New York Codes, Rules and Regulations › Title 15 - Department of Motor Vehicles › Chapter I - REGULATIONS OF THE COMMISSIONER › Subchapter B - Registration, Certificate of Title, and Number Plates › Part 20 - Certificate Of Title › Security Interests › Section 20.17 - Satisfaction of lien

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Whenever a
					 lien is satisfied, the lienholder shall immediately submit the notice of
					 recorded lien showing satisfaction thereof to the title holder or his designee.
					 The title holder or his designee may then submit such notice of recorded lien
					 together with his certificate of title to the Title Bureau, Department of Motor
					 Vehicles, 6 Empire State Plaza, Albany, NY 12228. A new certificate of title
					 with the satisfied lien eliminated will then be issued to the owner or to any
					 person authorized or designated by the owner, and the satisfaction of lien will
					 be noted in the records of the department.
(b) Whenever a dealer registered under
					 section 415  of the Vehicle and Traffic Law receives
					 a motor vehicle for the purpose of resale and arranges for the satisfaction of
					 any lien on such vehicle, but the lienholder fails to immediately upon receipt
					 of good funds submit the notice of recorded lien indicating satisfaction of
					 such lien to the vehicle owner named on the title, or to any person authorized
					 or designated by the owner, the dealer may request that the commissioner issue
					 either a duplicate title certificate without such lien included thereon or a
					 title certificate without such lien included thereon. Such requests shall be
					 mailed to the commissioner at New York State Department of Motor Vehicles,
					 Title Bureau, P.O. Box 2222, Albany, NY 12220, or if sending via express mail
					 service, to Title Bureau, Department of Motor Vehicles, 6 Empire State Plaza,
					 Albany, NY 12228, Attention: Box 2222, and shall include the following:
(1) An application for a duplicate title
					 certificate or for a title certificate properly completed by the owner of the
					 motor vehicle, accompanied by the appropriate fee.
(2) If the dealer and owner desire the
					 certificate to be mailed to the dealer, a written consent signed by the owner
					 permitting the commissioner to mail the duplicate title certificate or title
					 certificate to the dealer at an address designated in such written
					 consent.
(3) A copy of the dealer's
					 written notice submitted to the lienholder that the dealer shall seek to
					 arrange for the satisfaction and release of the lienholder's lien pursuant to
					 section 2121 (b)  of the Vehicle and
					 Traffic Law, together with evidence, such as an overnight delivery confirmation
					 or a certified mail return receipt, that such notice was received by the
					 lienholder not less than two weeks prior to the dealer's application for a
					 duplicate title certificate or title certificate. The dealer's notice shall be
					 sent to the lienholder address currently on the title record maintained by the
					 Department and shall be in 14-point type or larger and shall read as follows:
NOTICE OF DEALER'S REQUEST FOR RELEASE OF MOTOR VEHICLE
						LIEN
Motor Vehicle Information
Vehicle Identification Number (VIN): ____________
Name of Last Owner (if known):
						_______________________
You are hereby notified that [Name of Dealer] (the
						"Dealer") has arranged for the full payment of a loan, retail installment
						contract, or other relevant instrument held by you on the above-referenced
						motor vehicle. To date, the Dealer has not received the required lien release
						paperwork or been advised that the owner or the owner's appointed designee has
						received it.
Please be advised that if you do not promptly issue such
						paperwork to the owner of the motor vehicle, the Dealer shall, two weeks from
						the date of your receipt of this notice, request that DMV issue a duplicate or
						new certificate of title for the above-referenced vehicle without your lien
						included thereon pursuant to Section 2121(b) of the New York Vehicle and
						Traffic Law. Such action by DMV will eliminate your perfected security interest
						in the vehicle.
If you have any questions about this notice, you should
						immediately contact the Dealer at [Mailing Address], [Telephone Number],
						[E-mail Address (optional)]. Any questions about the lien release process may
						be directed to Title Bureau, NYS Department of Motor Vehicles, 6 Empire State
						Plaza, Albany, New York 12228, by telephone at (518) 486-4714 or by email at
						dmv.sm.DealerLienSatisfaction @dmv.ny.gov.
(4) A copy of a written payoff statement:
(i) from the lienholder to the dealer, on the
					 lienholder's letterhead; or
(ii)
					 from a third-party provider otherwise authorized by the lienholder to issue
					 payoff statements.
The payoff statement shall contain, at a minimum, the
						name of the lienholder, the VIN of the vehicle associated with the lien to be
						satisfied, the amount required to satisfy such lien, and the date through which
						such amount will be effective. The payoff statement may also contain a per diem
						amount for the period after such effective date.
(5) Sufficient evidence that the dealer has
					 tendered payment to the lienholder in the amount necessary to satisfy the lien
					 as represented by the lienholder. Such evidence shall be in one of the
					 following forms:
(i) a transmission receipt
					 for an interbank or electronic funds transfer that evidences the amount
					 transferred and the VIN of the vehicle associated with the lien being
					 satisfied;
(ii) a copy of a bank or
					 cashier's check delivered to the lienholder that evidences the amount
					 transferred and the VIN of the vehicle associated with the lien being
					 satisfied, together with evidence that the check has been delivered, such as an
					 overnight delivery confirmation or a certified mail return receipt;
					 or
(iii) a written statement from
					 the lienholder, on its letterhead, that evidences the VIN of the vehicle
					 associated with the lien being satisfied and includes an acknowledgement that
					 such lien has been satisfied in full.
(6) A signed statement from the dealer that
					 it has not received any notice from the lienholder disputing the amount
					 tendered pursuant to paragraph (5) of this subdivision as insufficient to
					 satisfy the lien and that such dealer has fully complied with the provisions of
					 this section.
The commissioner shall promptly review the information
						submitted by the dealer, and, provided that the commissioner finds that
						sufficient payment has been made to fully satisfy the lien, the commissioner
						shall issue a duplicate title certificate without such lien included thereon or
						a title certificate without such lien included thereon within 15 business days
						after receipt of all required information and fees.