HB 1403CS

CHAMBER ACTION




1The Transportation Committee recommends the following:
2
3     Council/Committee Substitute
4     Remove the entire bill and insert:
5
A bill to be entitled
6An act relating to nonjudicial sale of vessels; amending
7s. 328.17, F.S.; revising notice requirements of a marina
8having a possessory lien on a vessel for unpaid costs,
9charges, or fees prior to nonjudicial sale of the vessel;
10reducing the time allowed to pay the fees, charges, and
11costs giving rise to the lien prior to sale of the vessel;
12revising requirements with respect to perfection of and
13priority over prior or other liens; providing an effective
14date.
15
16Be It Enacted by the Legislature of the State of Florida:
17
18     Section 1.  Subsections (4), (5), (7), (10), (11), and (12)
19of section 328.17, Florida Statutes, are amended to read:
20     328.17  Nonjudicial sale of vessels.--
21     (4)  A marina, as defined in s. 327.02(19), shall have:
22     (a)  A possessory lien upon any vessel for storage fees,
23dockage fees, repairs, improvements, or other work-related
24storage charges, and for expenses necessary for preservation of
25the vessel or expenses reasonably incurred in the sale or other
26disposition of the vessel. The possessory lien shall attach as
27of the date the vessel is brought to the marina, or as of the
28date the vessel first occupies rental space at the marina
29facility. However, in the event of default, the marina must give
30notice to persons who hold perfected security interests against
31the vessel under the Uniform Commercial Code in which the owner
32is named as the debtor.
33     (b)  A possessory lien upon any vessel in a wrecked,
34junked, or substantially dismantled condition, which has been
35left docked, grounded, beached, or otherwise abandoned at a
36marina without consent of the marina owner, for expenses
37reasonably incurred in the removal and disposal of the vessel.
38The possessory lien shall attach as of the date the vessel is
39discovered at the marina facility. If the funds recovered from
40the sale of such a vessel, or from the scrap or salvage value of
41such a vessel, are insufficient to cover the expenses reasonably
42incurred by the marina in removing and disposing of the vessel,
43all costs in excess of recovery shall be recoverable against the
44owner of the vessel.
45     (5)  A marina's possessory lien may be satisfied as
46follows:
47     (a)1.  The marina shall provide written notice to the
48vessel's owner, delivered in person or by certified mail to the
49owner's last known address. The notice shall also be and
50conspicuously posted at the marina and on the vessel.
51     2.  In addition to notice provided to the vessel owner
52under subparagraph 1., the marina shall provide written notice
53to each person or entity that:
54     a.  Holds a security interest on the vessel as shown in the
55records of the Department of Highway Safety and Motor Vehicles
56with respect to state-titled vessels.
57     b.  Holds a preferred ship mortgage or has filed a claim of
58lien with the United States Coast Guard Vessel Documentation
59Center.
60     c.  Holds a security interest against the vessel under the
61Uniform Commercial Code.
62     d.  Has perfected a lien against the subject vessel by
63filing a judgment lien certificate pursuant to s. 55.201-55.209.
64     3.  When a vessel displays a foreign country identification
65or displays registration numbers from a state other than
66Florida, the marina shall conduct a reasonable lien search of
67the vessel registration records in the jurisdiction of registry
68to determine if there is a lienholder who is entitled to notice
69pursuant to subparagraph 2. Failure to discover a foreign
70national or non-Florida United States lienholder after a good
71faith effort to conduct such a lien search shall not prevent the
72sale or removal of a vessel from the marina to satisfy the
73marina's possessory lien or a purchaser, in good faith, from
74taking title of the vessel, pursuant to subsections (7) and
75(11).
76     4.  The requirements of subparagraph 2. shall be satisfied
77if the marina:
78     a.  Obtains a copy of the title for the vessel and trailer,
79if applicable, from the Department of Highway Safety and Motor
80Vehicles or other agency where the vessel is registered;
81     b.  Obtains an abstract from the United States Coast Guard
82for a vessel that is documented as defined in 46 U.S.C. s.
83301.01;
84     c.  Performs a current Uniform Commercial Code lien search;
85     d.  Performs a current Florida judgment lien certificate
86search; and
87     e.  Complies with subparagraph 3. with regard to vessels
88registered in a foreign country or in a state other than
89Florida.
90     5.  The written notice to the vessel owner and lienholders
91required by this paragraph shall be made at least 60 days prior
92to any sale of the vessel under this section recorded lienholder
93of such vessel registered with this state as shown by the
94records of the Department of Highway Safety and Motor Vehicles,
95at least 30 days prior to the proposed sale.
96     (b)  The notice shall include:
97     1.  An itemized statement of the marina's claim, showing
98the sum due at the time of the notice and the date upon which
99the sum became due.
100     2.  A description of the vessel.
101     3.  A demand for payment.
102     4.  A conspicuous statement that, unless the claim is paid
103within the time stated in the notice, the vessel will be
104advertised for sale or other disposition and will be sold or
105otherwise disposed of at a specified time and place.
106     5.  The name, street address, and telephone number of the
107marina that the owner may contact to respond to the notice.
108     (7)  If the fees, and costs, and late payment interest that
109give rise to such a lien are due and unpaid 60 120 days after
110the vessel owner and lienholder are is given written notice, the
111marina may sell the vessel, including its machinery, rigging,
112and accessories as provided for in subsection (8) or the marina
113may, at its option, remove the vessel from the marina or from
114the waters of the state at the owner's expense pursuant to
115paragraph (4)(b).
116     (10)  Before any sale or other disposition of the vessel
117pursuant to this section, the owner or the lienholder may pay
118the amount necessary to satisfy the lien and the reasonable
119expenses and late payment interest incurred under this section
120and thereby redeem and take possession of the vessel. Upon
121receipt of such payment, the marina shall return the property to
122the owner or lienholder making such payment and thereafter shall
123have no liability to any person with respect to such vessel.
124     (11)  Unless otherwise provided by law, a purchaser in good
125faith of a vessel sold to satisfy a lien provided for in this
126section takes the property free of any claims other than a prior
127lien perfected under state or federal law the Uniform Commercial
128Code, despite noncompliance by the marina with the requirements
129of this section.
130     (12)  In the event of a sale under this section, the marina
131may satisfy its lien from the proceeds of the sale, provided the
132marina's lien has priority over all other liens on the vessel
133other than a prior lien perfected under the Uniform Commercial
134Code. The lien rights of secured lienholders are automatically
135also attach transferred to the remaining proceeds of the sale.
136The balance, if any, shall be held by the marina for delivery on
137demand to the owner. A notice of any balance shall be delivered
138by the marina to the owner in person or by certified mail to the
139last known address of the owner. If the owner does not claim the
140balance of the proceeds within 1 year after the date of sale,
141the proceeds shall be deemed abandoned, and the marina shall
142have no further obligation with regard to the payment of the
143balance. In the event that the marina's lien does not have
144priority over all other liens, the sale proceeds shall be held
145for the benefit of the holders of those liens having priority. A
146notice of the amount of the sale proceeds shall be delivered by
147the marina to the owner or secured lienholder in person or by
148certified mail to the owner's or the secured lienholder's last
149known address. If the owner or the secured lienholder does not
150claim the sale proceeds within 1 year after the date of sale,
151the proceeds shall be deemed abandoned, and the owner or the
152secured lienholder shall have no further obligation with regard
153to the payment of the proceeds.
154     Section 2.  This act shall take effect July 1, 2005.


CODING: Words stricken are deletions; words underlined are additions.