(a) A secured party indicated in the department‘s files as having a security interest in a vessel shall deliver a termination statement to the department and, on the debtor‘s request, to the debtor, by the earlier of:

Terms Used In Hawaii Revised Statutes 200A-16

  • Certificate of title: means a record, created by the department under this chapter or by a governmental agency of another jurisdiction under the law of that jurisdiction, that is designated as a certificate of title by the department or agency and is evidence of ownership of a vessel. See Hawaii Revised Statutes 200A-2
  • Consumer goods: means goods that are used or bought for use primarily for personal, family, or household purposes. See Hawaii Revised Statutes 200A-2
  • Debtor: means :

    (1) A person having an interest, other than a security interest or other lien, in the collateral, whether or not the person is an obligor;
    (2) A seller of accounts, chattel paper, payment intangibles, or promissory notes; or
    (3) A consignee. See Hawaii Revised Statutes 200A-2
  • Department: means the department of land and natural resources. See Hawaii Revised Statutes 200A-2
  • Electronic: means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities. See Hawaii Revised Statutes 200A-2
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Owner: means a person that has legal title to a vessel. See Hawaii Revised Statutes 200A-2
  • Record: means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form. See Hawaii Revised Statutes 200A-2
  • Security interest: includes any interest of a consignor in a vessel in a transaction that is subject to article 9 of chapter 490. See Hawaii Revised Statutes 200A-2
  • Vessel: means any watercraft used or capable of being used as a means of transportation on water, except:

    (1) An amphibious vehicle for which a certificate of title is issued pursuant to part III of chapter 286 or a similar statute of another state;
    (2) A watercraft less than eight feet in length and propelled solely by sail, paddle, oar, or an engine of less than ten horsepower;
    (3) A watercraft that operates only on a permanently fixed, manufactured course and the movement of which is restricted to or guided by means of a mechanical device to which the watercraft is attached or by which the watercraft is controlled;
    (4) A stationary floating structure that:
    (A) Does not have and is not designed to have a mode of propulsion of its own;
    (B) Is dependent for utilities upon a continuous utility hookup to a source originating on shore; and
    (C) Has a permanent, continuous hookup to a shoreside sewage system;
    (5) A watercraft owned by the United States; a state; a foreign government; or a political subdivision of the United States, a state, or a foreign government; and
    (6) A watercraft used solely as a lifeboat on another watercraft. See Hawaii Revised Statutes 200A-2
(1) Twenty days after the secured party receives a signed demand from an owner for a termination statement; there is no obligation secured by the vessel subject to the security interest; and no commitment to make an advance, incur an obligation, or otherwise give value secured by the vessel; or
(2) If the vessel holds consumer goods, thirty days after there is no obligation secured by the vessel and no commitment to make an advance, incur an obligation, or otherwise give value secured by the vessel.
(b) If a written certificate of title has been created and delivered to a secured party and a termination statement is required under subsection (a), the secured party, no later than the date required by subsection (a), shall deliver the certificate to the debtor or to the department with the statement. If the certificate is lost, stolen, mutilated, destroyed, or is otherwise unavailable or illegible, the secured party shall deliver with the statement, no later than the date required by subsection (a), an application for a replacement certificate in accordance with § 200A-22.
(c) On delivery to the department of a termination statement authorized by the secured party, the security interest to which the statement relates ceases to be perfected. If the security interest to which the statement relates was indicated on the certificate of title, the department shall create a new certificate and deliver the new certificate or a record evidencing an electronic certificate. The department shall maintain in its files the date and time of delivery of the statement to the department.
(d) A secured party that fails to comply with this section is liable for any loss that the secured party had reason to know may result from its failure to comply and could not reasonably have been prevented and for the cost of an application for a certificate of title under § 200A-7 or 200A-22.

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