(a) Upon the satisfaction of a security interest in a vessel, the secured party shall securely attach to the certificate of title a release of security interest, in whatever form as may be prescribed by or acceptable to the department and shall within fifteen (15) days mail or deliver the certificate of title with attached release to the owner and a copy of the release to the department. Upon receipt, the department shall update its records to reflect the release. Upon request of the owner and the receipt by the department of the certificate of title with attached release, the department may issue a new certificate of title to the owner upon receipt of a fee of five dollars ($5.00).
(b) If the department determines, after a hearing and following due notice to all interested parties, that an indebtedness does not constitute a security interest, it shall release the indebtedness upon the certificate of title or issue a new certificate of title, and mail or deliver the certificate of title to the owner. Any person aggrieved by the decision of the department may file an appeal in accordance with the provisions of the Administrative Procedure Act, chapter 35 of title 42.