Secured party's transfer statement, defined. Department of Motor Vehicles' duties upon acceptance

(a) For the purposes of this section, “secured party's transfer statement” means a record signed by the secured party of record stating: (1) That there has been a default on an obligation to the secured party of record secured by the vessel; (2) The secured party of record is exercising or has exercised post-default remedies with respect to the vessel; (3) By reason of the exercise, the secured party of record has the right to transfer the ownership interest of an owner, and the name of the owner; (4) The name and last known mailing address of the owner of record and the secured party of record; (5) The name of the transferee; (6) Other information required by subsection (b) of section 15-207; and (7) One of the following: (A) The certificate of title is an electronic certificate of title; (B) The secured party does not have possession of the written certificate of title created in the name of the owner of record; or (C) The secured party is delivering the written certificate of title to the Department of Motor Vehicles with the secured party's transfer statement. (b) Unless the department rejects a secured party's transfer statement for a reason stated in subsection (c) of section 15-208, after delivery to the department of the statement and payment of fees and taxes payable under the law of this state, other than sections 15-201 to 15-232, inclusive, in connection with the statement or the acquisition or use of the vessel, the department shall: (1) Accept the statement; (2) Amend the files of the department 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 of title even if the certificate of title has not been delivered to the department; (B) Create a new certificate of title indicating the transferee as owner; and (C) Deliver the new certificate of title or a record evidencing an electronic certificate of title. (c) An application submitted under subsection (a) of this section or the creation of a certificate of title under subsection (b) of this section shall not in and of itself be a disposition of the vessel and shall not in and of itself relieve the secured party of its duties under article 9 of title 42a.