HB 1403

1
A bill to be entitled
2An act relating to nonjudicial sale of vessels; amending
3s. 328.17, F.S.; revising notice requirements of a marina
4having a possessory lien on a vessel for unpaid costs,
5charges, or fees prior to nonjudicial sale of the vessel;
6reducing the time allowed to pay the fees, charges, and
7costs giving rise to the lien prior to sale of the vessel;
8revising requirements with respect to perfection of and
9priority over prior or other liens; providing an effective
10date.
11
12Be It Enacted by the Legislature of the State of Florida:
13
14     Section 1.  Subsections (4), (5), (7), (10), (11), and (12)
15of 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:
18     (a)  A possessory lien upon any vessel for storage fees,
19dockage fees, repairs, improvements, or other work-related
20storage charges, and for expenses necessary for preservation of
21the vessel or expenses reasonably incurred in the sale or other
22disposition of the vessel. The possessory lien shall attach as
23of the date the vessel is brought to the marina, or as of the
24date the vessel first occupies rental space at the marina
25facility. However, in the event of default, the marina must give
26notice to persons who hold perfected security interests against
27the vessel under the Uniform Commercial Code in which the owner
28is named as the debtor.
29     (b)  A possessory lien upon any vessel in a wrecked,
30junked, or substantially dismantled condition, which has been
31left docked, grounded, beached, or otherwise abandoned at a
32marina without consent of the marina owner, for expenses
33reasonably incurred in the removal and disposal of the vessel.
34The possessory lien shall attach as of the date the vessel is
35discovered at the marina facility. If the funds recovered from
36the sale of such a vessel, or from the scrap or salvage value of
37such a vessel, are insufficient to cover the expenses reasonably
38incurred by the marina in removing and disposing of the vessel,
39all costs in excess of recovery shall be recoverable against the
40owner of the vessel.
41     (5)  A marina's possessory lien may be satisfied as
42follows:
43     (a)1.  The marina shall provide written notice to the
44vessel's owner, delivered in person or by certified mail to the
45owner's last known address. The notice shall also be and
46conspicuously posted at the marina and on the vessel.
47     2.  In addition to notice provided to the vessel owner
48under subparagraph 1., the marina shall provide written notice
49to each person or entity that:
50     a.  Holds a security interest on the vessel as shown in the
51records of the Department of Highway Safety and Motor Vehicles
52with respect to state-titled vessels.
53     b.  Holds a preferred ship mortgage or has filed a claim of
54lien with the United States Coast Guard Vessel Documentation
55Center.
56     c.  Holds a security interest against the vessel under the
57Uniform Commercial Code.
58     d.  Has perfected a lien against the subject vessel by
59filing a judgment lien certificate pursuant to s. 55.201-55.209.
60     3.  When a vessel displays a foreign country identification
61or displays registration numbers from a state other than
62Florida, the marina shall conduct a reasonable lien search of
63the vessel registration records in the jurisdiction of registry
64to determine if there is a lienholder who is entitled to notice
65pursuant to subparagraph 2. Failure to discover a foreign
66national or non-Florida United States lienholder after a good
67faith effort to conduct such a lien search shall not prevent the
68sale or removal of a vessel from the marina to satisfy the
69marina's possessory lien or a purchaser, in good faith, from
70taking title of the vessel, pursuant to subsections (7) and
71(11).
72     4.  The requirements of subparagraph 2. shall be satisfied
73if the marina:
74     a.  Obtains ownership documentation for the vessel and
75trailer, if applicable, from the Department of Highway Safety
76and Motor Vehicles or other agency where the vessel is
77registered;
78     b.  Obtains an abstract from the United States Coast Guard
79for a vessel that is documented as defined in 46 U.S.C. s.
80301.01;
81     c.  Performs a current Uniform Commercial Code lien search;
82     d.  Performs a current Florida judgment lien certificate
83search; and
84     e.  Complies with subparagraph 3. with regard to vessels
85registered in a foreign country or in a state other than
86Florida.
87     5.  The written notice to the vessel owner and lienholders
88required by this paragraph shall be made at least 60 days prior
89to any sale of the vessel under this section recorded lienholder
90of such vessel registered with this state as shown by the
91records of the Department of Highway Safety and Motor Vehicles,
92at least 30 days prior to the proposed sale.
93     (b)  The notice shall include:
94     1.  An itemized statement of the marina's claim, showing
95the sum due at the time of the notice and the date upon which
96the sum became due.
97     2.  A description of the vessel.
98     3.  A demand for payment.
99     4.  A conspicuous statement that, unless the claim is paid
100within the time stated in the notice, the vessel will be
101advertised for sale or other disposition and will be sold or
102otherwise disposed of at a specified time and place.
103     5.  The name, street address, and telephone number of the
104marina that the owner may contact to respond to the notice.
105     (7)  If the fees, and costs, and late payment interest that
106give rise to such a lien are due and unpaid 60 120 days after
107the vessel owner and lienholder are is given written notice, the
108marina may sell the vessel, including its machinery, rigging,
109and accessories as provided for in subsection (8) or the marina
110may, at its option, remove the vessel from the marina or from
111the waters of the state at the owner's expense pursuant to
112paragraph (4)(b).
113     (10)  Before any sale or other disposition of the vessel
114pursuant to this section, the owner or the lienholder may pay
115the amount necessary to satisfy the lien and the reasonable
116expenses and late payment interest incurred under this section
117and thereby redeem and take possession of the vessel. Upon
118receipt of such payment, the marina shall return the property to
119the owner or lienholder making such payment and thereafter shall
120have no liability to any person with respect to such vessel.
121     (11)  Unless otherwise provided by law, a purchaser in good
122faith of a vessel sold to satisfy a lien provided for in this
123section takes the property free of any claims other than a prior
124lien perfected under state or federal law the Uniform Commercial
125Code, despite noncompliance by the marina with the requirements
126of this section.
127     (12)  In the event of a sale under this section, the marina
128may satisfy its lien from the proceeds of the sale, provided the
129marina's lien has priority over all other liens on the vessel
130other than a prior lien perfected under the Uniform Commercial
131Code. The lien rights of secured lienholders are automatically
132also attach transferred to the remaining proceeds of the sale.
133The balance, if any, shall be held by the marina for delivery on
134demand to the owner. A notice of any balance shall be delivered
135by the marina to the owner in person or by certified mail to the
136last known address of the owner. If the owner does not claim the
137balance of the proceeds within 1 year after the date of sale,
138the proceeds shall be deemed abandoned, and the marina shall
139have no further obligation with regard to the payment of the
140balance. In the event that the marina's lien does not have
141priority over all other liens, the sale proceeds shall be held
142for the benefit of the holders of those liens having priority. A
143notice of the amount of the sale proceeds shall be delivered by
144the marina to the owner or secured lienholder in person or by
145certified mail to the owner's or the secured lienholder's last
146known address. If the owner or the secured lienholder does not
147claim the sale proceeds within 1 year after the date of sale,
148the proceeds shall be deemed abandoned, and the owner or the
149secured lienholder shall have no further obligation with regard
150to the payment of the proceeds.
151     Section 2.  This act shall take effect July 1, 2005.


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