Slates v. Commercial Credit Corporation

412 P.2d 444, 3 U.C.C. Rep. Serv. (West) 330, 1966 Wyo. LEXIS 138
CourtWyoming Supreme Court
DecidedMarch 29, 1966
Docket3470
StatusPublished
Cited by2 cases

This text of 412 P.2d 444 (Slates v. Commercial Credit Corporation) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Slates v. Commercial Credit Corporation, 412 P.2d 444, 3 U.C.C. Rep. Serv. (West) 330, 1966 Wyo. LEXIS 138 (Wyo. 1966).

Opinions

Mr. Justice HARNSBERGER

delivered the opinion of the court.

This matter is before us upon the appeal of the defendant below from a judgment of the district court rendered in favor of plaintiff in its replevin action wherein plaintiff sought possession of an automobile mortgaged to plaintiff.

It is undisputed that the vehicle in ques-' tion was purchased at Cheyenne in Laramie County, Wyoming, on April 14, 1964, by a buyer who had resided in Cheyenne since February 5, 1964; that the buyer executed upon the automobile a purchase-payment mortgage to the seller; that the seller then assigned the mortgage to plaintiff below,, the assignee filing the same for record in the office of the county clerk of Laramie County on April 16, 1964, and concurrently the Laramie County Clerk issued the purchaser a certificate of title endorsing thereon the security interest evidenced by the purchase-money mortgage; that the car was removed to Sheridan County about April 30, 1964, and the purchaser on that date made application for a “SPECIAL NON-TRANSFERABLE CERTIFICATE FOR NON-RESIDENT REGISTRATION PURPOSES ONLY,” leaving blank the spaces therein provided for insertion of “Non-Resident Title No.,” “State,” “License Registration No.,” “Year,” and “State,” but listing April 14, 1964, as the date the vehicle entered the State of Wyoming, and, at the bottom of the application at the end of a line on which the fee, the time,, and the date appeared, there was no notation above the words “Delivered to” but after the words following, to-wit, “Title No.'” were the figures “#3941”; that a Wyoming 1964 vehicle registration was issued by the Sheridan County Clerk which bears notation under the caption, “Title No.,” the letters and figures “NR3-3941”; that a further unsigned instrument appears in the record entitled “SPECIAL NONTRANSFERABLE CERTIFICATE FOR NON-RESIDENT REGISTRATION [445]*445PURPOSES ONLY” which also left blank the same information not given upon the application; that the defendant is a judgment creditor of the purchaser of the automobile; that the purchaser is a resident of Sheridan County, Wyoming; and that defendant proceeded to levy in execution under its judgment upon the purchaser’s automobile in Sheridan County relying upon the fact that there was no record in Sheridan County of any lien or security agreement encumbering the vehicle.

We must decide whether under the laws of this State the defendant, appellant here, was constructively noticed of plaintiff’s mortgage interest.

Section 31-33, W.S.1957, as amended by § 1, ch. 2, S.L. of Wyoming, 1961, and § 31-36, W.S.1957, are as follows:

Section 31-33:
“Application for certificate of title shall be made upon a form approved and furnished by the state board of equalization and shall contain a full description of the motor vehicle, including the name of the maker, the engine and serial numbers or manufacturer’s identification number and any distinguishing marks thereon and whether the vehicle is new or used, together with a statement of the applicant’s title, and of any liens or encumbrances upon said vehicle, and the name and address of the person to whom the certificate of title shall be delivered, and such other information as the state board of equalization shall require. The current title or other supporting evidence of ownership shall accompany the application for title arid said title or evidence of ownership shall be retained by' the county clerk upon issuance of the new title. The fee for issuance of the certificate of title shall be one dollar ($1.00), which fee shall accompany the application. Whenever a new motor vehicle is purchased from a licensed Wyoming dealer, the application for a certificate of title shall be signed by said dealer and shall include a statement of transfer by the dealer and of any lien retained by such dealer together with manufacturer’s statement or [statement of] origin. Only a licensed Wyoming dealer shall be eligible to sign the statement of transfer upon the application for a certificate of title upon a new vehicle.”
Section 31-36:
“Upon receipt of an application, the state board of equalization or any county clerk shall, if satisfied, that the applicant is the owner of the vehicle for which application for certificate of title is made, issue in the name of said owner a certificate of title bearing his signature and the seal of his office and a serial certificate number beginning with number one. Such certificate of title shall be completely filled out, giving a full description of the vehicle, as provided in section 22 [24] (60-204) of this act [§ 31-33] and shall show the date of issue and a statement of all encumbrances or liens on such vehicle. The certificate of title shall also contain upon the reverse side forms for assignment of title or interest and warranty thereof by the owner, with space for notation of liens and encumbrances at the time of transfer. Said certificate of title shall be good for the life of the vehicle, so long as the same is owned or held by the original owner of said certificate.”

The purchaser of the vehicle made application for and received a certificate of title from the county clerk of Laramie County where the vehicle was located on the date of purchase and where it remained for approximately two weeks thereafter.

Section 9-302(4), ch. 219, S.L. of Wyoming, .1961, as amended by § 2(4) (a) and-(b), ch. 185, S.L. of Wyoming, 1963 [§ 34-9-302(4), W.S.1957, 1965 Cum.Supp.], is as follows:

“(4) Two steps are required for perfection of a security interest in a motor vehicle required to be licensed.
“(a) A financing statement or security agreement must be filed in the office of the county clerk of the county in which said vehicle is located: and “(b) A nota[446]*446tion of the security interest must be endorsed on the certificate of title to such motor vehicle, such endorsement to he made concurrently with the filing of the financing statement or security agreement.”

The purchase-money mortgage was filed in Laramie County concurrently with the application for and the issuance of the certificate of title and was properly noted upon the certificate when it was issued.

Section 9-401(3), ch. 219, S.L. of Wyoming, 1961 [§ 34-9-401 (3), W.S.1957, 1965 Cum.Supp.], is as follows

“(3) A filing which is made in the proper county continues effective for four months after a change to another county of the debtor’s residence or place of business or the location of the collateral, whichever controlled the original filing. It becomes ineffective thereafter unless a copy of the financing statement signed by the secured party is filed in the new county within said period. The security interest may also be perfected in the new county after the expiration of the four-month period; in such case perfection dates from the time of perfection in the new county. A change in the use of the collateral does not impair the effectiveness of the original filing.”

The lien of plaintiff, evidenced by filing of the purchase-money mortgage in Laramie County concurrently with the issuance of the certificate of title and its endorsement thereon, remained a perfected security for a period of four months after the vehicle was removed from Laramie County to Sheridan County, and it was less than four months after the vehicle was removed from Laramie County and taken to Sheridan County that the judgment creditor levied in execution upon it.

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412 P.2d 444, 3 U.C.C. Rep. Serv. (West) 330, 1966 Wyo. LEXIS 138, Counsel Stack Legal Research, https://law.counselstack.com/opinion/slates-v-commercial-credit-corporation-wyo-1966.