1. A. A mechanics lien is created under Commercial Law Article, §16-201 et seq., Annotated Code of Maryland, when:

   1. (1) The Applicant, with the consent of the owner, has provided services or materials for a vessel;
   2. (2) Charges are due and unpaid for 30 days; and
   3. (3) The Applicant has possession of the vessel.

2. B. An application for mechanics lien title must include the following:

   1. (1) Vessel identification;
   2. (2) Evidence of published notice, with first date of publication at least 14 days prior to sale;
   3. (3) Evidence of owner and lienholder notification, mailed at least 10 days prior to sale;

   4. (4) Evidence of indebtedness:

      1. (a) Owner consent for services provided;
      2. (b) Invoices dated not later than 30 days prior to sale;
      3. (c) Invoices and statements with the vessel clearly identified by vessel number or hull identification number; and
      4. (d) Invoices cannot bill for services provided after the date of owner notification.
   5. (5) Evidence of sale; and
   6. (6) Any other documentation required by the Department.

3. C. Vessel excise tax shall be assessed on:

   1. (1) Successful bid when vessel is sold in an arm's-length transaction at auction; or
   2. (2) Total charges claimed when there are no bidders and applicant is granted a mechanics lien title.
4. D. Mechanics lien title will be issued in applicant's name as shown on invoices and statements submitted as evidence of indebtedness.

Authority: Natural Resources Article, §§8-704(C), 8-716, and 8-722, Annotated Code of Maryland

Effective date: August 10, 1974 (1:1 Md. R. 23)

Regulation .02 adopted effective October 29, 1975 (2:24 Md. R. 1480)

Chapter renumbered effective June 23, 1976 (3:13 Md. R. 721)

Chapter revised effective November 28, 2011 (38:24 Md. R. 1500)