61-3-103. Filing of security interests -- perfection -- rights -- procedure -- fees. (1) (a) Except as provided in subsection (2), the department, its authorized agent, or a county treasurer shall, upon payment of the fee required by subsection (8), enter a voluntary security interest or lien against the electronic record of title for a motor vehicle upon receipt of a written acknowledgment by a vehicle owner of a voluntary security interest or lien on a form required by the department. The entry may be made if:
(i) the person is applying for a certificate of title and the manufacturer's certificate of origin or a certificate of title is being surrendered; or
(ii) a transfer of ownership is not sought.
(b) After the voluntary security interest or lien has been entered on the electronic record of title for the vehicle, the department, its authorized agent, or a county treasurer shall issue a transaction summary receipt to the owner and, if requested, to the secured party or lienholder, showing the date that the security interest or lien was perfected.
(c) A voluntary security interest or lien is perfected on the date that the department, its authorized agent, or a county treasurer receives the written acknowledgment of the voluntary security interest or lien from the owner of the vehicle.
(d) Unless a person applying for a certificate of title requests issuance of a certificate of title under 61-3-201, the department may not record a voluntary security interest or lien on the face of a certificate of title.
(2) A security interest in a motor vehicle held as inventory by a dealer licensed under Title 23, chapter 2, part 5, 6, or 8, or chapter 4 of this title must be perfected in accordance with Title 30, chapter 9A.
(3) Whenever a security interest or lien is filed against the electronic record of title for a motor vehicle that is subject to two security interests previously perfected under this section and the applicant has requested issuance of a certificate of title under 61-3-201, the department shall endorse on the face of the certificate of title, "NOTICE. This motor vehicle is subject to additional security interests on file with the Department of Justice." Other information regarding the additional security interests is not required to be endorsed on the certificate.
(4) Upon default under a chattel mortgage or conditional sales contract covering a motor vehicle, the mortgagee or vendor has the same remedies as in the case of other personal property. In case of attachment of motor vehicles, all the provisions of 27-18-413, 27-18-414, and 27-18-804 are applicable except that deposits must be made with the department.
(5) A secured party or lienholder who has a perfected security interest in a vehicle and who fails to file a satisfaction of the security interest or lien within 21 days after receiving final payment is required to pay the department $25 for each day that the secured party or lienholder fails to file the satisfaction.
(6) Within 24 hours after receiving notice of any involuntary liens or attachments against the record of any motor vehicle registered in this state, the department shall mail to the owner or any secured party or lienholder of record a notice showing the name and address of the lien claimant, the amount of the lien, the date of execution of the lien, and, in the case of attachment, the full title of the court and the action and the names of the attorneys for the plaintiff and attaching creditor.
(7) (a) This section does not prevent a secured party or lienholder from assigning the secured party's or lienholder's interest in a motor vehicle, for which a certificate of title is issued under this chapter, to any other person without the consent of and without affecting the interest of the holder of the certificate of title.
(b) If a secured party assigns all or part of the party's interest in a motor vehicle for which a certificate of title is issued under this chapter, the secured party assigning the interest shall file a copy of the assignment with the department and the department shall record the assignment in the department's records.
(8) (a) A fee must be paid to the department to file any security interest or other lien against a motor vehicle. The fee covers the cost of entering and, upon the subsequent satisfaction or release, of removing the security interest or lien from the electronic record of title.
(b) Beginning January 1, 2002, and ending June 30, 2011, the fee is $8. Of the $8 fee, $4 must be deposited in the state general fund in accordance with 15-1-504. The remaining $4 must be forwarded to the department of revenue for deposit in the motor vehicle information technology system account provided for in 61-3-550.
(c) Beginning July 1, 2011, the fee is $4 and must be deposited in the state general fund.
(9) A fee of $10 must be paid to the department by a vehicle owner if, following satisfaction or release of a security interest and its removal from the department's records, the vehicle owner requests issuance of a new certificate of title without the security interest or lien shown on the face of the title. The $10 fee must be deposited in the motor vehicle information technology system account provided for in 61-3-550. (Subsection (9) terminates June 30, 2013--sec. 15, Ch. 562, L. 2003.)
History: En. Subd. 4, Sec. 2, Ch. 159, L. 1933; re-en. Sec. 1758.3, R.C.M. 1935; amd. Sec. 7, Ch. 72, L. 1937; amd. Sec. 3, Ch. 148, L. 1943; amd. Sec. 3, Ch. 63, L. 1945; amd. Sec. 11-143, Ch. 264, L. 1963; amd. Sec. 26, Ch. 121, L. 1965; R.C.M. 1947, 53-110; amd. Sec. 2, Ch. 189, L. 1979; amd. Sec. 1, Ch. 502, L. 1979; amd. Sec. 1, Ch. 277, L. 1983; amd. Sec. 2, Ch. 341, L. 1985; amd. Sec. 1, Ch. 358, L. 1985; amd. Sec. 1, Ch. 503, L. 1985; amd. Sec. 1, Ch. 361, L. 1987; amd. Sec. 3, Ch. 378, L. 1987; amd. Sec. 7, Ch. 398, L. 1989; amd. Sec. 1, Ch. 463, L. 1991; amd. Sec. 7, Ch. 482, L. 1993; amd. Sec. 2, Ch. 90, L. 1997; amd. Sec. 13, Ch. 409, L. 1999; amd. Sec. 3, Ch. 394, L. 2001; amd. Sec. 113, Ch. 114, L. 2003; amd. Secs. 44, 83(1)(b), Ch. 477, L. 2003; amd. Sec. 6, Ch. 562, L. 2003.
