Assignment by lienholder

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  • (a) A first priority lienholder may assign, absolutely or otherwise, his security interest in the vehicle to a person other than the owner without affecting the interest of the owner or the validity of the security interest, but any person without notice of the assignment is protected in dealing with the first priority lienholder as the holder of the security interest and such lienholder remains liable for any obligations as lienholder until the assignee is named as the new first priority lienholder on the certificate.

  • (b) The assignee may, but need not to perfect the assignment, have the certificate of title endorsed or issued with the assignee named as first priority lienholder, upon delivering to the Bureau of Motor Vehicles the certificate and an assignment by the prior lienholder named in the certificate in the form the Bureau of Motor Vehicles prescribes.

  • Upon the satisfaction of a security interest in a vehicle for which the certificate of title is in the possession of the lienholder, he shall, within 10 days after demand and, in any event, within 30 days, execute a release of his security interest, in the space provided therefor on the certificate or as the Bureau of Motor Vehicles prescribes, and mail or deliver the certificate and release to the owner and the Bureau of Motor Vehicles, and the Bureau of Motor Vehicles shall release the lienholder's rights on the certificates or issue a new certificate.


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