CHAPTER 2. WATERCRAFT CERTIFICATES OF TITLE
IC 9-31-2
Chapter 2. Watercraft Certificates of Title
IC 9-31-2-1
Nonapplicability of chapter
Sec. 1. This chapter does not apply to the following:
(1) A watercraft from a jurisdiction other than Indianatemporarily using the waters of Indiana.
(2) A ship's lifeboat.
(3) Watercraft other than motorboats unless the ownervoluntarily desires to become subject to this chapter.
(4) A watercraft that is a Class 5 or lower motorboat or sailboatunder IC 6-6-11-11 (the boat excise tax), unless the ownervoluntarily desires to become subject to this chapter.
(5) A watercraft that is propelled by an internal combustion,steam, or electrical inboard or outboard motor or engine or byany mechanical means, including sailboats that are equippedwith such a motor or engine when the sailboat is in operationwhether or not the sails are hoisted, if:
(A) the watercraft was made by an individual for the use ofthe individual and not for resale; and
(B) the owner does not voluntarily desire to become subjectto this chapter.
As added by P.L.71-1991, SEC.11.
IC 9-31-2-2
Watercraft requiring registration; exception
Sec. 2. (a) Except as provided in subsection (b), a watercraft thatis required to be registered in Indiana must have a certificate of titleissued under this chapter.
(b) A watercraft acquired by the Indiana owner of the watercraftbefore January 1, 1986, is not required to have a certificate of titleuntil after ownership of the watercraft is transferred to anotherperson.
As added by P.L.71-1991, SEC.11.
IC 9-31-2-3
Transfer or acquisition of title; necessity for transfer or obtainingof title certificate
Sec. 3. (a) Except as provided in section 5 of this chapter, aperson may not transfer ownership of a watercraft that was acquiredby the person after January 1, 1986, without delivering to thetransferee of the watercraft a certificate of title with an assignmenton the certificate of title that shows title in the transferee.
(b) A person who acquires ownership of a watercraft after January1, 1986, must obtain a certificate of title for the watercraft undersection 6 of this chapter.
As added by P.L.71-1991, SEC.11.
IC 9-31-2-4 Necessity for certificate of title to obtain right, title, claim, orinterest in watercraft
Sec. 4. (a) Except as provided in section 30 of this chapter, aperson acquiring a watercraft from the owner of the watercraft,whether the owner is a manufacturer, importer, dealer, or otherwise,does not acquire any right, title, claim, or interest in or to thewatercraft until the person has obtained a certificate of title to thewatercraft. A waiver or estoppel does not operate in favor of theperson against another person having possession of the certificate oftitle, or manufacturer's or importer's certificate for the watercraft, fora valuable consideration.
(b) A court may recognize the right, title, claim, or interest of aperson in or to a watercraft sold, disposed of, mortgaged, orencumbered only if the right, title, claim, or interest:
(1) is evidenced by:
(A) a certificate of title;
(B) a certificate of title designating a transfer on deathbeneficiary to the watercraft signed under section 30 of thischapter; or
(C) a manufacturer's or importer's certificate issued underthis chapter; or
(2) is evidenced by admission in the pleadings or stipulation ofthe parties.
As added by P.L.71-1991, SEC.11. Amended by P.L.83-2008, SEC.9.
IC 9-31-2-5
Sale of watercraft to dealer; manufacturer's or importer'scertificate
Sec. 5. (a) A manufacturer, importer, dealer, or other person maynot sell or otherwise dispose of a new watercraft to a dealer, to beused by the dealer for purposes of display and resale, withoutdelivering to the dealer a manufacturer's or importer's certificateexecuted under this section and with those assignments on thecertificate as are necessary to show title in the purchaser of thewatercraft. A dealer may not purchase or acquire a new watercraftwithout obtaining from the seller of the watercraft the manufacturer'sor importer's certificate.
(b) A manufacturer's or importer's certificate of the origin of awatercraft must contain the following information along with theadditional information the bureau requires:
(1) A description of the watercraft, including, if applicable, themake, year, length, dry weight, series or model, horsepowerrating, hull type, and hull identification number.
(2) Certification of the date of transfer of the watercraft to adistributor, dealer, or other transferee and the name and addressof the transferee.
(3) Certification that this is the first transfer of the newwatercraft in ordinary trade and commerce.
(4) The signature and address of a representative of thetransferor. (c) An assignment of a manufacturer's or importer's certificateshall be printed on the reverse side of the manufacturer's orimporter's certificate. The assignment form must include thefollowing:
(1) The name and address of the transferee.
