REPLACE OR ADD A SECURITY INTEREST (SI OR LIENHOLDER)

Transcription

1 REPLACE OR ADD A SECURITY INTEREST (SI OR LIENHOLDER) REPLACING &/OR ADDING A SECURITY INTEREST (LIENHOLDER) JULY 2013; KEYWORDS Secured Title Refinance Title Adding Lien Second Lien Remove/Add Lien NEW Refinance/Secure Title Duplicate/Secured Title Replacement/Secured Title STATUTES, (KSA) ,157 WHEN IS THIS FUNCTION USED Back When a Kansas resident is using a vehicle which is currently titled in their name as collateral to secure a loan some type of add SI (security interest) transaction will be processed. WHAT TYPE OF SECURITY INTEREST IS TO BE USED Below is a diagram to assist with determining which application is to be used to add or replace a lien holder on a title currently titled in the name of the person securing a loan. This is a narrative of what the diagram is showing. The owner of the vehicle has used the vehicle as collateral to secure a loan, also known as mortgaging the vehicle. The first question is if the current Kansas title electronic or paper. If the answer is Paper title, the next question is Is there a lien on this title. If the answer is yes you must file a Secured title using form TR-720B. If the answer is no, you ask if the customer has this paper title. If the answer is yes, you file a Secured Title application, TR-720B. If the answer is no, you file a Replacement/Secured title, form TR-720B. If the answer to the first question, if the current Kansas title is electronic or paper, is an electronic title, then the next question is do they have a lien release. If the answer is yes, then you file a Secured title application. If the answer is no, then you file a refinanced Secured Title application.

2 Owner borrows money against vehicle Vehicle titled by paper or electronic title? Etitle Is there a lien release? Paper No Yes No MOVRS indicate lien on vehicle? Yes Instruct applicant to obtain lien release then return. Customer has the title? Is there a lien release? No Yes Secure Title Application TR-720B No Replacement/ Secure Title Application TR-720B No Yes Customer has the title? Refinance/ Secure Title Application TR-720R Yes Secure Title Application with a Lien Release TR-720B MOVRS Policy & Procedures 2 Kansas Division of Vehicles

3 MAXIMUM NUMBER OF LIENS ON A VEHICLE RECORD Vehicles with a declared weight (gross vehicle weight rating (GVWR)) of 26,000 lbs. or less will be allowed one (1) lien holder shown on the etitle. NOTE: Applicants moving into Kansas from out of state and the out of state title displays two liens, it will be allowed to maintain these two (2) liens. The applicant will not be allowed to drop one of the lien holders listed on the out of state title and add a new lien holder. MOVRS Policy & Procedures 3 Kansas Division of Vehicles

4 SECURED TITLE JULY 2013; NEW Adding a lienholder when a Kansas paper title has been previously issued. STATUTES, (KSA) Back When the current owner, with a Kansas title showing in their name and uses their vehicle as collateral for a loan (mortgage the vehicle), a secured title is applied for to record the lien against the vehicle/trailer. NUMBER OF LIENS WHICH CAN BE RECORDED ON A VEHICLE S RECORD AUTOS, MOTORCYCLES, TRAILERS AND TRUCKS WITH 26,000 LBS. OR LESS GVWR For autos, motorcycles, trailers and trucks with a gross vehicle weight rating (GVWR) of 26,000 lbs. or less, only one (1) lien can be recorded on the title record. If the applicant wants to replace the lien holder currently on file with a new lien holder, an application form TR-720R, must be completed and processed as a Refinanced Secured Title application. MOBILE AND MANUFACTURED HOMES AND TRUCK WITH 26,001 LBS. OR MORE GVWR For mobile & manufactured homes and trucks with a GVWR of more than 26,000 lbs. up to two (2) liens can be recorded on the title record. If the paper title or the registration receipt for an etitle indicates a current lien holder, the new lien holder listed on the secured title application will be the second lien holder of record for the vehicle. 3 DIFFERENT SCENARIOS WHERE A SECURED TITLE WOULD BE DONE AND INFORMATION FOR MAKING APPLICATION 1. When there is a lien free title and the customer uses this title to take a new loan out on a vehicle. An application must be submitted to the County Treasurer's office. An Application for Replacement/Secured/Refinanced Title, form number TR-720B, must be fully completed, signed by the owner(s) and imaged with the application. The vehicle owner must sign the completed TR-720B. If there are two names or more and they are connected by and, all parties must sign the application. The previously issued MOVRS Policy & Procedures 4 Kansas Division of Vehicles

