500. This article shall be known and may be cited as the "Boaters
Lien Law".
501. As used in this article:
(a) "Department" means the Department of Motor Vehicles or any
successor agency thereto which registers vehicles.
(b) "Mail" means first-class mail, postage prepaid, unless
registered mail is specified. Registered mail includes certified
mail.
(c) "Services" means the making of repairs or performing labor
upon or to, and the furnishing of supplies or materials for, any
vessel or any trailer used in connection with a vessel.
(d) "Storage" means the safekeeping, mooring, berthage, wharfage,
or anchorage of a vessel and the providing of parking space for any
trailer used in connection with the vessel.
(e) "Vessel" means every description of watercraft, other than a
seaplane on the water or a floating home, used or capable of being
used as a means of transportation on the water and required to be
registered, excluding any vessel which has a valid marine document
issued by the United States or any agency thereof. For the purposes
of this article, "vessel" includes any trailer used in connection
with the vessel which is in the possession of the lienholder at the
time the lien arises.
501.3. The time a notice or statement is given or sent, unless
otherwise expressly provided, means the time a written notice to a
person is deposited in the United States mails; or the time any other
written notice is personally delivered to the recipient.
501.5. The possessory vessel lien procedures described by the
provisions of this article shall supersede any local ordinance and
shall provide the exclusive means of enforcing these liens. Nothing
in this article shall be construed as affecting any maritime lien
cognizable under any federal law.
502. (a) Except as provided in Article 1.5 (commencing with Section
410) of Chapter 1 of Division 3, every person has a lien dependent
upon possession of the vessel for the compensation to which he or she
is legally entitled for services rendered to or storage of any
vessel subject to registration with the Department of Motor Vehicles.
The lien shall arise at the time a written statement of lien is sent
to the registered owner of the vessel which specifies the charges
for services or storage rendered and states that the vessel is
subject to sale pursuant to the California Boater's Lien Law.
(b) Notwithstanding subdivision (a), no lien provided by this
section for storage or service provided upon the request of any
person other than the legal owner as shown on the registration
certificate of the vessel shall be valid against the interest of the
legal owner to the extent that the lien exceeds one thousand five
hundred dollars ($1,500) unless the person performing the storage or
service obtains the consent of the legal owner to the amount of the
excess. The legal owner may limit his or her consent to a specified
dollar amount or period of time. The lien claimant shall give actual
notice in writing, prior to exceeding that amount, either by personal
service or by registered mail to the legal and registered owner or
owners as named and at the addresses as shown on the registration
certificate, on a standard form provided by the department,
containing a description of the storage or services, or both, a
description and registration number of the vessel, the name of the
registered owner or owners, the dollar amount or rate of the charges
for the storage or services, and a statement in boldface type that,
with respect to storage charges, consent of the legal owner shall be
presumed unless the legal owner notifies the lien claimant within 15
days of receipt of the request for consent that he or she declines to
consent to the storage. The lien claimant shall notify the legal
owner as shown on the registration certificate of the vessel, by
certified mail, that the vessel is subject to sale pursuant to the
California Boater's Lien Law and that the lien claimed exceeds one
thousand five hundred dollars ($1,500).
(c) Notwithstanding subdivision (b), any claim for the cost of
services may exceed the estimate given therefor by an amount not in
excess of 10 percent thereof and the lien of the lien claimant shall
be valid against the legal owner to the full amount of such excess to
the same extent as would be a lien for the original estimate.
(d) With respect to claims for storage charges, a legal owner
shall be presumed to consent to storage charges if he or she fails to
respond to the request for consent set forth in subdivision (b)
within 15 days after receipt thereof, such response to be addressed
to the lien claimant at the address stated in the request for
consent. In addition, consent in all cases is presumed for the 30-day
period immediately following the giving of the request for consent
notice.
(e) The legal owner may, upon declining consent, remove the vessel
from the lien claimant only upon satisfying the lien of the lien
claimant.
(f) Any lien arising under this section shall be extinguished, and
no lien sale shall be conducted unless, 60 days after the lien
arises, the lienholder does either of the following:
(1) Applies to the department for an authorization to conduct a
lien sale.
(2) Files an action on the claim in court.
(g) Nothing in this section shall impair any rights or remedies
which are otherwise available to the lien claimant against the
registered owner under any other provisions of law.
503. (a) A lienholder shall apply to the department for the
issuance of an authorization to conduct a lien sale pursuant to the
provisions of this section for any vessel with a value determined to
be over one thousand five hundred dollars ($1,500). A fee shall be
charged by the department and may be recovered by the lienholder if a
lien sale is conducted or if the vessel is redeemed. The application
shall be executed under penalty of perjury and shall include all of
the following information:
(1) A description of the vessel, including make, hull
identification number, and state of registration, to the extent
available.
(2) The names and addresses of the registered and legal owners of
the vessel, if ascertainable from the registration certificate within
the vessel, and the name and address of any person whom the
lienholder knows or reasonably should know claims a proprietary
interest in the vessel.
(3) A statement of the amount of the lien and the facts which give
rise to the lien. The statement shall include, as a separate item,
an estimate of any additional storage costs accruing pending the lien
sale.
(b) Upon receipt of an application made pursuant to subdivision
(a), the department shall within 15 days thereafter do the following:
(1) Notify the vessel registry agency of a foreign state of the
pending lien sale, if the vessel bears indicia of registration in
that state.
(2) By mail, send a notice, a copy of the application, and a
return envelope preaddressed to the department to the registered and
legal owners at their addresses of record with the department, and to
any other person whose name and address is listed in the
application.
(3) A vessel registration stop order or title transfer stop order
shall be applied by the department at the time the lien claimant
requests authorization to conduct the sale.
(4) Notify the applicant of any outstanding property tax lien on
the vessel of which the department has been notified pursuant to
subdivision (b) of Section 3205 of the Revenue and Taxation Code. The
notice required by this paragraph shall identify the county in which
any outstanding lien is held.
(c) The notice required pursuant to subdivision (b) shall include
all of the following statements:
(1) An application has been made with the department for
authorization to conduct a lien sale and the department has placed a
vessel registration stop order or title transfer stop order on the
vessel.
(2) Each person to whom notice is sent pursuant to subdivision (b)
is entitled to a hearing in court if that person so desires.
(3) If a hearing in court is desired, a declaration of opposition,
signed under penalty of perjury, is required to be signed and
returned to the department within 15 days of the date that the notice
required pursuant to subdivision (b) was mailed.
(4) If the declaration of opposition is signed and returned to the
department, the lienholder will be allowed to sell the vessel only
if he or she obtains a court judgment or a subsequent release from
the declarant.
