§ 9-17-5-1 — Satisfaction or discharge of lien; delivery of certificate of title; violation

(a) Except as provided in subsection (b), a
person having physical possession of a certificate of title for a vehicle
because the person has a lien or an encumbrance on the vehicle must:
(1) note the discharge on the certificate of title over the signature
of the holder of the lien or encumbrance; and
(2) deliver not more than ten (10) business days after receipt of
the final payment for the satisfaction or discharge of the lien or
encumbrance indicated upon the certificate of title to the person
that:
(A) is listed on the certificate of title as owner of the vehicle; or
(B) is acting as an agent of the owner and that holds power of
attorney for the owner of the vehicle.
(b) A person having a lien or encumbrance on a vehicle for which
the certificate of title is electronically recorded shall electronically
release the lien or encumbrance not more than ten (10) days after the
receipt of the final payment for the satisfaction or discharge of the lien
or encumbrance. The electronic lien or encumbrance release referenced
in this subsection constitutes notice to the bureau that the lien or
encumbrance has been satisfied or discharged.
(c) A person having a lien or encumbrance on a vehicle for which
the certificate of title is electronically recorded shall notify the person:
(1) who is listed on the certificate of title as owner of the vehicle;
or
(2) who:
(A) is acting as an agent of the owner; and
(B) holds power of attorney for the owner of the vehicle;
of the release of the lien or encumbrance not more than ten (10)
business days after receipt of the final payment for the satisfaction or
discharge of the lien or encumbrance.
(d) A notice under subsection (c) must include:
(1) the date the satisfaction or discharge of the lien or
encumbrance occurred; and
(2) the name and address of the person:
(A) who is listed on the certificate of title as owner of the
vehicle; or
(B) who:
(i) is acting as an agent of the owner; and
(ii) holds power of attorney for the owner of the vehicle.
(e) When the bureau receives notice under subsection (b), the
bureau shall remove the record of the lien or encumbrance from the
certificate of title.
(f) A person that:
(1) fails to remove a lien or encumbrance under subsection (b);
(2) fails to notify the owner of a vehicle or the owner's agent
under subsection (c); or
(3) fails to deliver a certificate of title to the owner of a vehicle as
required under subsection (a);
commits a Class C infraction.
[Pre-1991 Recodification Citation: 9-1-3.5-1 part.]

Legislative History

As added by P.L.2-1991, SEC.5. Amended by P.L.268-2003, SEC.16; P.L.188-2015, SEC.12; P.L.198-2016, SEC.239; P.L.27-2018, SEC.12.