2023 Illinois Compiled Statutes › Chapter 625 - VEHICLES › 625 ILCS 45/ - Boat Registration and Safety Act. › Article IIIB - Security Interests

(625 ILCS 45/Art. IIIB heading)
ARTICLE IIIB.  
		SECURITY INTERESTS
(625 ILCS 45/3B-1) (from Ch. 95 1/2, par. 313B-1)
Sec. 3B-1. 
		Excepted liens and security interests. 
		This Article does not apply to or affect:
(a) A lien given by statute or rule of law to a supplier of services or
materials for the watercraft;
(b) A lien given by the statute to the United States, this State or any
political subdivision of this State.
(c) A security interest in a watercraft created by a manufacturer or dealer
who holds the watercraft for sale, but a buyer in the ordinary course of trade
from the manufacturer or dealer takes free of the security interest.
(Source: P.A. 81-1199.)
(625 ILCS 45/3B-2) (from Ch. 95 1/2, par. 313B-2)
Sec. 3B-2. 
		Perfection of security interest.
(a) Unless excepted by Section 3B-1, a security interest in a watercraft
of a type for which a certificate of title is required is not valid against
subsequent transferees or lienholders of the watercraft unless perfected as
provided in this Act.
(b) A security interest is perfected by the delivery to the Department of
Natural Resources of the existing certificate of title, if
any, an application for a
certificate of title containing the name and address of the lienholder and
the date of his security agreement and the required fee.  It is perfected as
of the time of its creation if the delivery is completed within 21 days
thereafter, otherwise as of the time of the delivery.
(c) If a watercraft is subject to a security interest when brought into
this State, the validity of the security interest is determined by the law
of the jurisdiction where the watercraft was when the security interest
attached, subject to the following:
1. If the parties understood at the time the security     interest attached that the watercraft would be kept in this State and it was brought into this State within 30 days thereafter for purposes other than transportation through this State, the validity of the security interest in this State is determined by the law of this State.
2. If the security interest was perfected under the     law of the jurisdiction where the watercraft was when the security interest attached, the following rules apply:
(A) If the name of the lienholder is shown on an         existing certificate of title issued by that jurisdiction, his security interest continues perfected in this State.
(B) If the name of the lienholder is not shown on         an existing certificate of title issued by that jurisdiction, a security interest may be perfected by the lienholder delivering to the Department of Natural Resources the prescribed notice and by payment of the required fee.  Such security interest is perfected as of the time of delivery of the prescribed notice and payment of the required fee.
3. If the security interest was not perfected under     the law of the jurisdiction where the watercraft was when the security interest attached, it may be perfected in this State; in that case perfection dates from the time of perfection in this State.
4. A security interest may be perfected under     paragraph 3 of this subsection either as provided in subsection (b) or by the lienholder delivering to the Department of Natural Resources a notice of security interest in the form the Department prescribes and the required fee.
(Source: P.A. 89-445, eff. 2-7-96.)
(625 ILCS 45/3B-3) (from Ch. 95 1/2, par. 313B-3)
Sec. 3B-3. 
		Security interest. 
		If an owner creates a security interest in a
watercraft:
(a) The owner shall immediately execute the application, in the space
provided therefor on the certificate of title or on a separate form the
Department of Natural Resources prescribes, to name the
lienholder on the certificate,
showing the name and address of the lienholder and the date of his security
agreement, and cause the certificate, application and the required fee to
be delivered to the lienholder.
(b) The lienholder shall immediately cause the certificate, application
and the required fee to be mailed or delivered to the Department of
Natural Resources.
(c) Upon request of the owner or subordinate lienholder, a lienholder in
possession of the certificate of title shall either mail or deliver the
certificate to the subordinate lienholder for delivery to the Department of
Natural Resources or, upon receipt from the subordinate
lienholder of the owner's application and the required fee, mail or deliver
them to the Department of Natural Resources with the
certificate.  The delivery of the certificate does not affect the rights of the
first lienholder under his security agreement.
(d) Upon receipt of the certificate of title, application and the
required fee, the Department of Natural Resources shall
either endorse on the
certificate or issue a new certificate containing the name and address of
the new lienholder, and mail the certificate to the first lienholder named
in it.
(Source: P.A. 89-445, eff. 2-7-96.)
(625 ILCS 45/3B-4) (from Ch. 95 1/2, par. 313B-4)
Sec. 3B-4. 
		Assignment by lienholder.
(a) A lienholder may assign, absolutely or otherwise, his security
interest in the watercraft to a person other than the owner without affecting
the interest of the owner or the validity of the security interest, but any
person without notice of the assignment is protected in dealing with the
lienholder as the holder of the security interest and the lienholder
remains liable for any obligations as lienholder until the assignee is
named as lienholder on the certificate.
