AN ACT to amend the Indiana Code concerning property.
SECTION 1. IC 32-8-40 IS ADDED TO THE INDIANA CODE AS
A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2001]:
Chapter 40. Sale of Abandoned Watercraft
Sec. 1. As used in this chapter, "marina operator" means a
person, a firm, a corporation, a limited liability company, a
municipality, or another unit of government that is engaged in the
business of operating a marina.
Sec. 2. A marina operator may:
(1) sell a watercraft that has been left without permission at
the marina for more than six (6) months; and
(2) recover the operator's reasonable maintenance, repair,
dockage, storage, and other charges if the conditions
described in section 3 of this chapter are met.
Sec. 3. The minimum six (6) month period described in section
2 of this chapter begins the day written notice is sent by the marina
operator to the last known address of the owner of the watercraft
or personally delivered to the owner of the watercraft. If the notice
is mailed, the marina operator shall send notice by certified mail,
return receipt requested. Notice, by mail or personally delivered,
must include a description of the watercraft and a conspicuous
statement that the watercraft is at the marina without permission
of the marina.
Sec. 4. The marina operator shall:
(1) perform a search of watercraft titles for the name and
address of the owner of the watercraft and the name and
address of any person holding a lien or security interest on the
watercraft. The marina operator shall conduct the search
required by this subdivision in the following order:
(A) First, in the records of the state of registration as
indicated on the exterior of the watercraft.
(B) Second, in the United States Coast Guard registration
records maintained by the National Vessel Documentation
Center.
(C) Third, in the records of the bureau of motor vehicles.
(2) after receiving the results of the search required by
subdivision (1), give notice by certified mail, return receipt
requested, or in person, to the last known address of the
owner of the watercraft, to any lien holder with a perfected
security interest in the watercraft, and to all other persons
known to claim an interest in the watercraft. The notice must
include an itemized statement of the charges, a description of
the watercraft, a demand for payment within a specified time
not less than ten (10) days after receipt of the notice, and a
conspicuous statement that unless the charges are paid within
that time, the watercraft will be advertised for sale and sold
by auction at a specified time and place;
(3) advertise that the watercraft will be sold at public auction
in conformity with the provisions of IC 26-1-7-210 and
IC 26-1-2-328. The advertisement of sale must be published
once a week for two (2) consecutive weeks in a newspaper of
general circulation in the county where the watercraft has
been left without permission. The advertisement must include
a description of the watercraft, the name of the person on
whose account the watercraft is being held, and the time and
place of the sale. The sale must take place at least fifteen (15)
days after the first publication. If there is no newspaper of
general circulation where the sale is to be held, the
advertisement must be posted at least ten (10) days before the
sale in not less than six (6) conspicuous places in the
neighborhood of the proposed sale;
(4) conduct an auction sale, not less than thirty (30) days after
the return receipt is received by the marina operator, on the
marina property where the watercraft was left without
permission;
(5) provide a reasonable time before the sale for prospective
purchasers to examine the watercraft;
(6) sell the watercraft to the highest bidder; and
(7) immediately after the auction sale, execute an affidavit of
sale in triplicate on a form prescribed by the bureau of motor
vehicles stating:
(A) that the requirements of this section have been met;
(B) the length of time that the watercraft was left on the
marina property without permission;
(C) the expenses incurred by the marina operator,
including the expenses of the sale;
(D) the name and address of the purchaser of the
watercraft at the auction sale; and
(E) the amount of the winning bid.
Sec. 5. Upon payment of the bid price by the purchaser, the
marina operator shall provide the purchaser with the affidavit of
sale described in this chapter.
Sec. 6. The affidavit of sale under this chapter constitutes proof
of ownership and right to possession under IC 9-31-2-16.
Sec. 7. After the purchaser:
(1) presents the bureau of motor vehicles with the affidavit of
sale;
(2) completes an application for title; and
(3) pays any applicable fee;
the bureau shall issue to the purchaser a certificate of title to the
watercraft.
Sec. 8. If a boat is sold under this chapter for an amount of
money that is greater than the charges owed to the marina
operator plus all reasonable expenses of sale, the marina operator
shall pay the excess in the following order:
(1) For the satisfaction of obligations held by secured parties
with respect to the watercraft, in the order in which security
interests in the watercraft were perfected.
(2) To the owner of the watercraft.
SECTION 2. [EFFECTIVE JULY 1, 2001] This chapter applies to
all watercraft located on the property of a marina after January 1,
2001.