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HomeHarbors and Navigation CodeDiv. 3Ch. 2Art. 4§ 506 Vessel Lien Sale Requirements

§ 506 Vessel Lien Sale Requirements

Harbors and Navigation Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 506 Vessel Lien Sale Requirements

This law says that before a boat can be sold to pay off a debt, the boat must be shown to the public for at least one hour, must be at the sale spot when the sale happens, no secret bids are allowed, and the sale must be run fairly.

Key Takeaways

  • •The boat must be available for public inspection for at least one hour before the sale.
  • •The boat has to be at the sale location at the time and date listed in the notice.
  • •Sealed (secret) bids cannot be used.
  • •The lienholder must run the sale in a commercially reasonable (fair) manner.

Example

A bank wants to auction a fishing boat because the owner stopped paying the loan.

The bank has to park the boat where anyone can look at it for at least an hour before the auction, make sure the boat is actually there on the day of the auction, cannot accept hidden sealed bids, and must run the auction in a normal, fair way.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 506 Vessel Lien Sale Requirements

No lien sale shall be undertaken pursuant to Section 503 or 504 unless the vessel has been available for inspection at a location easily accessible to the public for at least one hour before the sale and is at the place of sale at the time and date specified on the notice of sale. Sealed bids shall not be accepted. The lienholder shall conduct the sale in a commercially reasonable manner. (Added by Stats. 1982, Ch. 941, Sec. 2.)

Last verified: January 11, 2026

Key Terms

lien salecommercially reasonable manner

Related Statutes

  • § 503 Lienholder Vessel Sale Authorization
  • § 4100 Harbor Bond Fund Management
  • § 4101 County Bond Pre-Vote Expenses
  • § 4102 Commission Expenditure Approval
  • § 4103 County Harbor Fund Reimbursement

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Harbors and Navigation Code. Section 506.
View Official Source