After notice of sale, what action does the department take?

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Multiple Choice

After notice of sale, what action does the department take?

When there’s a notice of sale, the department updates its records and informs anyone with a proprietary interest that the title will not transfer until the lien is satisfied. This protects the security interests tied to the vessel and ensures that a buyer does not obtain clear title while a lien remains unpaid. It also gives lienholders notice so they can act to protect their lien. The title transfer to the purchaser only occurs after the lien is resolved; transfers aren’t made while the lien exists, and the lien isn’t voided by the sale.

When there’s a notice of sale, the department updates its records and informs anyone with a proprietary interest that the title will not transfer until the lien is satisfied. This protects the security interests tied to the vessel and ensures that a buyer does not obtain clear title while a lien remains unpaid. It also gives lienholders notice so they can act to protect their lien. The title transfer to the purchaser only occurs after the lien is resolved; transfers aren’t made while the lien exists, and the lien isn’t voided by the sale.

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