Md. Code Regs. 08.04.10.03

Current through Register Vol. 51, No. 12, June 14, 2024

Section 08.04.10.03 - Mechanics Lien Title

A. A mechanics lien is created under Commercial Law Article, § 16-201 et seq., Annotated Code of Maryland, when:

(1) The Applicant, with the consent of the owner, has provided services or materials for a vessel;

(2) Charges are due and unpaid for 30 days; and

(3) The Applicant has possession of the vessel.

B. An application for mechanics lien title must include the following:

(1) Vessel identification;

(2) Evidence of published notice, with first date of publication at least 14 days prior to sale;

(3) Evidence of owner and lienholder notification, mailed at least 10 days prior to sale;

(4) Evidence of indebtedness:

(a) Owner consent for services provided;

(b) Invoices dated not later than 30 days prior to sale;

(c) Invoices and statements with the vessel clearly identified by vessel number or hull identification number; and

(d) Invoices cannot bill for services provided after the date of owner notification.

(5) Evidence of sale; and

(6) Any other documentation required by the Department.

C. Vessel excise tax shall be assessed on:

(1) Successful bid when vessel is sold in an arm's-length transaction at auction; or

(2) Total charges claimed when there are no bidders and applicant is granted a mechanics lien title.

D. Mechanics lien title will be issued in applicant's name as shown on invoices and statements submitted as evidence of indebtedness.

Md. Code Regs. 08.04.10.03