5 Kansas title will also be required to be imaged with this application. 2. When the current title is an Etitle. An application must be submitted to the County Treasurer's office. An Application for Replacement/Secured/Refinanced Title, form number TR-720B, must be fully completed, signed by the owner(s) and imaged with the application. The vehicle owner must sign the completed TR-720B. If there are two names or more and they are connected by and, all parties must sign the application. The lien release for the current lienholder listed on the Kansas Etitle will also be required to be imaged with this application. 3. When there is a paper title with a lien listed on it. An application must be submitted to the County Treasurer's office. An Application for Replacement/Secured/Refinanced Title, form number TR-720B, must be fully completed, signed by the owner(s) and imaged with the application. The vehicle owner must sign the completed TR-720B. If there are two names or more and they are connected by and, all parties must sign the application. The previously issued Kansas title and the lien release for the current lienholder listed on the Kansas title will also be required to be imaged with this application If there is no lien release submitted releasing the current lien shown on the current Etitle record, a Refinanced Secured Title would need to be applied for, not a Secured title. If there is no lien release submitted for a title that shows a lien on the front, you must reject the application until the lien release for the lienholder listed on the front of the title is received. If the previous paper title has been lost, a replacement title will also need to be applied for (see Replacement/Secured title). THE TREASURER S OFFICE IS TO CONFIRM THAT THIS IS THE MOST UP TO DATE CURRENT RECORD IN THE SYSTEM(S), BOTH THE LEGACY AND MVS. DO NOT RELY SOLELY ON THE RECEIPT. COUNTY WILL NEED TO BE SURE TO ENTER THE NEW LIEN PRIOR TO REMOVING A LIEN TO ENSURE THAT A CLEAR TITLE DOES NOT PRINT. MOVRS Policy & Procedures 5 Kansas Division of Vehicles

6 REFINANCED SECURED TITLE JULY 2013; NEW Adding a lienholder when there is a current lien on the vehicle. STATUTES, (KSA) ,157 Back Motor vehicles and trailers with a gross vehicle weight rating (GVWR) of 26,000 lbs. or less will only be allowed to have one (1) lien holder shown on the etitle. A Refinanced Secured title application, form TR-720R, is used when the current Kansas etitle record indicates a lien holder. The refinancing lienholder is placed on as a second lienholder until the lien release from the original lien release is received. A lien release from the previous lienholder must be received within 30 days of the date of the refinance secure title application. Failure to provide the lien release within the required time frame will render the refinance application incomplete. If the application is rendered incomplete, the applicant (owner) will not be able to renew their registration until one of the lien releases is received. INFORMATION FOR MAKING APPLICATION Information required for processing application: 1. An application must be submitted to the County Treasurer's office. An Application for Refinance Secured Title, form number TR-720R, must be fully completed, signed by the owner(s) and imaged with the application. The vehicle owner must sign the completed TR-720R. If there are two names or more and they are connected by and, all parties must sign the application. 2. A copy of the current Kansas registration receipt showing owner(s) and the current lien holder may be attached to the application for refinance secured title. The treasurer s office is to confirm that this is the most up to date current record in the system(s), both Legacy and MVS. LIEN RELEASE MUST BE RECEIVED WITHIN 30 DAYS If the lien release is not received within 30 days of the refinance secured application, the registration is to be suspended and the owner notified of same. There are time requirements for providing a lien release in KSA 8-1,157. If the lien holder has failed to comply with these requirements, the owner may file a Lien Holder Complaint, form TR-156. If the complaint form is completed and filed with Central Office Operations, the owner will be allowed to renew the registration. MOVRS Policy & Procedures 6 Kansas Division of Vehicles

7 If the owner completes the Lien Holder Complaint and submits it to the county treasurer s motor vehicle office, please contact COO for approval to renew the registration. MOVRS Policy & Procedures 7 Kansas Division of Vehicles