(2) A certification that the watercraft is new.
(3) A warranty that the title at the time of delivery is subjectonly to the liens and encumbrances that are set forth anddescribed in full in the assignment.
As added by P.L.71-1991, SEC.11.
IC 9-31-2-6
Application for certificate of title; time for filing; fee
Sec. 6. (a) Except as provided in subsection (b), an application fora certificate of title shall be filed with the bureau within thirty-one(31) days after the date of purchase or transfer. The application mustbe accompanied by the fee prescribed in IC 9-29-15-1.
(b) This subsection applies only to a watercraft acquired by aconveyance subject to section 30 of this chapter. An application fora certificate of title shall be filed with the bureau within sixty (60)days after the date of the transfer under section 30 of this chapter.The application must be accompanied by the fee prescribed inIC 9-29-15-1.
As added by P.L.71-1991, SEC.11. Amended by P.L.83-2008,SEC.10.
IC 9-31-2-7
Application for certificate of title; certification; contents
Sec. 7. An application for a certificate of title must be certified bythe owner or purchaser of the watercraft and must contain thefollowing information, along with the additional information thebureau requires:
(1) The name and address of the applicant.
(2) A statement of how the watercraft was acquired.
(3) The name and address of the previous owner.
(4) A statement of liens, mortgages, or other encumbrances onthe watercraft and the name and address of the holder of theliens, mortgages, or other encumbrances.
(5) If a lien, mortgage, or other encumbrance is not outstanding,a statement of that fact.
(6) A description of the watercraft, including, if applicable, themake, year, length, dry weight, series or model, horsepowerrating, hull type, and hull identification number.
As added by P.L.71-1991, SEC.11.
IC 9-31-2-8
Hull identification number
Sec. 8. If a watercraft contains a permanent hull identificationnumber placed on the watercraft by the manufacturer of thewatercraft, the number shall be used as the hull identification
number. If there is no manufacturer's hull identification number or ifthe manufacturer's hull identification number has been removed orobliterated, the bureau shall, upon a prescribed application thatincludes information indicating proof of ownership, assign a hullidentification number to the watercraft. The assigned hullidentification number shall be permanently affixed to or imprinted bythe applicant at the place and in the manner designated by the bureauupon the watercraft to which the hull identification number isassigned. The fee prescribed under IC 9-29-15-2 shall be paid to thebureau for assigning a hull identification number.
As added by P.L.71-1991, SEC.11.
IC 9-31-2-9
Certificate of title; first application
Sec. 9. If a certificate of title was not previously issued in Indianafor the watercraft, the application must be accompanied by one (1)of the following:
(1) A manufacturer's or importer's certificate.
(2) A sworn statement of ownership as prescribed by thebureau.
(3) A certificate of registration issued under IC 9-31-3, ifpurchased by the applicant before January 1, 1986.
(4) A certificate of title or bill of sale.
(5) Other evidence of ownership required by the law of anotherstate from which the watercraft is brought into Indiana.
As added by P.L.71-1991, SEC.11.
IC 9-31-2-10
Certificate of title; first application; certificate of hullidentification number
Sec. 10. Evidence of ownership of a watercraft for which anIndiana certificate of title was not previously issued and that does nothave permanently affixed to the watercraft a hull identificationnumber shall be accompanied by the certificate of hull identificationnumber assigned by the bureau under section 8 of this chapter.
As added by P.L.71-1991, SEC.11.
IC 9-31-2-11
Retention and verification of evidence of title
Sec. 11. The bureau shall retain the evidence of title presented byan applicant on which a certificate of title is issued and shall usereasonable diligence in ascertaining whether the facts in theapplication are true by checking the application and documentsaccompanying the application with the records of watercraft in thebureau.
As added by P.L.71-1991, SEC.11.
IC 9-31-2-12
Filing of application and issuance of certificate of title; assignmentof certificate form Sec. 12. (a) The bureau shall file each application received. If thebureau is satisfied:
(1) of the genuineness and regularity of an application;
(2) that no tax imposed by IC 6-2.5 is owed as evidenced by thereceipt for payment or determination of exemption from thedepartment of state revenue; and
(3) that the applicant is entitled to the issuance of a certificateof title;
the bureau shall issue a certificate of title containing the informationrequired in the application for a certificate of title, as prescribed bysection 7 of this chapter, as well as space for the notation andcancellation of a lien, a mortgage, or an encumbrance.
