| 1 | A bill to be entitled |
| 2 | An act relating to nonjudicial sale of vessels; amending |
| 3 | s. 328.17, F.S.; revising notice requirements of a marina |
| 4 | having a possessory lien on a vessel for unpaid costs, |
| 5 | charges, or fees prior to nonjudicial sale of the vessel; |
| 6 | reducing the time allowed to pay the fees, charges, and |
| 7 | costs giving rise to the lien prior to sale of the vessel; |
| 8 | revising requirements with respect to perfection of and |
| 9 | priority over prior or other liens; providing an effective |
| 10 | date. |
| 11 |
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| 12 | Be It Enacted by the Legislature of the State of Florida: |
| 13 |
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| 14 | Section 1. Subsections (4), (5), (7), (10), (11), and (12) |
| 15 | of section 328.17, Florida Statutes, are amended to read: |
| 16 | 328.17 Nonjudicial sale of vessels.-- |
| 17 | (4) A marina, as defined in s. 327.02(19), shall have a |
| 18 | possessory lien upon any vessel for storage fees, dockage fees, |
| 19 | repairs, improvements, or other work-related storage charges, |
| 20 | and for expenses necessary for preservation of the vessel or |
| 21 | expenses reasonably incurred in the sale or other disposition of |
| 22 | the vessel. The possessory lien shall attach as of the date the |
| 23 | vessel is brought to the marina, or as of the date the vessel |
| 24 | first occupies rental space at the marina facility. However, in |
| 25 | the event of default, the marina must give notice to persons who |
| 26 | hold perfected security interests against the vessel under the |
| 27 | Uniform Commercial Code in which the owner is named as the |
| 28 | debtor. |
| 29 | (5) A marina's possessory lien may be satisfied as |
| 30 | follows: |
| 31 | (a)1. The marina shall provide written notice to the |
| 32 | vessel's owner, delivered in person or by certified mail to the |
| 33 | owner's last known address. The notice shall also be and |
| 34 | conspicuously posted at the marina and on the vessel. |
| 35 | 2. In addition to notice provided to the vessel owner |
| 36 | under subparagraph 1., the marina shall provide written notice |
| 37 | to each person or entity that: |
| 38 | a. Holds a security interest on the vessel as shown in the |
| 39 | records of the Department of Highway Safety and Motor Vehicles |
| 40 | with respect to state-titled vessels; |
| 41 | b. Holds a preferred ship mortgage or has filed a claim of |
| 42 | lien with the United States Coast Guard Vessel Documentation |
| 43 | Center; |
| 44 | c. Is known by the marina to possess a maritime lien |
| 45 | against the vessel pursuant to 46 U.S.C. ss. 31301-31343 or |
| 46 | other applicable federal maritime law; or |
| 47 | d. Has perfected a lien against the subject vessel by |
| 48 | filing a judgment lien certificate pursuant to s. 55.201-55.209. |
| 49 | 3. In furtherance of the requirements of subparagraph 2., |
| 50 | the marina shall: |
| 51 | a. Obtain a copy of the title for the vessel and trailer, |
| 52 | if applicable, from the Department of Highway Safety and Motor |
| 53 | Vehicles or other agency where the vessel is registered. |
| 54 | b. Obtain an abstract from the United States Coast Guard |
| 55 | for a vessel that is documented as defined in 46 U.S.C. s. |
| 56 | 301.01. |
| 57 | c. Conduct a current Uniform Commercial Code lien search. |
| 58 | d. Conduct a current Florida judgment lien certificate |
| 59 | search. |
| 60 | 4. A written notice required by this paragraph shall be |
| 61 | made at least 60 days prior to any sale of the vessel under this |
| 62 | section recorded lienholder of such vessel registered with this |
| 63 | state as shown by the records of the Department of Highway |
| 64 | Safety and Motor Vehicles, at least 30 days prior to the |
| 65 | proposed sale. |
| 66 | (b) The notice shall include: |
| 67 | 1. An itemized statement of the marina's claim, showing |
| 68 | the sum due at the time of the notice and the date upon which |
| 69 | the sum became due. |
| 70 | 2. A description of the vessel. |
| 71 | 3. A demand for payment. |
| 72 | 4. A conspicuous statement that, unless the claim is paid |
| 73 | within the time stated in the notice, the vessel will be |
| 74 | advertised for sale or other disposition and will be sold or |
| 75 | otherwise disposed of at a specified time and place. |
| 76 | 5. The name, street address, and telephone number of the |
| 77 | marina that the owner may contact to respond to the notice. |
| 78 | (7) If the fees, charges, and costs that give rise to such |
| 79 | a lien are due and unpaid 60 120 days after the vessel owner and |
| 80 | lienholder are is given written notice, the marina may sell the |
| 81 | vessel, including its machinery, rigging, and accessories as |
| 82 | provided for in subsection (8). |
| 83 | (10) Before any sale or other disposition of the vessel |
| 84 | pursuant to this section, the owner, or the holder of any |
| 85 | perfected lien who is entitled to possession of the vessel, may |
| 86 | pay the amount necessary to satisfy the lien and the reasonable |
| 87 | expenses incurred under this section and thereby redeem and take |
| 88 | possession of the vessel. Upon receipt of such payment, the |
| 89 | marina shall return the property to the person owner and |
| 90 | thereafter shall have no liability to any person with respect to |
| 91 | such vessel. |
| 92 | (11) Unless otherwise provided by law, a purchaser in good |
| 93 | faith of a vessel sold to satisfy a lien provided for in this |
| 94 | section takes the property free of any claims other than a prior |
| 95 | lien perfected under state or federal law the Uniform Commercial |
| 96 | Code, despite noncompliance by the marina with the requirements |
| 97 | of this section. |
| 98 | (12) In the event of a sale under this section, the marina |
| 99 | may satisfy its lien from the proceeds of the sale, provided the |
| 100 | marina's lien has priority over all other liens on the vessel |
| 101 | other than a prior lien perfected under the Uniform Commercial |
| 102 | Code. The lien rights of secured lienholders are automatically |
| 103 | also attach transferred to the remaining proceeds of the sale. |
| 104 | The balance, if any, shall be held by the marina for delivery on |
| 105 | demand to the owner. A notice of any balance shall be delivered |
| 106 | by the marina to the owner in person or by certified mail to the |
| 107 | last known address of the owner. If the owner does not claim the |
| 108 | balance of the proceeds within 1 year after the date of sale, |
| 109 | the proceeds shall be deemed abandoned, and the marina shall |
| 110 | have no further obligation with regard to the payment of the |
| 111 | balance. In the event that the marina's lien does not have |
| 112 | priority over all other liens, the sale proceeds shall be held |
| 113 | for the benefit of the holders of those liens having priority. A |
| 114 | notice of the amount of the sale proceeds shall be delivered by |
| 115 | the marina to the owner or secured lienholder in person or by |
| 116 | certified mail to the owner's or the secured lienholder's last |
| 117 | known address. If the owner or the secured lienholder does not |
| 118 | claim the sale proceeds within 1 year after the date of sale, |
| 119 | the proceeds shall be deemed abandoned, and the owner or the |
| 120 | secured lienholder shall have no further obligation with regard |
| 121 | to the payment of the proceeds. |
| 122 | Section 2. This act shall take effect July 1, 2005. |