(a) In this section:

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Terms Used In Alabama Code 33-5B-20

  • Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • person: includes a corporation as well as a natural person. See Alabama Code 1-1-1
  • state: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Alabama Code 1-1-1
  • Statute: A law passed by a legislature.
(1) “By operation of law” means pursuant to a law or judicial order affecting ownership of a vessel:

(A) because of death, divorce or other family law proceeding, merger, consolidation, dissolution, or bankruptcy;
(B) through the exercise of the rights of a lien creditor or a person having a lien created by statute or rule of law; or
(C) through other legal process.
(2) “Transfer-by-law statement” means a record signed by a transferee stating that by operation of law the transferee has acquired or has the right to acquire an ownership interest in a vessel.
(b) A transfer-by-law statement must contain:

(1) the name and last known mailing address of the owner of record and the transferee and the other information required by Section 33-5B-7(b);
(2) documentation sufficient to establish the transferee’s ownership interest or right to acquire the ownership interest;
(3) a statement that:

(A) the certificate of title is an electronic certificate of title;
(B) the transferee does not have possession of the written certificate of title created in the name of the owner of record; or
(C) the transferee is delivering the written certificate to the office with the transfer-by-law statement; and
(4) except for a transfer described in paragraph (a)(1)(A), evidence that notification of the transfer and the intent to file the transfer-by-law statement has been sent to all persons indicated in the files of the office as having an interest, including a security interest, in the vessel.
(c) Unless the office rejects a transfer-by-law statement for a reason stated in Section 33-5B-8(c) or because the statement does not include documentation satisfactory to the office as to the transferee’s ownership interest or right to acquire the ownership interest, after delivery to the office of the statement and payment of fees and taxes payable under the law of this state other than this chapter in connection with the statement or with the acquisition or use of the vessel, the office shall:

(1) accept the statement;
(2) amend the files of the office to reflect the transfer; and
(3) if the name of the owner whose ownership interest is being transferred is indicated on the certificate of title:

(A) cancel the certificate even if the certificate has not been delivered to the office;
(B) create a new certificate indicating the transferee as owner;
(C) indicate on the new certificate any security interest indicated on the canceled certificate, unless a court order provides otherwise; and
(D) deliver the new certificate or a record evidencing an electronic certificate.
(d) This section does not apply to a transfer of an interest in a vessel by a secured party under Part 6, Article 9A, Title 7.
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