(b) A form for the assignment of the certificate of title mustappear on the reverse side of the certificate of title. The assignmentform must include a warranty that the signer is the owner of thewatercraft and that a mortgage, a lien, or an encumbrance is not onthe watercraft except as noted on the face of the certificate of title.
As added by P.L.71-1991, SEC.11.
IC 9-31-2-13
Numbering and indexing of certificates of title
Sec. 13. The bureau shall do the following:
(1) Prescribe a uniform method of numbering certificates oftitle.
(2) Maintain in the office of the bureau indexes for thecertificates of title.
As added by P.L.71-1991, SEC.11.
IC 9-31-2-14
Destruction of old certificates and supporting evidence
Sec. 14. The bureau may destroy a certificate of title or supportingevidence of a certificate of title covering a watercraft that was on filefor ten (10) years after the date of filing.
As added by P.L.71-1991, SEC.11.
IC 9-31-2-15
Cancellation of improperly issued certificates of title
Sec. 15. (a) If it appears that a certificate of title is improperlyissued, the bureau shall cancel the certificate. The bureau shall notifythe person to whom the certificate of title was issued, as well as anylienholders appearing on the certificate of title, of the cancellationand shall demand the surrender of the certificate of title.
(b) A cancellation under subsection (a) does not affect the validityof a lien noted on the certificate of title.
(c) The holder of a certificate of title canceled under subsection(a) shall return the certificate of title to the bureau immediately.
As added by P.L.71-1991, SEC.11.
IC 9-31-2-16
Transfers of ownership by operation of law; issuance of certificate
of title
Sec. 16. (a) If the transfer of ownership of a watercraft is byoperation of law (such as upon inheritance, devise, bequest, transferon death designation in accordance with section 30 of this chapter,order in bankruptcy, insolvency, replevin, or execution of sale), if awatercraft is sold to satisfy a storage or repair charge, or ifrepossession is had upon default in performance of the terms of asecurity agreement, the bureau shall issue to the applicant acertificate of title to the watercraft upon the following:
(1) Compliance with any of the following:
(A) The surrender of the prior certificate of title.
(B) The surrender of the manufacturer's or importer'scertificate.
(C) Both of the following:
(i) The surrender of a certificate of title designating atransfer on death beneficiary.
(ii) The submission of proof of the death of the transferor.
(D) The presentation of satisfactory proof to the bureau ofownership and a right of possession to the watercraft.
(2) Payment of the fee prescribed under IC 9-29-15-1.
(3) Presentation of an application for certificate of title.
(b) A certification by the person or agent of the person to whompossession of the watercraft passed setting forth the facts entitlingthe person to possession and ownership, together with a copy of thejournal entry, court order, or instrument upon which the claim ofpossession and ownership is founded, is satisfactory proof ofownership and right of possession.
(c) If an applicant cannot produce proof of ownership, theapplicant may apply to the bureau and submit evidence of ownership.If the bureau finds the evidence sufficient, the bureau may issue acertificate of title. If, from the records of the department, a lienappears to be on the watercraft, the certificate of title must containa statement of the lien, unless the application is accompanied byproper evidence of the extinction of the lien.
As added by P.L.71-1991, SEC.11. Amended by P.L.83-2008,SEC.11.
IC 9-31-2-17
Late application for certificate of title
Sec. 17. If a person fails to apply for a title within thirty-one (31)days after obtaining ownership of a boat, the person shall pay a latetitle fee prescribed under IC 9-29-15-3.
As added by P.L.71-1991, SEC.11.
IC 9-31-2-18
Distribution of use tax collections
Sec. 18. The bureau shall retain one percent (1%) of the use taxesreceived under this article and remit the balance to the department ofstate revenue in the manner prescribed by the department of staterevenue.As added by P.L.71-1991, SEC.11.
IC 9-31-2-19
Change or destruction of watercraft; surrender and cancellationof certificate of title
Sec. 19. (a) If a watercraft is dismantled, destroyed, or changed ina manner that the watercraft loses the character of a watercraft orchanged in a manner that the watercraft is not the watercraftdescribed in the certificate of title, an owner of the watercraft and aperson mentioned as owner in the last certificate of title shallsurrender the certificate of title to the bureau. The bureau shall, withthe consent of a holder of a lien noted on the certificate of title, entera cancellation upon the lienholder's records.
