Liens to Be Noted on Certificates of Title — County Clerk Entering Lien
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When any new lien, other than a lien dependent solely upon possession, or a lien of the state for taxes established pursuant to title 67, chapter 1, part 14, is placed on any motor vehicle coming within the title provisions of chapters 1-6 of this title in a transaction not involving any change of ownership, the owner shall deliver the certificate of title, if in the owner's possession, on to the lienor, who shall forward the certificate of title, together with the required fee for noting the lien on the certificate of title, with proof of the lien required by the reasonable rules and regulations of the commissioner directly to the county clerk. The county clerk, when satisfied of the lienor's right to have the lien noted on the certificate of title, shall note the lien on the certificate of title and return the certificate of title to the lienor.
In the event the certificate of title is in the possession of some prior lienor, the new or subordinate lienor shall forward to the county clerk the required fee for noting the lien, together with proof of the lien required by the reasonable rules and regulations of the commissioner, and the county clerk, when satisfied of the right of the lienor to have the lien noted on the certificate of title, shall forward the application and proof of lien to the department. The department shall procure the certificate of title from the lienor in whose possession it is being held, for the sole purpose of noting the new lien on the certificate of title, and shall return the certificate of title to the lienor from whom it was obtained and shall further notify the new lienor of the fact that the lien has been noted on the certificate of title.