2023 New York Laws › VAT - Vehicle and Traffic › Title 10 - Uniform Vehicle Certificate of Title Act › Article 46 - Uniform Vehicle Certificate of Title Act › 2118 - Perfection of Security Interests.

§ 2118. Perfection  of  security  interests.
(a) Unless excepted by
section two thousand  one  hundred  three  of  this  title,  a  security
interest  in  a  vehicle  of  a type for which a certificate of title is
required is not valid against  creditors  of  the  owner  or  subsequent
transferees  or  lienholders  of  the  vehicle  without knowledge of the
security interest unless perfected as  provided  in  this  section.    A
purchase  money  security interest in a vehicle is perfected against the
rights of judicial lien creditors and execution creditors on  and  after
the date such purchase money security interest is created.
(b) (1) A security interest is perfected:
(A)   By  the  delivery  to  the  commissioner  of  (i)  the  existing
certificate of title, if any, an application for a certificate of  title
containing  the  name and address of the lienholder and the required fee
or (ii) a notice of lien evidencing a lien  arising  under  section  two
hundred  eleven  of the lien law and section one hundred eleven-u of the
social services law;
(B) As of the time of its creation if the delivery is completed within
ten days thereafter, otherwise, as of the time of delivery.
(2) A security interest in  a  vehicle  provided  for  in  a  security
agreement made by a person before he becomes the owner of the vehicle or
arising under section two hundred eleven of the lien law and section one
hundred eleven-u of the social services law:
(A) Is deemed to be created at the time of the sale or transfer of the
vehicle to him;
(B)  If  not  perfected  under  paragraph  one  of this subdivision is
perfected by the lienholder delivering to the commissioner a  notice  of
security  interest  in  the  form  the  commissioner  prescribes and the
required fee or a notice of lien, but only if the delivery is  completed
before  the  commissioner  issues  a certificate of title of the vehicle
containing the name of the owner as owner;
(C) If so perfected, is perfected as  of  the  time  of  the  sale  or
transfer  of  the vehicle to him if the delivery is completed within ten
days thereafter, otherwise, as of the time of delivery;
(D) Is subject and subordinate to a security  interest,  perfected  in
accordance  with  paragraph  one  of  this  subdivision, of a lienholder
without knowledge of it.
(3) The commissioner shall  file  each  notice  of  security  interest
delivered  to  him  with  the  required fee and shall maintain a record,
under the identifying number of the vehicles, of all notices of security
interests filed by him.
(4) The commissioner shall file each notice of lien delivered  to  him
and  shall  maintain  a  record  pursuant  to the agreement set forth in
section twenty-one hundred five-a of this article.
(c) If a vehicle is subject to a security interest when  brought  into
this  state,  the validity of the security interest is determined by the
law of the jurisdiction where the vehicle was when the security interest
attached, subject to the following:
(1) If the parties  understood  at  the  time  the  security  interest
attached that the vehicle would be kept in this state and it was brought
into  this  state  within thirty days thereafter for purposes other than
transportation through this state, the validity of the security interest
in this state is determined by the law of this state.
(2) If the security interest  was  perfected  under  the  law  of  the
jurisdiction  where the vehicle was when the security interest attached,
the following rules apply:
(A) If the name of the lienholder is shown on  a  currently  effective
certificate  of title issued by that jurisdiction, his security interest
continues perfected in this state.
(B) If the name  of  the  lienholder  is  not  shown  on  a  currently
effective certificate of title issued by that jurisdiction, the security
interest continues perfected in this state for four months after a first
certificate  of  title of the vehicle is issued in this state, and also,
thereafter  if,  within  the  four month period, it is perfected in this
state. The security interest may also be perfected in this  state  after
the  expiration  of the four month period; in that case perfection dates
from the time of perfection in this state.
(3) If the security interest was not perfected under the  law  of  the
jurisdiction  where the vehicle was when the security interest attached,
it may be perfected in this state; in that case, perfection  dates  from
the time of perfection in this state.
(d)  A  security interest noted on a certificate of title to a vehicle
which is a mobile home or a manufactured home shall have  priority  over
any  other  subsequent  liens or security interests except for those set
forth in subdivision (c) of section two thousand one  hundred  three  of
this article.
(e)  After  a certificate of title has been issued in this state for a
vehicle which is a mobile home or a manufactured home, and  as  long  as
the  vehicle which is a mobile home or a manufactured home is subject to
any  security  interest  perfected  pursuant  to   this   section,   the
commissioner  shall  not  revoke  the  certificate of title, and, in any
event, the validity and priority  of  any  security  interest  perfected
pursuant  to  this section shall continue, notwithstanding the provision
of any other law, including  but  not  limited  to  section  9--303  and
section 9-313 of the uniform commercial code.