Current through Register Vol. 42, No. 11, August 30, 2024
(1)
First Lien to be
Recorded.
(a) If the lienholder
is a designated agent of the department or can quality as a designated agent in
accordance with §§ 32-8-24 or
32-20-22,
Code of Ala, 1975, or rules promulgated thereunder,
then form MVT 5-1E, Application for Certification of Title, must be completed
by the lienholder through the Alabama Title System to record the
lien.
(b) If the lienholder is not
a designated agent and cannot qualify as a designated agent in accordance with
§§
32-8-34 or
32-20-22,
Code of Ala. 1975, or rules promulgated thereunder,
then form MVT 20-1, Application for Certificate of Title of Record or Transfer
a Lien, must be completed. Form MVT 20-1 can only be used when the current
certificate of title is an Alabama title and there is no change in ownership of
the vehicle in conjunction with the recording of the new lien.
(c) Forms MVT 5-1E, and MVT 20-1 must be
completed legibly and in their entirety. Form MVT 5-1E must be signed and dated
by the designated agent and owner(s). Form MVT 20-1 must be signed by the
lienholder and owner(s).
(2) The lienholder or designated agent must
immediately deliver the application, Alabama certificate of title, supporting
documents, and fee, as provided for in §§
32-8-6 or
32-20-4,
Code of Ala. 1975, to the department.
(3)
Second Lien to be
Recorded.
(a) Whenever a second
lien is to be recorded on a title, the procedures set forth in order to record
the first lien will apply. NO more than two liens may be recorded on the
certificate of title.
(b) Once the
application (Forms MVT 5-1E or MVT 20-1) has been signed and dated, it must be
delivered to the first lienholder listed on the applications in accordance with
§
32-8-61,
Code of Ala. 1975.
(c) The first lienholder must immediately
deliver the application, Alabama certificate of title, any supporting
documents, and fee as provided for in §
32-8-6,
Code of Ala. 1975, to the department.
(4)
Assignment and
Transfer of First or Second Lien by Lienholder.
(a) In the event the lienholder needs to
transfer a lien to another lienholder and there is no transfer of ownership,
form MVT 20-1 must be completed regardless of whether the lienholder is a
designated agent.
This procedure records the lien interest of the new lienholder
and is required to record the lienholder on the Alabama certificate of title.
The owner(s) names(s) and original lien date cannot be changed.
(5) The department may
authorize designated agents and lienholders to electronically submit title
applications and supporting documents in lieu of delivering the original
documents to the department.
Authors: Mike Gamble, Jonathan Lawrence
Statutory Authority:
Code of Ala.
1975, §§
32-8-3(b)(2),
32-8-61,
40-2A-7(a)(5).
