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Roger, Attorney
Category: Business Law
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Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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Can a bank make or generate a new title for a boat The boat

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Can a bank make or generate a new title for a boat? The boat was given to me by my father and I have the original title with no lien on it .
Submitted: 6 years ago.
Category: Business Law
Expert:  Roger replied 6 years ago.

Hi - my name is XXXXX XXXXX I'm a Business litigation attorney here to assist you.


No. Titles are issued by the state and there can only be one title - it's like a social security number.


However, a bank can file a UCC-1 financing statement to publicly affix its lien against the boat even if it is not on the title.

Roger and 4 other Business Law Specialists are ready to help you
Customer: replied 6 years ago.

Hello Kirk ,


I don't know if you can read all my comments on this situation? But long story short I'm the second owner my father was the first with the loan in his name. When him and I went to get the registration renewed they asked us at the court house If I'm the one using it why don't I just put the title in my name (Yes we had the original Title) she check and the title was free and clear with no liens so we changed it all over in 200href=" into my name and address as a gift from him. M y father continued to pay the loan. The problem is my father had passed away in Dec 2010. The bank called for the loan, and there is no estate, so they want the boat. I have the original title and I find out they never filled the correct wording in the ucc on line 4 it reads the easy loader trailer as collateral for this loan not the boat so I told them come get the trailer . Now the repo guy is telling me the bank has made a new title and has refilled a continuance for the ucc to read on line 4 the trailer and boat and motor. How can they do this I was told by someone on this site tuff luck for the bank and to give them the trailer because that is what they had listed as collateral in the original filling but now everything has been changed and I'm the second owner and nothing has me on the loan for that boat...? Help in Ohio

Expert:  Roger replied 6 years ago.

It is possible for the lender to amend the UCC to reflect the proper collateral.


Also, the transfer from your father to you is legal, but it is subject to any liens against the property.


You're going to have to go back to the purchase contract, and if it lists the boat as collateral, the lender is allowed to modify the UCC.

Customer: replied 6 years ago.
Ok your saying that a title can have a lien put on it even if I'm the second owner and the original owner renigs on the payment ? Also they can change the ucc to say what they did not say on the original and this was change also after the title was in my name . Can they make a new title up ? Can they take this boat from me ?
Expert:  Roger replied 6 years ago.

The lender's lien remains even if the property transfers or is sold by the debtor to another person.


Also, a UCC can be amended to reflect the proper collateral as long as there is a contract that proves what the collateral for the loan actually is.


I don't know of any way they could get a new title.


If the lender's lien is valid, and the loan is in default, they can repossess the boat.

Customer: replied 6 years ago.

The bank told me today that I need to refinace a loan to keep the boat and that they corrected the title with the state and have a new one with my dad name on it ???? They want the boat and no I can not just keep paying on my fathers loan . Is there anything I can do ?I don't want to refinance this loan and pay all that interest back . As it stands am I in a no win game here ? The other thing is I need to get this from the storage space and I don't know how it looked or anything about it before it was put into storage so when and if I have to turn this over and there are any issuse with this boat, motor, just saying anything can they (the bank peopl) give me a hard time about anything .They also said if I don't turn it over they would sue me for money and the boat ?Help in Ohio

Expert:  Roger replied 6 years ago.

They can't change you as the owner on the title, but the bank can get its lien corrected.


You can't stop the creditor from retaking the collateral if its lien is valid. Thus, if you don't turn over the boat, it can get an order compelling you to release the boat and allow the lender to sell it.


The good news is that the lender can't seek payment of the debt from you if the boat doesn't generate enough to pay off the debt.



Customer: replied 6 years ago.

What if there was an unfortunate accident with that boat on the way home from the stoage facility . The insurance for that boat is in my name, would I have to settle the loan to the bank ?

Expert:  Roger replied 6 years ago.

Then they could sue you for conversion - which is a civil charge for destruction of property. In that case, you would be on the hook for the loss. If you have insurance, it would cover the accident and pay the creditor directly.


I would recommend that if you are going to return the boat that you tell them where it is and allow them to come get it.