N.J. Admin. Code § 13:21-3.7

Current through Register Vol. 56, No. 24, December 18, 2024

Section 13:21-3.7 - Notation of security interest at time of sale

(a) When a new motor vehicle is sold in this State, if in connection with such sale, a security interest is taken or retained by the seller to secure all or a part of the purchase price of the motor vehicle, or is taken by a person who, by making an advance or incurring an obligation, gives value to enable the purchaser to acquire rights in the motor vehicle, and that seller retaining a security interest or person making an advance or incurring an obligation giving value to enable the purchaser to acquire rights in the motor vehicle is a participating lien holder in the Electronic Lien and Titling Program, that person or entity shall electronically deliver to the Commission the name and business address of the secured party noted through an electronic add lien function. Upon notification of the creation of a security interest, the Chief Administrator shall make notation of the security interest and an electronic title shall be sent through a service provider to the participating lien holder.

(b) When a used motor vehicle is sold in this State, if a security interest exists at the time of such sale and will continue in effect afterwards or if, in connection with such sale, a security interest is taken or retained by the seller to secure all or a part of the purchase price of the motor vehicle, or is taken by a person who by making an advance or incurring an obligation gives value to enable the purchaser to acquire rights in the motor vehicle, and that seller retaining a security interest or person making an advance or incurring an obligation giving value to enable the purchaser to acquire rights in the motor vehicle is a participating lien holder in the Electronic Lien and Titling Program, the name and the business or residential address of the secured party or his or her assignee shall be noted on the title and a copy of the electronic title shall be sent through a service provider to the participating lien holder.

Adopted by 46 N.J.R. 1904(a), effective 9/2/2014.

Amended by 48 N.J.R. 1502(a), effective 8/1/2016