(5) If a court action is filed, the declarant will be served by
mail with legal process in the court proceedings at the address shown
on the declaration of opposition and may appear to contest the
claim.
(6) The person may be liable for court costs if a judgment is
entered in favor of the lienholder.
(d) If the department receives the declaration of opposition in
the time provided, the department shall notify the lienholder within
16 days of the receipt of the declaration of opposition that a lien
sale shall not be conducted unless the lienholder files an action in
court within 60 days of the notice. A lien sale of the vessel shall
not be conducted unless judgment is subsequently entered in favor of
the lienholder or the declarant subsequently releases his or her
interest in the vessel.
(e) Service of legal process on the declarant, with return receipt
requested signed by the declarant or an authorized agent of the
declarant at the address shown on the declaration of opposition,
shall be effective. Return of a declaration of opposition shall
constitute consent by the declarant to service of legal process for
the desired court hearing upon him or her in the foregoing manner.
Notwithstanding subdivision (d) of Section 415.3 of the Code of Civil
Procedure, if the lienholder has attempted service upon declarant by
that method at the address shown on the declaration of opposition
and the mail has been returned unclaimed, the department shall
promptly authorize the sale.
(f) Upon receipt of authorization to conduct the lien sale, the
lienholder shall do all of the following:
(1) At least 10 days, but not more than 30 days, prior to the lien
sale, not counting the day of the sale, give notice of the sale by
advertising once in a newspaper of general circulation published in
the county in which the vessel is located. If there is no newspaper
published in the county, notice shall be given by posting a notice of
sale form in three of the most public places in the area in which
the vessel is located and at the place where the vessel is to be sold
for 10 consecutive days prior to and including the day of the sale.
(2) Send a notice of pending lien sale 20 days prior to the sale,
but not counting the day of sale, by mail with return receipt
requested, to each of the following:
(A) The registered and legal owners of the vessel, if registered
in this state.
(B) All persons known to have an interest in the vessel.
(C) The department.
(g) Upon receipt of the notice, the department shall mark its
records and thereafter notify any person having a proprietary
interest in the vessel that there is a pending lien sale and that
title will not be transferred until the lien is satisfied or
released.
(h) All notices required by this section, including the notice
forms prescribed by the department, shall specify the make, hull
identification number, and state of registration, if available, and
the specific date, exact time, and place of sale.
504. (a) For vessels with a value determined to be one thousand
five hundred dollars ($1,500) or less, the department shall promptly
furnish the lienholder with the names and addresses of the registered
and legal owners of record.
(b) The lienholder shall, immediately upon receipt of the names
and addresses, send by mail, with return receipt requested, a
completed notice of pending lien sale form, a blank declaration of
opposition form, and a return envelope preaddressed to the
department, to the registered owner and legal owner at their
addresses of record with the department, to any other person known to
have a proprietary interest in the vessel, and to the department.
(c) Upon receipt of the notice, the department shall mark its
records and thereafter notify any person having a proprietary
interest in the vessel that there is a pending lien sale and that
title will not be transferred until the lien is satisfied or
released.
(d) All notices shall be signed under penalty of perjury and shall
include all of the following information and statements:
(1) A description of the vessel, including make, identification
number, and state of registration, to the extent available.
(2) The specific date, exact time, and place of sale, which shall
be set not less than 35 days, but not more than 60 days, from the
date of mailing.
(3) The names and addresses of the registered and legal owners of
the vessel and any other person known to have an interest in the
vessel.
(4) All of the following statements:
(A) The amount of the lien and the facts that give rise to the
lien. The statement shall include, as a separate item, an estimate of
any additional storage costs accruing pending the lien sale.
(B) The person has a right to a hearing in court.
(C) If a court hearing is desired, a declaration of opposition
signed under penalty of perjury is required to be signed and returned
to the department within 15 days of the date the notice of pending
lien sale was mailed.
(D) If the declaration of opposition is signed and returned, the
lienholder will be allowed to sell the vessel only if he or she
obtains a court judgment or if he or she obtains a subsequent release
from the declarant.
(E) If a court action is filed, the declarant will be served by
mail with legal process in the court proceedings at the address shown
on the declaration of opposition and may appear to contest the
claim.
(F) The person may be liable for court costs if a judgment is
entered in favor of the lienholder.
(e) If the department receives the completed declaration of
opposition within the time provided, the department shall notify the
lienholder within 16 days that a lien sale shall not be conducted
unless the lienholder files an action in court within 20 days of the
notice and judgment is subsequently entered in favor of the
lienholder or the declarant subsequently releases his or her interest
in the vessel.
(f) Service on the declarant by mail with return receipt
requested, signed by the declarant or an authorized agent of the
declarant at the address shown on the declaration of opposition,
shall be effective. Return of a declaration of opposition shall
constitute consent by the declarant to service of legal process for
the desired court hearing upon him or her in the foregoing manner. If
the lienholder has attempted service upon the declarant by that
method at the address shown on the declaration of opposition and the
mail has been returned unclaimed, the lienholder may proceed with the
sale.
505. (a) A registered or legal owner of a vessel may release any
interest in the vessel after the lien has arisen. The release shall
be dated when signed and a copy shall be given at the time the
release is signed to the person releasing the interest.
(b) The release shall be in at least 12-point type and shall
contain all of the following information in simple, nontechnical
language:
(1) A description of the vessel, including the make, the
identification number, and the state of registration, to the extent
available.
(2) The names and addresses of the registered and legal owners of
record with the department, to the extent available.
(3) A statement of the amount of the lien and the facts which give
rise to the lien.
(4) A statement that the person releasing the interest understands
that (i) he or she has a legal right to a hearing in court prior to
any sale of the vessel to satisfy the lien and (ii) he or she is
giving up the right to appear to contest the claim of the lienholder.
(5) A statement that (i) the person releasing the interest gives
up any interest he or she may have in the vessel and (ii) he or she
is giving the lienholder permission to sell the vessel.
(c) The release required by this section shall be filed with the
department in connection with any transfer of interest in a vessel
following a lien sale.
505.5. (a) Whenever the lien upon any vessel is lost by reason of
the loss of possession through trick, fraud, or device, the
repossession of the vessel by the former lienholder claimant revives
the lien, but a lien so revived is subordinate to any right, title,
or interest of a person under a sale, transfer, encumbrance, lien, or
other interest acquired or secured in good faith and for value
between the time of the loss of possession and the time of
repossession.
(b) It is a misdemeanor for a person to obtain possession of a
vessel or any part of the vessel subject to a lien pursuant to the
provisions of this chapter by trick, fraud, or device.
