RELEASE SI (PAPER TITLE OR ETITLE) RELEASE SI (LIEN)

Transcription

1 RELEASE SI (LIEN) JULY 2013; KEYWORDS Lien Release STATUTES, (KSA) , NEW RELEASE SI (PAPER TITLE OR ETITLE) WHEN IS THIS FUNCTION USED When a release of lien is received from the lienholder on record. There are two (2) types of releasing an SI. Back 1. Etitle a lien release is processed when the vehicle s title is being held electronically (etitle) and a release of lien is submitted. THIS IS A NO FEE APPLICATION. 2. Paper Title a lien release is processed when an owner of the vehicle with a Kansas paper title in their name has a lien release from the lien holder listed on the front of the Kansas title. This type of application is at the owner s option, IT IS NOT REQUIRED BY STATUTE. There is a $10 fee for this application. If the previously issued Kansas title with the lien list on it has been lost, a duplicate/reissue title will need to be applied for, for the customer to obtain a lien free title. There is a $20.00 fee associated with this application. Unless another state that requested a Kansas title with the lien listed thereon returns this title to the owner for whatever reason, you should not see a Kansas paper title with a lien listed which was issued on or after RELEASE OF LIEN INFORMATION REQUIRED FROM LIEN HOLDER Information on the release of lien must match the information for the vehicle s record. If the information does not match, the lien is not to be released. A Release of Lien, form TR-150, is available on the ksrevenue.com web site. If a paper title with a lien printed on it was previously issued a form TR-720B must be completed in order to process the release of lien. For out-of-state paper titles, the release of lien may be part of/completed on the title or on a separate form. Each state may have slightly different methods for allowing a lien to be released. The following information must be recorded on the

2 release of lien: Name of the lien holder. (Must match title record) Name of the vehicle owner(s). (Must match title record) Vehicle Information Year, Make and Complete VIN. (Must match title record) Mailing Information, if there are special mailing instructions (name, address, priority mailing account information) these need to be indicated on the lien release form. Statement that the lien is paid, satisfied or released and the date of the release Signature of authorized agent of lien holder If a lien holder is in a notary state, the release must be notarized. A Kansas lien holder MUST notarize all of their release of lien with a notary seal, notary s signature, date release was notarized and the date the notary s commission expires. TIME REQUIREMENT FOR RELEASING A SECURITY INTEREST Kansas statute KSA 8-1,157 sets time requirements for a lien holder to provide a release of lien once a lien has been satisfied. The following are the requirements: PAID IN FULL BY CASH, INTRA-BANK TRANSFER OR WIRED FUNDS When a lien has been paid in full by cash, intra-bank transfer or wired funds, the lien is considered paid in full (satisfied) as soon as the lien holder receipts the payment. The lien holder will then have three (3) business days after the receipt of payment and a request for the release of the lien to fully execute a release of lien and shall mail or deliver the lien release where directed by the person who requested the lien release. PAID IN FULL BY ANY OTHER FORM OF PAYMENT When a lien holder has been paid in full by any other form of payment (not by cash, intra-bank transfer or wired funds) with a request for the release of the lien, the lien holder must fully execute a release of lien within ten (10) business days and shall mail or deliver the lien release where directed by the person who requested the release. MOVRS Policy & Procedures 2 Kansas Division of Vehicles

3 COMPLETED The release will be considered completed when it is placed in the US mail, postage prepaid or, delivered to the person requesting the lien release or, is faxed to the Kansas Division of Vehicles or a Kansas County Treasurer s Motor Vehicle office. For liens released electronically the release will be considered completed when it is delivered electronically to the Division of Vehicles. WRITTEN REQUEST In addition to the final payment, a written request for the lien release is needed. If the written request is not sent with the payment, the clock will not start until the written request has been received. The written request may be delivered by the mail, by fax, by or in person. The Division of Vehicles has a Request of Lien Release, form TR-155, available at This is not the only form that may be used, however, this form has the details from KSA 8-1,157 concerning the time requirements and the consequence for failure to meet the requirements. MAILING OF TITLE WHEN LIEN RELEASE IS PROCESSED If there are mailing instruction within the release as to whom and where title is to be mailed, this information is to be used in the MVS system when completing a lien release application. COMPLAINT PROCESS IF RELEASE IS NOT COMPLETED IN TIMELY FASHION As covered in the Time Requirement section of this subject, a lien holder will have a maximum of 10 days to complete a release. If the lien holder fails to comply with KSA 8-1,157, the owner, individual or business that paid off the lien may file a Lien Holder Complaint Form, TR- 156, with the Division of Vehicles. By filing a complaint, the Division of Vehicles becomes one of the aggrieved parties. The division will investigate the complaint and the division may schedule an administrative hearing on the complaint. Civil administrative penalties may also be assessed against the lien holder. MOVRS Policy & Procedures 3 Kansas Division of Vehicles

4 NOTICE:The timely completion of a release of lien is a serious issue. For complete details of the requirements and consequences of the statute, review Kansas statute KSA 8-1,157. MOVRS Policy & Procedures 4 Kansas Division of Vehicles

5 RELEASE SI JULY 2013; NEW PROCEDURE Back SECURITY INTEREST/ETITLE LIEN RELEASE, NO REGISTRATION DOCUMENTATION WILL BE ISSUED OR RECEIVED. LAUNCH AND SIGN INTO THE MOVRS SYSTEM Click on VRT. Click on Title Transactions. Click on Add/Release SI. ADD/RELEASE SI PREQUALIFIER SCREEN Enter the Vehicle ID or Customer ID number. Click Continue. SEARCH SCREEN If there is more than one applicable result, the search screen will appear. Select the vehicle and/or customer by double clicking on the row. ADD/RELEASE SI SCREEN The Add/Release SI window will open. APPLICATION TAB You will see the title number, the issue date, the customer information, and the lien information. Under the SI Information header, select a Release Date and Release Reason from the corresponding drop down menus. If there is a previously issued Kansas paper title, the Title Surrendered checkbox will already be checked by default. If the paper title is not being surrendered during the application, uncheck this box and select the appropriate reason that the title is not being surrendered. The system will then generate the appropriate fees. FEE DETAIL TAB For a Kansas E-Title lien release, there are no fees associated so this will be blank. (PLEASE NOTE THAT IF THIS IS A REISSUE OR DUPLICATE REISSUE SCENARIO, MOVRS Policy & Procedures 5 Kansas Division of Vehicles

6 ADDITIONAL STEPS AND CORRESPONDING FEES WOULD BE ASSOCIATED.) MAILING TAB Review your current customer s information for mailing address for the title. If a special mail out is listed on the lien release or the customer states they want the title mailed to a different address, this information needs to be entered here. DOCUMENTS TAB Collect, Scan and account for any documents applicable to the transaction. COMPLETE APPLICATION Click Commit. PLEASE NOTE THAT IF THERE ARE FEES ASSOCIATED DUE TO A REISSUE OR DUPLICATE REISSUE SCENARIO, THE SYSTEM USER WILL PAY, FINALIZE, AND GENERATE CREDENTIALS ACCORDINGLY. MOVRS Policy & Procedures 6 Kansas Division of Vehicles