Mississippi Code 1972 (2023) › Title 63 - MOTOR VEHICLES AND TRAFFIC REGULATIONS (§§ 63-1-1 — 63-NEW01-NEW-014) › Chapter 21 - MOTOR VEHICLE TITLES (§§ 63-21-1 — 63-21-261) › Article 1 - GENERAL PROVISIONS (§§ 63-21-1 — 63-21-77) › Section 63-21-16 - [Effective 1/1/2025] Electronic transmittal of information by banks and other lending institutions; duties of institutions with respect to applications for certificates of title; entry of applications on statewide title registration system; addition of second lienholder to certificate of title; applications for certificates of title after assignment of liens; issuance of new certificate of title by Department of Revenue; connection of institutions to title registration system; penalties for noncompliance with statute or regulations by institutions; conditions for issuance of certificate of title to manufactured or mobile home for which title has been retired to real property; electronic transmission of liens and lien satisfactions

(1)
All designated agents appointed by the department under Section
63-21-13
may electronically transmit to the department information entered by them on applications for a certificate of title given in connection with the sale or transfer of a motor vehicle, manufactured home or mobile home or a loan for which the owner's motor vehicle, manufactured home or mobile home is pledged to that institution as collateral for the loan. The format and the data required to be transmitted shall be established by the department . Transmission of data shall meet minimum criteria and edits established by the department equal to any edit presently existing in the statewide title registration system, or as may be established, to which the county tax collectors shall also conform. All data transmitted must successfully pass edits established by the department , including lienholder name, mailing address and lienholder account number assigned to a lienholder by the department to identify the lienholder, for the purpose of causing the data to appear in the certificate of title for which the application is made.
(2)
It shall be the responsibility of the designated agent to verify all data before it is electronically transmitted. It shall also be the responsibility of the designated agent to ensure that the required certification of designated agent and the certification of statement of facts that are contained on the application for certificate of title appear above the signatures of both the owner and the authorized representative of the designated agent. Data which cannot be transmitted because of error shall be corrected by the designated agent when the statewide title registration system indicates that the data is erroneous or is not valid for the purposes of titling the motor vehicle, manufactured home or mobile home or for transfer of the data.
(3)
When an institution has agreed to loan money for the purchase of a motor vehicle, manufactured home or mobile home, the institution shall complete an application for certificate of title or require the borrower to provide to the institution the copy of the application for certificate of title contained in the application packet which is designated "Lienholder's Copy" according to provisions of the Motor Vehicle and Manufactured Housing Title Law, which the owner will receive from the county tax collector or any designated agent upon completion of the application for title and registration process.
(4)
An application for certificate of title originating from a designated agent shall be entered on the statewide title registration system by the originating lending institution when the transaction is for the purpose of perfecting the institution's interest in a vehicle, manufactured home or mobile home currently owned or purchased by the applicant, in connection with application for certificate of title or the purchase of a license tag or both.
(5)
When an institution in this state adds a second lien on a certificate of title in possession of a first lienholder institution in this state, the second lienholder institution seeking to be shown on the certificate of title shall:
(a)
Prepare the application for certificate of title in accordance with the requirements of Sections
63-21-15
and
63-21-45(1)(c)
;
(b)
Obtain all required signatures; and
(c)
Forward the completed application for certificate of title to the first lienholder together with any necessary remittance advice, a check for the title fee payable to the department and a cover letter to the first lienholder requesting that the first lienholder attach the certificate of title to the required documents sent by the second lienholder and then forward the application, certificate of title and required documents to the department .
(6)
Upon receipt of the application for certificate of title from the second lienholder institution to record the second lien, the first lienholder institution shall compare the data contained in the application for certificate of title to the information contained in the original certificate of title. If the first lienholder institution is satisfied as to the ownership, accuracy and order of priority of liens as shown in the application, it shall enter the data contained on the application for certificate of title prepared by the second lienholder on the statewide title registration system, including the designated agent number of the second lienholder. After entering the data from the application for certificate of title, the first lienholder institution shall immediately forward the application for certificate of title with the certificate of title attached to the application, the remittance advice and the second lienholder's check for the title fee to the department within three (3) working days.
(7)
In an assignment of lien pursuant to Section
63-21-47
, the assignee shall receive the notice of assignment along with the current title attached and with the assignors interest open. The assignee lienholder shall prepare an application for certificate of title according to the notice of assignment, showing the assignee institution as the lienholder, and then shall electronically transmit the data to the department . The completed application shall be forwarded to the department within three (3) working days.
