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186A.195 Title lien statement defined -- System to receive financing information -- Perfection of security interest.

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Page 1 of 2 186A.195 Title lien statement defined -- System to receive financing information -- Perfection of security interest. (1) As used in this chapter, a title lien statement is a document to be submitted by the secured party to the county clerk. Upon submission of the title lien statement, the <br>county clerk shall use the information contained therein to note the security interest <br>on the certificate of title. The county clerk may make title lien statements available <br>to the general public. However, public availability of such statements is not <br>necessary or effective to perfect a security interest in property required to be <br>registered or titled in accordance with this chapter. (2) If a title lien statement and the required fees accompany the application for first title of any property in the name of an owner, the county clerk shall enter the <br>information required by KRS 186A.190(6) into the automated system so as to <br>produce a certificate of title in Frankfort bearing in addition to any other required <br>information, the information designated by KRS 186A.190(6). The clerk shall <br>thereby produce, in accordance with design of the automated system, a certificate of <br>registration, if required. (3) If a title lien statement and the required fees are not received at the time of application for first title of any property in the name of the owner due to owner's <br>residency in another county, or if the form prescribed by KRS 186A.060 indicates a <br>pending lien but the title lien statement does not accompany the application for title, <br>the county clerk shall enter into the Automated Vehicle Information System (AVIS) <br>the name and address of the lienholder and the county where the lien is to be noted <br>or that a lien is pending. The clerk shall indicate a title is not to be issued until the <br>lien has been noted and fees, according to KRS 186A.190, paid in the county of the <br>owner's residence or in thirty (30) days. The county clerk shall then issue the <br>registration. The county clerk in the county of the owner's residence shall, after <br>receiving the title lien statement and fees contained in KRS 186A.190, enter into the <br>Automated Vehicle Information System (AVIS) the date of lien notation and the <br>notation number, thus enabling the system to produce the title in Frankfort. (4) Should a certificate of title be issued after the thirty (30) day period has expired without the notation of a security interest thereon, or should there be no provision <br>made for a lien to be noted in the county of residence of the debtor within thirty (30) <br>days and the title issued within that time, the secured party shall request from the <br>debtor, and the debtor shall submit to the secured party, the certificate of title. The <br>secured party shall submit the certificate of title along with the title lien statement to <br>the county clerk of the county of the debtor's residence. The county clerk shall then <br>enter the information required by KRS 186A.190(6) into the Automated Vehicle <br>Information System (AVIS) and note on the certificate of title in the appropriate <br>section the information described in that section. Following the notation of the <br>appropriate information on the certificate of title, the county clerk shall return the <br>title to the debtor. (5) The security interest noted on the certificate of title shall be deemed perfected at the time the security interest attaches (KRS 355.9-203) if the secured party tenders the <br>required fees and submits a properly completed title lien statement and application Page 2 of 2 for first title or, in the case of property previously titled in the name of its debtor, <br>the certificate of title to the appropriate county clerk within twenty (20) days of <br>attachment. Otherwise, the security interest shall be deemed perfected at the time <br>that such fees are tendered and such documents are submitted to the appropriate <br>county clerk. Effective: July 1, 2001 <br>History: Amended 2000 Ky. Acts ch. 408, sec. 181, effective July 1, 2001. -- Amended 1996 Ky. Acts ch. 297, sec. 2, effective July 15, 1996. -- Amended 1988 Ky. Acts <br>ch. 132, sec. 4, effective March 31, 1988. -- Amended 1986 Ky. Acts ch. 118, <br>sec. 98, effective July 1, 1987. -- Created 1982 Ky. Acts ch. 164, sec. 36, effective <br>July 15, 1982.