Alabama Administrative Code
Title 810 - ALABAMA DEPARTMENT OF REVENUE
Chapter 810-5-75 - TITLE PROCEDURE
Section 810-5-75-.21 - Lien Or Security Interest Releases And Continuous Perfection Of Lien Or Security Interests
Universal Citation: AL Admin Code R 810-5-75-.21
Current through Register Vol. 42, No. 11, August 30, 2024
(1) Release of Lien or Security Interest. A lienholder recorded on a certificate of title may release the lien or security interest utilizing one of the following procedures:
(a) Completing the area prescribed
on the certificate of title to release the lien.
(b) Completing form MVT 5-63 when the
certificate of title is unavailable due to being lost, stolen, illegible or
mutilated. The MVT 5-63 can then be used to support an application for
replacement certificate of title.
(c) Providing a lien release on the
lienholder's letterhead. This lien release must accompany the certificate of
title or application for replacement certificate of title and must contain the
following information:
1. The lien release
must identify the vehicle or manufactured home by complete vehicle
identification number (VIN) or manufactured home identification number.
2. The lien release must provide
the name of the owner(s) with whom the lienholder held a security
agreement.
3. The lien release must
state clearly that the lien has been released and show the date of release,
and
4. The lien release must be
signed by an authorized representative of the recorded lienholder.
(d) In the event that a lienholder
recorded on a certificate of title is no longer in business and a replacement
certificate of title is required, the following alternative method for
evidencing the release of a lien or security interest may be used for a motor
vehicle, other than a travel trailer, manufactured home, or vehicle that weighs
more than 12,000 pounds gross weight:
1.
Affidavit from the owner referencing the VIN and attesting to the fact that the
lien or security interest is satisfied and that the lienholder is no longer in
business.
2. Unopened envelope,
accompanied by certified mail return receipt request, sent to lienholder's last
known address, containing a letter requesting a release of lien or security
interest.
3. Evidence of
satisfaction of the lien or security interest.
(2) Events when the Release of Lien or Security Interest is not Required.
(a)
§
32-8-64.1,
Code of Ala. 1975, provides that any lien or security
interest must be considered satisfied and a release is not required after 12
years from the date of the security agreement as recorded on the certificate of
title for a motor vehicle other than a travel trailer, manufactured home, or
vehicle that weighs more than 12,000 pounds gross vehicle weight.
(b)
§
32-8-64.2,
Code of Ala. 1975, provides that any lien or security
interest must be considered satisfied and a lien release is not required after
4 years from the date of the security agreement as recorded on the certificate
of title for a vehicle that is 12 or more model years old, other than a travel
trailer, manufactured home, or vehicle that weighs more than 12,000 pounds
gross vehicle weight.
(3) Surety Bond Required. If the lien or security interest release cannot be provided for a travel trailer, manufactured home, or vehicle that weighs more than 12,000 pounds gross vehicle weight, a surety bond must be posted in accordance with § 32-8-36, Code of Ala.1975, to obtain a certificate of title.
(4) Application for Second Title for Security Interest or Lien.
(a)
§
32-8-64.2,
Code of Ala. 1975, provides for the automatic release
of certain security interests and liens unless a second application to record
the existence of a continuous security interest or lien is filed prior to the
automatic release provision of the security interest or lien.
(a) In order to provide for the continuous
perfection of a security interest or lien that would otherwise be satisfied
pursuant to Section
32-8-64.2,
Code of Ala. 1975, an application for a second title
on which the security interest or lien is listed must be submitted to a
designated agent prior to the date the security interest or lien is
automatically released. The application must be accompanied by the Alabama
certificate of title and a notice of continuous lien perfection (form MVT 5-64)
to extend the security interest or lien beyond the time period as provided in
§
32-8-64.2.
The lien date on the notice of continuous lien perfection and the application
must be the date the notice of continuous lien perfection was executed.
Otherwise, the security interest or lien must be perfected as provided for by
§
32-8-61,
Code of Ala. 1975.
Author: Don Clemons
Statutory Authority: Code of Ala. 1975, § 32-8-3(b)(2), 32-8-36, 32-8-61, 32-8-64, 32-8-64.1, 32-8-64.2, 32-20-3(b)(2), 32-20-44, 40-2A-7(a)(5).
Disclaimer: These regulations may not be the most recent version. Alabama may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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