8 REPLACEMENT/ SECURED TITLE JULY 2013; NEW Adding a lienholder when a Kansas paper title has been previously issued and is lost, mutilated and/or illegible. STATUTES, (KSA) Back The current owner, has a Kansas paper title in their name, however they have lost the paper title, and uses their vehicle as collateral for a loan (mortgage the vehicle), a Replacement/Secured title are applied for to record the lien against the vehicle. REPLACEMENT TITLE PAPER TITLE IS NOT AVAILABLE (LOST) Kansas statute requires if a paper title has been issued that it be attached to the application for secured (mortgaged) title. If the previously issued Kansas paper title is lost, mutilated, or illegible, a Replacement/Secured title would need to be applied for. This adds a $10.00 fee to the transaction because of the replacement title fee. INFORMATION FOR MAKING APPLICATION Information required for processing application: An application must be submitted to the County Treasurer's office. An Application for Replacement/Secured/Reissue Title, form number TR- 720B, must be fully completed, signed by the owner(s) and imaged with the application. The customer must complete the Replacement Title Certification section. The vehicle owner must sign the completed TR-720B. If there are two names or more and they are connected by and, all parties must sign the application. There is a $21.50 fee for this application. WHY TWO FEES? Kansas statute KSA 8-135(c)(6) states: When a person acquires a security interest that such person seeks to perfect on a vehicle subsequent to the issuance of the original title on such vehicle, such person shall require the holder of the certificate of title to surrender the same and sign an application for a mortgage title in form prescribed by the division. Upon such surrender such person shall immediately deliver the certificate of title, application, and a fee of $10 to the division. By processing two functions through one transaction/visit the applicant will not: 1. Have to make the application for Replacement Title then MOVRS Policy & Procedures 8 Kansas Division of Vehicles

9 wait for this title to be issued, and 2. Have to make a second trip to the county s motor vehicle office to make the application for Secured Title. The paper title must be surrendered or cancelled by the application for replacement title. The answer to an applicant s question to what do I get for the second fee? is the applicant only has to make one trip to the county s motor vehicle office/stand in line one time. They save the time and cost of making a second trip. It really is the customer s choice: two fees, one trip or two fees and two trips. MOVRS Policy & Procedures 9 Kansas Division of Vehicles

10 SECURED TITLE ADDING LIEN TO CLEAR PAPER TITLE JULY 2013; NEW PROCEDURE WHEN IS THIS FUNCTION USED The vehicle has a clear paper title and the owner needs to add a lien holder. Back 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 VIN or Customer ID. Click Continue. SEARCH SCREEN If there is more than one applicable result, the search results screen will appear. Select the vehicle or customer by double clicking on the appropriate row. The Add/Release SI window will open. APPLICATION TAB The current title number, title issue date, and customer information will be displayed. ADDING LIENHOLDER S NAME Under the SI Information header, click on the Add button on the right hand side of the screen. The Customer Search window will display. Search for the new lienholder by name or customer id# and click Search. A list of results will be displayed. Select the corresponding lienholder from the list by double clicking on the record. The selected SI customer will populate in the SI Information field. You will see a Title Surrendered check box that is already checked by default. Total fees of $11.50 will be calculated accordingly. MOVRS Policy & Procedures 10 Kansas Division of Vehicles

11 FEE DETAIL TAB This tab will give you the breakdown of fees for this transaction. MAILING TAB In this transaction an e-title record is created and title mailing information is not applicable. DOCUMENTS TAB Collect, Scan and account for any documents applicable to the transaction. COMPLETE APPLICATION Click Validate. Click PAY NOW. Collect fees listed. Finalize Transaction and generate credentials. MOVRS Policy & Procedures 11 Kansas Division of Vehicles

12 SECURED TITLE AND RELEASING PRIOR LIEN RELEASING PRIOR LIEN AND ADDING NEW LIENHOLDER TO JULY 2013; TITLE NEW PROCEDURE WHEN IS THIS FUNCTION USED The vehicle has an etitle and the owner has a lien release for the corresponding lienholder OR the vehicle has a paper title and the owner has the paper title and lien release for the corresponding lienholder. The owner wants to remove the current/satisfied lienholder and needs to add a new lien holder. This was previously called a Secured Title in VIPS. Back 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 VIN or Customer ID. Click Continue. SEARCH SCREEN If there is more than one applicable result, the search results screen will appear. Select the vehicle or customer by double clicking on the appropriate row. The Add/Release SI window will open. APPLICATION TAB The current title number, title issue date, and customer information will be displayed. Current lienholder data displays under the SI Information field Verify the lienholder displayed matches the lienholder name on the lien release document prior to releasing the lien. Select a Release Date and a Release Reason from the corresponding drop down menus. ADDING LIENHOLDER S NAME Click the ADD button on the right hand side of the screen. The Customer Search window will display. MOVRS Policy & Procedures 12 Kansas Division of Vehicles

