2023 New York Laws › VAT - Vehicle and Traffic › Title 10 - Uniform Vehicle Certificate of Title Act › Article 46 - Uniform Vehicle Certificate of Title Act › 2121 - Release of Security Interest.

§ 2121. Release  of  security interest. (a) Upon the satisfaction of a
security interest in a vehicle the  lienholder  shall  immediately  upon
clearance  of  payment  execute  a release of his security interest in a
manner prescribed by the commissioner and mail or deliver the release to
the owner or any person who delivers to the lienholder an  authorization
from the owner to receive the certificate. Payment sufficient to satisfy
the  security  interest  by  an  insurer of the owner shall be deemed an
authorization by the owner for  the  delivery  of  the  release  of  the
security  interest to the insurer. If the payment in satisfaction of the
security interest is in cash, certified check,  intra-bank  transfer  of
funds  or  an  uncertified check or draft issued by an insurance company
authorized to do business in this state, the payment shall be deemed  to
be  cleared  immediately  upon  receipt.  The owner, other than a dealer
holding the vehicle for resale, may cause the certificate and release to
be mailed or delivered  to  the  commissioner,  who  shall  release  the
lienholder's rights on the certificate or issue a new certificate.
(b)  A  dealer who receives a motor vehicle for the purposes of resale
and who arranges for the satisfaction of any security interest  in  such
vehicle,  and  for  which  a  release  of security interest has not been
issued,  may  submit  to  the  commissioner   sufficient   evidence   to
demonstrate  that  such  security  interest has been satisfied and shall
provide notice to the lienholder two weeks prior to  submission  to  the
commissioner.  The  commissioner shall, upon receipt of such evidence, a
proper  application  and  the  appropriate  fee  pursuant   to   section
twenty-one  hundred  twenty-five of this article, promptly issue, within
no more than fifteen business days of receipt by the department  of  all
required  information  and  fees, either a duplicate certificate without
such lien included thereon, or a certificate without such lien  included
thereon.  Evidence  that  a  security  interest has been satisfied shall
include: (i) evidence that an interbank or electronic transfer of  funds
has been made; or (ii) evidence that a copy of a cashier's or bank check
has  been  delivered;  or  (iii)  other  evidence  as  determined  to be
satisfactory by the commissioner; and  (iv)  evidence  that  the  amount
delivered  to  the  lienholder  is  equal  to  the amount which has been
represented to the dealer by the lienholder  as  sufficient  to  satisfy
such  lien.  Such  evidence  shall  be  accepted  by the commissioner as
sufficient. Any evidence submitted to the commissioner pursuant to  this
subdivision  may,  subject to approval of the commissioner, be submitted
in electronic form. In addition to  the  penalties  imposed  by  section
twenty-one  hundred  thirty  of  this  article, any dealer who alters or
forges evidence of payment, or fails to make a payment, shall be  liable
to  any  party  for  any  damages  resulting  from the issuance of a new
certificate by the commissioner, plus attorney's fees and costs incurred
in recovering such damages, provided however no subsequent purchaser  of
a  vehicle  where  the security interest was removed by the commissioner
under the provisions of this subdivision shall be liable for any  errors
in  the removal of such security interest, and any dealer who so applied
for the  removal  of  such  security  interest  on  such  vehicle  shall
indemnify  any  such  purchaser  and  lienholder.  The  commissioner  is
authorized  to  adopt  and  enforce  reasonable  rules  and  regulations
necessary to carry out the provisions of this subdivision.