HF 790

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to motor vehicles; requiring release of a 
  1.3             security interest in a vehicle to be acted on within 
  1.4             five days; amending Minnesota Statutes 1998, section 
  1.5             168A.20. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1998, section 168A.20, is 
  1.8   amended to read: 
  1.9      168A.20 [SATISFACTION OF SECURITY INTEREST.] 
  1.10     Subdivision 1.  [CERTIFICATE WITH LATEST SECURED PARTY.] 
  1.11  Upon the satisfaction of a security interest in a vehicle for 
  1.12  which the certificate of title is in the possession of the 
  1.13  secured party, the secured party shall within 15 five days 
  1.14  execute a release of security interest in the space provided 
  1.15  therefor on the certificate or as the department prescribes, and 
  1.16  mail or deliver the certificate and release to the next secured 
  1.17  party named therein, or if none, to the owner or any person who 
  1.18  delivers to the secured party an authorization from the owner to 
  1.19  receive the certificate.  The owner, other than a dealer holding 
  1.20  the vehicle for resale, shall promptly cause the certificate and 
  1.21  release, together with the required fees and taxes, to be mailed 
  1.22  or delivered to the department, which shall release the secured 
  1.23  party's rights on the certificate or issue a new certificate. 
  1.24     Subd. 1a.  [TITLE ISSUED BEFORE JULY 1, 1990.] For titles 
  1.25  issued to the secured party before July 1, 1990, the secured 
  2.1   party shall hold the certificate of title until the security 
  2.2   interest is satisfied. 
  2.3      Subd. 2.  [CERTIFICATE WITH PRIOR SECURED PARTY.] Upon the 
  2.4   satisfaction of a security interest in a vehicle for which the 
  2.5   certificate of title is in the possession of a prior secured 
  2.6   party, the secured party whose security interest is satisfied 
  2.7   shall within 15 five days execute a release in the form the 
  2.8   department prescribes and deliver the release to the owner or 
  2.9   any person who delivers to the secured party an authorization 
  2.10  from the owner to receive it.  The secured party in possession 
  2.11  of the certificate of title shall either deliver the certificate 
  2.12  to the owner, or the person authorized by the owner, for 
  2.13  delivery to the department, or upon receipt of the release, mail 
  2.14  or deliver it with the certificate to the department, which 
  2.15  shall release the subordinate secured party's rights on the 
  2.16  certificate or issue a new certificate. 
  2.17     Subd. 3.  [CERTIFICATE WITH OWNER.] Upon the satisfaction 
  2.18  of a security interest in a vehicle for which the certificate of 
  2.19  title is in the possession of the owner, the secured party shall 
  2.20  within 15 five days execute a release of security interest on 
  2.21  the form prescribed by the department and mail or deliver the 
  2.22  notification with release to the owner or any person who 
  2.23  delivers to the secured party an authorization from the owner to 
  2.24  receive the release. 
  2.25     Subd. 4.  [SATISFACTION OF LIEN FOR CHILD SUPPORT.] If the 
  2.26  secured party is a public authority or a child support or 
  2.27  maintenance obligee with a lien under section 168A.05, 
  2.28  subdivision 8, upon either the satisfaction of a security 
  2.29  interest in a vehicle for which the certificate of title is in 
  2.30  the possession of the owner, or the execution by the owner of a 
  2.31  written payment agreement determined to be acceptable by the 
  2.32  court, an administrative law judge, the public authority, or the 
  2.33  obligee, within 15 five days the secured party shall execute a 
  2.34  release of security interest on the form prescribed by the 
  2.35  department and mail or deliver the notification with release to 
  2.36  the owner or any person who delivers to the secured party an 
  3.1   authorization from the owner to receive the release.