(b) Upon the cancellation of a certificate of title in the mannerprescribed by subsection (a), the bureau may cancel and destroy thecertificates.
As added by P.L.71-1991, SEC.11.
IC 9-31-2-20
Duplicate certificates of title
Sec. 20. (a) If a certificate of title is lost or mutilated or becomesillegible, the owner of the watercraft shall apply to the bureau for aduplicate certificate of title upon a form prescribed by the bureau andaccompanied by the fee prescribed by IC 9-29-15-1. The personmaking the application shall certify the application. Upon receipt ofthe application, the bureau shall issue a duplicate certificate of titleto the person entitled to receive the certificate of title under thischapter. Upon the issuance of a duplicate certificate of title, thepreviously issued certificate of title becomes void.
(b) Each duplicate certificate of title must contain the legend"This is a duplicate certificate.". The duplicate certificate of titleshall be delivered to the person entitled to possession.
(c) If an original certificate of title is recovered by the owner, theowner shall immediately surrender the original certificate of title tothe bureau for cancellation.
As added by P.L.71-1991, SEC.11.
IC 9-31-2-21
Commercial lookup service of watercraft title records; titleinformation
Sec. 21. (a) The bureau may provide a commercial lookup serviceof watercraft title records on a fee basis per transaction and use feerevenues received from the service for necessary expenses.
(b) The bureau shall furnish information on a title without chargeto law enforcement and conservation officers when engaged inofficial duties.
As added by P.L.71-1991, SEC.11.
IC 9-31-2-22
Agents to sign manufacturer or importer certificates Sec. 22. Manufacturers and importers shall appoint and authorizeagents to sign manufacturer's or importer's certificates. The bureaumay require that a certified copy of a list containing the names andthe facsimile signatures of authorized agents be furnished to thebureau.
As added by P.L.71-1991, SEC.11.
IC 9-31-2-23
Stolen or converted watercraft; record information
Sec. 23. (a) Upon receiving knowledge of a stolen watercraft, alaw enforcement agency shall immediately furnish the sheriff'sdepartment of the county from which the watercraft was stolen, thedepartment of natural resources, law enforcement division, and thebureau with full information concerning the theft.
(b) The bureau shall file the record in the numerical order of themanufacturer's hull identification number or assigned hullidentification number with the index records of the watercraft. Thebureau shall prepare a list of watercraft stolen and recovered asdisclosed by the reports submitted to the bureau. The bureau shalldistribute the lists as the bureau considers advisable.
(c) If a stolen or converted watercraft is recovered, the owner orrecovering agency shall immediately notify the law enforcementagency that received the initial theft report. The law enforcementagency shall immediately notify the bureau, the department of naturalresources, the sheriff of the county from which the watercraft wasstolen, and other law enforcement agencies in the county. The bureaushall remove the record of the theft or conversion from the file inwhich the report is recorded.
As added by P.L.71-1991, SEC.11.
IC 9-31-2-24
Security agreements; perfection; record entry; discharge of lien
Sec. 24. (a) A security agreement covering a security interest ina watercraft that is not inventory held for sale can be perfected onlyif the bureau indicates the security interest on the certificate of titleor duplicate. Except as otherwise provided in this section,IC 26-1-9.1 applies to security interests in watercraft.
(b) The secured party, upon presentation of a properly completedapplication for certificate of title to the bureau together with the feeprescribed by IC 9-29-15-1, may have a notation of the lien made onthe face of the certificate of title to be issued by the bureau. Thebureau shall enter the notation and the date of the notation and shallnote the lien and the date of the lien in the bureau's files.
(c) Whenever a lien is discharged, the holder shall note thedischarge on the certificate of title over the holder's signature.
As added by P.L.71-1991, SEC.11. Amended by P.L.57-2000, SEC.5.
IC 9-31-2-25
Examination of certificate applications; investigations; rejection ofapplication Sec. 25. The bureau shall use due diligence in examining anddetermining the genuineness, regularity, and legality of everyapplication for a certificate of title for a watercraft and may do thefollowing:
(1) Make the investigations that are determined necessary orrequire additional information. An authorized employee of thebureau may inspect a watercraft to determine whether acertificate of title should be issued.
(2) Reject an application:
(A) if not satisfied of:
(i) the application's genuineness, regularity, or legality; or
(ii) the truth of a statement contained on the application;or
(B) for any other reason authorized by law.
As added by P.L.71-1991, SEC.11.
