Senate Bill sb2652c1

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    Florida Senate - 2003                           CS for SB 2652

    By the Committee on Judiciary; and Senator Aronberg





    308-2470-03

  1                      A bill to be entitled

  2         An act relating to vessels; amending s. 328.17,

  3         F.S.; revising provisions with respect to the

  4         nonjudicial sale of vessels; providing an

  5         effective date.

  6  

  7  Be It Enacted by the Legislature of the State of Florida:

  8  

  9         Section 1.  Section 328.17, Florida Statutes, is

10  amended to read:

11         (Substantial rewording of section. See

12         s. 328.17, F.S., for present text.)

13         328.17  Nonjudicial sale of vessels.--

14         (1)  It is the intent of the Legislature that any

15  nonjudicial sale of any vessel held for unpaid costs, storage

16  charges, or dockage fees, or any vessel held for failure to

17  pay removal costs pursuant to s. 327.53(7), be disposed of

18  pursuant to the provisions of this section.

19         (2)  The Department of Highway Safety and Motor

20  Vehicles shall provide certification forms for the nonjudicial

21  sale of vessels as authorized by this section.

22         (3)  For purposes of this section, "owner" shall mean

23  the person holding title to the vessel, or any person the

24  marina reasonably believes to be authorized to act for the

25  vessel.

26         (4)  A marina, as defined in s. 327.02(19), shall have

27  a possessory lien upon any vessel for storage fees, dockage

28  fees, repairs, improvements, or other work-related storage

29  charges, and for expenses necessary for preservation of the

30  vessel or expenses reasonably incurred in the sale or other

31  disposition of the vessel. The possessory lien shall attach as

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    Florida Senate - 2003                           CS for SB 2652
    308-2470-03




 1  of the date the vessel is brought to the marina, or as of the

 2  date the vessel first occupies rental space at the marina

 3  facility. However, in the event of default, the marina must

 4  give notice to persons who hold perfected security interests

 5  against the vessel under the Uniform Commercial Code in which

 6  the owner is named as the debtor.

 7         (5)  A marina's possessory lien may be satisfied as

 8  follows:

 9         (a)  The marina shall provide written notice to the

10  vessel's owner, delivered in person or by certified mail to

11  the owner's last known address and conspicuously posted at the

12  marina and on the vessel. In addition, the marina shall

13  provide written notice to each recorded lienholder of such

14  vessel registered with this state as shown by the records of

15  the Department of Highway Safety and Motor Vehicles, at least

16  30 days prior to the proposed sale.

17         (b)  The notice shall include:

18         1.  An itemized statement of the marina's claim,

19  showing the sum due at the time of the notice and the date

20  upon which the sum became due.

21         2.  A description of the vessel.

22         3.  A demand for payment.

23         4.  A conspicuous statement that, unless the claim is

24  paid within the time stated in the notice, the vessel will be

25  advertised for sale or other disposition and will be sold or

26  otherwise disposed of at a specified time and place.

27         5.  The name, street address, and telephone number of

28  the marina that the owner may contact to respond to the

29  notice.

30         (6)  Any notice given pursuant to this section shall be

31  presumed delivered when it is deposited with the United States

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    Florida Senate - 2003                           CS for SB 2652
    308-2470-03




 1  Postal Service, certified, and properly addressed with postage

 2  prepaid.

 3         (7)  If the fees and costs that give rise to such a

 4  lien are due and unpaid 120 days after the vessel owner is

 5  given written notice, the marina may sell the vessel,

 6  including its machinery, rigging, and accessories as provided

 7  for in subsection (8).

 8         (8)  The marina shall first publish an advertisement of

 9  the sale or other disposition once a week for 2 consecutive

10  weeks in a newspaper of general circulation in the area in

11  which the marina is located. Inasmuch as any sale may involve

12  more than one vessel, a single advertisement may be used to

13  dispose of more than one vessel at any one sale.

