§ 46-22.1-3.1. Registration without certificate of title. If an applicant is unable to provide a valid certificate of title for a vessel required to be titled under the provisions of this chapter then:
(1) As a condition of issuing a certificate of title, the department may accept a surety bond, in an amount equal to the value of the boat, which shall be conditioned to protect the department and all officers and employees of the department, any subsequent purchaser of the boat, any person holding or acquiring a lien or security interest on the boat, and any successor in interest of said purchaser or person, against any loss or damage on account of any defect in or undisclosed claim upon the right, title and interest of the applicant or other person in and to the boat. Any aforementioned interested person shall have a right of action to recover on the bond for any breach of its conditions, but the aggregate liability of the surety to all persons shall not exceed the amount of the bond. The bond shall expire no later than three (3) years after the date it became effective.
(2) In the alternative, an applicant may apply to the superior court for a hearing to determine the title to the vessel. The superior court shall require advertisement once a week for two (2) consecutive weeks in a paper of statewide circulation, and notice by certified mail return receipt requested to: (i) the department of environmental management; and (ii) any and all registered owners, title or lien holders, at their last known address, at least ten (10) days prior to the hearing date, together with any other provisions for notice the court may require. The burden shall be on the applicant to demonstrate ownership of the boat to the court, by a preponderance of the evidence, prior to the issuance of the title. After a hearing, the superior court shall issue an appropriate order. The superior court may order the department to title the vessel in the name of the applicant. Said order issued by the court shall protect the department, all officers and employees of the department, any subsequent purchaser of the boat, any person holding or acquiring a lien or security interest on the boat, and any successor in interest of said purchaser or person against any loss or damage on account of any defect in or undisclosed claim upon the right, title and interest of the applicant or other person in and to the boat.
History of Section. (P.L. 2004, ch. 33, § 1; P.L. 2004, ch. 61, § 1.)
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