Virginia Code 29.1-733.24: Rights of secured party.
A. Subject to subsection B or C, the effect of perfection and nonperfection of a security interest and the priority of a perfected or unperfected security interest with respect to the rights of a purchaser or creditor, including a lien creditor, is governed by Titles 8.1A through 8.10.
Terms Used In Virginia Code 29.1-733.24
- Buyer: means a person that buys or contracts to buy a watercraft. See Virginia Code 29.1-733.2
- Certificate of title: means a record, created by the Department under this article or by a governmental agency of another jurisdiction under the law of that jurisdiction that is designated as a certificate of title by the Department or agency and is evidence of ownership of a watercraft. See Virginia Code 29.1-733.2
- Good faith: means honesty in fact and the observance of reasonable commercial standards of fair dealing. See Virginia Code 29.1-733.2
- Knowledge: means the same as that term is defined in § Virginia Code 29.1-733.2
- Lien: A claim against real or personal property in satisfaction of a debt.
- Person: means an individual, corporation, business trust, estate, trust, statutory trust, partnership, limited liability company, association, joint venture, public corporation, government or governmental subdivision, agency or instrumentality, or any other legal or commercial entity. See Virginia Code 29.1-733.2
- Purchaser: means a person that takes by purchase. See Virginia Code 29.1-733.2
- Security interest: means an interest in a watercraft that secures payment or performance of an obligation if the interest is created by contract or arises under § Virginia Code 29.1-733.2
- sworn: means "affirm" or "affirmed. See Virginia Code 1-250
- Value: means the same as that term is defined in § Virginia Code 29.1-733.2
- Watercraft: means any vessel that is used or capable of being used as a means of transportation on water and is propelled by machinery, whether or not the machinery is the principal source of propulsion, except:
1. See Virginia Code 29.1-733.2
B. A security interest perfected under this article has priority over any statutory lien on the watercraft, except for a mechanics lien for repairs to the extent of $150 given by § 43-33 if the requirements are met, provided the mechanic furnishes the holder of any such recorded lien who requests it with an itemized sworn statement of the work done and materials supplied for which the lien is claimed.
C. If, while a security interest in a watercraft is perfected by any method under this article, the Department creates a certificate of title that does not indicate that the watercraft is subject to the security interest or contain a statement that it may be subject to security interests not indicated on the certificate:
1. A buyer of the watercraft, other than a person in the business of selling or leasing watercraft of that kind, takes free of the security interest if the buyer, acting in good faith and without knowledge of the security interest, gives value and receives possession of the watercraft; and
2. The security interest is subordinate to a conflicting security interest in the watercraft that is perfected under § 29.1-733.15 after creation of the certificate and without the conflicting secured party’s knowledge of the security interest.
2013, c. 787.