14         (a)  The advertisement shall include:

15         1.  A brief and general description of the vessel.

16         2.  The address of the marina facility or the address

17  where the marina is located and the name of the owner of the

18  vessel.

19         3.  The time, place, and manner of the sale or other

20  disposition. The sale or other disposition shall take place no

21  sooner than 15 days after the first publication.

22         (b)  If there is no newspaper of general circulation in

23  the area in which the marina is located, the advertisement

24  shall be posted at least 10 days before the date of the sale

25  or other disposition in no fewer than three conspicuous places

26  in the neighborhood in which the marina is located.

27         (9)  Any sale or other disposition of the vessel shall

28  conform to the terms of the notification as provided for in

29  this section and shall be conducted in a commercially

30  reasonable manner, as that term is used in s. 679.610.

31  

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    Florida Senate - 2003                           CS for SB 2652
    308-2470-03




 1         (10)  Before any sale or other disposition of the

 2  vessel pursuant to this section, the owner may pay the amount

 3  necessary to satisfy the lien and the reasonable expenses

 4  incurred under this section and thereby redeem the vessel.

 5  Upon receipt of such payment, the marina shall return the

 6  property to the owner and thereafter shall have no liability

 7  to any person with respect to the vessel.

 8         (11)  Unless otherwise provided by law, a purchaser in

 9  good faith of a vessel sold to satisfy a lien provided for in

10  this section takes the property free of any claims, other than

11  a prior lien perfected under the Uniform Commercial Code,

12  despite noncompliance by the marina with the requirements of

13  this section.

14         (12)  In the event of a sale under this section, the

15  marina may satisfy its lien from the proceeds of the sale,

16  provided the marina's lien has priority over all other liens

17  on the vessel, other than a prior lien perfected under the

18  Uniform Commercial Code. The lien rights of secured

19  lienholders are automatically transferred to the remaining

20  proceeds of the sale. The balance, if any, shall be held by

21  the marina for delivery on demand to the owner. A notice of

22  any balance shall be delivered by the marina to the owner in

23  person or by certified mail to the last known address of the

24  owner. If the owner does not claim the balance of the proceeds

25  within 1 year after the date of sale, the proceeds shall be

26  deemed abandoned, and the marina shall have no further

27  obligation with regard to the payment of the balance. In the

28  event that the marina's lien does not have priority over all

29  other liens, the sale proceeds shall be held for the benefit

30  of the holders of those liens having priority. A notice of the

31  amount of the sale proceeds shall be delivered by the marina

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    Florida Senate - 2003                           CS for SB 2652
    308-2470-03




 1  to the owner or secured lienholder in person or by certified

 2  mail to the owner's or the secured lienholder's last known

 3  address. If the owner or the secured lienholder does not claim

 4  the sale proceeds within 1 year after the date of sale, the

 5  proceeds shall be deemed abandoned, and the owner or the

 6  secured lienholder shall have no further obligation with

 7  regard to the payment of the proceeds.

 8         (13)  In making application for transfer of title of a

 9  vessel sold pursuant to this section, the new owner shall

10  establish proof of ownership by submitting with the

11  application, which includes the applicable fees and the

12  original bill of sale executed by the marina, a copy of each

13  registered or certified letter sent by the marina to the

14  previous owner and lienholder and a certified copy of the

15  public notice of intent to sell published in a newspaper of

16  general circulation in the county in which the marina is

17  located. At the time the purchase price is paid, the marina

18  shall provide the documentation required by this subsection to

19  the purchaser.

20         Section 2.  This act shall take effect upon becoming a

21  law.

22  

23          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
24                         Senate Bill 2652

25                                 

26  Provides that marina liens are subordinate to prior liens
    perfected under the Uniform Commercial Code.
27  
    Provides that good faith buyer of vessel takes free of any
28  claims except those prior liens perfected under the Uniform
    Commercial Code.
29  

30  

31  

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