(c) It is a misdemeanor for a person claiming a lien on a vessel
to knowingly violate this article.
(d) A person found guilty of a misdemeanor violation of
subdivision (b) or (c) shall be subject to a fine not to exceed one
thousand dollars ($1,000) or imprisonment in the county jail not to
exceed six months, or both that fine and imprisonment.
506. No lien sale shall be undertaken pursuant to Section 503 or
504 unless the vessel has been available for inspection at a location
easily accessible to the public for at least one hour before the
sale and is at the place of sale at the time and date specified on
the notice of sale. Sealed bids shall not be accepted. The lienholder
shall conduct the sale in a commercially reasonable manner.
506.5. Within 10 days after the sale of any vessel pursuant to the
provisions of Section 503 or 504, the legal or registered owner may
redeem the vessel upon the payment of the amount of the lien, all
costs and expenses of the lien, together with interest on that sum at
the legal rate from the due date thereof until the repayment. If the
vessel is not redeemed, all lien sale documents required by the
department to effect transfer of title shall then be completed and
delivered to the buyer.
507. (a) Except as provided in subdivision (b), at the time a
lienholder applies to the department to conduct a sale under Section
504, the lienholder shall submit with the application a declaration
by a licensed yacht and ship broker of the fair market value of the
described vessel at a specific date within 30 days of that
submission. The opinion need not be based upon a marine survey, but
shall be based on a physical inspection of the vessel. No cause of
action shall lie against the declarant on account of the opinion
given.
(b) The declaration specified in subdivision (a) is not required
if a public agency removes an abandoned vessel, or arranges, by
contract, for the removal of the vessel, from a highway or from
public or private property.
(1) For lien sale purposes, the public agency which removed the
vessel, or arranged for the removal, shall determine if the estimated
value of the vessel that has been ordered removed or stored is one
thousand five hundred dollars ($1,500) or less.
(2) If the public agency fails or refuses to determine the
estimated value of the vessel within three days after the date of
removal of the vessel, the lienholder or the lienholder's agent shall
determine, under penalty of perjury, if the estimated value of the
vessel that has been ordered removed or stored is one thousand five
hundred dollars ($1,500) or less.
507.5. The proceeds of a vessel lien sale shall be disposed of as
follows:
(a) The amount necessary to discharge the lien and the actual cost
of selling the vessel shall be paid to the lienholder. Actual cost
of sale shall include any fees charged by the department, publication
fees, postage and service of notices, whether incurred as a result
of a sale or redemption by the registered or legal owner without a
sale. The actual cost of sale shall not exceed one hundred dollars
($100) for a vessel without a trailer and one hundred twenty-five
dollars ($125) for a vessel with a trailer, exclusive of the charges
of the department.
(b) The balance, if any, shall be forwarded to the department
within 15 days of any sale. Within 30 days thereafter, the department
shall send notice of the receipt of the funds, if the amount thereof
exceeds ten dollars ($10), to the legal and registered owners at the
most current addresses shown in the department's records.
(c) Any person claiming an interest in the vessel may file a claim
with the department for any portion of the funds forwarded to the
department pursuant to subdivision (b). Upon determination of the
department that the claimant is entitled to a portion of those funds,
the department shall pay any entitled amount which does not exceed
the balance of the funds remaining on deposit with the department
that pertain to the vessel. The department shall not honor any claim
unless the claim has been filed within three years of the date the
funds were received. At the end of each fiscal year the department
shall deposit in the Harbors and Watercraft Revolving Fund all funds
held by it for which no claim was filed within the three-year period.
508. A lien provided for in this article for repairs, labor,
supplies, or materials for, or for storage or safekeeping of, a
vessel may be assigned by written instrument accompanied by delivery
of possession of the vessel subject to the lien, and the assignee may
exercise the rights of a lienholder as provided in this article. A
lienholder assigning a lien as authorized in this section shall at
the time of assigning the lien give written notice of the assignment
either by personal delivery or by certified mail, to the registered
and legal owners of the vessel, indicating the name and address of
the person to whom the lien is assigned.
508.5. All forms required pursuant to this article shall be
prescribed by the department. Language used in the notices and
declarations shall be simple and nontechnical.
509. No lien shall attach to any personal property in or on the
vessel except that which is carried on the vessel for lifesaving,
safety, mooring, and operating purposes. Personal property not
subject to lien shall be given to the registered owner or the owner's
authorized agent upon demand.
500. This article shall be known and may be cited as the "Boaters
Lien Law".
501. As used in this article:
(a) "Department" means the Department of Motor Vehicles or any
successor agency thereto which registers vehicles.
(b) "Mail" means first-class mail, postage prepaid, unless
registered mail is specified. Registered mail includes certified
mail.
(c) "Services" means the making of repairs or performing labor
upon or to, and the furnishing of supplies or materials for, any
vessel or any trailer used in connection with a vessel.
(d) "Storage" means the safekeeping, mooring, berthage, wharfage,
or anchorage of a vessel and the providing of parking space for any
trailer used in connection with the vessel.
(e) "Vessel" means every description of watercraft, other than a
seaplane on the water or a floating home, used or capable of being
used as a means of transportation on the water and required to be
registered, excluding any vessel which has a valid marine document
issued by the United States or any agency thereof. For the purposes
of this article, "vessel" includes any trailer used in connection
with the vessel which is in the possession of the lienholder at the
time the lien arises.
501.3. The time a notice or statement is given or sent, unless
otherwise expressly provided, means the time a written notice to a
person is deposited in the United States mails; or the time any other
written notice is personally delivered to the recipient.
501.5. The possessory vessel lien procedures described by the
provisions of this article shall supersede any local ordinance and
shall provide the exclusive means of enforcing these liens. Nothing
in this article shall be construed as affecting any maritime lien
cognizable under any federal law.
502. (a) Except as provided in Article 1.5 (commencing with Section
410) of Chapter 1 of Division 3, every person has a lien dependent
upon possession of the vessel for the compensation to which he or she
is legally entitled for services rendered to or storage of any
vessel subject to registration with the Department of Motor Vehicles.
The lien shall arise at the time a written statement of lien is sent
to the registered owner of the vessel which specifies the charges
for services or storage rendered and states that the vessel is
subject to sale pursuant to the California Boater's Lien Law.
