Sec. 31.0466.  TITLE FOR ABANDONED VESSEL; BOND.  (a)  A person may apply for a certificate of title for an abandoned vessel or outboard motor found on the person's property.
(b)  The department may cancel the certificate for the abandoned vessel or outboard motor and issue a new certificate to the applicant if the applicant:
(1)  executes and files a bond with the department:
(A)  in the form prescribed by the department;
(B)  issued by a person authorized to act as a surety business in this state;
(C)  in an amount equal to 1-1/2 times the value of the abandoned vessel or outboard motor as determined by the department; and
(D)  conditioned to indemnify all prior owners and lienholders and all subsequent purchasers of the abandoned vessel or outboard motor or persons who acquire a security interest in the vessel or outboard motor, and their successors in interest, against any expense, loss, or damage, including reasonable attorney's fees, resulting from:
(i)  the issuance of the certificate of title for the abandoned vessel or outboard motor; or
(ii)  a defect in or undisclosed security interest in the right, title, or interest of the applicant to or in the abandoned vessel or outboard motor;
(2)  proves to the satisfaction of the department that:
(A)  the abandoned vessel or outboard motor is not stolen;
(B)  issuance of a certificate of title would not defraud the owner or a lienholder of the abandoned vessel or outboard motor;
(C)  at least 30 days before the applicant applied for the certificate, the applicant contacted the applicant's local law enforcement agency through certified mail to report that the vessel or outboard motor is abandoned; and
(D)  the local law enforcement agency has not taken the abandoned vessel or outboard motor into custody or informed the applicant of the agency's intent to take the abandoned vessel or outboard motor into custody; and
(3)  posts notice of the certificate of title application in the manner and for a period of time designated by rule by the department.
(c)  A person described by Subsection (b)(1)(D) has a right of action to recover on the bond for a breach of a condition of the bond described by Subsection (b)(1)(D).  The aggregate liability of the surety to all persons may not exceed the amount of the bond.
(d)  A bond filed under this section expires on the third anniversary of the date the bond became effective.  The department shall return an expired bond to the person who filed the bond unless the department has been notified of a pending action to recover on the bond.
(e)  On return of a bond under Subsection (d), the department shall issue a certificate of title to the person to whom the bond is returned.
(f)  If an abandoned vessel or outboard motor is not claimed before the department issues a certificate of title under this section, the owner or lienholder waives all rights and interests in the abandoned vessel or outboard motor and consents to the cancellation of the certificate for the abandoned vessel or outboard motor.
(g)  The applicant for the certificate of title for the abandoned vessel or outboard motor takes title free and clear of all liens and claims of ownership.
(h)  In addition to the situation described by Subsection (b)(2), the commission by rule may define acceptable situations in which certificates of title may be issued after the filing of a bond under this section.
(i)  This section does not apply to a vessel or outboard motor that is subject to a contract or lien under Chapter 59 or 70, Property Code.
Added by Acts 2011, 82nd Leg., R.S., Ch. 720 (H.B. 787), Sec. 2, eff. September 1, 2011.