301.640. Release of lienholders' rights upon satisfaction of lien or encumbrance, procedure--issuance of new certificate of ownership--certain liens deemed satisfied, when--penalty. - Missouri Statutes

Release of lienholders' rights upon satisfaction of lien orencumbrance, procedure--issuance of new certificate ofownership--certain liens deemed satisfied, when--penalty.

301.640. 1. Within five business days after the satisfaction of anylien or encumbrance of a motor vehicle or trailer, the lienholder shallrelease the lien or encumbrance on the certificate or a separate document,and mail or deliver the certificate or a separate document to the owner orany person who delivers to the lienholder an authorization from the ownerto receive the certificate or such documentation. The release on thecertificate or separate document shall be notarized. Each perfectedsubordinate lienholder, if any, shall release such lien or encumbrance asprovided in this section for the first lienholder. The owner may cause thecertificate to be mailed or delivered to the director of revenue, who shallissue a new certificate of ownership upon application and payment of therequired fee. A lien or encumbrance shall be satisfied for the purposes ofthis section when a lienholder receives payment in full in the form ofcertified funds, as defined in section 381.410, RSMo, or when thelienholder receives payment in full electronically or by way of electronicfunds transfer, whichever first occurs.

2. If the electronic certificate of ownership is in the possession ofthe director of revenue, the lienholder shall notify the director withinfive business days after any release of a lien and provide the directorwith the most current address of the owner or any person who delivers tothe lienholder an authorization from the owner to receive the certificateor such documentation. The director shall note such release on theelectronic certificate and if no other lien exists the director shall mailor deliver the certificate free of any lien to the owner or any person whohas delivered to the lienholder an authorization from the owner to receivethe certificate or such documentation from the director.

3. If the purchase price of a motor vehicle or trailer did not exceedsix thousand dollars at the time of purchase, a lien or encumbrance whichwas not perfected by a motor vehicle financing corporation whose net worthexceeds one hundred million dollars, or a depository institution, shall beconsidered satisfied within six years from the date the lien or encumbrancewas originally perfected unless a new lien or encumbrance has beenperfected as provided in section 301.600. This subsection does not applyto motor vehicles or trailers for which the certificate of ownership hasrecorded in the second lienholder portion the words "subject to futureadvances".

4. Any lienholder who fails to timely comply with subsection 1 or 2of this section shall pay to the person or persons satisfying the lien orencumbrance liquidated damages up to a maximum of two thousand five hundreddollars for each lien. Liquidated damages shall be five hundred dollars ifthe lienholder does not comply within five business days after satisfactionof the lien or encumbrance. Liquidated damages shall be one thousanddollars if the lienholder does not comply within ten business days aftersatisfaction of the lien or encumbrance. Liquidated damages shall be twothousand dollars if the lienholder does not comply within fifteen businessdays after satisfaction of the lien or encumbrance. Liquidated damagesshall be two thousand five hundred dollars if the lienholder does notcomply within twenty business days after satisfaction of the lien orencumbrance. If delivery of the certificate or other lien release is madeby mail, the delivery date is the date of the postmark for purposes of thissubsection. In computing any period of time prescribed or allowed by thissection, the day of the act or event after which the designated period oftime begins to run is not to be counted. However, the last day of theperiod so computed is to be included, unless it is a Saturday, Sunday, or alegal holiday, in which event the period runs until the end of the next daythat is not a Saturday, Sunday, or legal holiday.

5. Any person who knowingly and intentionally sends in a separatedocument releasing a lien of another without authority to do so shall beguilty of a class C felony.

(L. 1965 p. 474 § 5, A.L. 1990 H.B. 1279 merged with S.B. 495, A.L. 1992 H.B. 884, A.L. 1998 S.B. 852 & 913, A.L. 1999 H.B. 795, A.L. 2002 H.B. 2008 merged with S.B. 895, A.L. 2007 S.B. 82)