§ 2118 — Perfection of security interests

§ 2118. Perfection of security interests. (a) Unless excepted by\nsection two thousand one hundred three of this title, a security\ninterest in a vehicle of a type for which a certificate of title is\nrequired is not valid against creditors of the owner or subsequent\ntransferees or lienholders of the vehicle without knowledge of the\nsecurity interest unless perfected as provided in this section. A\npurchase money security interest in a vehicle is perfected against the\nrights of judicial lien creditors and execution creditors on and after\nthe date such purchase money security interest is created.\n (b) (1) A security interest is perfected:\n (A) By the delivery to the commissioner of (i) the existing\ncertificate of title, if any, an application for a certificate of title\ncontaining the name and address of the lienholder and the required fee\nor (ii) a notice of lien evidencing a lien arising under section two\nhundred eleven of the lien law and section one hundred eleven-u of the\nsocial services law;\n (B) As of the time of its creation if the delivery is completed within\nten days thereafter, otherwise, as of the time of delivery.\n (2) A security interest in a vehicle provided for in a security\nagreement made by a person before he becomes the owner of the vehicle or\narising under section two hundred eleven of the lien law and section one\nhundred eleven-u of the social services law:\n (A) Is deemed to be created at the time of the sale or transfer of the\nvehicle to him;\n (B) If not perfected under paragraph one of this subdivision is\nperfected by the lienholder delivering to the commissioner a notice of\nsecurity interest in the form the commissioner prescribes and the\nrequired fee or a notice of lien, but only if the delivery is completed\nbefore the commissioner issues a certificate of title of the vehicle\ncontaining the name of the owner as owner;\n (C) If so perfected, is perfected as of the time of the sale or\ntransfer of the vehicle to him if the delivery is completed within ten\ndays thereafter, otherwise, as of the time of delivery;\n (D) Is subject and subordinate to a security interest, perfected in\naccordance with paragraph one of this subdivision, of a lienholder\nwithout knowledge of it.\n (3) The commissioner shall file each notice of security interest\ndelivered to him with the required fee and shall maintain a record,\nunder the identifying number of the vehicles, of all notices of security\ninterests filed by him.\n (4) The commissioner shall file each notice of lien delivered to him\nand shall maintain a record pursuant to the agreement set forth in\nsection twenty-one hundred five-a of this article.\n (c) If a vehicle is subject to a security interest when brought into\nthis state, the validity of the security interest is determined by the\nlaw of the jurisdiction where the vehicle was when the security interest\nattached, subject to the following:\n (1) If the parties understood at the time the security interest\nattached that the vehicle would be kept in this state and it was brought\ninto this state within thirty days thereafter for purposes other than\ntransportation through this state, the validity of the security interest\nin this state is determined by the law of this state.\n (2) If the security interest was perfected under the law of the\njurisdiction where the vehicle was when the security interest attached,\nthe following rules apply:\n (A) If the name of the lienholder is shown on a currently effective\ncertificate of title issued by that jurisdiction, his security interest\ncontinues perfected in this state.\n (B) If the name of the lienholder is not shown on a currently\neffective certificate of title issued by that jurisdiction, the security\ninterest continues perfected in this state for four months after a first\ncertificate of title of the vehicle is issued in this state, and also,\nthereafter if, within the four month period, it is perfected in this\nstate. The security interest may also be perfected in this state after\nthe expiration of the four month period; in that case perfection dates\nfrom the time of perfection in this state.\n (3) If the security interest was not perfected under the law of the\njurisdiction where the vehicle was when the security interest attached,\nit may be perfected in this state; in that case, perfection dates from\nthe time of perfection in this state.\n * (d) A security interest noted on a certificate of title to a vehicle\nwhich is a mobile home or a manufactured home shall have priority over\nany other subsequent liens or security interests except for those set\nforth in subdivision (c) of section two thousand one hundred three of\nthis article.\n * NB Effective until December 12, 2026\n * (d) A security interest noted on a certificate of title to a vehicle\nwhich is a manufactured home shall have priority over all subsequent\nliens or security interests except for those set forth in subdivision\n(c) of section twenty-one hundred three of this article.\n * NB Effective December 12, 2026\n * (e) After a certificate of title has been issued in this state for a\nvehicle which is a mobile home or a manufactured home, and as long as\nthe vehicle which is a mobile home or a manufactured home is subject to\nany security interest perfected pursuant to this section, the\ncommissioner shall not revoke the certificate of title, and, in any\nevent, the validity and priority of any security interest perfected\npursuant to this section shall continue, notwithstanding the provision\nof any other law, including but not limited to section 9--303 and\nsection 9-313 of the uniform commercial code.\n * NB Effective until December 12, 2026\n * (e) Except as otherwise provided in sections twenty-one hundred\nseventeen-b and twenty-one hundred twenty-three of this article, and\narticle nine-E of the real property law, after a certificate of title\nhas been issued for a manufactured home, and as long as the manufactured\nhome is subject to any security interest perfected pursuant to this\nsection, the commissioner shall not file an affidavit of affixation, nor\nrevoke the certificate of title, nor issue a certificate of title under\nsubdivision (a) of section twenty-one hundred seven of this article,\nand, in any event, the validity and priority of any security interest\nperfected pursuant to this section shall continue, notwithstanding the\nprovision of any other law.\n * NB Effective December 12, 2026\n