QUESTION
Does previous promissory note to one person overrule debt to another on current debt?
Asked on Jul 23rd, 2016 on Debtor and Creditor - Tennessee
More details to this question:
I have a personal watercraft that is secured on a promissory note dating 9/10/14. i am unable to pay on service and storage at boat service center. They are unwilling to negotiate anything at boat center. Does the person with the prom note have the right to go get the boat as he has first rights from prom note? i am losing either way.
1 ANSWER
Although I don't claim to be a maritime law specialist or even practice in that area, 46 USCS § 31342 provides that (a) Except as provided in subsection (b) of this section, a person providing necessaries to a vessel on the order of the owner or a person authorized by the owner--
(1) has a maritime lien on the vessel;
(2) may bring a civil action in rem to enforce the lien; and
(3) is not required to allege or prove in the action that credit was given to the vessel.
(b) This section does not apply to a public vessel
This usually means that the repair shop has priority over the holder of the promissory note on the boat especially if the holder of the promissory has not recorded a UCC 1.
Answered on Jul 23rd, 2016 at 9:57 AM