Creation of Security Interest by Owner

  1. Law
  2. Georgia Code
  3. Motor Vehicles and Traffic
  4. Certificates of Title, Security Interests, and Liens
  5. Security Interests in and Liens on Motor Vehicles
  6. Creation of Security Interest by Owner

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If the owner creates a security interest in a vehicle:

  1. The owner shall immediately execute the application in the space provided therefor on the certificate of title or on a separate form that the commissioner prescribes, naming the holder of the security interest on the certificate and showing the name and address of the security interest holder, and shall cause the certificate, the application, and the required fee to be delivered to the security interest holder;
  2. The security interest holder shall immediately cause the certificate of title and application and the required fee to be mailed or delivered to the commissioner or the commissioner's appropriate authorized county tag agent within 30 days of the date of creation of the security interest or lien. If the certificate of title and application and the required fee are not mailed or delivered within such time, the lien or security interest holder shall be required to pay a $10.00 penalty in addition to the ordinary title fee provided for by this chapter. If the documents submitted in support of the title application are rejected, the party submitting the documents shall have 60 days from the date of initial rejection to resubmit the documents required by the commissioner or the authorized county tag agent for the issuance of title. If the documents are not properly resubmitted within the 60 day period, there shall be an additional $10.00 penalty assessed, and the owner of the vehicle shall be required to remove immediately the license plate of the vehicle and return same to the commissioner or authorized county tag agent. The license plate shall be deemed to have expired at 12:00 Midnight of the sixtieth day following the initial rejection of the documents, if the documents have not been resubmitted as required under this paragraph; and
  3. Upon receipt of the certificate of title, the application, and the required fee, the commissioner or the commissioner's duly authorized county tag agent shall issue a new certificate containing the name and address of the holder of the security interest and of holders of previous unreleased security interests and liens, if any, and shall mail the certificate to the first holder on it. If more than one holder is named on the certificate, the first holder shall comply with subsection (b) of Code Section 40-3-26 in regard to notifying other holders of the content of the certificate.

(Ga. L. 1961, p. 68, § 22; Ga. L. 1962, p. 79, § 12; Ga. L. 1964, p. 436, § 4; Ga. L. 1965, p. 304, § 6; Ga. L. 1969, p. 92, § 5; Ga. L. 1981, p. 883, § 11; Ga. L. 1990, p. 8, § 40; Ga. L. 1990, p. 2048, § 3; Ga. L. 1997, p. 739, § 19; Ga. L. 2008, p. 835, § 7/SB 437.)

OPINIONS OF THE ATTORNEY GENERAL

Receipt of application or notice of lien in commissioner's records.

- Department of Revenue's (now commissioner's) records show when an application or notice of lien is received under Ga. L. 1961, p. 68 (see now O.C.G.A. Ch. 3, T. 40) for use in determining relative priority of security interest. 1962 Op. Att'y Gen. p. 310.

Correction of title certificate.

- If title certificate is incorrect, it should be returned to commissioner and the owner notified by the security interest holder that the holder has received the certificate, that it contained an error, and that the holder has returned the certificate to the commissioner; the commissioner will issue a correct certificate of title if such seems to be required under the circumstances. 1962 Op. Att'y Gen. p. 311.

Used car dealers.

- Failure of a used car dealer to be listed on the certificate of title as an owner or security interest holder does not affect the creation of the security interest and all the rights attached thereto, including repossession. 1990 Op. Att'y Gen. No. 90-8.

RESEARCH REFERENCES

Am. Jur. 2d.

- 7A Am. Jur. 2d, Automobiles and Highway Traffic, §§ 36, 37, 56. 51 Am. Jur. 2d, Liens, § 16.

C.J.S.

- 60 C.J.S., Motor Vehicles, § 103 et seq. 72 C.J.S., Pledges, § 13. 78A C.J.S., Sales, § 807 et seq.

U.L.A.

- Uniform Motor Vehicle Certificate of Title and Anti-Theft Act (U.L.A.) §§ 20, 21.

ALR.

- Lien for repairs to or services in connection with automobile, 62 A.L.R. 1485.


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