Transfer of ownership by secured party's transfer statement

(a) As used in this section, "secured party's transfer statement" means a record signed by the secured party of record stating: (1) That there has been a default on an obligation secured by the vessel; (2) The secured party of record is exercising or has exercised post-default remedies with respect to the vessel; (3) By reason of the exercise, the secured party of record has the right to transfer the ownership interest of an owner, and the name of the owner; (4) The name and last-known mailing address of the owner of record and the secured party of record; (5) The name of the transferee; (6) Other information required by section 200A-7(b); and (7) One of the following: (A) The certificate of title is an electronic certificate; (B) The secured party does not have possession of the written certificate of title created in the name of the owner of record; or (C) The secured party is delivering the written certificate of title to the department with the secured party's transfer statement. (b) Unless the department rejects a secured party's transfer statement for a reason stated in section 200A-8(c), no later than twenty days after delivery to the department of the statement and payment of fees and taxes payable under the law of this State other than this chapter in connection with the statement or the acquisition or use of the vessel, the department shall: (1) Accept the statement; (2) Amend the department's files to reflect the transfer; and (3) If the name of the owner whose ownership interest is being transferred is indicated on the certificate of title: (A) Cancel the certificate even if the certificate has not been delivered to the department; (B) Create a new certificate indicating the transferee as owner; and (C) Deliver the new certificate or a record evidencing an electronic certificate. (c) An application under subsection (a) or the creation of a certificate of title under subsection (b) shall not be by itself a disposition of the vessel and shall not by itself relieve the secured party of its duties under article 9 of chapter 490.