Section 33-5B-15 - Perfection of security interest(a) Except as otherwise provided in this section or Section 33-5B-28, a security interest in a vessel may be perfected only by delivery to the office of an application for a certificate of title that identifies the secured party and otherwise complies with Section 33-5B-7. The security interest is perfected on the later of delivery to the office of the application and the applicable fee or attachment of the security interest under Section 7-9A-203.(b) If the interest of a person named as owner in an application for a certificate of title delivered to the office is a security interest, the application sufficiently identifies the person as a secured party. Identification on the application for a certificate of a person as owner is not by itself a factor in determining whether the person's interest is a security interest.(c) If the office has created a certificate of title for a vessel, a security interest in the vessel may be perfected by delivery to the office of an application, on a form the office may require, to have the security interest added to the certificate. The application must be signed by an owner of the vessel or by the secured party and must include: (1) the name of the owner of record;(2) the name and mailing address of the secured party;(3) the hull identification number for the vessel; and(4) if the office has created a written certificate of title for the vessel, the certificate.(d) A security interest perfected under subsection (c) is perfected on the later of delivery to the office of the application and all applicable fees or attachment of the security interest under Section 7-9A-203.(e) On delivery of an application that complies with subsection (c) and payment of all applicable fees, the office shall create a new certificate of title pursuant to Section 33-5B-8 and deliver the new certificate or a record evidencing an electronic certificate pursuant to Section 33-5B-12(a). The office shall maintain in the files of the office the date and time of delivery of the application to the office.(f) If a secured party assigns a perfected security interest in a vessel, the receipt by the office of a statement providing the name of the assignee as secured party is not required to continue the perfected status of the security interest against creditors of and transferees from the original debtor. A purchaser of a vessel subject to a security interest which obtains a release from the secured party indicated in the files of the office or on the certificate takes free of the security interest and of the rights of a transferee unless the transfer is indicated in the files of the office or on the certificate.(g) This section does not apply to a security interest:(1) created in a vessel by a person during any period in which the vessel is inventory held for sale or lease by the person or is leased by the person as lessor if the person is a dealer;(2) in a barge for which no application for a certificate of title has been delivered to the office; or(3) in a vessel before delivery if the vessel is under construction or completed pursuant to contract and for which no application for a certificate has been delivered to the office.(h) This subsection applies if a certificate of documentation for a documented vessel is deleted or canceled. If a security interest in the vessel was valid immediately before deletion or cancellation against a third party as a result of compliance with 46 U.S.C. § 31321, the security interest is and remains perfected until the earlier of four months after cancellation of the certificate or the time the security interest becomes perfected under this chapter.(i) A security interest in a vessel arising under Section 7-2-401, 7-2-505, 7-2-711(3), or 7-2A-508(5), is perfected when it attaches but becomes unperfected when the debtor obtains possession of the vessel, unless before the debtor obtains possession the security interest is perfected pursuant to subsection (a) or (c).(j) A security interest in a vessel as proceeds of other collateral is perfected to the extent provided in Section 7-9A-315.(k) A security interest in a vessel perfected under the law of another jurisdiction is perfected to the extent provided in Section 7-9A-316(d).Ala. Code § 33-5B-15 (1975)
Added by Act 2022-144,§ 15, eff. 1/1/2024.