(b) Notwithstanding subdivision (a), no lien provided by this
section for storage or service provided upon the request of any
person other than the legal owner as shown on the registration
certificate of the vessel shall be valid against the interest of the
legal owner to the extent that the lien exceeds one thousand five
hundred dollars ($1,500) unless the person performing the storage or
service obtains the consent of the legal owner to the amount of the
excess. The legal owner may limit his or her consent to a specified
dollar amount or period of time. The lien claimant shall give actual
notice in writing, prior to exceeding that amount, either by personal
service or by registered mail to the legal and registered owner or
owners as named and at the addresses as shown on the registration
certificate, on a standard form provided by the department,
containing a description of the storage or services, or both, a
description and registration number of the vessel, the name of the
registered owner or owners, the dollar amount or rate of the charges
for the storage or services, and a statement in boldface type that,
with respect to storage charges, consent of the legal owner shall be
presumed unless the legal owner notifies the lien claimant within 15
days of receipt of the request for consent that he or she declines to
consent to the storage. The lien claimant shall notify the legal
owner as shown on the registration certificate of the vessel, by
certified mail, that the vessel is subject to sale pursuant to the
California Boater's Lien Law and that the lien claimed exceeds one
thousand five hundred dollars ($1,500).
(c) Notwithstanding subdivision (b), any claim for the cost of
services may exceed the estimate given therefor by an amount not in
excess of 10 percent thereof and the lien of the lien claimant shall
be valid against the legal owner to the full amount of such excess to
the same extent as would be a lien for the original estimate.
(d) With respect to claims for storage charges, a legal owner
shall be presumed to consent to storage charges if he or she fails to
respond to the request for consent set forth in subdivision (b)
within 15 days after receipt thereof, such response to be addressed
to the lien claimant at the address stated in the request for
consent. In addition, consent in all cases is presumed for the 30-day
period immediately following the giving of the request for consent
notice.
(e) The legal owner may, upon declining consent, remove the vessel
from the lien claimant only upon satisfying the lien of the lien
claimant.
(f) Any lien arising under this section shall be extinguished, and
no lien sale shall be conducted unless, 60 days after the lien
arises, the lienholder does either of the following:
(1) Applies to the department for an authorization to conduct a
lien sale.
(2) Files an action on the claim in court.
(g) Nothing in this section shall impair any rights or remedies
which are otherwise available to the lien claimant against the
registered owner under any other provisions of law.
503. (a) A lienholder shall apply to the department for the
issuance of an authorization to conduct a lien sale pursuant to the
provisions of this section for any vessel with a value determined to
be over one thousand five hundred dollars ($1,500). A fee shall be
charged by the department and may be recovered by the lienholder if a
lien sale is conducted or if the vessel is redeemed. The application
shall be executed under penalty of perjury and shall include all of
the following information:
(1) A description of the vessel, including make, hull
identification number, and state of registration, to the extent
available.
(2) The names and addresses of the registered and legal owners of
the vessel, if ascertainable from the registration certificate within
the vessel, and the name and address of any person whom the
lienholder knows or reasonably should know claims a proprietary
interest in the vessel.
(3) A statement of the amount of the lien and the facts which give
rise to the lien. The statement shall include, as a separate item,
an estimate of any additional storage costs accruing pending the lien
sale.
(b) Upon receipt of an application made pursuant to subdivision
(a), the department shall within 15 days thereafter do the following:
(1) Notify the vessel registry agency of a foreign state of the
pending lien sale, if the vessel bears indicia of registration in
that state.
(2) By mail, send a notice, a copy of the application, and a
return envelope preaddressed to the department to the registered and
legal owners at their addresses of record with the department, and to
any other person whose name and address is listed in the
application.
(3) A vessel registration stop order or title transfer stop order
shall be applied by the department at the time the lien claimant
requests authorization to conduct the sale.
(4) Notify the applicant of any outstanding property tax lien on
the vessel of which the department has been notified pursuant to
subdivision (b) of Section 3205 of the Revenue and Taxation Code. The
notice required by this paragraph shall identify the county in which
any outstanding lien is held.
(c) The notice required pursuant to subdivision (b) shall include
all of the following statements:
(1) An application has been made with the department for
authorization to conduct a lien sale and the department has placed a
vessel registration stop order or title transfer stop order on the
vessel.
(2) Each person to whom notice is sent pursuant to subdivision (b)
is entitled to a hearing in court if that person so desires.
(3) If a hearing in court is desired, a declaration of opposition,
signed under penalty of perjury, is required to be signed and
returned to the department within 15 days of the date that the notice
required pursuant to subdivision (b) was mailed.
(4) If the declaration of opposition is signed and returned to the
department, the lienholder will be allowed to sell the vessel only
if he or she obtains a court judgment or a subsequent release from
the declarant.
(5) If a court action is filed, the declarant will be served by
mail with legal process in the court proceedings at the address shown
on the declaration of opposition and may appear to contest the
claim.
(6) The person may be liable for court costs if a judgment is
entered in favor of the lienholder.
(d) If the department receives the declaration of opposition in
the time provided, the department shall notify the lienholder within
16 days of the receipt of the declaration of opposition that a lien
sale shall not be conducted unless the lienholder files an action in
court within 60 days of the notice. A lien sale of the vessel shall
not be conducted unless judgment is subsequently entered in favor of
the lienholder or the declarant subsequently releases his or her
interest in the vessel.
(e) Service of legal process on the declarant, with return receipt
requested signed by the declarant or an authorized agent of the
declarant at the address shown on the declaration of opposition,
shall be effective. Return of a declaration of opposition shall
constitute consent by the declarant to service of legal process for
the desired court hearing upon him or her in the foregoing manner.
Notwithstanding subdivision (d) of Section 415.3 of the Code of Civil
Procedure, if the lienholder has attempted service upon declarant by
that method at the address shown on the declaration of opposition
and the mail has been returned unclaimed, the department shall
promptly authorize the sale.
(f) Upon receipt of authorization to conduct the lien sale, the
lienholder shall do all of the following:
(1) At least 10 days, but not more than 30 days, prior to the lien
sale, not counting the day of the sale, give notice of the sale by
advertising once in a newspaper of general circulation published in
the county in which the vessel is located. If there is no newspaper
published in the county, notice shall be given by posting a notice of
sale form in three of the most public places in the area in which
the vessel is located and at the place where the vessel is to be sold
for 10 consecutive days prior to and including the day of the sale.
(2) Send a notice of pending lien sale 20 days prior to the sale,
but not counting the day of sale, by mail with return receipt
requested, to each of the following:
(A) The registered and legal owners of the vessel, if registered
in this state.
(B) All persons known to have an interest in the vessel.
(C) The department.
(g) Upon receipt of the notice, the department shall mark its
records and thereafter notify any person having a proprietary
interest in the vessel that there is a pending lien sale and that
title will not be transferred until the lien is satisfied or
released.
