HB 550 - This act revises the laws regarding the perfection of liens and encumbrances on motor vehicles, trailers, watercraft, and manufactured homes.
Under the terms of the act, the notice of lien on a motor vehicle or trailer is perfected as of the time of its creation if it is delivered within 30 days to the director. If the notice of lien is not delivered within 30 days of its creation, it is perfected at the time of delivery. The notice of lien must contain complete and legible documents including the name and address of the owner and the secured party, a description of the vehicle or trailer, including the vehicle identification number; and any other information as prescribed by the department of revenue. The director must confirm receipt by mail or electronically as soon as possible but no later than 15 business days after the filing of the notice of lien.
Under the terms of the act, when refinancing a loan on a motor vehicle, trailer, outboard motor, watercraft, or manufactured home, a notice of lien, that is completed by the refinancing lender in a prescribed format, is perfected upon delivery to the Director of the Department of Revenue.