Sec. 1548.20.
(A) Chapter 1309. of the Revised Code does
not
| 9 |
permit or require the deposit, filing, or other
record of
a
| 10 |
security
interest covering a watercraft or outboard
motor for
| 11 |
which a certificate of
title is required. Any
security agreement
| 12 |
covering a security interest in a
watercraft
or outboard motor,
if
| 13 |
it is accompanied by delivery of
a
manufacturer's or
importer's
| 14 |
certificate and followed by actual
and
continued
possession of
| 15 |
that certificate by the holder of
the instrument,
or,
in the case
| 16 |
of a certificate of title, if a
notation of the
security agreement | 17 |
has
been made by
a clerk of
a court of
common
pleas on the
face of
| 18 |
the
certificate
of title or the
clerk has entered a notation of | 19 |
the
agreement into the automated
title processing system and a | 20 |
physical certificate of title for
the watercraft or outboard motor | 21 |
has not been issued, shall be
valid as against
the creditors
of | 22 |
the
debtor, whether
armed
with process or not,
and against
| 23 |
subsequent
purchasers, secured
parties,
and other
lienholders or
| 24 |
claimants.
All
security
interests, liens, mortgages, and | 25 |
encumbrances
entered into the
automated title
processing system in | 26 |
relation to a particular
certificate of
title, regardless of | 27 |
whether a
physical
certificate of
title
is issued, take priority | 28 |
according
to the
order
of
time in
which
they are
entered into the | 29 |
automated
title
processing system by the
clerk. Exposure for
sale
| 30 |
of any
watercraft or outboard motor
by its owner, with the
| 31 |
knowledge
or
with the knowledge and
consent of the holder of any | 32 |
security
interest, lien,
mortgage, or
encumbrance
on the | 33 |
watercraft or
outboard
motor, shall not render the
security | 34 |
interest lien,
mortgage, or encumbrance
ineffective as against
the | 35 |
creditors of
the owner or against
holders of
subsequent
security | 36 |
interests,
liens, mortgages, or
encumbrances upon the
watercraft | 37 |
or outboard
motor. | 38 |
(B) If
a secured party presents
evidence of the security
| 39 |
interest to
a
clerk of
a court of common pleas
together with
the | 40 |
certificate of
title, if a physical certificate
of title for
the | 41 |
watercraft or
outboard motor exists, and the fee
prescribed
by
| 42 |
section 1548.10
of the
Revised
Code, the clerk,
unless the
secured | 43 |
party
specifically requests the clerk not to
issue a
physical
| 44 |
certificate of title, shall issue a new original
certificate of
| 45 |
title
from
the
automated title processing
records. The new
| 46 |
certificate
shall indicate the
security
interest and the
date of
| 47 |
the security
interest. The clerk also
shall note the
security
| 48 |
interest and
its date
in
the clerk's
files
and
enter that | 49 |
information into the automated title
processing system,
and on | 50 |
that
day shall notify
the
chief of
the division
of
watercraft. The
| 51 |
clerk shall
indicate by
appropriate
notation on
the
security | 52 |
agreement
itself the fact
that the
security
interest
has been | 53 |
noted
on the certificate of
title. | 54 |
(C) If a security interest is
fully
discharged
as a result of | 55 |
its holder's receipt of good funds in
the correct amount and if | 56 |
the holder holds a physical certificate
of title, the holder
shall
| 57 |
note the discharge
of
the
security interest over
the
holder's | 58 |
signature
on the face
of
the certificate of title,
or,
if there
is | 59 |
not
sufficient
space
for the notation on the face of
the
| 60 |
certificate of
title,
the
holder shall note the discharge
over
the | 61 |
holder's
signature on a
form
prescribed
by the
chief.
Except
as | 62 |
otherwise provided
in this section, prior
to delivering the | 63 |
certificate
of title to
the owner, the
holder or
the
holder's | 64 |
agent shall
convey the certificate of title or a
separate sworn | 65 |
statement of
the discharge of the security interest
and any | 66 |
additional
information the chief requires to
a clerk. The | 67 |
conveyance shall occur not more
than seven business
days after the | 68 |
date
good funds in
the correct amount to fully
discharge the | 69 |
security interest have been credited to
an account
of the holder, | 70 |
provided the
holder has been provided accurate
information | 71 |
concerning the watercraft or
outboard motor.
