Senate Bill sb0648c1
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Florida Senate - 2006 CS for SB 648
By the Committee on Judiciary; and Senator Campbell
590-1829-06
1 A bill to be entitled
2 An act relating to nonjudicial sale of vessels;
3 amending s. 328.17, F.S.; revising notice
4 requirements of a marina having a possessory
5 lien on a vessel for unpaid costs, charges, or
6 fees prior to nonjudicial sale of the vessel;
7 reducing the time allowed to pay the fees,
8 charges, and costs giving rise to the lien
9 prior to sale of the vessel; revising
10 requirements with respect to perfection of and
11 priority over prior or other liens; providing
12 an effective date.
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14 Be It Enacted by the Legislature of the State of Florida:
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16 Section 1. Subsections (4), (5), (7), (10), (11), and
17 (12) of section 328.17, Florida Statutes, are amended to read:
18 328.17 Nonjudicial sale of vessels.--
19 (4) A marina, as defined in s. 327.02(19), shall have:
20 (a) A possessory lien upon any vessel for storage
21 fees, dockage fees, repairs, improvements, or other
22 work-related storage charges, and for expenses necessary for
23 preservation of the vessel or expenses reasonably incurred in
24 the sale or other disposition of the vessel. The possessory
25 lien shall attach as of the date the vessel is brought to the
26 marina, or as of the date the vessel first occupies rental
27 space at the marina facility. However, in the event of
28 default, the marina must give notice to persons who hold
29 perfected security interests against the vessel under the
30 Uniform Commercial Code in which the owner is named as the
31 debtor.
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Florida Senate - 2006 CS for SB 648
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1 (b) A possessory lien upon any vessel in a wrecked,
2 junked, or substantially dismantled condition, which has been
3 left abandoned at the marina, for expenses reasonably incurred
4 in the removal and disposal of the vessel. The possessory lien
5 shall attach as of the date the vessel arrives at the marina
6 or as of the date the vessel first occupies rental space at
7 the marina facility. If the funds recovered from the sale of
8 the vessel, or from the scrap or salvage value of the vessel,
9 are insufficient to cover the expenses reasonably incurred by
10 the marina in removing and disposing of the vessel, all costs
11 in excess of recovery shall be recoverable against the owner
12 of the vessel. For a vessel damaged as a result of a named
13 storm, the provisions of this paragraph shall be suspended for
14 60 days following the date the vessel is damaged in the named
15 storm. The operation of the provisions specified in this
16 paragraph run concurrently with, and do not extend, the 60-day
17 notice periods provided in subsections (5) and (7).
18 (5) A marina's possessory lien may be satisfied as
19 follows:
20 (a)1. The marina shall provide written notice to the
21 vessel's owner, delivered in person or by certified mail to
22 the owner's last known address. The notice shall also be and
23 conspicuously posted at the marina and on the vessel.
24 2. In addition to notice provided to the vessel owner
25 under subparagraph 1., the marina shall provide written notice
26 to each person or entity that:
27 a. Holds a security interest on the vessel as shown in
28 the records of the Department of Highway Safety and Motor
29 Vehicles with respect to state-titled vessels.
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Florida Senate - 2006 CS for SB 648
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1 b. Holds a preferred ship mortgage or has filed a
2 claim of lien with the United States Coast Guard Vessel
3 Documentation Center.
4 c. Holds a security interest against the vessel under
5 the Uniform Commercial Code.
6 d. Has perfected a lien against the subject vessel by
7 filing a judgment lien certificate pursuant to ss.
8 55.201-55.209.
9 3. When a vessel displays a foreign country
10 identification or displays registration numbers from a state
11 other than Florida, the marina shall conduct a reasonable lien
12 search of the vessel registration records in the jurisdiction
13 of registry to determine if there is a lienholder who is
14 entitled to notice pursuant to subparagraph 2. The failure to
15 discover a foreign national or non-Florida United States
16 lienholder after a good faith effort to conduct such a lien
17 search does not prevent the sale or removal of a vessel from
18 the marina to satisfy the marina's possessory lien or a
19 purchaser, in good faith, from taking title of the vessel,
20 pursuant to subsections (7) and (11).
