Section 3823 - Perfecting security interest(a) Unless excepted by section 3822 of this title, a security interest in a vessel, snowmobile, or all-terrain vehicle of a type for which a certificate of title is required is not valid against creditors of the owner or subsequent transferees or lienholders of the vessel, snowmobile, or all-terrain vehicle unless perfected as provided in this chapter.(b) A security interest is perfected by the delivery to the Commissioner of the existing certificate of title, if any, an application for a certificate of title containing the name and address of the lienholder and the date of the lienholder's security agreement, and the required fee. It is perfected as of the time of its creation if delivery is completed within 20 days after the time of its creation, otherwise as of the time of the delivery.(c) If a vessel, snowmobile, or all-terrain vehicle is subject to a security interest when brought into this State, the validity of the security interest is determined by the law of the jurisdiction where the vessel, snowmobile, or all-terrain vehicle was when the security interest attached, subject to the following: (1) If the parties understood at the time the security interest attached that the vessel, snowmobile, or all-terrain vehicle would be kept in this State and it was brought into this State within 30 days after the time the security interest attached for purposes other than transportation through this State, the validity of the security interest in this State is determined by the law of this State.(2) If the security interest was perfected under the law of the jurisdiction where the vessel, snowmobile, or all-terrain vehicle was when the security interest attached, the following rules apply: (A) If the name of the lienholder is shown on an existing certificate of title issued by that jurisdiction, his or her security interest continues perfected in this State.(B) If the name of the lienholder is not shown on an existing certificate of title issued by that jurisdiction, the security interest continues perfected in this State for four months after a first certificate of title of the vessel, snowmobile, or all-terrain vehicle is issued in this State, and also thereafter if, within the four-month period, it is perfected in this State. The security interest may also be perfected in this State after the expiration of the four-month period; in that case perfection dates from the time of perfection in this State.(3) If the security interest was not perfected under the law of the jurisdiction where the vessel, snowmobile, or all-terrain vehicle was when the security interest attached, it may be perfected in this State; in that case, perfection dates from the time of perfection in this State.(4) A security interest may be perfected under subdivision (2)(B) or subdivision (3) of this subsection either as provided in subsection (b) of this section or by the lienholder delivering to the Commissioner a notice of security interest in the form the Commissioner prescribes and the required fee.Amended by 2024, No. 85,§ 322, eff. 7/1/2024.Amended by 2024, No. 85,§ 321, eff. 7/1/2024.Added 1987, No. 152 (Adj. Sess.), § 1; amended 2001, No. 107 (Adj. Sess.), § 19.