Conveyance of the | 72 |
certificate of title or
separate sworn statement
of the discharge | 73 |
within the required
seven business days may be
indicated by | 74 |
postmark or receipt by a
clerk within that period.
If
the | 75 |
discharge of the security
interest appears to be genuine,
the | 76 |
clerk
shall note the discharge
of the
security
interest
on the | 77 |
face of the certificate
of title, if it was so
conveyed,
and note | 78 |
it in the automated
title processing system. | 79 |
If a security interest is fully discharged as a result of its | 80 |
holder's receipt of good funds in the correct amount and the | 81 |
holder does not hold a physical certificate of title, when the | 82 |
holder notifies a clerk of the discharge of its security interest, | 83 |
the holder at that time also may request the clerk to issue a | 84 |
physical certificate of title to the watercraft or outboard motor. | 85 |
The request shall specify whether the clerk is to send the | 86 |
certificate of title directly to the owner or to the holder or the | 87 |
holder's agent for transmission to the owner. If such a request is | 88 |
made, the clerk shall issue a physical certificate of title and | 89 |
send it to the specified person. | 90 |
(D)(1) In all cases, a secured party may choose to present a | 95 |
clerk with evidence of a security interest via electronic means, | 96 |
and the clerk shall enter the security interest into the automated | 97 |
title processing system. A secured party also may choose to
notify | 98 |
a clerk of the discharge of its security interest via
electronic | 99 |
means, and the clerk shall enter the cancellation into
the | 100 |
automated title processing system. | 101 |
(2) In the case of a security interest that is being | 102 |
satisfied by a watercraft dealer to whom a certificate of title is | 103 |
being transferred, the cancellation of the security interest shall | 104 |
occur during the course of the transfer. The dealer shall submit
a | 105 |
discharge request to the secured party. A discharge request
shall | 106 |
include good funds in the correct amount to fully discharge
the | 107 |
security interest and accurate information concerning the | 108 |
watercraft or outboard motor. | 109 |
(3)(a) Upon receiving a discharge request that complies
with | 110 |
division (D)(2) of this section, except as otherwise provided
in | 111 |
this division, a secured party shall convey the certificate of | 112 |
title, with the discharge of the security interest noted on its | 113 |
face, to the dealer within seven business days after the date good | 114 |
funds in the correct
amount to fully discharge the security | 115 |
interest have been credited to an account of
the secured party. | 116 |
(4) A secured party is liable to a dealer for a late fee of | 128 |
ten dollars per day for each certificate of title, or affidavit | 129 |
and required payment, conveyed to the dealer more than seven | 130 |
business days but less than twenty-one days after the date | 131 |
specified in division (D)(3)(a) of this section and, from then on, | 132 |
twenty-five dollars per day until the certificate of title, or | 133 |
affidavit and required payment, are conveyed to the dealer. | 134 |
(E) IfRegardless of whether a physical certificate of title | 135 |
has not been issued
for a watercraft or outboard motor and, when | 136 |
all the security interests
relating to that watercraft or outboard | 137 |
motor have been
discharged, the secured party shall convey to the | 138 |
owner of the watercraft or outboard motor may
obtain a physical | 139 |
certificate of title from the clerk of any court
of common pleas | 140 |
upon payment of the fee specified in section
1548.10 of the | 141 |
Revised Code, which may be an original or a duplicate certificate | 142 |
of title, with the discharge noted on the certificate. | 143 |
(F) If a clerk of a court of common pleas, other than the | 144 |