(h) All notices required by this section, including the notice
forms prescribed by the department, shall specify the make, hull
identification number, and state of registration, if available, and
the specific date, exact time, and place of sale.
504. (a) For vessels with a value determined to be one thousand
five hundred dollars ($1,500) or less, the department shall promptly
furnish the lienholder with the names and addresses of the registered
and legal owners of record.
(b) The lienholder shall, immediately upon receipt of the names
and addresses, send by mail, with return receipt requested, a
completed notice of pending lien sale form, a blank declaration of
opposition form, and a return envelope preaddressed to the
department, to the registered owner and legal owner at their
addresses of record with the department, to any other person known to
have a proprietary interest in the vessel, and to the department.
(c) Upon receipt of the notice, the department shall mark its
records and thereafter notify any person having a proprietary
interest in the vessel that there is a pending lien sale and that
title will not be transferred until the lien is satisfied or
released.
(d) All notices shall be signed under penalty of perjury and shall
include all of the following information and statements:
(1) A description of the vessel, including make, identification
number, and state of registration, to the extent available.
(2) The specific date, exact time, and place of sale, which shall
be set not less than 35 days, but not more than 60 days, from the
date of mailing.
(3) The names and addresses of the registered and legal owners of
the vessel and any other person known to have an interest in the
vessel.
(4) All of the following statements:
(A) The amount of the lien and the facts that give rise to the
lien. The statement shall include, as a separate item, an estimate of
any additional storage costs accruing pending the lien sale.
(B) The person has a right to a hearing in court.
(C) If a court hearing is desired, a declaration of opposition
signed under penalty of perjury is required to be signed and returned
to the department within 15 days of the date the notice of pending
lien sale was mailed.
(D) If the declaration of opposition is signed and returned, the
lienholder will be allowed to sell the vessel only if he or she
obtains a court judgment or if he or she obtains a subsequent release
from the declarant.
(E) If a court action is filed, the declarant will be served by
mail with legal process in the court proceedings at the address shown
on the declaration of opposition and may appear to contest the
claim.
(F) The person may be liable for court costs if a judgment is
entered in favor of the lienholder.
(e) If the department receives the completed declaration of
opposition within the time provided, the department shall notify the
lienholder within 16 days that a lien sale shall not be conducted
unless the lienholder files an action in court within 20 days of the
notice and judgment is subsequently entered in favor of the
lienholder or the declarant subsequently releases his or her interest
in the vessel.
(f) Service on the declarant by mail with return receipt
requested, signed by the declarant or an authorized agent of the
declarant at the address shown on the declaration of opposition,
shall be effective. Return of a declaration of opposition shall
constitute consent by the declarant to service of legal process for
the desired court hearing upon him or her in the foregoing manner. If
the lienholder has attempted service upon the declarant by that
method at the address shown on the declaration of opposition and the
mail has been returned unclaimed, the lienholder may proceed with the
sale.
505. (a) A registered or legal owner of a vessel may release any
interest in the vessel after the lien has arisen. The release shall
be dated when signed and a copy shall be given at the time the
release is signed to the person releasing the interest.
(b) The release shall be in at least 12-point type and shall
contain all of the following information in simple, nontechnical
language:
(1) A description of the vessel, including the make, the
identification number, and the state of registration, to the extent
available.
(2) The names and addresses of the registered and legal owners of
record with the department, to the extent available.
(3) A statement of the amount of the lien and the facts which give
rise to the lien.
(4) A statement that the person releasing the interest understands
that (i) he or she has a legal right to a hearing in court prior to
any sale of the vessel to satisfy the lien and (ii) he or she is
giving up the right to appear to contest the claim of the lienholder.
(5) A statement that (i) the person releasing the interest gives
up any interest he or she may have in the vessel and (ii) he or she
is giving the lienholder permission to sell the vessel.
(c) The release required by this section shall be filed with the
department in connection with any transfer of interest in a vessel
following a lien sale.
505.5. (a) Whenever the lien upon any vessel is lost by reason of
the loss of possession through trick, fraud, or device, the
repossession of the vessel by the former lienholder claimant revives
the lien, but a lien so revived is subordinate to any right, title,
or interest of a person under a sale, transfer, encumbrance, lien, or
other interest acquired or secured in good faith and for value
between the time of the loss of possession and the time of
repossession.
(b) It is a misdemeanor for a person to obtain possession of a
vessel or any part of the vessel subject to a lien pursuant to the
provisions of this chapter by trick, fraud, or device.
(c) It is a misdemeanor for a person claiming a lien on a vessel
to knowingly violate this article.
(d) A person found guilty of a misdemeanor violation of
subdivision (b) or (c) shall be subject to a fine not to exceed one
thousand dollars ($1,000) or imprisonment in the county jail not to
exceed six months, or both that fine and imprisonment.
506. No lien sale shall be undertaken pursuant to Section 503 or
504 unless the vessel has been available for inspection at a location
easily accessible to the public for at least one hour before the
sale and is at the place of sale at the time and date specified on
the notice of sale. Sealed bids shall not be accepted. The lienholder
shall conduct the sale in a commercially reasonable manner.
506.5. Within 10 days after the sale of any vessel pursuant to the
provisions of Section 503 or 504, the legal or registered owner may
redeem the vessel upon the payment of the amount of the lien, all
costs and expenses of the lien, together with interest on that sum at
the legal rate from the due date thereof until the repayment. If the
vessel is not redeemed, all lien sale documents required by the
department to effect transfer of title shall then be completed and
delivered to the buyer.
507. (a) Except as provided in subdivision (b), at the time a
lienholder applies to the department to conduct a sale under Section
504, the lienholder shall submit with the application a declaration
by a licensed yacht and ship broker of the fair market value of the
described vessel at a specific date within 30 days of that
submission. The opinion need not be based upon a marine survey, but
shall be based on a physical inspection of the vessel. No cause of
action shall lie against the declarant on account of the opinion
given.
(b) The declaration specified in subdivision (a) is not required
if a public agency removes an abandoned vessel, or arranges, by
contract, for the removal of the vessel, from a highway or from
public or private property.
(1) For lien sale purposes, the public agency which removed the
vessel, or arranged for the removal, shall determine if the estimated
value of the vessel that has been ordered removed or stored is one
thousand five hundred dollars ($1,500) or less.
(2) If the public agency fails or refuses to determine the
estimated value of the vessel within three days after the date of
removal of the vessel, the lienholder or the lienholder's agent shall
determine, under penalty of perjury, if the estimated value of the
vessel that has been ordered removed or stored is one thousand five
hundred dollars ($1,500) or less.
