Section 306.415

Title XIX MOTOR VEHICLES, WATERCRAFT AND AVIATION

Chapter 306

Effective - 28 Aug 1999   

  306.415.  Assignment of lien or encumbrance by lienholder, rights and obligations — perfection by assignee, how. — 1.  A lienholder may assign, absolutely or otherwise, his or her lien or encumbrance on the outboard motor, motorboat, vessel, or watercraft to a person other than the owner without affecting the interest of the owner or the validity or effect of the lien or encumbrance, but any person without notice of the assignment is protected in dealing with the lienholder as the holder of the lien or encumbrance and the lienholder shall remain liable for any obligations as lienholder until the assignee is named as lienholder on the certificate of title.

  2.  An assignee pursuant to subsection 1 of this section may, but need not to perfect the assignment, have the certificate of title issued with the assignee named as lienholder, upon delivering to the director of revenue the certificate of title, an assignment by the lienholder named in the certificate of title, and the required fee in the form the director of revenue prescribes.

  3.  If the certificate of title is being electronically retained by the director of revenue, the original lienholder may mail or deliver a notice of assignment of lien to the director in a form prescribed by the director.  Upon receipt of notice of assignment, the director shall update the electronic certificate of title to reflect the assignment of lien and lienholder.

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(L. 1985 H.B. 280, et al. § 301.715, A.L. 1999 S.B. 19)