clerk of the court of common pleas of the county in which the | 145 |
owner of a watercraft or outboard motor resides, enters a notation | 146 |
of the existence of, or the cancellation of, a security interest | 147 |
relating to the watercraft or outboard motor, the clerk shall | 148 |
transmit the data relating to the notation to the
automated title | 149 |
processing system. | 150 |
(2)
Chapter 1309. of the Revised
Code
applies
to a
security | 169 |
interest in a motor vehicle held
as inventory
for sale
by a | 170 |
dealer. The security
interest has
priority
over
creditors
of the | 171 |
dealer as provided
in
Chapter 1309. of the
Revised Code
without
| 172 |
notation of the security
interest on a
certificate of
title, | 173 |
without entry of a notation of
the security
interest into
the
| 174 |
automated title processing system if a physical
certificate
of
| 175 |
title for
the motor vehicle has not been issued,
or without
the
| 176 |
retention of a
manufacturer's or importer's
certificate. | 177 |
(B) Subject to division (A) of this section, any security
| 178 |
agreement covering a security interest in a motor vehicle, if a
| 179 |
notation of the agreement has been made by
a clerk of
a
court
of | 180 |
common pleas on the face of the certificate of
title
or
the
clerk | 181 |
has entered a notation of the agreement into the
automated
title | 182 |
processing system and a physical certificate of
title
for
the | 183 |
motor vehicle has not been issued, is valid
as
against the | 184 |
creditors of the debtor, whether armed with
process
or
not, and | 185 |
against subsequent purchasers, secured
parties, and
other
| 186 |
lienholders or claimants. All security
interests, liens,
| 187 |
mortgages, and encumbrances
entered into the automated
title | 188 |
processing system in relation to
a particular certificate
of
| 189 |
title, regardless of whether
a
physical
certificate
of
title
is | 190 |
issued, take priority according to the
order of time
in
which
they | 191 |
are
entered into the
automated
title processing system by
the | 192 |
clerk.
Exposure for sale of any
motor vehicle by its owner,
with | 193 |
the
knowledge or with the
knowledge and consent of the
holder of | 194 |
any
security interest,
lien, mortgage, or encumbrance
on it, does | 195 |
not
render that
security interest, lien, mortgage,
or encumbrance
| 196 |
ineffective as
against the creditors of that
owner, or against
| 197 |
holders of
subsequent security interests,
liens, mortgages, or
| 198 |
encumbrances
upon that motor vehicle. | 199 |
The secured party, upon presentation of
evidence of a
| 200 |
security
interest to
a clerk of
a court of common pleas,
together | 201 |
with the
certificate of title
if a physical certificate
of title | 202 |
for the
motor
vehicle exists, and the
fee prescribed
by
section | 203 |
4505.09 of the Revised Code, may have a
notation of
the
security | 204 |
interest made.
Unless the secured party
specifically
requests the | 205 |
clerk not to
issue a physical
certificate of title
and instead to | 206 |
issue an electronic
certificate of title, the
clerk
shall issue,
| 207 |
over the clerk's
signature and seal of office, a new
original | 208 |
certificate
of
title from the automated title processing
records | 209 |
that
indicates
the security interest and the date of the
security
| 210 |
interest. | 211 |
If a security interest is
fully discharged
as a
result of its | 212 |
holder's receipt of good funds in the correct amount
and if the | 213 |
holder
holds a physical certificate of title,
the
holder
shall | 214 |
note
the discharge
of the security interest
on
the face of the | 215 |
certificate of title
over the holder's
signature,
or over the | 216 |
holder's
signature on a form prescribed
by the
registrar of
motor | 217 |
vehicles when there
is no space for
the
discharge on the
face of | 218 |
the certificate of title.
