§ 20-58.1. Duty of the Division upon receipt of application for notation of security interest.
§ 20‑58.1. Duty of theDivision upon receipt of application for notation of security interest.
(a) Upon receipt of anapplication for notation of security interest, the required fee andaccompanying documents required by G.S. 20‑58, the Division, if it findsthe application and accompanying documents in order, shall either endorse uponthe certificate of title or issue a new certificate of title containing, thename and address of each secured party, and the date of perfection of eachsecurity interest as determined by the Division. The Division shall deliver ormail the certificate to the first secured party named in it and shall alsonotify the new secured party that his security interest has been noted upon thecertificate of title.
(b) If the certificate oftitle is in the possession of some prior secured party, the Division, whensatisfied that the application is in order, shall procure the certificate oftitle from the secured party in whose possession it is being held, for the solepurpose of noting the new security interest. Upon request of the Division, asecured party in possession of a certificate of title shall forthwith deliveror mail the certificate of title to the Division. Such delivery of thecertificate does not affect the rights of any secured party under his securityagreement. (1961, c. 835, s. 6; 1969, c. 838, s. 1; 1975, c. 716,s. 5; 1979, c. 145, s. 3.)