(1)Upon the payment or discharge
of the undertaking secured by a mortgage on a motor or off-highway vehicle that
has been filed for record under section 42-6-121, the legal holder, on a form
approved by the director, shall notify the director or authorized agent of the
discharge of the obligation and release of the mortgage securing the obligation and
set forth in the notice the facts concerning the right of the holder to release the
mortgage as the director may require by rule. The lienholder shall include in the
notice of satisfaction and release a signed affirmation, noted in the certificate of
title on file with the director or the authorized agent, that contains or is
accompanied by a notarized declaration or a written declaration that it is made
under the penalties of perj
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(1) Upon the payment or discharge
of the undertaking secured by a mortgage on a motor or off-highway vehicle that
has been filed for record under section 42-6-121, the legal holder, on a form
approved by the director, shall notify the director or authorized agent of the
discharge of the obligation and release of the mortgage securing the obligation and
set forth in the notice the facts concerning the right of the holder to release the
mortgage as the director may require by rule. The lienholder shall include in the
notice of satisfaction and release a signed affirmation, noted in the certificate of
title on file with the director or the authorized agent, that contains or is
accompanied by a notarized declaration or a written declaration that it is made
under the penalties of perjury in the second degree, as defined in section 18-8-503.
Thereupon, the holder of the released mortgage shall dispose of the certificate of
title as follows:
(a) If the motor or off-highway vehicle is encumbered by a mortgage filed
under section 42-6-121 after the date on which the released mortgage was filed for
record, the holder of the certificate of title shall deliver the certificate to the person
shown to be the holder of the mortgage noted on the title filed earliest after the
filing of the released mortgage, or to the person or agent of the person shown to be
the assignee or other legal holder of the mortgage, or shall mail the certificate to
the mortgagee or holder at the address appearing on the mortgage. If the
certificate is returned unclaimed, the holder shall mail the certificate to the
director.
(b) If it appears from an examination of the certificate of title that there are
no other outstanding mortgages against the motor or off-highway vehicle upon the
release of the mortgage as provided in this section, the holder of the mortgage
shall deliver the certificate of title to the owner of the vehicle or shall mail the title
to the owner at his or her address, and, if for any reason the certificate of title is not
delivered to the owner or is returned unclaimed, the holder shall immediately mail
the certificate to the director.
(c) The director's authorized agent shall note in the electronic record of the
lien the satisfaction and release of the lien or mortgage and shall file a notice of the
satisfaction and release in accordance with section 42-6-122.
(2) (a) (I) Except when a lienholder can show extenuating circumstances,
within fifteen calendar days after a lien or mortgage on a motor or off-highway
vehicle is paid and satisfied, a lienholder shall release the lien or mortgage as
required by subsection (1) of this section.
(II) As used in this subsection (2), extenuating circumstances means a
situation where access to the title is impaired, making good faith compliance with
this subsection (2) impossible within the time frame required by this paragraph (a).
Extenuating circumstances does not include intentional or negligent acts by a
lienholder that result in delay beyond the time frame required in this subsection (2).
(b) Any person aggrieved by a violation of this subsection (2) may bring a civil
action in a court of competent jurisdiction to bring about compliance with this
subsection (2) and for any damages arising from the violation.
(3) Mortgage or lien satisfactions may be electronically transmitted to the
department's authorized agent as authorized by rules of the director. When
electronic transmission of mortgages or liens or mortgage or lien satisfactions is
used, a certificate of title need not be issued until the last mortgage or lien is
satisfied and a clear certificate of title is issued to the owner of the motor or off-highway vehicle under section 42-6-126.
Source: L. 94: Entire title amended with relocations, p. 2460, � 1, effective
January 1, 1995. L. 2000: IP(1) amended and (1)(c) added, p. 1665, � 19, effective July
1, 2001. L. 2009: IP(1), (1)(a), and (1)(b) amended, (HB 09-1089), ch. 196, p. 881, � 3,
effective October 1. L. 2011: (2) added, (HB 11-1185), ch. 122, p. 383, � 1, effective
April 20. L. 2013: (1), (2)(a)(I), and (3) amended, (SB 13-280), ch. 407, pp. 2388, 2397,
�� 21, 43, effective June 5; (3) added, (HB 13-1289), ch. 380, p. 2226, � 6, effective
June 5. L. 2022: IP(1) amended, (HB 22-1388), ch. 475, p. 3464, � 12, effective
January 1, 2023.