Section 27-101-1028 - Time requirements for payment of lien or encumbrance - Definitions(a) As used in this section: (1) "Customer" means a person who trades in or otherwise provides a motorboat to a motorboat dealer for resale;(2) "Motorboat dealer" means a recognized motorboat dealer; and(3) "Subsequent purchaser" means a person who buys the motorboat that was provided to the motorboat dealer as a trade-in or for resale by the customer.(b)(1) If a motorboat dealer takes possession of a motorboat for purposes of resale and there is an outstanding lien or encumbrance on the motorboat, the motorboat dealer shall in good faith tender full payment on the outstanding lien or encumbrance within ten (10) business days after the motorboat dealer takes possession of the motorboat from the customer.(2) This time period may be shortened if the customer and the motorboat dealer agree to a shorter time period.(c)(1) If the motorboat dealer fails to act in good faith in tendering full payment for the outstanding lien or encumbrance within ten (10) business days or within the time period agreed to by the motorboat dealer and the customer under subdivision (b)(2) of this section, the customer shall have an absolute right to cancel the contract for sale between the customer and the motorboat dealer.(2) If the contract for sale is canceled under subdivision (c)(1) of this section, the motorboat dealer shall be responsible for late fees, finance charges, or any financial penalty that is required to be made by the customer as part of the existing lien or encumbrance.(d)(1) If the motorboat dealer sells the motorboat to a subsequent purchaser without first tendering full payment for the outstanding lien or encumbrance, the subsequent purchaser who buys the motorboat subject to the existing lien or encumbrance shall have an absolute right to cancel the contract for sale between the subsequent purchaser and the motorboat dealer.(2) If the contract for sale is canceled under subdivision (d)(1) of this section, the motorboat dealer shall be responsible for late fees, finance charges, or any financial penalty that is required to be made by the subsequent purchaser as part of the existing lien or encumbrance.Added by Act 2019, No. 733,§ 16, eff. 7/24/2019.