The Department of Motor Vehicles acts only administratively with respect to security interests, recording and filing of liens and releases and noting liens on title certificates. The department does not determine priority of interests between lienholders or the disposition of proceeds upon sale of a vehicle after foreclosure or repossession. Such matters are subject to determination in civil judicial proceedings.
N.Y. Comp. Codes R. & Regs. Tit. 15 § 20.19