CHAPTER 2. WATERCRAFT CERTIFICATES OF TITLE - Indiana Statutes

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 Indiana temporarily using the waters of Indiana.
        (2) A ship's lifeboat.
        (3) Watercraft other than motorboats unless the owner voluntarily desires to become subject to this chapter.
        (4) A watercraft that is a Class 5 or lower motorboat or sailboat under IC 6-6-11-11 (the boat excise tax), unless the owner voluntarily 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 by any mechanical means, including sailboats that are equipped with such a motor or engine when the sailboat is in operation whether or not the sails are hoisted, if:
            (A) the watercraft was made by an individual for the use of the individual and not for resale; and
            (B) the owner does not voluntarily desire to become subject to 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 that is required to be registered in Indiana must have a certificate of title issued under this chapter.
    (b) A watercraft acquired by the Indiana owner of the watercraft before January 1, 1986, is not required to have a certificate of title until after ownership of the watercraft is transferred to another person.
As added by P.L.71-1991, SEC.11.

IC 9-31-2-3
Transfer or acquisition of title; necessity for transfer or obtaining of title certificate
     Sec. 3. (a) Except as provided in section 5 of this chapter, a person may not transfer ownership of a watercraft that was acquired by the person after January 1, 1986, without delivering to the transferee of the watercraft a certificate of title with an assignment on the certificate of title that shows title in the transferee.
    (b) A person who acquires ownership of a watercraft after January 1, 1986, must obtain a certificate of title for the watercraft under section 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, or interest in watercraft
     Sec. 4. (a) Except as provided in section 30 of this chapter, a person 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 the watercraft until the person has obtained a certificate of title to the watercraft. A waiver or estoppel does not operate in favor of the person against another person having possession of the certificate of title, or manufacturer's or importer's certificate for the watercraft, for a valuable consideration.
    (b) A court may recognize the right, title, claim, or interest of a person in or to a watercraft sold, disposed of, mortgaged, or encumbered 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 death beneficiary to the watercraft signed under section 30 of this chapter; or
            (C) a manufacturer's or importer's certificate issued under this chapter; or
        (2) is evidenced by admission in the pleadings or stipulation of the 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's certificate
     Sec. 5. (a) A manufacturer, importer, dealer, or other person may not sell or otherwise dispose of a new watercraft to a dealer, to be used by the dealer for purposes of display and resale, without delivering to the dealer a manufacturer's or importer's certificate executed under this section and with those assignments on the certificate as are necessary to show title in the purchaser of the watercraft. A dealer may not purchase or acquire a new watercraft without obtaining from the seller of the watercraft the manufacturer's or importer's certificate.
    (b) A manufacturer's or importer's certificate of the origin of a watercraft must contain the following information along with the additional information the bureau requires:
        (1) A description of the watercraft, including, if applicable, the make, year, length, dry weight, series or model, horsepower rating, hull type, and hull identification number.
        (2) Certification of the date of transfer of the watercraft to a distributor, dealer, or other transferee and the name and address of the transferee.
        (3) Certification that this is the first transfer of the new watercraft in ordinary trade and commerce.
        (4) The signature and address of a representative of the transferor.     (c) An assignment of a manufacturer's or importer's certificate shall be printed on the reverse side of the manufacturer's or importer's certificate. The assignment form must include the following:
        (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 subject only to the liens and encumbrances that are set forth and described 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 for a certificate of title shall be filed with the bureau within thirty-one (31) days after the date of purchase or transfer. The application must be accompanied by the fee prescribed in IC 9-29-15-1.
    (b) This subsection applies only to a watercraft acquired by a conveyance subject to section 30 of this chapter. An application for a 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 in IC 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 by the owner or purchaser of the watercraft and must contain the following information, along with the additional information the bureau 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 on the watercraft and the name and address of the holder of the liens, 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, the make, year, length, dry weight, series or model, horsepower rating, 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 identification number placed on the watercraft by the manufacturer of the watercraft, the number shall be used as the hull identification

number. If there is no manufacturer's hull identification number or if the manufacturer's hull identification number has been removed or obliterated, the bureau shall, upon a prescribed application that includes information indicating proof of ownership, assign a hull identification number to the watercraft. The assigned hull identification number shall be permanently affixed to or imprinted by the applicant at the place and in the manner designated by the bureau upon the watercraft to which the hull identification number is assigned. The fee prescribed under IC 9-29-15-2 shall be paid to the bureau 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 Indiana for 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 the bureau.
        (3) A certificate of registration issued under IC 9-31-3, if purchased 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 another state 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 hull identification number
     Sec. 10. Evidence of ownership of a watercraft for which an Indiana certificate of title was not previously issued and that does not have permanently affixed to the watercraft a hull identification number shall be accompanied by the certificate of hull identification number 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 by an applicant on which a certificate of title is issued and shall use reasonable diligence in ascertaining whether the facts in the application are true by checking the application and documents accompanying the application with the records of watercraft in the bureau.
As added by P.L.71-1991, SEC.11.

