1. (a) Except as otherwise provided in Section 33-5B-19 or 33-5B-20, if the office 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 office may create a new certificate under this section only if:

   1. (1) all other requirements under Sections 33-5B-7 and 33-5B-8 are met;
   2. (2) the applicant provides an affidavit stating facts showing the applicant is entitled to a transfer of ownership or termination statement;
   3. (3) the applicant provides the office 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 office as having an interest, including a security interest, in the vessel, at least 45 days have passed since the notification was sent, and the office has not received an objection from any of those persons; and
   4. (4) the applicant submits any other information required by the office as evidence of the applicant’s ownership or right to terminate the security interest, and the office has no credible information indicating theft, fraud, or an undisclosed or unsatisfied security interest, lien, or other claim to an interest in the vessel.
2. (b) The office may 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 vessel is delivered to the office not later than one year after creation of the certificate, on request in a form and manner required by the office, the office shall remove the indication from the certificate.
3. (c) Before the office creates a certificate of title under subsection (a), the office may require the applicant to post a bond. The bond may not exceed twice the value of the vessel as determined by the office. The bond must be in form, amount, and term required by the office and provide for indemnification of any owner, purchaser, or other claimant for any expense, loss, delay, or damage, including reasonable attorney’s fees and costs, but not including incidental or consequential damages, resulting from creation or amendment of the certificate.

(Act 2022-144, §21.)