Regulation .03 Mechanics Lien Title.

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.

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.

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.

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