IC 9-31-2-12
Filing of application and issuance of certificate of title; assignment of certificate form      Sec. 12. (a) The bureau shall file each application received. If the bureau 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 the receipt for payment or determination of exemption from the department of state revenue; and
        (3) that the applicant is entitled to the issuance of a certificate of title;
the bureau shall issue a certificate of title containing the information required in the application for a certificate of title, as prescribed by section 7 of this chapter, as well as space for the notation and cancellation of a lien, a mortgage, or an encumbrance.
    (b) A form for the assignment of the certificate of title must appear on the reverse side of the certificate of title. The assignment form must include a warranty that the signer is the owner of the watercraft and that a mortgage, a lien, or an encumbrance is not on the 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 of title.
        (2) Maintain in the office of the bureau indexes for the certificates 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 supporting evidence of a certificate of title covering a watercraft that was on file for 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 improperly issued, the bureau shall cancel the certificate. The bureau shall notify the person to whom the certificate of title was issued, as well as any lienholders appearing on the certificate of title, of the cancellation and shall demand the surrender of the certificate of title.
    (b) A cancellation under subsection (a) does not affect the validity of 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 by operation of law (such as upon inheritance, devise, bequest, transfer on death designation in accordance with section 30 of this chapter, order in bankruptcy, insolvency, replevin, or execution of sale), if a watercraft is sold to satisfy a storage or repair charge, or if repossession is had upon default in performance of the terms of a security agreement, the bureau shall issue to the applicant a certificate 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's certificate.
            (C) Both of the following:
                (i) The surrender of a certificate of title designating a transfer on death beneficiary.
                (ii) The submission of proof of the death of the transferor.
            (D) The presentation of satisfactory proof to the bureau of ownership 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 whom possession of the watercraft passed setting forth the facts entitling the person to possession and ownership, together with a copy of the journal entry, court order, or instrument upon which the claim of possession and ownership is founded, is satisfactory proof of ownership and right of possession.
    (c) If an applicant cannot produce proof of ownership, the applicant may apply to the bureau and submit evidence of ownership. If the bureau finds the evidence sufficient, the bureau may issue a certificate of title. If, from the records of the department, a lien appears to be on the watercraft, the certificate of title must contain a statement of the lien, unless the application is accompanied by proper 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 late title 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 taxes received under this article and remit the balance to the department of state revenue in the manner prescribed by the department of state revenue. As added by P.L.71-1991, SEC.11.

IC 9-31-2-19
Change or destruction of watercraft; surrender and cancellation of certificate of title
     Sec. 19. (a) If a watercraft is dismantled, destroyed, or changed in a manner that the watercraft loses the character of a watercraft or changed in a manner that the watercraft is not the watercraft described in the certificate of title, an owner of the watercraft and a person mentioned as owner in the last certificate of title shall surrender the certificate of title to the bureau. The bureau shall, with the consent of a holder of a lien noted on the certificate of title, enter a cancellation upon the lienholder's records.
    (b) Upon the cancellation of a certificate of title in the manner prescribed by subsection (a), the bureau may cancel and destroy the certificates.
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 becomes illegible, the owner of the watercraft shall apply to the bureau for a duplicate certificate of title upon a form prescribed by the bureau and accompanied by the fee prescribed by IC 9-29-15-1. The person making the application shall certify the application. Upon receipt of the application, the bureau shall issue a duplicate certificate of title to the person entitled to receive the certificate of title under this chapter. Upon the issuance of a duplicate certificate of title, the previously 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 title shall be delivered to the person entitled to possession.
    (c) If an original certificate of title is recovered by the owner, the owner shall immediately surrender the original certificate of title to the bureau for cancellation.
As added by P.L.71-1991, SEC.11.