507.5. The proceeds of a vessel lien sale shall be disposed of as
follows:
(a) The amount necessary to discharge the lien and the actual cost
of selling the vessel shall be paid to the lienholder. Actual cost
of sale shall include any fees charged by the department, publication
fees, postage and service of notices, whether incurred as a result
of a sale or redemption by the registered or legal owner without a
sale. The actual cost of sale shall not exceed one hundred dollars
($100) for a vessel without a trailer and one hundred twenty-five
dollars ($125) for a vessel with a trailer, exclusive of the charges
of the department.
(b) The balance, if any, shall be forwarded to the department
within 15 days of any sale. Within 30 days thereafter, the department
shall send notice of the receipt of the funds, if the amount thereof
exceeds ten dollars ($10), to the legal and registered owners at the
most current addresses shown in the department's records.
(c) Any person claiming an interest in the vessel may file a claim
with the department for any portion of the funds forwarded to the
department pursuant to subdivision (b). Upon determination of the
department that the claimant is entitled to a portion of those funds,
the department shall pay any entitled amount which does not exceed
the balance of the funds remaining on deposit with the department
that pertain to the vessel. The department shall not honor any claim
unless the claim has been filed within three years of the date the
funds were received. At the end of each fiscal year the department
shall deposit in the Harbors and Watercraft Revolving Fund all funds
held by it for which no claim was filed within the three-year period.
508. A lien provided for in this article for repairs, labor,
supplies, or materials for, or for storage or safekeeping of, a
vessel may be assigned by written instrument accompanied by delivery
of possession of the vessel subject to the lien, and the assignee may
exercise the rights of a lienholder as provided in this article. A
lienholder assigning a lien as authorized in this section shall at
the time of assigning the lien give written notice of the assignment
either by personal delivery or by certified mail, to the registered
and legal owners of the vessel, indicating the name and address of
the person to whom the lien is assigned.
508.5. All forms required pursuant to this article shall be
prescribed by the department. Language used in the notices and
declarations shall be simple and nontechnical.
509. No lien shall attach to any personal property in or on the
vessel except that which is carried on the vessel for lifesaving,
safety, mooring, and operating purposes. Personal property not
subject to lien shall be given to the registered owner or the owner's
authorized agent upon demand.
500. This article shall be known and may be cited as the "Boaters
Lien Law".
501. As used in this article:
(a) "Department" means the Department of Motor Vehicles or any
successor agency thereto which registers vehicles.
(b) "Mail" means first-class mail, postage prepaid, unless
registered mail is specified. Registered mail includes certified
mail.
(c) "Services" means the making of repairs or performing labor
upon or to, and the furnishing of supplies or materials for, any
vessel or any trailer used in connection with a vessel.
(d) "Storage" means the safekeeping, mooring, berthage, wharfage,
or anchorage of a vessel and the providing of parking space for any
trailer used in connection with the vessel.
(e) "Vessel" means every description of watercraft, other than a
seaplane on the water or a floating home, used or capable of being
used as a means of transportation on the water and required to be
registered, excluding any vessel which has a valid marine document
issued by the United States or any agency thereof. For the purposes
of this article, "vessel" includes any trailer used in connection
with the vessel which is in the possession of the lienholder at the
time the lien arises.
501.3. The time a notice or statement is given or sent, unless
otherwise expressly provided, means the time a written notice to a
person is deposited in the United States mails; or the time any other
written notice is personally delivered to the recipient.
501.5. The possessory vessel lien procedures described by the
provisions of this article shall supersede any local ordinance and
shall provide the exclusive means of enforcing these liens. Nothing
in this article shall be construed as affecting any maritime lien
cognizable under any federal law.
502. (a) Except as provided in Article 1.5 (commencing with Section
410) of Chapter 1 of Division 3, every person has a lien dependent
upon possession of the vessel for the compensation to which he or she
is legally entitled for services rendered to or storage of any
vessel subject to registration with the Department of Motor Vehicles.
The lien shall arise at the time a written statement of lien is sent
to the registered owner of the vessel which specifies the charges
for services or storage rendered and states that the vessel is
subject to sale pursuant to the California Boater's Lien Law.
(b) Notwithstanding subdivision (a), no lien provided by this
section for storage or service provided upon the request of any
person other than the legal owner as shown on the registration
certificate of the vessel shall be valid against the interest of the
legal owner to the extent that the lien exceeds one thousand five
hundred dollars ($1,500) unless the person performing the storage or
service obtains the consent of the legal owner to the amount of the
excess. The legal owner may limit his or her consent to a specified
dollar amount or period of time. The lien claimant shall give actual
notice in writing, prior to exceeding that amount, either by personal
service or by registered mail to the legal and registered owner or
owners as named and at the addresses as shown on the registration
certificate, on a standard form provided by the department,
containing a description of the storage or services, or both, a
description and registration number of the vessel, the name of the
registered owner or owners, the dollar amount or rate of the charges
for the storage or services, and a statement in boldface type that,
with respect to storage charges, consent of the legal owner shall be
presumed unless the legal owner notifies the lien claimant within 15
days of receipt of the request for consent that he or she declines to
consent to the storage. The lien claimant shall notify the legal
owner as shown on the registration certificate of the vessel, by
certified mail, that the vessel is subject to sale pursuant to the
California Boater's Lien Law and that the lien claimed exceeds one
thousand five hundred dollars ($1,500).
(c) Notwithstanding subdivision (b), any claim for the cost of
services may exceed the estimate given therefor by an amount not in
excess of 10 percent thereof and the lien of the lien claimant shall
be valid against the legal owner to the full amount of such excess to
the same extent as would be a lien for the original estimate.
(d) With respect to claims for storage charges, a legal owner
shall be presumed to consent to storage charges if he or she fails to
respond to the request for consent set forth in subdivision (b)
within 15 days after receipt thereof, such response to be addressed
to the lien claimant at the address stated in the request for
consent. In addition, consent in all cases is presumed for the 30-day
period immediately following the giving of the request for consent
notice.
(e) The legal owner may, upon declining consent, remove the vessel
from the lien claimant only upon satisfying the lien of the lien
claimant.
(f) Any lien arising under this section shall be extinguished, and
no lien sale shall be conducted unless, 60 days after the lien
arises, the lienholder does either of the following:
(1) Applies to the department for an authorization to conduct a
lien sale.
(2) Files an action on the claim in court.
(g) Nothing in this section shall impair any rights or remedies
which are otherwise available to the lien claimant against the
registered owner under any other provisions of law.