Except
as
otherwise provided
in this | 219 |
section, prior to
delivering the
certificate
of title to
the
| 220 |
owner, the holder or
the holder's
agent shall
convey the
| 221 |
certificate of
title or a
separate statement of the
discharge of | 222 |
the
security interest
to
a clerk. The conveyance
shall occur not | 223 |
more than seven business
days after the date good
funds in
the | 224 |
correct amount to fully
discharge the security
interest have been | 225 |
credited to
an account
of the holder, provided
the holder has been | 226 |
provided accurate
information concerning the
motor vehicle. | 227 |
Conveyance of the
certificate of title or separate
statement of | 228 |
the discharge
within the required seven
business days may be | 229 |
indicated by
postmark or receipt by a clerk
within that period, | 230 |
or, in the case of a written confirmation that is sent | 231 |
electronically as provided in division (C)(1) of this section, by | 232 |
the date of the electronic mail or other electronic communication. | 233 |
If the
discharge of
the security
interest
appears to
be genuine, | 234 |
the
clerk shall note the cancellation
of
the
security interest
on | 235 |
the face of the certificate of title,
if it
was so conveyed, and | 236 |
note it in the
automated title
processing system. | 237 |
If a security interest is fully discharged as a result of its | 238 |
holder's receipt of good funds in the correct amount and the | 239 |
holder does not hold a physical certificate of title, when the | 240 |
holder notifies a clerk of the discharge of its security interest, | 241 |
the holder at that time also may request the clerk to issue a | 242 |
physical certificate of title to the vehicle. The request shall | 243 |
specify whether the clerk is to send the certificate of title | 244 |
directly to the owner or to the holder or the holder's agent for | 245 |
transmission to the owner. If such a request is made, the clerk | 246 |
shall issue a physical certificate of title and send it to the | 247 |
specified person. | 248 |
(C)(1) In all cases, a secured party may choose to present
a
| 253 |
clerk with
evidence of a security interest via written | 254 |
confirmation through electronic
means, and the clerk
shall enter | 255 |
the security interest into the
automated
title processing system. | 256 |
A secured party also may
choose to
notify a clerk of the discharge | 257 |
of its security
interest via
electronic means, and the clerk shall | 258 |
enter the
cancellation into
the automated title processing system. | 259 |
(3)(a) Upon receiving a discharge request that complies
with | 268 |
division (C)(2) of this section, if the current automated title | 269 |
processing system record indicates that a physical title exists | 270 |
for that motor vehicle, a secured party shall convey the physical | 271 |
certificate of
title, with the discharge of the security interest | 272 |
noted on its
face, to the dealer within seven business days after | 273 |
the date good
funds in the correct
amount to fully discharge the | 274 |
security
interest have been
credited to an account of
the secured | 275 |
party. | 276 |
If a secured party is unable to convey to the dealer the | 277 |
physical
certificate of
title within the required seven business | 278 |
days, the
secured
party instead shall convey to the dealer an | 279 |
affidavit
stating that the
security interest
has
been discharged, | 280 |
together
with payment for a duplicate
certificate
of title, within | 281 |
that
period. If the current automated title processing system | 282 |
record for a motor vehicle indicates that an electronic title | 283 |
exists for that motor vehicle, the secured party shall convey to | 284 |
the dealer within the required seven business days written | 285 |
confirmation that the security interest has been satisfied. | 286 |
(b) Conveyance of a physical certificate of title, or | 287 |
affidavit and
required
payment, or written confirmation that the | 288 |
security interest has been satisfied from a secured party to a | 289 |
dealer under the
circumstances described in division (C)(3)(a) of | 290 |
this section
within the required seven business days may be | 291 |
indicated by a
postmark within that period or, in the case of a | 292 |
written confirmation that is sent electronically, the date of the | 293 |
electronic mail or other electronic communication. | 294 |
(4) A secured party is liable to a dealer for a
late fee of | 295 |
ten dollars per day for each physical certificate of title, or | 296 |
affidavit
and required payment, or written confirmation that the | 297 |
security interest has been satisfied that is conveyed to the | 298 |
dealer more than seven
business days but
less than twenty-one days | 299 |
after the date
specified in division
(C)(3)(a) of this section | 300 |
and, from then on,
twenty-five dollars
per day
