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 electronically maintaining the lien and title.
An electronic lien and title (ELT) is an electronic method by which MVD and authorized lienholders, through an approved ELT Service Provider, exchange essential vehicle, lien and title information. Once the lien has been satisfied, a lienholder sends an electronic message releasing the lien. MVD then notifies the vehicle owner or the next lienholder of record that the lien was released. This method results in faster service to vehicle owners and eliminates the need for printing and mailing individual paper titles.
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.