§ 187.308 Creation and cancellation of certificate of title.

(a) Unless an application for a certificate of title is rejected under paragraph (c) or (d) of this section, the office must create a certificate for the vessel in accordance with paragraph (b) of this section not later than 20 days after delivery to it of an application that complies with § 187.307. (b) If the office creates electronic certificates of title, it must create an electronic certificate unless in the application the secured party of record or, if none, the owner of record, requests that the office create a written certificate. (c) Except as otherwise provided in paragraph (d) of this section, the office may reject an application for a certificate of title only if— (1) The application does not comply with § 187.307; (2) The application does not contain documentation sufficient for the office to determine whether the applicant is entitled to a certificate; (3) There is a reasonable basis for concluding that the application is fraudulent or issuance of a certificate would facilitate a fraudulent or illegal act; or (4) The application does not comply with State law. (d) The office must reject an application for a certificate of title for a vessel that is a documented vessel or a foreign-documented vessel. (e) The office may cancel a certificate of title created by it only if the office— (1) Could have rejected the application for the certificate under paragraph (c) of this section; (2) Is required to cancel the certificate under another provision of this subpart; or (3) Receives satisfactory evidence that the vessel is a documented vessel or a foreign-documented vessel.