until the physical | 301 |
certificate of title, or
affidavit and required
payment,
or | 302 |
written confirmation that the security interest has been satisfied | 303 |
is conveyed to the dealer. | 304 |
(D) Notwithstanding any provision of
Chapter 1310. of the | 305 |
Revised Code or of any other law, the
lease of a
motor vehicle
or | 306 |
trailer does not constitute a
conditional sale
or create a | 307 |
security interest merely because the
lease agreement
permits or | 308 |
requires the lessor, at the end of the
lease term, to
adjust the | 309 |
rental price to either a higher or a
lower amount by
reference
to | 310 |
the amount the lessor realizes upon
the sale or
other
disposition | 311 |
of the motor vehicle or trailer. | 312 |
(E)
IfRegardless of whether a physical certificate of title | 313 |
has not been issued
for a
motor vehicle and, when all the security | 314 |
interests relating to
that motor vehicle
have been discharged, the | 315 |
secured party shall convey to the owner of the motor
vehicle may | 316 |
obtain a physical
certificate of title from the clerk
of any court | 317 |
of common pleas upon payment
of the fee specified in
section | 318 |
4505.09 of the Revised
Code, which may be an original or a | 319 |
duplicate certificate of title, with the discharge noted on the | 320 |
certificate. | 321 |
(F) If a clerk of a court of common pleas, other than the
| 322 |
clerk
of the court of common pleas of the county in which the
| 323 |
owner of a motor
vehicle resides, enters a notation of the
| 324 |
existence of, or the cancellation
of, a security interest
relating
| 325 |
to the motor vehicle, the clerk shall
transmit the data
relating
| 326 |
to the notation to the automated
title
processing
system. | 327 |
(3) "Good funds" includes cash, or a wire transfer,
cashier's | 340 |
check, certified check, draft, money order, or teller's
check | 341 |
issued by an insured financial institution, or a dealer's
check | 342 |
for which the secured party has received funds that are
available | 343 |
for withdrawal pursuant to "Availability of Funds and
Collection | 344 |
of Checks (Regulation CC)," 12 C.F.R. 229. | 345 |
(2)
Chapter 1309. of the
Revised
Code
applies to a
security
| 363 |
interest in an off-highway
motorcycle or all-purpose
vehicle
held | 364 |
as inventory, as defined
in
section 1309.102 of the
Revised
Code, | 365 |
for
sale by a
dealer.
The security interest has
priority over | 366 |
creditors of the
dealer
as provided in
Chapter
1309. of
the
| 367 |
Revised
Code without
notation of
the
security
interest on a
| 368 |
certificate of title,
without entry
of a
notation
of the security
| 369 |
interest into the
automated title
processing
system
if a physical
| 370 |
certificate of
title has not
been issued,
or without
the
retention
| 371 |
of a
manufacturer's or
importer's
certificate. | 372 |
(B) Subject to
division (A) of this
section,
any security
| 373 |
agreement covering a security interest in an
off-highway
| 374 |
motorcycle or all-purpose vehicle,
if a notation of the
agreement
| 375 |
has been made by
a clerk of
a
court of common
pleas
on the
face
of | 376 |
the certificate of title
or if the clerk
has
entered a
notation of | 377 |
the
agreement into the automated title
processing
system if a | 378 |
physical
certificate of title has not
been issued, is
valid as | 379 |
against the
creditors of
the debtor,
whether armed with
process or | 380 |
not, and against subsequent
purchasers, secured
parties, and other | 381 |
lienholders or claimants.
All security
interests, liens,
| 382 |
mortgages, and
encumbrances
entered
into the automated title | 383 |
processing
system in
relation
to a
particular certificate of | 384 |
title, regardless of
whether a
physical certificate of title
is | 385 |
issued,
take
priority
according
to the order of time in which they | 386 |
are
entered into
the
automated title processing system by the | 387 |
clerk.
Exposure for
sale of any off-highway motorcycle or | 388 |
all-purpose
vehicle by its
owner, with the knowledge or with the | 389 |
knowledge
and
consent of
the
holder of any security interest, | 390 |
lien,
mortgage, or
encumbrance
on it, does not
render the
security | 391 |
interest, lien,
mortgage, or encumbrance ineffective as
against | 392 |
the creditors
of
the owner, or against holders of
subsequent | 393 |
security interests,
liens,
mortgages, or
encumbrances upon the | 394 |
off-highway
motorcycle
or all-purpose
vehicle. | 395 |
The secured party, upon presentation of
evidence of a
| 396 |
security
interest to
a clerk
of
a court of
common pleas,
together | 397 |
with the certificate of title
if a
physical
certificate
of title | 398 |
for the off-highway motorcycle or all-purpose
vehicle
exists, and | 399 |
the fee prescribed by
section 4519.59 of the
Revised
Code,
may | 400 |
have a notation of the security interest made.
