N.Y. Comp. Codes R. & Regs. tit. 15 § 20.17

Current through Register Vol. 46, No. 45, November 2, 2024

Section 20.17 - Satisfaction of lien

(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.

(c) Pursuant to section 2127 of the Vehicle and Traffic Law, any party subject to the provisions of subdivision (b) of this section may request a hearing before the Department of Motor Vehicles, if such party is aggrieved by an act or omission of the commissioner.

N.Y. Comp. Codes R. & Regs. Tit. 15 § 20.17