§ 31-3.1-19 - Perfection of security interests.
SECTION 31-3.1-19
§ 31-3.1-19 Perfection of securityinterests. – (a) Unless excepted by § 31-3.1-18, a security interest in a vehicle of atype for which a certificate of title is required is not valid againstcreditors of the owner or subsequent transferees or lienholders of the vehicleunless perfected as provided in this chapter.
(b) A security interest is perfected by the delivery to thedivision of motor vehicles of the existing certificate of title, if any, anapplication for a certificate of title containing the name and address of thelienholder, and the date of his or her security agreement. A security interestmay also be perfected by the execution of a security lien statement and therequired fee of fifty dollars ($50.00) and registration card.
(c) If a vehicle is subject to the security interest whenbrought into this state, the validity of the security interest is determined bythe law of the jurisdiction where the vehicle was when the security interestattached, subject to the following:
(1) If the parties understood at the time the securityinterest attached that the vehicle would be kept in this state and it wasbrought into this state within the following thirty (30) days for purposesother than transportation through this state, the validity of the securityinterest in this state is determined by the law of this state.
(2) If the security interest was perfected under the law ofthe jurisdiction where the vehicle was when the security interest attached, thefollowing rules apply:
(i) If the name of the lienholder is shown on an existingcertificate of title issued by that jurisdiction, his security interestcontinues perfected in this state.
(ii) If the name of the lienholder is not shown on anexisting certificate of title issued by that jurisdiction, the securityinterest continues perfected in this state for four (4) months after a firstcertificate of title of the vehicle is issued in this state and beyond that if,within the four (4) month period, it is perfected in this state. The securityinterest may also be perfected in this state after the expiration of the four(4) month period. If done at that time, perfection dates from the time ofperfection in this state.
(3) If the security interest was not perfected under the lawof the jurisdiction where the vehicle was when the security interest attached,it may be perfected in this state. If done at that time, perfection dates fromthe time of perfection in this state.
(4) A security interest may be perfected under subsection(c)(2)(ii) or subsection (c)(3) either as provided in subsection (b), or by thelienholder delivering to the division of motor vehicles a notice of securityinterest in the form the division of motor vehicles prescribes and the requiredfee.