SB 781 Revises the process for obtaining a repossession title to motor vehicles, certain watercrafts, and manufactured homes
Sponsor: Ridgeway
LR Number: 4114S.01I Fiscal Note: 4114-01
Committee: Judiciary and Civil & Criminal Jurisprudence
Last Action: 3/6/2006 - SCS Voted Do Pass S Judiciary and Civil & Criminal Jurisprudence Committee (4114S.02C) Journal Page:
Title: Calendar Position:
Effective Date: August 28, 2006

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Current Bill Summary


SCS/SB 781 - This act modifies the law that governs the process of obtaining a repossession title. In order to obtain a title to a motor vehicle, trailer, motorboat or vessel that has been legally repossessed, the debt holder must submit a notice of lien receipt or the original certificate of ownership reflecting the holder's lien. The act provides that a lienholder may give notice that it is seeking a repossession title to a motor vehicle owner and other lienholders by complying with Uniform Commercial Code notice provisions.

The act provides that a person seeking a repossession title to a motorboat, vessel or watercraft must present a notice of lien receipt or the original certificate of ownership reflecting the holder's lien. The act removes the requirement that the lienholder must present the original or photostatic copy of the security agreement. Instead, the act requires presentation of an affidavit that the lienholder has the written consent of all owners or lienholders of record to repossess the vessel, motorboat or watercraft or has provided such parties with written notice of the repossession. The act also imposes specific notice requirements upon the lienholder that are similar to the requirements for persons repossessing motor vehicles. The lienholder must give 10 days written notice by 1st class U.S. mail to the owners and other lienholders.

The act provides that a person seeking a repossession title to a manufactured home must present a notice of lien receipt or the original certificate of ownership reflecting the holder's lien. The act removes the requirement that the lienholder must present the original or photostatic copy of the security agreement. Instead, the act requires presentation of an affidavit that the lienholder has the written consent of all owners or lienholders of record to repossess the manufactured home or has provided such parties with written notice of the repossession. The act also imposes specific notice requirements upon the lienholder that are similar to the requirements for persons repossessing motor vehicles. The lienholder must give 10 days written notice by 1st class U.S. mail to the owners and other lienholders. The lienholder may also comply with the notice provision by giving notice under the Uniform Commercial Code provisions.

STEPHEN WITTE