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             seven days if satisfied by a dealer; amending 
  1.5             Minnesota Statutes 1998, section 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 days, or seven 
  1.14  days if satisfied by a dealer licensed under section 168.27, 
  1.15  subdivision 2, 3, or 4, execute a release of security interest 
  1.16  in the space provided therefor on the certificate or as the 
  1.17  department prescribes, and mail or deliver the certificate and 
  1.18  release to the next secured party named therein, or if none, to 
  1.19  the owner or any person who delivers to the secured party an 
  1.20  authorization from the owner to receive the certificate.  The 
  1.21  owner, other than a dealer holding the vehicle for resale, shall 
  1.22  promptly cause the certificate and release, together with the 
  1.23  required fees and taxes, to be mailed or delivered to the 
  1.24  department, which shall release the secured party's rights on 
  1.25  the certificate or issue a new certificate. 
  2.1      Subd. 1a.  [TITLE ISSUED BEFORE JULY 1, 1990.] For titles 
  2.2   issued to the secured party before July 1, 1990, the secured 
  2.3   party shall hold the certificate of title until the security 
  2.4   interest is satisfied. 
  2.5      Subd. 2.  [CERTIFICATE WITH PRIOR SECURED PARTY.] Upon the 
  2.6   satisfaction of a security interest in a vehicle for which the 
  2.7   certificate of title is in the possession of a prior secured 
  2.8   party, the secured party whose security interest is satisfied 
  2.9   shall within 15 days, or seven days if satisfied by a dealer 
  2.10  licensed under section 168.27, subdivision 2, 3, or 4, execute a 
  2.11  release in the form the department prescribes and deliver the 
  2.12  release to the owner or any person who delivers to the secured 
  2.13  party an authorization from the owner to receive it.  The 
  2.14  secured party in possession of the certificate of title shall 
  2.15  either deliver the certificate to the owner, or the person 
  2.16  authorized by the owner, for delivery to the department, or upon 
  2.17  receipt of the release, mail or deliver it with the certificate 
  2.18  to the department, which shall release the subordinate secured 
  2.19  party's rights on the certificate or issue a new certificate. 
  2.20     Subd. 3.  [CERTIFICATE WITH OWNER.] Upon the satisfaction 
  2.21  of a security interest in a vehicle for which the certificate of 
  2.22  title is in the possession of the owner, the secured party shall 
  2.23  within 15 days, or seven days if satisfied by a dealer licensed 
  2.24  under section 168.27, subdivision 2, 3, or 4, execute a release 
  2.25  of security interest on the form prescribed by the department 
  2.26  and mail or deliver the notification with release to the owner 
  2.27  or any person who delivers to the secured party an authorization 
  2.28  from the owner to receive the release. 
  2.29     Subd. 4.  [SATISFACTION OF LIEN FOR CHILD SUPPORT.] If the 
  2.30  secured party is a public authority or a child support or 
  2.31  maintenance obligee with a lien under section 168A.05, 
  2.32  subdivision 8, upon either the satisfaction of a security 
  2.33  interest in a vehicle for which the certificate of title is in 
  2.34  the possession of the owner, or the execution by the owner of a 
  2.35  written payment agreement determined to be acceptable by the 
  2.36  court, an administrative law judge, the public authority, or the 
  3.1   obligee, within 15 days, or seven days if satisfied by a dealer 
  3.2   licensed under section 168.27, subdivision 2, 3, or 4, the 
  3.3   secured party shall execute a release of security interest on 
  3.4   the form prescribed by the department and mail or deliver the 
  3.5   notification with release to the owner or any person who 
  3.6   delivers to the secured party an authorization from the owner to 
  3.7   receive the release.