503. (a) A lienholder shall apply to the department for the
issuance of an authorization to conduct a lien sale pursuant to the
provisions of this section for any vessel with a value determined to
be over one thousand five hundred dollars ($1,500). A fee shall be
charged by the department and may be recovered by the lienholder if a
lien sale is conducted or if the vessel is redeemed. The application
shall be executed under penalty of perjury and shall include all of
the following information:
(1) A description of the vessel, including make, hull
identification number, and state of registration, to the extent
available.
(2) The names and addresses of the registered and legal owners of
the vessel, if ascertainable from the registration certificate within
the vessel, and the name and address of any person whom the
lienholder knows or reasonably should know claims a proprietary
interest in the vessel.
(3) A statement of the amount of the lien and the facts which give
rise to the lien. The statement shall include, as a separate item,
an estimate of any additional storage costs accruing pending the lien
sale.
(b) Upon receipt of an application made pursuant to subdivision
(a), the department shall within 15 days thereafter do the following:
(1) Notify the vessel registry agency of a foreign state of the
pending lien sale, if the vessel bears indicia of registration in
that state.
(2) By mail, send a notice, a copy of the application, and a
return envelope preaddressed to the department to the registered and
legal owners at their addresses of record with the department, and to
any other person whose name and address is listed in the
application.
(3) A vessel registration stop order or title transfer stop order
shall be applied by the department at the time the lien claimant
requests authorization to conduct the sale.
(4) Notify the applicant of any outstanding property tax lien on
the vessel of which the department has been notified pursuant to
subdivision (b) of Section 3205 of the Revenue and Taxation Code. The
notice required by this paragraph shall identify the county in which
any outstanding lien is held.
(c) The notice required pursuant to subdivision (b) shall include
all of the following statements:
(1) An application has been made with the department for
authorization to conduct a lien sale and the department has placed a
vessel registration stop order or title transfer stop order on the
vessel.
(2) Each person to whom notice is sent pursuant to subdivision (b)
is entitled to a hearing in court if that person so desires.
(3) If a hearing in court is desired, a declaration of opposition,
signed under penalty of perjury, is required to be signed and
returned to the department within 15 days of the date that the notice
required pursuant to subdivision (b) was mailed.
(4) If the declaration of opposition is signed and returned to the
department, the lienholder will be allowed to sell the vessel only
if he or she obtains a court judgment or a subsequent release from
the declarant.
(5) If a court action is filed, the declarant will be served by
mail with legal process in the court proceedings at the address shown
on the declaration of opposition and may appear to contest the
claim.
(6) The person may be liable for court costs if a judgment is
entered in favor of the lienholder.
(d) If the department receives the declaration of opposition in
the time provided, the department shall notify the lienholder within
16 days of the receipt of the declaration of opposition that a lien
sale shall not be conducted unless the lienholder files an action in
court within 60 days of the notice. A lien sale of the vessel shall
not be conducted unless judgment is subsequently entered in favor of
the lienholder or the declarant subsequently releases his or her
interest in the vessel.
(e) Service of legal process on the declarant, with return receipt
requested signed by the declarant or an authorized agent of the
declarant at the address shown on the declaration of opposition,
shall be effective. Return of a declaration of opposition shall
constitute consent by the declarant to service of legal process for
the desired court hearing upon him or her in the foregoing manner.
Notwithstanding subdivision (d) of Section 415.3 of the Code of Civil
Procedure, if the lienholder has attempted service upon declarant by
that method at the address shown on the declaration of opposition
and the mail has been returned unclaimed, the department shall
promptly authorize the sale.
(f) Upon receipt of authorization to conduct the lien sale, the
lienholder shall do all of the following:
(1) At least 10 days, but not more than 30 days, prior to the lien
sale, not counting the day of the sale, give notice of the sale by
advertising once in a newspaper of general circulation published in
the county in which the vessel is located. If there is no newspaper
published in the county, notice shall be given by posting a notice of
sale form in three of the most public places in the area in which
the vessel is located and at the place where the vessel is to be sold
for 10 consecutive days prior to and including the day of the sale.
(2) Send a notice of pending lien sale 20 days prior to the sale,
but not counting the day of sale, by mail with return receipt
requested, to each of the following:
(A) The registered and legal owners of the vessel, if registered
in this state.
(B) All persons known to have an interest in the vessel.
(C) The department.
(g) Upon receipt of the notice, the department shall mark its
records and thereafter notify any person having a proprietary
interest in the vessel that there is a pending lien sale and that
title will not be transferred until the lien is satisfied or
released.
(h) All notices required by this section, including the notice
forms prescribed by the department, shall specify the make, hull
identification number, and state of registration, if available, and
the specific date, exact time, and place of sale.
504. (a) For vessels with a value determined to be one thousand
five hundred dollars ($1,500) or less, the department shall promptly
furnish the lienholder with the names and addresses of the registered
and legal owners of record.
(b) The lienholder shall, immediately upon receipt of the names
and addresses, send by mail, with return receipt requested, a
completed notice of pending lien sale form, a blank declaration of
opposition form, and a return envelope preaddressed to the
department, to the registered owner and legal owner at their
addresses of record with the department, to any other person known to
have a proprietary interest in the vessel, and to the department.
(c) Upon receipt of the notice, the department shall mark its
records and thereafter notify any person having a proprietary
interest in the vessel that there is a pending lien sale and that
title will not be transferred until the lien is satisfied or
released.
(d) All notices shall be signed under penalty of perjury and shall
include all of the following information and statements:
(1) A description of the vessel, including make, identification
number, and state of registration, to the extent available.
(2) The specific date, exact time, and place of sale, which shall
be set not less than 35 days, but not more than 60 days, from the
date of mailing.
(3) The names and addresses of the registered and legal owners of
the vessel and any other person known to have an interest in the
vessel.
(4) All of the following statements:
(A) The amount of the lien and the facts that give rise to the
lien. The statement shall include, as a separate item, an estimate of
any additional storage costs accruing pending the lien sale.
(B) The person has a right to a hearing in court.
(C) If a court hearing is desired, a declaration of opposition
signed under penalty of perjury is required to be signed and returned
to the department within 15 days of the date the notice of pending
lien sale was mailed.
(D) If the declaration of opposition is signed and returned, the
lienholder will be allowed to sell the vessel only if he or she
obtains a court judgment or if he or she obtains a subsequent release
from the declarant.
(E) If a court action is filed, the declarant will be served by
mail with legal process in the court proceedings at the address shown
on the declaration of opposition and may appear to contest the
claim.
(F) The person may be liable for court costs if a judgment is
entered in favor of the lienholder.