21 4. The requirements of subparagraph 2. are satisfied
22 if the marina:
23 a. Obtains ownership documentation for the vessel and
24 trailer, if applicable, from the Department of Highway Safety
25 and Motor Vehicles or other agency where the vessel is
26 registered;
27 b. Obtains an abstract from the United States Coast
28 Guard for a vessel that is documented as defined in 46 U.S.C.
29 s. 30101;
30 c. Performs a current Uniform Commercial Code lien
31 search;
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Florida Senate - 2006 CS for SB 648
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1 d. Performs a current Florida judgment lien
2 certificate search; and
3 e. Complies with subparagraph 3. with regard to
4 vessels registered in a foreign country or in a state other
5 than Florida.
6 5. The written notice to the vessel owner and
7 lienholders required by this paragraph must be made at least
8 60 days before any sale of the vessel under this section
9 recorded lienholder of such vessel registered with this state
10 as shown by the records of the Department of Highway Safety
11 and Motor Vehicles, at least 30 days prior to the proposed
12 sale.
13 (b) The notice shall include:
14 1. An itemized statement of the marina's claim,
15 showing the sum due at the time of the notice and the date
16 upon which the sum became due.
17 2. A description of the vessel.
18 3. A demand for payment.
19 4. A conspicuous statement that, unless the claim is
20 paid within the time stated in the notice, the vessel will be
21 advertised for sale or other disposition and will be sold or
22 otherwise disposed of at a specified time and place.
23 5. The name, street address, and telephone number of
24 the marina that the owner or lienholder may contact to respond
25 to the notice.
26 (7) If the fees, and costs, and late payment interest
27 that give rise to such a lien are due and unpaid 60 120 days
28 after the vessel owner and lienholder are is given written
29 notice, the marina may sell the vessel, including its
30 machinery, rigging, and accessories as provided for in
31 subsection (8) or the marina may remove the vessel from the
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Florida Senate - 2006 CS for SB 648
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1 marina or from the waters of the state at the owner's expense
2 pursuant to paragraph (4)(b).
3 (10) Before any sale or other disposition of the
4 vessel pursuant to this section, the owner or the lienholder
5 may pay the amount necessary to satisfy the lien and the
6 reasonable expenses and late payment interest incurred under
7 this section and thereby redeem and take possession of the
8 vessel. Upon receipt of such payment, the marina shall return
9 the property to the owner or lienholder making such payment
10 and thereafter shall have no liability to any person with
11 respect to such vessel.
12 (11) Unless otherwise provided by law, a purchaser in
13 good faith of a vessel sold to satisfy a lien provided for in
14 this section takes the property free of any claims other than
15 a prior lien perfected under state or federal law the Uniform
16 Commercial Code, despite noncompliance by the marina with the
17 requirements of this section.
18 (12) In the event of a sale under this section, the
19 marina may satisfy its lien from the proceeds of the sale,
20 provided the marina's lien has priority over all other liens
21 on the vessel other than a prior lien perfected under the
22 Uniform Commercial Code. The lien rights of secured
23 lienholders are automatically also attach transferred to the
24 remaining proceeds of the sale. The balance, if any, shall be
25 held by the marina for delivery on demand to the owner. A
26 notice of any balance shall be delivered by the marina to the
27 owner in person or by certified mail to the last known address
28 of the owner. If the owner does not claim the balance of the
29 proceeds within 1 year after the date of sale, the proceeds
30 shall be deemed abandoned, and the marina shall have no
31 further obligation with regard to the payment of the balance.
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Florida Senate - 2006 CS for SB 648
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1 In the event that the marina's lien does not have priority
2 over all other liens, the sale proceeds shall be held for the
3 benefit of the holders of those liens having priority. A
4 notice of the amount of the sale proceeds shall be delivered
5 by the marina to the owner or secured lienholder in person or
6 by certified mail to the owner's or the secured lienholder's
7 last known address. If the owner or the secured lienholder
8 does not claim the sale proceeds within 1 year after the date
9 of sale, the proceeds shall be deemed abandoned, and the owner
10 or the secured lienholder shall have no further obligation
11 with regard to the payment of the proceeds.
12 Section 2. This act shall take effect July 1, 2006.
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14 STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
COMMITTEE SUBSTITUTE FOR
15 Senate Bill 648
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17 The committee substitute changes the underlying bill by:
18 -- Revising the proposed possessory lien for wrecked vessels
that are abandoned at a marina, to provide that the lien
19 provisions are suspended for 60 days following the date a
vessel is damaged in a named storm.
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-- Making technical and conforming changes.
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