306.410. Duties of parties upon creation of lien or encumbrance--failure of owner to perform certain duties, penalty--name change, authorization to director required. - Missouri Statutes

Duties of parties upon creation of lien or encumbrance--failure ofowner to perform certain duties, penalty--name change,authorization to director required.

306.410. 1. If an owner creates a lien or encumbrance on an outboardmotor, motorboat, vessel, or watercraft:

(1) The owner shall immediately execute the application, either inthe space provided therefor on the certificate of title or on a separateform the director of revenue prescribes, to name the lienholder on thecertificate of title, showing the name and address of the lienholder andthe date of his or her security agreement, and shall cause the certificateof title, the application and the required fee to be mailed or delivered tothe director of revenue. Failure of the owner to do so is a class Amisdemeanor;

(2) The lienholder or an authorized agent licensed pursuant tosections 301.112 to 301.119, RSMo, shall deliver to the director of revenuea notice of lien as prescribed by the director accompanied by all othernecessary documentation to perfect a lien pursuant to section 306.400;

(3) To perfect a lien for a subordinate lienholder when a transfer ofownership occurs, the subordinate lienholder shall either mail or deliver,or cause to be mailed or delivered, a completed notice of lien to thedepartment of revenue, accompanied by authorization from the firstlienholder. The owner shall ensure the subordinate lienholder is recordedon the application for title at the time the application is made to thedepartment of revenue. To perfect a lien for a subordinate lienholder whenthere is no transfer of ownership, the owner or lienholder in possession ofthe certificate shall either mail or deliver, or cause to be mailed ordelivered, the owner's application for title, certificate, notice of lien,authorization from the first lienholder and title fee to the department ofrevenue. The delivery of the certificate and executing a notice ofauthorization to add a subordinate lien does not affect the rights of thefirst lienholder under the security agreement;

(4) Upon receipt of the documents and fee required in subdivision (3)of this section, the director of revenue shall issue a new certificate oftitle containing the name and address of the new lienholder, and mail thecertificate of title to the owner named in it or if a lienholder haselected to have the director of revenue retain possession of an electroniccertificate of title, the lienholder shall either mail or deliver to thedirector a notice of authorization for the director to add a subordinatelienholder to the existing certificate as prescribed in section 306.405.Upon receipt of such authorization and a notice of lien from a subordinatelienholder, the director shall add the subordinate lienholder to thecertificate of title being electronically retained by the director andprovide confirmation of the addition to both lienholders.

2. When an owner wants to add or delete a name or names on anapplication for certificates of title of an outboard motor, motorboat,vessel, or watercraft that would cause it to be inconsistent with the nameor names listed on the notice of lien, the owner shall provide the directorwith documentation evidencing the lienholder's authorization to add ordelete a name or names on an application for certificate of title.

(L. 1985 H.B. 280, et al. § 301.710, A.L. 1999 S.B. 19, A.L. 2000 S.B. 896, A.L. 2002 H.B. 2008 merged with S.B. 895, A.L. 2003 H.B. 221 merged with S.B. 346, A.L. 2009 H.B. 269)