(e) If the department receives the completed declaration of
opposition within the time provided, the department shall notify the
lienholder within 16 days that a lien sale shall not be conducted
unless the lienholder files an action in court within 20 days of the
notice and judgment is subsequently entered in favor of the
lienholder or the declarant subsequently releases his or her interest
in the vessel.
(f) Service on the declarant by mail with return receipt
requested, signed by the declarant or an authorized agent of the
declarant at the address shown on the declaration of opposition,
shall be effective. Return of a declaration of opposition shall
constitute consent by the declarant to service of legal process for
the desired court hearing upon him or her in the foregoing manner. If
the lienholder has attempted service upon the declarant by that
method at the address shown on the declaration of opposition and the
mail has been returned unclaimed, the lienholder may proceed with the
sale.
505. (a) A registered or legal owner of a vessel may release any
interest in the vessel after the lien has arisen. The release shall
be dated when signed and a copy shall be given at the time the
release is signed to the person releasing the interest.
(b) The release shall be in at least 12-point type and shall
contain all of the following information in simple, nontechnical
language:
(1) A description of the vessel, including the make, the
identification number, and the state of registration, to the extent
available.
(2) The names and addresses of the registered and legal owners of
record with the department, to the extent available.
(3) A statement of the amount of the lien and the facts which give
rise to the lien.
(4) A statement that the person releasing the interest understands
that (i) he or she has a legal right to a hearing in court prior to
any sale of the vessel to satisfy the lien and (ii) he or she is
giving up the right to appear to contest the claim of the lienholder.
(5) A statement that (i) the person releasing the interest gives
up any interest he or she may have in the vessel and (ii) he or she
is giving the lienholder permission to sell the vessel.
(c) The release required by this section shall be filed with the
department in connection with any transfer of interest in a vessel
following a lien sale.
505.5. (a) Whenever the lien upon any vessel is lost by reason of
the loss of possession through trick, fraud, or device, the
repossession of the vessel by the former lienholder claimant revives
the lien, but a lien so revived is subordinate to any right, title,
or interest of a person under a sale, transfer, encumbrance, lien, or
other interest acquired or secured in good faith and for value
between the time of the loss of possession and the time of
repossession.
(b) It is a misdemeanor for a person to obtain possession of a
vessel or any part of the vessel subject to a lien pursuant to the
provisions of this chapter by trick, fraud, or device.
(c) It is a misdemeanor for a person claiming a lien on a vessel
to knowingly violate this article.
(d) A person found guilty of a misdemeanor violation of
subdivision (b) or (c) shall be subject to a fine not to exceed one
thousand dollars ($1,000) or imprisonment in the county jail not to
exceed six months, or both that fine and imprisonment.
506. No lien sale shall be undertaken pursuant to Section 503 or
504 unless the vessel has been available for inspection at a location
easily accessible to the public for at least one hour before the
sale and is at the place of sale at the time and date specified on
the notice of sale. Sealed bids shall not be accepted. The lienholder
shall conduct the sale in a commercially reasonable manner.
506.5. Within 10 days after the sale of any vessel pursuant to the
provisions of Section 503 or 504, the legal or registered owner may
redeem the vessel upon the payment of the amount of the lien, all
costs and expenses of the lien, together with interest on that sum at
the legal rate from the due date thereof until the repayment. If the
vessel is not redeemed, all lien sale documents required by the
department to effect transfer of title shall then be completed and
delivered to the buyer.
507. (a) Except as provided in subdivision (b), at the time a
lienholder applies to the department to conduct a sale under Section
504, the lienholder shall submit with the application a declaration
by a licensed yacht and ship broker of the fair market value of the
described vessel at a specific date within 30 days of that
submission. The opinion need not be based upon a marine survey, but
shall be based on a physical inspection of the vessel. No cause of
action shall lie against the declarant on account of the opinion
given.
(b) The declaration specified in subdivision (a) is not required
if a public agency removes an abandoned vessel, or arranges, by
contract, for the removal of the vessel, from a highway or from
public or private property.
(1) For lien sale purposes, the public agency which removed the
vessel, or arranged for the removal, shall determine if the estimated
value of the vessel that has been ordered removed or stored is one
thousand five hundred dollars ($1,500) or less.
(2) If the public agency fails or refuses to determine the
estimated value of the vessel within three days after the date of
removal of the vessel, the lienholder or the lienholder's agent shall
determine, under penalty of perjury, if the estimated value of the
vessel that has been ordered removed or stored is one thousand five
hundred dollars ($1,500) or less.
507.5. The proceeds of a vessel lien sale shall be disposed of as
follows:
(a) The amount necessary to discharge the lien and the actual cost
of selling the vessel shall be paid to the lienholder. Actual cost
of sale shall include any fees charged by the department, publication
fees, postage and service of notices, whether incurred as a result
of a sale or redemption by the registered or legal owner without a
sale. The actual cost of sale shall not exceed one hundred dollars
($100) for a vessel without a trailer and one hundred twenty-five
dollars ($125) for a vessel with a trailer, exclusive of the charges
of the department.
(b) The balance, if any, shall be forwarded to the department
within 15 days of any sale. Within 30 days thereafter, the department
shall send notice of the receipt of the funds, if the amount thereof
exceeds ten dollars ($10), to the legal and registered owners at the
most current addresses shown in the department's records.
(c) Any person claiming an interest in the vessel may file a claim
with the department for any portion of the funds forwarded to the
department pursuant to subdivision (b). Upon determination of the
department that the claimant is entitled to a portion of those funds,
the department shall pay any entitled amount which does not exceed
the balance of the funds remaining on deposit with the department
that pertain to the vessel. The department shall not honor any claim
unless the claim has been filed within three years of the date the
funds were received. At the end of each fiscal year the department
shall deposit in the Harbors and Watercraft Revolving Fund all funds
held by it for which no claim was filed within the three-year period.
508. A lien provided for in this article for repairs, labor,
supplies, or materials for, or for storage or safekeeping of, a
vessel may be assigned by written instrument accompanied by delivery
of possession of the vessel subject to the lien, and the assignee may
exercise the rights of a lienholder as provided in this article. A
lienholder assigning a lien as authorized in this section shall at
the time of assigning the lien give written notice of the assignment
either by personal delivery or by certified mail, to the registered
and legal owners of the vessel, indicating the name and address of
the person to whom the lien is assigned.
508.5. All forms required pursuant to this article shall be
prescribed by the department. Language used in the notices and
declarations shall be simple and nontechnical.
509. No lien shall attach to any personal property in or on the
vessel except that which is carried on the vessel for lifesaving,
safety, mooring, and operating purposes. Personal property not
subject to lien shall be given to the registered owner or the owner's
authorized agent upon demand.
