2121 - Release of security interest. - New York Statutes

§ 2121. Release of security interest. Upon the satisfaction of a security interest in a vehicle the lienholder shall immediately upon clearance of payment execute a release of his security interest in a manner prescribed by the commissioner and mail or deliver the release to the owner or any person who delivers to the lienholder an authorization from the owner to receive the certificate. Payment sufficient to satisfy the security interest by an insurer of the owner shall be deemed an authorization by the owner for the delivery of the release of the security interest to the insurer. If the payment in satisfaction of the security interest is in cash, certified check, intra-bank transfer of funds or an uncertified check or draft issued by an insurance company authorized to do business in this state, the payment shall be deemed to be cleared immediately upon receipt. The owner, other than a dealer holding the vehicle for resale, may cause the certificate and release to be mailed or delivered to the commissioner, who shall release the lienholder's rights on the certificate or issue a new certificate.