(8)
The department , upon receipt of applications for certificate of title, shall verify the data by accessing it on the statewide title registration system by the title application control number appearing on the application for title. After receiving verification that is satisfactory to the department that the data necessary for the issuance of a new certificate of title exists, the department shall issue a new certificate of title that records the interests of all the parties named in the application for certificate of title.
(9)
Designated agents shall be connected to the statewide title registration system for the purpose of electronic transfer of applications for certificate of title data in the order of priority established by the department .
(10)
If a participating designated agent fails to comply with the provisions of this section or the rules adopted by the department to implement this section, the department may impose a penalty of Twenty-five Dollars ($25.00) for each instance of noncompliance. Any penalty imposed under this section not paid within thirty (30) days after a notice is given shall be subject to collection from the bond of the designated agent that is required to be provided under the provisions of Section
63-21-13(3)
. The penalty provided shall also be assessable, due and collectible from any licensed motor vehicle dealer or manufactured home or mobile home dealer for failure to accept an application for certificate of title for each and every vehicle, manufactured home or mobile home he sells to a consumer. These penalties shall be cumulative, supplemental and in addition to the penalties provided by any other law.
(11)
This section shall apply to all designated agents appointed by the department under Section
63-21-13
, that choose to electronically transmit information on applications for certificates of title to the department . This section shall not apply to other designated agents.
(12)
Notwithstanding the foregoing, the department shall not issue a certificate of title to a manufactured home or mobile home with respect to which title has been retired to real property under Section
63-21-30
unless with respect to the same manufactured home or mobile home title has been severed from real property pursuant to Section
63-21-30
.
(13)
Notwithstanding any requirement in this chapter that a lien on a motor vehicle or manufactured home shall be noted on the face of the certificate of title, if there are one or more liens or encumbrances on the motor vehicle or manufactured home, the department may electronically transmit the lien to the first lienholder and notify the first lienholder of any additional liens. Subsequent lien satisfactions may be electronically transmitted to the department and shall include the name and address of the person satisfying the lien. When electronic transmission of liens and lien satisfactions is used, a certificate of title need not be issued until the last lien is satisfied and a clear certificate of title is issued to the owner of the motor vehicle or manufactured home. When a motor vehicle is subject to an electronic lien, the certificate of title for the motor vehicle shall be considered to be physically held by the lienholder for purposes of compliance with state or federal odometer disclosure requirements. A duly certified copy of the department 's electronic record of the lien shall be admissible in any civil, criminal, or administrative proceeding in this state as evidence of the existence of the lien.
(14)
Any lienholder with a federal Employer Identification Number (EIN) must electronically transmit the satisfaction and release and discharge of a lien on a motor vehicle to the department not later than fourteen (14) days after the date of satisfaction of the lien. The failure of any such lienholder to comply with the requirements of this subsection shall be a violation of this chapter. Any such lienholder who knowingly and willfully fails to transmit the satisfaction and release and discharge of a lien on a motor vehicle within fourteen (14) days after the date of the satisfaction of the lien shall be in violation of this section, and subject to a civil penalty of up to Two Hundred Fifty Dollars ($250.00) per violation, which shall be in addition to any other penalty provided in this chapter. In addition, the lienholder shall be liable for any attorney's fees, legal fees and/or other fees and costs incurred by a person in any action necessary to discharge and/or release a lien or otherwise affecting a lien for which the lienholder failed to transmit the required information.
(15)
Notwithstanding any other provision of this chapter to the contrary, if a lien on a motor vehicle is older than eight (8) years from the date the lien was placed on the motor vehicle, the lien shall be recorded by the department in the automated statewide motor vehicle registration system as having been satisfied and released and discharged, unless annually recertified by the lienholder by utilizing the format and transmitting the data required by the department.
Laws, 1996, ch. 539, § 1; Laws, 1997, ch. 458, § 1; Laws, 1999, ch. 396, § 2; Laws, 1999, ch. 556, § 7, eff. 7/1/1999.
Amended by Laws, 2024, ch. (number not assigned at time of publication), HB 1589,§ 1, eff. 1/1/2025.
Amended by Laws, 2023, ch. 353, HB 1170,§ 1, eff. 7/1/2023.
Amended by Laws, 2018, ch. 401, HB 827,§ 4, eff. 1/1/2019.
This section is set out more than once due to postponed, multiple, or conflicting amendments.