§ 31-3.1-22 - Release of security interest.
SECTION 31-3.1-22
§ 31-3.1-22 Release of security interest.– (a) Upon the satisfaction of a security interest in a vehicle for which thecertificate of title is in the possession of the lienholder, the lienholdershall, within fifteen (15) business days, execute a release of his or hersecurity interest, in the space provided for it on the certificate or as thedivision of motor vehicles prescribes, and mail or deliver the certificate andrelease to the next lienholder named in it, or, if none, to the owner or anyperson who delivers to the lienholder an authorization from the owner toreceive the certificate. The owner, other than a dealer holding the vehicle forresale, shall promptly cause the certificate and release to be mailed ordelivered to the division of motor vehicles, which shall release thelienholder's rights on the certificate or issue a new certificate.
(b) Upon the satisfaction of a security interest in a vehiclefor which the certificate of title is in the possession of a prior lienholder,the lienholder whose security interest is satisfied shall within ten (10) daysexecute a release in the form the division of motor vehicles prescribes anddeliver the release to the owner or to any person who delivers to thelienholder an authorization from the owner to receive it. The lienholder inpossession of the certificate of title shall either deliver the certificate tothe owner, or the person authorized by him or her, for delivery to the divisionof motor vehicles, or, upon receipt of the release and registration card, mailor deliver them with the certificate to the division of motor vehicles whichshall release the subordinate lienholder's rights on the certificate or issue anew certificate.
(c) It shall be unlawful for the lienholder to charge any feefor the delivery of the certificate and release.
(d) Failure of the lienholder to provide the certificate andrelease as required by this section shall subject the lienholder to liabilityfor any damages to the owner caused by that failure.