SB-0917, As Passed Senate, June 4, 2014
April 29, 2014, Introduced by Senators BIEDA, ANANICH and MEEKHOF and referred to the Committee on Transportation.
A bill to amend 1949 PA 300, entitled
"Michigan vehicle code,"
by amending section 238 (MCL 257.238).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
238. (1) (a) When
an owner named in a certificate of
title
creates a security interest in the vehicle described in such
the
certificate or in any accessory thereon:on the vehicle, all of
the following apply:
(a) (1)
The owner shall immediately execute
an application in
the form prescribed by the department to name the holder of the
security interest on the certificate of title, showing the name and
address
of such the holder and deliver the certificate of title,
application
and the required fee together with a copy of such the
application, which
need not be signed, to the holder of the
security interest.
(b) (2)
The holder of the security interest
shall cause the
certificate
of title, application and fee and the copy of such the
application to be mailed or delivered to the department.
(c) (3)
The department shall indicate on
the copy of such the
application
the date and place of filing of the application. and
return
said copy to the person presenting the same.
(d) (4)
Upon receipt of the certificate of
title, application
and the required fee, the department shall issue a new certificate
in the form provided by section 222 setting forth the name and
address of each holder of a security interest in the vehicle or in
any
accessory thereon on the
vehicle for which a termination
statement has not been filed and the date on which the application
first
stating such the security interest was filed, and mail the
certificate to the owner. However, as provided under this section,
the secretary of state is not required to issue a title to the
owner of a vehicle if the title is subject to a security interest.
(2) (b)
(1) A holder of any kind of a
security interest may
assign,
absolutely or otherwise, his the
holder's security interest
in the vehicle or any accessory thereon to a person other than the
owner without affecting the interest of the owner or the validity
of the security interest, but any person without notice of the
assignment is protected in dealing with the holder of the security
interest as the holder thereof.
(3) (2)
The assignee of a security interest may have the
certificate of title indorsed with the assignee named as the holder
of the security interest by providing the department with a copy of
the assignment instrument, but the failure of the assignee to do so
shall
not affect the validity of the security interest of the that
assignment. thereof.
(4) (c)
(1) Whenever If there is no outstanding obligation and
no commitment to make advances, incur obligations, or otherwise
give
value , secured
or to be secured by a security interest in a
vehicle , or an accessory thereon, on the vehicle, for which the
certificate
of title is in possession of a secured party, such the
secured
party shall, within 10 may,
not more than 14 days after
satisfaction
of the obligation, and, in any event within 30 days,
execute a termination statement in the form prescribed by the
department and mail or deliver the termination statement to the
owner
or such other another person as the owner may direct. The
owner
other than a dealer holding the vehicle for resale, shall
promptly
cause the certificate, all termination agreements, and an
application
for certificate of title accompanied by the proper fee,
to
be mailed or delivered to the department, which shall issue a
new
certificate.
(5) (2)
Whenever If there is no outstanding obligation and no
commitment to make advances, incur obligations, or otherwise give
value , secured or to be secured by a security interest in a
vehicle , or an accessory thereon, on the vehicle, for which the
certificate of title is in the possession of another person, the
secured
party shall, within 10 14 days after demand and
in any
event
within but not more than 30 days
after demand, execute a
termination statement in the form prescribed by the department and
mail
or deliver the termination statement to the owner or such
other
another person as the owner may direct.
(6) The department may require that all transactions
concerning vehicle title liens and security interests be conducted
by electronic means, as determined by the department. After all
liens have been terminated, or for purposes of retitling the
vehicle in another state or any other purpose deemed appropriate by
the department, the department may issue a paper copy of the
vehicle title to the vehicle's owner.
(7) A vehicle sale transaction in which a security interest is
entered by electronic means shall include a document recording
entry of the electronic security interest and information regarding
the financial institution that holds the security interest. At the
time a security interest is presented with payment in satisfaction
of the security interest, a secured receipt in a form approved by
the department and produced at the time the security interest is
presented with payment in satisfaction of the security interest may
be submitted to the department in lieu of the title for purposes of
transferring ownership in the vehicle.
Enacting section 1. This amendatory act does not take effect
unless both of the following bills of the 97th Legislature are
enacted into law:
(a) Senate Bill No.916
.
(b) Senate Bill No.918
.