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Introduction
Jun 12, 2023 - The boat authorization for payoff is designed to enable a third party to pay off a boat loan on behalf of the borrower. Marine lenders will not typically allow this without the borrower's written consent. It also provides a directive to send a released title and any lien or mortgage release documents directly to the payor. Unfortunately, such instruction is not always honored and should not be taken for granted.
Format
The form is provided as an example only in Adobe PDF format and can be configured in various ways so long as it contains the necessary information.
Instructions
Include the names and addresses of the payer, lender or lien-holder as shown on title or registration records, and any agents, successors, or assignees of that lender. It must contain the loan number and a full description of the subject boat along with its identification numbers. Lenders do not typically require notarization of the borrower's signature.
Conclusion
Payoff authorizations are typically used subsequent to obtaining a written payoff demand from the lender. This should indicate the balance due, any per-diem interest that may needed to be added along with instructions on where to send such amount. Sufficient per-diem should calculated to cover any delays in processing the payoff. Any overage will be refunded to the borrower.
Credits and References
Jun 12, 2023 Page revised.
