§ 20-58.4. Release of security interest.
§ 20‑58.4. Release ofsecurity interest.
(a) Upon thesatisfaction or other discharge of a security interest in a vehicle for whichthe certificate of title is in the possession of the secured party, the securedparty shall within 10 days after demand and, in any event, within 30 days,execute a release of his security interest, in the space provided therefor onthe certificate or as the Division prescribes, and mail or deliver thecertificate and release to the next secured party named therein, or if none, tothe owner or other person authorized to receive the certificate for the owner.
(b) Upon thesatisfaction or other discharge of a security interest in a vehicle for whichthe certificate of title is in the possession of a prior secured party, thesecured party whose security interest is satisfied shall within 10 days executea release of his security interest in such form as the Division prescribes andmail or deliver the same to the owner or other person authorized to receive thesame for the owner.
(c) An owner, uponsecuring the release of any security interest in a vehicle shown upon thecertificate of title issued therefor, may exhibit the documents evidencingsuch release, signed by the person or persons making such release, and thecertificate of title to the Division which shall, when satisfied as to thegenuineness and regularity of the release, issue to the owner either a newcertificate of title in proper form or an endorsement or rider attached theretoshowing the release of the security interest.
(d) If an ownerexhibits documents evidencing the release of a security interest as provided insubsection (c) of this section but is unable to furnish the certificate oftitle to the Division because it is in possession of a prior secured party, theDivision, when satisfied as to the genuineness and regularity of the release,shall procure the certificate of title from the person in possession thereoffor the sole purpose of noting thereon the release of the subsequent securityinterest, following which the Division shall return the certificate of title tothe person from whom it was obtained and notify the owner that the release hasbeen noted on the certificate of title.
(e) If it is impossiblefor the owner to secure from the secured party the release contemplated by thissection, the owner may exhibit to the Division such evidence as may beavailable showing satisfaction or other discharge of the debt secured, togetherwith a sworn affidavit by the owner that the debt has been satisfied, which theDivision may treat as a proper release for purposes of this section whensatisfied as to the genuineness, truth and sufficiency thereof. Prior tocancellation of a security interest under the provisions of this subsection, atleast 15 days' notice of the pendency thereof shall be given to the securedparty at his last known address by the Division by registered letter. (1961,c. 835, s. 6; 1969, c. 838, s. 1; 1975, c. 716, s. 5.)