Proposal describes bond rules and watercraft and off-road vehicle lien records

The text describes bonds as negotiable under the Uniform Commercial Code and exempt from state and local taxes. These provisions cover bonds issued under several parts of Michigan's environmental law, including water quality district bonds.

The text describes how watercraft lenders record and release security interests, which are lender claims against the watercraft. These provisions concern security interests in watercraft and titles handled by the secretary of state. The state may require electronic handling of watercraft title lien transactions and may keep title records electronically instead of issuing paper titles while a lien remains. After the lien ends, the state may issue a paper title. If the lender has been paid, a state-approved receipt may replace the title for an ownership transfer.

The text describes the information required in an ORV title application and how filing affects a lender's priority over other creditors. These provisions concern applications for off-road vehicle titles that show a security interest or other lien. A copy of the security agreement is required only if the lender asks for it. The application filing rule does not apply if the state does not issue titles for ORVs with security interests.