301.620. Duties of parties upon creation of lien or encumbrance, violation, penalty. - Missouri Statutes

Duties of parties upon creation of lien or encumbrance, violation,penalty.

301.620. If an owner creates a lien or encumbrance on a motor vehicleor trailer:

(1) The owner shall immediately execute the application, in the spaceprovided therefor on the certificate of ownership or on a separate form thedirector of revenue prescribes, to name the lienholder on the certificate,showing the name and address of the lienholder and the date of thelienholder's security agreement, and cause the certificate, application andthe required fee to be delivered to the director of revenue;

(2) The lienholder or an authorized agent licensed pursuant tosections 301.112 to 301.119 shall deliver to the director of revenue anotice of lien as prescribed by the director accompanied by all othernecessary documentation to perfect a lien as provided in section 301.600;

(3) To perfect a lien for a subordinate lienholder when a transfer ofownership occurs, the subordinate lienholder shall either mail or deliver,or cause to be mailed or delivered, a completed notice of lien to thedepartment of revenue, accompanied by authorization from the firstlienholder. The owner shall ensure the subordinate lienholder is recordedon the application for title at the time the application is made to thedepartment of revenue. To perfect a lien for a subordinate lienholder whenthere is no transfer of ownership, the owner or lienholder in possession ofthe certificate shall either mail or deliver, or cause to be mailed ordelivered, the owner's application for title, certificate, notice of lien,authorization from the first lienholder and title fee to the department ofrevenue. The delivery of the certificate and executing a notice ofauthorization to add a subordinate lien does not affect the rights of thefirst lienholder under the security agreement;

(4) Upon receipt of the documents and fee required in subdivision (3)of this section, the director of revenue shall issue a new certificate ofownership containing the name and address of the new lienholder, and shallmail the certificate as prescribed in section 301.610 or if a lienholderwho has elected for the director of revenue to retain possession of anelectronic certificate of ownership the lienholder shall either mail ordeliver to the director a notice of authorization for the director to add asubordinate lienholder to the existing certificate. Upon receipt of suchauthorization, a notice of lien and required documents and title fee, ifapplicable, from a subordinate lienholder, the director shall add thesubordinate lienholder to the certificate of ownership being electronicallyretained by the director and provide confirmation of the addition to bothlienholders;

(5) Failure of the owner to name the lienholder in the applicationfor title, as provided in this section, is a class A misdemeanor.

(L. 1965 p. 474 § 3, A.L. 1990 H.B. 1279, A.L. 1992 H.B. 884, A.L. 1999 H.B. 795, A.L. 2002 H.B. 2008 merged with S.B. 895)

Effective 8-28-02 (H.B. 2008)

7-01-03 (S.B. 895)