Sec. 31.0575. TRANSFER OF OWNERSHIP BY SECURED PARTY'S TRANSFER STATEMENT. (a) In this section, "secured party's transfer statement" means a record signed by the secured party of record stating: (1) there has been a default on an obligation secured by the vessel or outboard motor; (2) the secured party of record is exercising or has exercised post-default remedies with respect to the vessel or outboard motor; (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 Section 31.047 (b); and (7) one of the following: (A) that the certificate of title is an electronic certificate of title; (B) that the secured party does not have possession of the written certificate of title issued in the name of the owner of record; or (C) that the secured party is delivering the written certificate of title to the department with the secured party's transfer statement. (b) Unless the department rejects a secured party's transfer statement for a reason stated in Section 31.0485 (c), not later than the 20th day after the date of delivery to the department of the statement and payment of fees due under this chapter and taxes payable under Chapter 160 , Tax Code, in connection with the statement or the acquisition or use of the vessel or outboard motor, 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, regardless of whether the certificate of title has been delivered to the department; (B) issue 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) The submission to the department of a secured party's transfer statement, or the issuance of a certificate of title under Subsection (b), is not a disposition of the vessel or outboard motor and does not relieve the secured party of the secured party's duties under Chapter 9 , Business & Commerce Code.
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