(b) The assignee may, but need not to perfect the assignment, have the
certificate of title endorsed or issued with the assignee named as lienholder,
upon delivering to the Department of Natural Resources the
certificate and an assignment by the lienholder named in the certificate in the
form the Department prescribes.
(Source: P.A. 89-445, eff. 2-7-96.)
(625 ILCS 45/3B-5) (from Ch. 95 1/2, par. 313B-5)
Sec. 3B-5. 
		Release of security interest.
(a) Upon the satisfaction of a security interest in a watercraft for which
the certificate of title is in the possession of the lienholder, he shall,
within 10 days after demand and, in any event, within 30
days, execute a release of his security interest, and mail or deliver the
certificate and release to the next lienholder named therein, or, if none, to
the owner or any person who delivers to the lienholder an authorization from
the owner to receive the certificate.  The owner, other than a dealer holding
the watercraft for resale, shall promptly cause the certificate and release
to be mailed or delivered to the Department of Natural Resources, which shall
release the lienholder's rights on the
certificate or issue a new certificate.
(b) Upon the satisfaction of a security interest in a watercraft for which
the certificate of title is in the possession of a prior lienholder, the
lienholder whose security interest is satisfied shall within 10 days
after demand and, in any event, within 30 days execute a release
and deliver the release to the owner or any person who delivers to the
lienholder an authorization from the owner to receive it.  The lienholder in
possession of the certificate of title shall either deliver the certificate
to the owner, or the person authorized by him, for delivery to the
Department of Natural Resources, or, upon receipt of the
release, mail or
deliver the certificate and release to the Department,
which shall release the subordinate lienholder's rights on the
certificate or issue a new certificate.
(Source: P.A. 89-445, eff. 2-7-96.)
(625 ILCS 45/3B-6) (from Ch. 95 1/2, par. 313B-6)
Sec. 3B-6. 
		Duty of lienholder. 
		A lienholder named in a certificate of title shall, upon written request
of the owner or of another lienholder named on the certificate, disclose
any pertinent information as to his security agreement and the indebtedness
secured by it.
(Source: P.A. 81-1199.)
(625 ILCS 45/3B-7) (from Ch. 95 1/2, par. 313B-7)
Sec. 3B-7. 
		Exclusiveness of procedure. 
		The method provided in this Act of perfecting and giving notice of
security interests subject to this Act is exclusive.  Security interests
subject to this Act are hereby exempted from the provisions of law which
otherwise require or relate to the recording or filing of instruments
creating or evidencing security interests in watercraft including chattel
mortgages and conditional sale agreements.
(Source: P.A. 85-149.)
(625 ILCS 45/3B-8) (from Ch. 95 1/2, par. 323B-8)
Sec. 3B-8. 
		Suspension or revocation of certificates.
(a) The Department of Natural Resources may suspend or
revoke a certificate of title, upon notice and reasonable opportunity to be
heard, when authorized by any other provision of law or if he finds:
1. The certificate of title was fraudulently procured     or erroneously issued, or
2. The watercraft has been scrapped, dismantled or     destroyed.
(b) Suspension or revocation of a certificate of title does not, in
itself, affect the validity of a security interest noted on it.
(c) When the Department of Natural Resources suspends
or revokes a certificate
of title, the owner or person in possession of it shall, immediately upon
receiving notice of the suspension or revocation, mail or deliver the
certificate to the Department.
(d) The Department of Natural Resources may seize and
impound any
certificate of title which has been suspended or revoked.
(Source: P.A. 89-445, eff. 2-7-96.)
(625 ILCS 45/3B-9) (from Ch. 95 1/2, par. 313B-9)
Sec. 3B-9. 
		Powers of Department of Natural Resources.
(a) The Department of Natural Resources
shall prescribe and provide suitable forms of applications, certificates
of title, notices of security interests, and all
other notices and forms necessary to carry out the provisions of this
Article and Article IIIA.
(b) The Department of Natural Resources may:
1. Make necessary investigations to procure     information required to carry out the provisions of this Article and Article IIIA;
2. Assign a new identifying number to a watercraft if     it has none, or its identifying number is destroyed or obliterated, and shall either issue a new certificate of title showing the new identifying number or make an appropriate endorsement on the original certificate.
(Source: P.A. 89-445, eff. 2-7-96.)
(625 ILCS 45/3B-10) (from Ch. 95 1/2, par. 313B-10)
Sec. 3B-10. 
		Court review. 
		A person aggrieved by an act or omission to act of
the Department of Natural Resources under this Article or
Article IIIA is also entitled to a review thereof by the Circuit Court of
Sangamon County in accordance with the Administrative Review Law, as amended.
(Source: P.A. 89-445, eff. 2-7-96.)