Lienholders hold the title until the lien is satisfied. The vehicle owner must hold a valid registration.
All title transactions, including new, transfer, duplicate and corrected, that indicate a lien are processed in the usual manner. However, after the transaction is recorded by MVD, the lienholder is responsible for maintaining the title.
The current regulations for title liens began Jan. 1, 2003, and were updated May 31, 2010, pursuant to Laws 2009, Chapter 70. An electronic lien and title (ELT) is an electronic method by which MVD and authorized lienholders exchange essential vehicle, lien and title information. Lienholders are required to perfect or release liens using the current ELT process through an approved ELT Service Provider. This process eliminates the need for printing and mailing individual paper titles. Once the lien has been satisfied, a lienholder sends an electronic message releasing the lien. MVD then forwards the title to the vehicle owner or to the next lienholder of record. This method results in faster service to vehicle owners.
A lien is satisfied once a lienholder receives payment in full. Full satisfaction of a lien is met under these conditions:
- Good funds received
- Wire transfer complete
- Cleared check
- Funds debited from account
Penalties may be assessed to any lienholder who does not surrender a certificate of title (electronic or paper) upon the full satisfaction of the lien and the request of the legal vehicle owner. The title must be delivered within 15 business days of full satisfaction of the lien.
Lienholders found in violation may receive penalties that range from $50 to a maximum of $500 per title.
For more information, please see our Vehicle FAQs.