306.405.  Certificates of title, delivery of, how, to whom — lienholder may elect to have revenue retain electronic title. — 1.  All certificates of title of an outboard motor, motorboat, vessel, or watercraft issued by the director of revenue shall be mailed to the owner named therein.  If the certificate of ownership is being held electronically by the director of revenue at the election of a lienholder, then confirmation of such ownership shall be electronically transmitted or mailed to the first lienholder named in such certificate.

  2.  A lienholder may elect to have the director of revenue retain possession of an electronic certificate of title and the director shall issue regulations to govern the procedure for making such an election.  Each such certificate of title shall require a separate election unless the director provides otherwise by regulation.  A subordinate lienholder shall be bound by the election of the superior lienholder with respect to the certificate involved.

  3.  "Electronic certificate of title" means any electronic record of ownership, including liens that may be recorded.