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.