13 Search for the new lienholder by name or customer id# and click Search. A list of results will be displayed. Select the corresponding lienholder from the list by double clicking on the record. The selected SI customer will populate in the SI Information field. You will see a Title Surrendered check box on the bottom left hand side of the screen. If the previous title was electronic, the checkbox will be grayed out. If the previous title was NOT electronic, the Title Surrendered check box will already be checked by default. Total fees of $11.50 will be calculated accordingly. FEE DETAIL TAB This tab will give you the breakdown of fees for this transaction. MAILING TAB In this transaction an e-title record is created and title mailing information is not applicable. DOCUMENTS TAB Collect, Scan and account for any documents applicable to the transaction. COMPLETE APPLICATION Click Validate. Click PAY NOW. Collect fees listed. Finalize Transaction and generate credentials. MOVRS Policy & Procedures 13 Kansas Division of Vehicles

14 REFINANCED SECURED TITLE ETITLE LIEN TO BE RELEASED, NEW SI ALREADY BEING ADDED MAY 2013 NEW PROCEDURE 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 VIN or Customer ID. Click Continue. Back SEARCH SCREEN If there is more than one applicable result, the search results screen will appear. Select the vehicle or customer by double clicking on the appropriate row. The Add/Release SI window will open. APPLICATION TAB The current title number, title issue date, and customer information will be displayed. Current lienholder data displays under the SI Information field. Verify this lienholder is the current lienholder that will be released soon. ADDING LIENHOLDER S NAME Click the ADD button on the right hand side of the screen. The Customer Search window will display. Search for the new lienholder by name or customer id# and click Search. A list of results will be displayed. Select the corresponding lienholder from the list by double clicking on the record. The selected SI customer will populate in the SI Information field. This should be the customer s lienholder name and address to be added as the 2 nd lien to the existing lien on the record until the first lien release is received. Use the SI Mailing Address dropdown to select the MOVRS Policy & Procedures 14 Kansas Division of Vehicles

15 correct lienholder branch address for this transaction FEE DETAIL TAB This tab will give you the breakdown of fees for this transaction. MAILING TAB In this transaction an e-title record is created and title mailing information is not applicable. DOCUMENTS TAB The Application for Refinance Secured Title form is a required document for this transaction. Collect, Scan and account for any other documents applicable to the transaction. COMPLETE APPLICATION Click Validate. Click PAY NOW. Collect fees listed. Finalize Transaction and generate credentials. MOVRS Policy & Procedures 15 Kansas Division of Vehicles

16 REPLACEMENT/ SECURED TITLE PROCEDURE Back PAPER TITLE DID HAVE A LIEN JULY 2013; NEW WHEN IS THIS FUNCTION USED The vehicle is titled on a paper title. The owner has lost the previous paper title in their name. A replacement title is needed to complete the secured title. This was previously called a duel fee application (two fees collected, one for the duplicate and one for the secured, on one application. 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 customer by double clicking on the row. The Add/Release SI window will open. APPLICATION TAB The current title number, title issue date, and customer information will be displayed. Under the SI Information header, click on the Add button on the right hand side of the screen. SEARCH SCREEN The search window will come up. Search for the new SI Holder information by Name or customer id. Click Search A list of Results will be returned. Select the correct SI Holder by double clicking on the record. MOVRS Policy & Procedures 16 Kansas Division of Vehicles

17 APPLICATION TAB The selected SI Holder will populate under the SI Information. You will see a Title Surrendered check box that is already checked by default. Total fees of $11.50 will be calculated accordingly. If the title is not surrendered, you will need to uncheck the Title Surrendered checkbox and select the Reason Not Surrendered from the corresponding drop down menu. Total fees of $21.50 will be calculated accordingly. FEE DETAIL TAB This tab will give you the breakdown of fees for this transaction. MAILING TAB Review your current customer s information for mailing address. DOCUMENTS TAB Collect, Scan and account for any documents applicable to the transaction. COMPLETE APPLICATION Click Validate. Click PAY NOW. Collect fees. Finalize Transaction and Generate Credentials. MOVRS Policy & Procedures 17 Kansas Division of Vehicles