1016 PRIORITY OF UNSATISFIED LIENS

1016.1 The record holder of the first unsatisfied lien shown on a certificate of title shall be entitled to possess the certificate of title.

1016.2 If the lien becomes satisfied, the record holder shall mark on the certificate of title as follows:

1. (a) The record number of the lien;
2. (b) Either the word “satisfied” or a synonym of “satisfied”; and
3. (c) The record holder’s signature.

1016.3 If the Harbor Master does not have the lien instrument in the Harbor Master records, the record holder shall do the following:

1. (a) Briefly describe the lien in a separate memorandum;
2. (b) Mark either the work “satisfied” or a synonym of “satisfied” on the memorandum describing the lien; and
3. (c) Sign the memorandum.

1016.4 If the lien becomes satisfied, the record holder of the lien shall swear or affirm before a notary public that the lien has been satisfied, and shall deliver the certificate of title to the holder of the lien next in priority.

1016.5 If after satisfaction of a lien there is no unsatisfied lien lower in priority than the satisfied lien, the record holder of the satisfied lien shall deliver the certificate of title to the owner of the vessel or to the person designated in writing by the owner of the vessel.

1016.6 Upon the satisfaction of any lien other than the first unsatisfied lien shown on the certificate of title, the record holder of the satisfied lien shall, within seventy-two (72) hours, make the entries described in this section on the certificate of title.

1016.7 It shall be the duty of the person in possession of the certificate of title, upon demand, to permit the lien holder to make these entries.

SOURCE: Final Rulemaking published at 31 DCR 1459 (March 30, 1984); incorporating by reference 30 DCR 6293, 6309-10 (December 9, 1983).