SB266 Alabama 2016 Session

Summary

Primary Sponsor

Mark Slade Blackwell

Republican

Session

Regular Session 2016

Title

Vessels, certificate of title, uniform act, requirements, issuance by State Law Enforcement Agency, security agreement, perfection

Summary

SB266 would adopt the Uniform Certificate of Title for Vessels Act in Alabama, creating a voluntary title system for vessels and a framework to record ownership and secured interests.

What This Bill Does

It allows vessel owners to voluntarily obtain a certificate of title for their vessel from the Alabama State Law Enforcement Agency, with a defined application process. It explains how a security interest can be perfected by filing an application or adding the security interest to the title, and requires maintenance of records detailing ownership and liens. It sets what must be on a certificate (owner, vessel details, secured party, title brands) and outlines how certificates are created (written or electronic), replaced, or canceled, including hull-damaged branding and transfer procedures. It applies to transactions after January 1, 2017, allows voluntary application for vessels never titled, and preserves existing rights and liens from before the act.

Who It Affects

• Vessel owners and prospective owners who may apply for a certificate of title and will have an official record of ownership, branding (such as hull-damaged) and transfer history.
• Secured parties (lenders and lienholders), buyers, insurers, and others with an interest in a vessel who can perfect, transfer, or release security interests through the title system and rely on its records and priority rules.

Key Provisions

• Adopts the Uniform Certificate of Title for Vessels Act and authorizes the Alabama State Law Enforcement Agency to issue titles for vessels.
• Allows voluntary issuance of a certificate of title and specifies the application requirements, including owner and vessel details and documentation of ownership or security interests.
• Defines how security interests are perfected, either by filing an application identifying the secured party or by adding the interest to an existing or newly created certificate, with timing tied to attachment or filing.
• Outlines content and formats of certificates (written and electronic), replacement/cancellation rules, and treatment of hull-damaged branding along with transfer procedures and potential penalties for noncompliance.
• Establishes maintenance and accessibility of records, retention of security-interest information for at least 10 years after termination, and public or authorized government access to information for safety or enforcement.
• Specifies transition rules and effective date (January 1, 2017), voluntary application to vessels not previously titled, and continuation of pre-existing rights and transactions.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Vessels