IC 9-31-2-26
Misdemeanor offenses
Sec. 26. A person who does any of the following commits a ClassA misdemeanor:
(1) Operates in Indiana a watercraft for which a certificate oftitle is required without having a certificate as prescribed by thischapter.
(2) Operates in Indiana a watercraft for which a certificate oftitle is required for which the certificate of title is canceled.
(3) Fails to surrender a certificate of title upon cancellation ofthe certificate by the bureau and notice of the cancellation asprescribed in this chapter.
(4) Fails to surrender a certificate of title to the bureau, asprovided in this chapter, if the watercraft is destroyed,dismantled, or changed in a manner that the watercraft is not thewatercraft described in the certificate of title.
As added by P.L.71-1991, SEC.11.
IC 9-31-2-27
Felony offenses
Sec. 27. A person who does any of the following commits a ClassD felony:
(1) Alters or forges a certificate of title or a manufacturer's orimporter's certificate to a watercraft, an assignment of either, ora cancellation of a lien on a watercraft.
(2) Holds or uses a certificate, assignment, or cancellation,knowing the document is altered or forged.
(3) Procures or attempts to procure a certificate of title to awatercraft or passes or attempts to pass a certificate of title oran assignment of title to a watercraft knowing or having reasonto believe that the watercraft is stolen.
(4) Sells or offers for sale in Indiana a watercraft on which themanufacturer's or assigned hull identification number isdestroyed, removed, covered, altered, or defaced, with
knowledge of the destruction, removal, covering, alteration, ordefacement of the manufacturer's or assigned hull identificationnumber.
(5) Destroys, removes, alters, or defaces the manufacturer's orassigned hull identification number of a watercraft.
(6) Uses a false or fictitious name, gives a false or fictitiousaddress, or makes a false statement in an application orcertificate required under this chapter or in a bill of sale orsworn statement of ownership, or otherwise commits fraud inan application.
(7) Sells or transfers a watercraft without delivering to thepurchaser or transferee of the watercraft a certificate of title ora manufacturer's or importer's certificate to the watercraftassigned to the purchaser as provided for in this chapter.
As added by P.L.71-1991, SEC.11.
IC 9-31-2-28
Chapter violations; offenses
Sec. 28. A person who violates section 2, 3, 5, 6, 9, 10, or 11 ofthis chapter commits a Class C misdemeanor.
As added by P.L.71-1991, SEC.11.
IC 9-31-2-29
Rule violation; offense
Sec. 29. A person who violates a rule adopted to carry out thischapter commits a Class A infraction.
As added by P.L.71-1991, SEC.11.
IC 9-31-2-30
Transfer on death conveyance; requirements
Sec. 30. (a) An individual whose certificate of title for awatercraft indicates that the individual is the sole owner of thewatercraft may create an interest in the watercraft that istransferrable on the death of the individual by obtaining a certificateof title conveying the interest in the watercraft to one (1) or morenamed individuals as transfer on death beneficiaries.
(b) Subject to subsection (e), an interest in a watercraft transferredunder this section vests upon the death of the transferor.
(c) A certificate of title that is:
(1) worded in substance as "A.B. transfers on death to C.D.";and
(2) signed by the transferor;
is a good and sufficient conveyance on the death of the transferor tothe transferee.
(d) A certificate of title obtained under this section is not requiredto be:
(1) supported by consideration; or
(2) delivered to the named transfer on death beneficiary;
to be effective.
(e) Upon the death of an individual conveying an interest in a
watercraft in a certificate of title obtained under this section, theinterest in the watercraft is transferred to each beneficiary who isdescribed by either of the following:
(1) The beneficiary:
(A) is named in the certificate; and
(B) survives the transferor.
(2) The beneficiary:
(A) survives the transferor; and
(B) is entitled to an interest in the watercraft underIC 32-17-14-22 following the death of a beneficiary who:
(i) is named in the certificate; and
(ii) did not survive the transferor.
(f) A transfer of an interest in a watercraft under this section issubject to IC 6-4.1.
(g) A certificate of title designating a transfer on death beneficiaryis not testamentary.
(h) In general, IC 32-17-14 applies to a certificate of titledesignating a transfer on death beneficiary. However, a particularprovision of IC 32-17-14 does not apply if it is inconsistent with therequirements of this section or IC 9-31-2-16.
As added by P.L.83-2008, SEC.12. Amended by P.L.143-2009,SEC.4; P.L.6-2010, SEC.5.