corporation
that is in the business of selling motorboats, the filing provisions of article
9, Uniform Commercial Code, as applied to inventory, shall apply to a security
interest in the motorboat created by such person or corporation as debtor
without the notation of lien on the instrument of title. A buyer at retail
from a dealer of any motorboat in the ordinary course of business shall take
the motorboat free of any security interest.
(3) All liens, security agreements, and encumbrances noted upon a certificate
of title or an electronic certificate of title record and all liens noted
electronically as prescribed in subsection (1) of this section shall take
priority according to the order of time in which the same are noted on the
certificate of title by the county treasurer or
the department. Exposure for sale of any motorboat by the owner thereof with
the knowledge or with the knowledge and consent of the holder of any lien,
security agreement, or encumbrance on the motorboat shall not render the same
void or ineffective as against the creditors of the owner or holder of subsequent
liens, security agreements, or encumbrances upon the motorboat.
(4) Upon presentation of a security agreement, trust receipt, conditional
sales contract, or similar instrument to the county treasurer or department together
with the certificate of title and the fee prescribed by section 37-1287 , the
holder of such instrument may have a notation of the lien made on the face
of the certificate of title. The owner of a motorboat may present a valid
out-of-state certificate of title issued to such owner for such motorboat
with a notation of lien on such certificate of title and the prescribed fee
to the county treasurer or
department and have the notation of lien made on the new certificate of title
issued pursuant to section 37-1278 without presenting a copy of the lien instrument.
The county treasurer or
the department shall enter the notation and the date thereof over the signature
of the person making the notation and the seal of office. If noted by a county treasurer, he or she shall
on that day notify the department which shall note the lien on its records.
The county treasurer or
the department shall also indicate by appropriate notation and on such instrument
itself the fact that the lien has been noted on the certificate of title.
(5) The county treasurer or
the department, upon receipt of a lien instrument duly signed by the owner
in the manner prescribed by law governing such lien instruments together with
the fee prescribed for notation of lien, shall notify the first lienholder
to deliver to the county treasurer or
the department, within fifteen days from the date of notice, the certificate
of title to permit notation of such other lien and, after notation of such
other lien, the county treasurer or
the department shall deliver the certificate of title to the first lienholder.
The holder of a certificate of title who refuses to deliver a certificate
of title to the county treasurer or
the department for the purpose of showing such other lien on the certificate
of title within fifteen days from the date when notified to do so shall be
liable for damages to such other lienholder for the amount of damages such
other lienholder suffered by reason of the holder of the certificate of title
refusing to permit the showing of such lien on the certificate of title.
(6) Beginning on the implementation date of the electronic title and
lien system, upon receipt of a subsequent lien instrument duly signed by the
owner in the manner prescribed by law governing such lien instruments or a
notice of lien filed electronically, together with an application for notation
of the subsequent lien, the fee prescribed in section 37-1287 , and, if a printed
certificate of title exists, the presentation of the certificate of title,
the county treasurer or
department shall make notation of such other lien. If the certificate of title
is not an electronic certificate of title record, the county treasurer or department, upon
receipt of a lien instrument duly signed by the owner in the manner prescribed
by law governing such lien instruments together with the fee prescribed for
notation of lien, shall notify the first lienholder to deliver to the county treasurer or department, within
fifteen days after the date of notice, the certificate of title to permit
notation of such other lien. After such notation of lien, the lien shall become
part of the electronic certificate of title record created by the county treasurer or department which
is maintained on the electronic title and lien system. The holder of a certificate
of title who refuses to deliver a certificate of title to the county treasurer or department for
the purpose of noting such other lien on such certificate of title within
fifteen days after the date when notified to do so shall be liable for damages
to such other lienholder for the amount of damages such other lienholder suffered
by reason of the holder of the certificate of title refusing to permit the
noting of such lien on the certificate of title.
(7) When the lien is discharged, the holder shall, within fifteen days
after payment is received, note a cancellation of the lien on the face of
the certificate of title over his, her, or its signature and deliver the certificate
of title to the county treasurer or
the department which shall note the cancellation of the lien on the face of
the certificate of title and on the records of the office. If delivered to
a county treasurer, he
or she shall on that day notify the department which shall note the cancellation
on its records. The county treasurer or
the department shall then return the certificate of title to the owner or
as otherwise directed by the owner. The cancellation of the lien shall be
noted on the certificate of title without charge. For an electronic certificate
of title record, the lienholder shall, within fifteen days after payment is
received when such lien is discharged, notify the department electronically
or provide written notice of such lien release, in a manner prescribed by
the department, to the county treasurer or
department. The department shall note the cancellation of lien and, if no
other liens exist, issue the certificate of title to the owner or as otherwise
directed by the owner or lienholder. If the holder of the certificate of title
cannot locate a lienholder, a lien may be discharged ten years after the date
of filing by presenting proof that thirty days have passed since the mailing
of a written notice by certified mail, return receipt requested, to the last-known
address of the lienholder.

Legislative History

Source: Laws 1994, LB 123, § 10; Laws 1996, LB 464, § 18; Laws 1999, LB 550, § 7; Laws 2008, LB756, § 1; Laws 2009, LB202, § 5; Laws 2012, LB801, § 18. Cross References: Certificate of title, negligent execution by government employee, see sections 13-910 and 81-8,219.