                                 CODE OF VIRGINIA

APPLICATION FOR TRANSFER OF OWNERSHIP OR TERMINATION OF SECURITY INTEREST
WITHOUT CERTIFICATE OF TITLE (§ 29.1-733.21)

A. Except as otherwise provided in § 29.1-733.19 or 29.1-733.20, if the
Department receives, unaccompanied by a signed certificate of title, an
application for a new certificate that includes an indication of a transfer of
ownership or a termination statement, the Department shall create a new
certificate under this section only if:

   1. All other requirements under &#xA7;&#xA7; 29.1-733.7 and 29.1-733.8 are
   met;

   2. The applicant provides an affidavit stating facts showing the applicant is
   entitled to a transfer of ownership or termination statement;

   3. The applicant provides the Department with satisfactory evidence that
   notification of the application has been sent to the owner of record and all
   persons indicated in the files of the Department as having an interest,
   including a security interest, in the watercraft, at least 45 days have passed
   since the notification was sent, and the Department has not received an
   objection from any of those persons; and

   4. The applicant submits any other information required by the Department as
   evidence of the applicant&#8217;s ownership or right to terminate the security
   interest, and the Department has no credible information indicating theft,
   fraud, or an undisclosed or unsatisfied security interest, lien, or other
   claim to an interest in the watercraft.

B. The Department shall indicate in a certificate of title created under
subsection A that the certificate was created without submission of a signed
certificate or termination statement. Unless credible information indicating
theft, fraud, or an undisclosed or unsatisfied security interest, lien, or other
claim to an interest in the watercraft is delivered to the Department not later
than one year after creation of the certificate, on request in a form and manner
required by the Department, the Department shall remove the indication from the
certificate.

C. Unless the Department determines that the value of a watercraft is less than
$5,000, before the Department creates a certificate of title under subsection A,
the Department shall require the applicant to post a bond or provide an
equivalent source of indemnity or security. The bond, indemnity, or other
security shall not exceed twice the value of the watercraft as determined by the
Department. The bond, indemnity, or other security shall be in a form required
by the Department and provide for indemnification of any owner, purchaser, or
other claimant for any expense, loss, delay, or damage, including reasonable
attorney fees and costs, but not including incidental or consequential damages,
resulting from creation or amendment of the certificate.

D. Unless the Department receives a claim for indemnity not later than one year
after creation of a certificate of title under subsection A, on request in a
form and manner required by the Department, the Department shall release any
bond, indemnity, or other security.

HISTORY: 2013, c. 787.