Goodman

This is a controversy over the ownership of a boat, involving the effect of the registration law in the Harbors and Navigation Code and several provisions of the Uniform Commercial Code concerning sales and secured transactions.

On August 11, 1965, Mr. and Mrs. Redinger borrowed from Security First National Bank (now Security Pacific National Bank) the sum of $7,725.60, repayable at the rate of $128.76 each month, and executed an agreement granting to the bank a security interest in a 27-foot motor boat. Soon afterwards an undocumented vessel certificate of ownership was issued by the State of California naming Mr. Redinger as registered owner and the bank as legal owner.

On January 6, 1966, Mr. Redinger delivered the boat to Jeffries & Enderle, Inc. (hereinafter Jeffries), a dealer in boats, and told Jeffries about the outstanding bank loan. Jeffries gave Redinger, for his equity, a slip of paper which said, “Received of Al Redinger, address 143 Chestnut, Orange, twelve hundred fifty dollars for credit on boat of buyer’s choice.” Redinger gave Jeffries a paper described in testimony as “a power of attorney for title to the boat.” That document is not in evidence.…