Mich. Admin. Code R. 281.2211 - Certificate of title; issuance; bond
Rule 11.
(1) If the
secretary of state is not satisfied as to the ownership of a watercraft upon
application for a certificate of title, the secretary of state may require the
applicant to file a properly executed surety bond issued by a company
authorized to conduct a surety business in this state. The bond shall be in an
amount equal to twice the value of the watercraft as determined by the
secretary of state and shall be conditioned to indemnify and reimburse the
secretary of state, prior owners, and subsequent purchasers of the watercraft
and their successors in interest for expenses or damages incurred, including
reasonable attorney fees, on issuance of a certificate of title to the
watercraft. An interested person has a right of action for recovery on the bond
for breach of its conditions, but the aggregate liability of the surety to all
persons shall not exceed the amount of the bond. The bond shall be returned at
the end of 3 years.
(2) Upon
receipt of the surety bond, the secretary of state shall issue a certificate of
title to the applicant.
Notes
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