IC 9-31-2-21
Commercial lookup service of watercraft title records; title information
     Sec. 21. (a) The bureau may provide a commercial lookup service of watercraft title records on a fee basis per transaction and use fee revenues received from the service for necessary expenses.
    (b) The bureau shall furnish information on a title without charge to law enforcement and conservation officers when engaged in official 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 authorize agents to sign manufacturer's or importer's certificates. The bureau may require that a certified copy of a list containing the names and the facsimile signatures of authorized agents be furnished to the bureau.
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, a law enforcement agency shall immediately furnish the sheriff's department of the county from which the watercraft was stolen, the department of natural resources, law enforcement division, and the bureau with full information concerning the theft.
    (b) The bureau shall file the record in the numerical order of the manufacturer's hull identification number or assigned hull identification number with the index records of the watercraft. The bureau shall prepare a list of watercraft stolen and recovered as disclosed by the reports submitted to the bureau. The bureau shall distribute the lists as the bureau considers advisable.
    (c) If a stolen or converted watercraft is recovered, the owner or recovering agency shall immediately notify the law enforcement agency that received the initial theft report. The law enforcement agency shall immediately notify the bureau, the department of natural resources, the sheriff of the county from which the watercraft was stolen, and other law enforcement agencies in the county. The bureau shall remove the record of the theft or conversion from the file in which 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 in a watercraft that is not inventory held for sale can be perfected only if the bureau indicates the security interest on the certificate of title or 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 completed application for certificate of title to the bureau together with the fee prescribed by IC 9-29-15-1, may have a notation of the lien made on the face of the certificate of title to be issued by the bureau. The bureau shall enter the notation and the date of the notation and shall note the lien and the date of the lien in the bureau's files.
    (c) Whenever a lien is discharged, the holder shall note the discharge 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 of application      Sec. 25. The bureau shall use due diligence in examining and determining the genuineness, regularity, and legality of every application for a certificate of title for a watercraft and may do the following:
        (1) Make the investigations that are determined necessary or require additional information. An authorized employee of the bureau may inspect a watercraft to determine whether a certificate 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 Class A misdemeanor:
        (1) Operates in Indiana a watercraft for which a certificate of title is required without having a certificate as prescribed by this chapter.
        (2) Operates in Indiana a watercraft for which a certificate of title is required for which the certificate of title is canceled.
        (3) Fails to surrender a certificate of title upon cancellation of the certificate by the bureau and notice of the cancellation as prescribed in this chapter.
        (4) Fails to surrender a certificate of title to the bureau, as provided in this chapter, if the watercraft is destroyed, dismantled, or changed in a manner that the watercraft is not the watercraft 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 Class D felony:
        (1) Alters or forges a certificate of title or a manufacturer's or importer's certificate to a watercraft, an assignment of either, or a 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 a watercraft or passes or attempts to pass a certificate of title or an assignment of title to a watercraft knowing or having reason to believe that the watercraft is stolen.
        (4) Sells or offers for sale in Indiana a watercraft on which the manufacturer's or assigned hull identification number is destroyed, removed, covered, altered, or defaced, with

knowledge of the destruction, removal, covering, alteration, or defacement of the manufacturer's or assigned hull identification number.
        (5) Destroys, removes, alters, or defaces the manufacturer's or assigned hull identification number of a watercraft.
        (6) Uses a false or fictitious name, gives a false or fictitious address, or makes a false statement in an application or certificate required under this chapter or in a bill of sale or sworn statement of ownership, or otherwise commits fraud in an application.
        (7) Sells or transfers a watercraft without delivering to the purchaser or transferee of the watercraft a certificate of title or a manufacturer's or importer's certificate to the watercraft assigned 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 of this 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 this chapter 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 a watercraft indicates that the individual is the sole owner of the watercraft may create an interest in the watercraft that is transferrable on the death of the individual by obtaining a certificate of title conveying the interest in the watercraft to one (1) or more named individuals as transfer on death beneficiaries.
    (b) Subject to subsection (e), an interest in a watercraft transferred under 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 to the transferee.
    (d) A certificate of title obtained under this section is not required to 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, the interest in the watercraft is transferred to each beneficiary who is described 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 under IC 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 is subject to IC 6-4.1.
    (g) A certificate of title designating a transfer on death beneficiary is not testamentary.
    (h) In general, IC 32-17-14 applies to a certificate of title designating a transfer on death beneficiary. However, a particular provision of IC 32-17-14 does not apply if it is inconsistent with the requirements 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.