Unless the
secured | 401 |
party specifically
requests
the
clerk not to issue a
physical | 402 |
certificate of title
and instead
to issue an
electronic | 403 |
certificate of title, the
clerk, over the
clerk's
signature and | 404 |
seal of office,
shall
issue
a new original
certificate of title | 405 |
from the
automated
title
processing system
that indicates the | 406 |
security
interest
and the
date of the
security
interest. | 407 |
If a security interest is
fully discharged
as a result of its | 408 |
holder's receipt of good funds in the correct amount
and
if the | 409 |
holder
holds a physical certificate of
title,
the
holder
shall | 410 |
note
the
discharge
of the security interest
over
the holder's | 411 |
signature on
the face of the
certificate of title,
or over the | 412 |
holder's
signature on a form
prescribed by the
registrar of motor
| 413 |
vehicles when there is no
space for the
discharge on the face of | 414 |
the
certificate of title.
Except as otherwise provided in
this | 415 |
section, prior to
delivering the certificate
of title to
the | 416 |
owner, the
holder or
the holder's agent shall
convey
the
| 417 |
certificate of title
or
a separate sworn statement of the | 418 |
discharge of the security
interest to a clerk. The conveyance | 419 |
shall occur not more than
seven business days after the date good | 420 |
funds in the correct
amount to discharge fully the security | 421 |
interest have been credited
to an account of the holder, provided | 422 |
the holder has been provided
accurate information concerning the | 423 |
off-highway motorcycle or
all-purpose vehicle. Conveyance of the | 424 |
certificate of title or
separate sworn statement of the discharge | 425 |
within the required
seven business days may be indicated by | 426 |
postmark or receipt by a
clerk
within that period.
If
the
| 427 |
discharge
of the security
interest
appears to be genuine, the | 428 |
clerk shall
note the
cancellation
of the security interest on the | 429 |
face of the
certificate of title, if it was so conveyed, and
also | 430 |
shall
note
it in the
automated
title processing system. | 431 |
If a security interest is fully discharged as a result of its | 432 |
holder's receipt of good funds in the correct amount and the | 433 |
holder does not hold a physical certificate of title, when the | 434 |
holder notifies a clerk of the discharge of its security interest, | 435 |
the holder at that time also may request the clerk to issue a | 436 |
physical certificate of title to the off-highway motorcycle or | 437 |
all-purpose vehicle. The request shall specify whether the clerk | 438 |
is to send the certificate of title directly to the owner or to | 439 |
the holder or the holder's agent for transmission to the owner. If | 440 |
such a request is made, the clerk shall issue a physical | 441 |
certificate of title and send it to the specified person. | 442 |
(C)
In all cases, a secured party may choose to present a | 447 |
clerk with evidence of a security interest via electronic means, | 448 |
and the clerk shall enter the security interest into the automated | 449 |
title processing system. A secured party also may choose to
notify | 450 |
a clerk of the discharge of its security interest via
electronic | 451 |
means, and the clerk shall enter the cancellation into
the | 452 |
automated title processing system. | 453 |
(D) IfRegardless of whether a physical certificate of title | 454 |
has not been issued
for
an off-highway motorcycle or all-purpose | 455 |
vehicle and, when all the
security
interests relating to that | 456 |
motorcycle or vehicle
have
been discharged, the secured party | 457 |
shall convey to the owner of the motorcycle or vehicle may obtain | 458 |
a
physical
certificate of title from the clerk of any court of
| 459 |
common pleas upon payment
of the fee specified in section 4519.59
| 460 |
of the Revised
Code, which may be an original or a duplicate | 461 |
certificate of title, with the discharge noted on the certificate. | 462 |
(E) If a clerk of a court of common pleas, other than the
| 463 |
clerk
of the court of common pleas of the county in which the
| 464 |
owner of an
off-highway motorcycle or all-purpose vehicle
resides,
| 465 |
enters a notation of
the existence of, or the
cancellation
of, a
| 466 |
security interest relating to the off-highway
motorcycle or
| 467 |
all-purpose
vehicle, the clerk shall
transmit the
data relating to
| 468 |
the notation to the automated
title processing
system. | 469 |