TITLE 31

Motor and Other vehicles

CHAPTER 31-3.1

Certificates of Title and Security Interests

SECTION 31-3.1-19



   § 31-3.1-19  Perfection of security

interests. –

(a) Unless excepted by § 31-3.1-18, a security interest in a vehicle of a

type for which a certificate of title is required is not valid against

creditors of the owner or subsequent transferees or lienholders of the vehicle

unless perfected as provided in this chapter.



   (b) A security interest is perfected by the delivery to the

division of motor vehicles of the existing certificate of title, if any, an

application for a certificate of title containing the name and address of the

lienholder, and the date of his or her security agreement. A security interest

may also be perfected by the execution of a security lien statement and the

required fee of fifty dollars ($50.00) and registration card.



   (c) If a vehicle is subject to the security interest when

brought into this state, the validity of the security interest is determined by

the law of the jurisdiction where the vehicle was when the security interest

attached, subject to the following:



   (1) If the parties understood at the time the security

interest attached that the vehicle would be kept in this state and it was

brought into this state within the following thirty (30) days for purposes

other than transportation through this state, the validity of the security

interest in this state is determined by the law of this state.



   (2) If the security interest was perfected under the law of

the jurisdiction where the vehicle was when the security interest attached, the

following rules apply:



   (i) If the name of the lienholder is shown on an existing

certificate of title issued by that jurisdiction, his security interest

continues perfected in this state.



   (ii) If the name of the lienholder is not shown on an

existing certificate of title issued by that jurisdiction, the security

interest continues perfected in this state for four (4) months after a first

certificate 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 security

interest 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 of

perfection in this state.



   (3) If the security interest was not perfected under the law

of 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 from

the 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 the

lienholder delivering to the division of motor vehicles a notice of security

interest in the form the division of motor vehicles prescribes and the required

fee.



History of Section.

(P.L. 1971, ch. 100, § 1; P.L. 1973, ch. 46, § 2; P.L. 1975, ch. 245,

§ 2; P.L. 1990, ch. 13, § 3; P.L. 1992, ch. 15, art. 7, § 1;

P.L. 2000, ch. 182, § 11; P.L. 2000, ch. 420, § 11; P.L. 2009, ch. 5,

art. 9, § 1.)