KRS § 376.272 — KY Code / Title XXXI / Chapter 376 / Section 376.272
376.272 Marina may enforce lien on boat asserted pursuant to KRS 376.270 by civil action
Status: in_force

376.272 Marina may enforce lien on boat asserted pursuant to KRS 376.270 by

civil action.

(1) Any marina asserting a possessory lien pursuant to KRS 376.270 may enforce the

lien by filing a civil action in the county in which the boat is located.

(2) Prior to filing an action pursuant to subsection (1) of this section, the marina shall

send, by certified mail, return receipt requested, notice of intent to enforce the lien

to:

(a) All known owners at their last known address; and

(b) All secured parties discernible through reasonable effort. For the purposes of

this paragraph, "reasonable effort" includes notice to any secured party that

has:

1. Properly perfected its security interest in the boat by having its lien

indicated on a certificate of title for the boat;

2. Properly perfected its security interest through an unexpired sufficient

financing statement filed in the jurisdiction of the boat owner's

residence, as that jurisdiction appears on the certificate of title, or

equivalent document, for the boat; or

3. Become a mortgagee of a federally documented vessel by recording a

ship mortgage on the vessel pursuant to Chapter 313 of Title 46 of the

United States Code.

In addition to the notice required in this subsection, the marina shall advertise the

notice of intent to enforce the lien at least once per week for two (2) consecutive

weeks pursuant to KRS Chapter 424.

(3) Upon the marina properly sending notice of its intent to enforce its lien in

accordance with subsection (2) of this section, a boat's owner may not remove the

boat from the marina without a court order.

(4) The notice of intent to enforce the lien required by subsection (2) of this section

shall include:

(a) The name of the owner of the boat as indicated on the certificate of title,

certificate of registration, or certificate of documentation;

(b) The owner's last known address;

(c) The make, model, length, and hull identification number of the boat if visually

discernable; and

(d) A description of any attached outboard motor, including make, horsepower,

and serial number if visually discernable.

(5) Any secured party to whom notice was sent pursuant to subsection (2) of this

section shall be named as a party in any civil action filed to enforce a marina's lien

under KRS 376.270 and called upon to enter therein and set forth its claim or

interest in the boat that is subject to the action, and the secured party shall be served

with summons at its address as indicated on the certificate of title, financing

statement, or ship mortgage through which its security interest was perfected.

(6) Upon judgment being entered in favor of a marina pursuant to this section, and

subject to any restrictions of the United States Code, or any regulations issued

pursuant thereto, regarding federally documented vessels, the court shall order the

boat, or any part of the furniture and tackle as may be sufficient, to be sold for the

satisfaction of the judgment. The marina shall conduct the sale in conformity with

reasonable commercial practices among dealers in the type of boat being sold and in

accordance with the court order. The sale shall be advertised in conformity with

reasonable commercial practices among dealers for the type of boat being sold and,

additionally, shall be advertised at least ten (10) days prior to the sale pursuant to

KRS Chapter 424.

(7) The court shall authorize and direct the county clerk to issue a title to the purchaser

of the boat at a sale authorized by and conducted in conformance with this section,

and the purchaser shall take title to the boat free of any liens or encumbrances. Any

liens or encumbrances attached to the boat shall attach to the proceeds of the sale in

the same order of priority that the liens and encumbrances attach to the boat

pursuant to applicable law.