Transfer or repossession of vessel or outboard motor by operation of law or court order

A. In the event of a transfer by operation of law or order of a court of the title or interest of an owner in a vessel or outboard motor titled under the provisions of this Part, the transferee or the transferee's legal representative shall make application to the department for a certificate of title within sixty days of the transfer. The application shall be accompanied by the title previously issued, if available, or an original or authentic copy of the legal transfer document, together with such instruments or documents of authority, or copies thereof, satisfactory to the department as proof of ownership, and the required fee. B. For purposes of this Part, transfer by operation of law or order of a court shall include transfers to anyone as legatee or distributee or as surviving joint owner or by an order in bankruptcy or insolvency, execution sale, repossession upon default in the performance of the terms of a lease or executory sales contract, or transfers pursuant to any written agreement ratified or incorporated in a decree or order of a court of record, or otherwise than by the voluntary act of the person whose title or interest is so transferred. C. The provisions of this Section shall not apply to vessel or outboard motor dealers and supervised financial organizations or licensed lenders as defined in R.S. 9:3516, when they acquire or dispose of such vessels or outboard motors in connection with enforcement of any security interest held therein.