Section 702 - Perfecting security interest1.Valid against creditors, transferees and lienholders. A security interest in a vehicle for which a certificate of title is issued is not valid against creditors of the owner or subsequent transferees or lienholders unless perfected as provided in this subchapter. [1993, c. 683, Pt. A, §2(NEW); 1993, c. 683, Pt. B, §5(AFF).]
2.Method. A security interest is perfected by the delivery to the Secretary of State of: A. The certificate of origin or existing certificate of title or certificate of salvage; [1993, c. 683, Pt. A, §2(NEW); 1993, c. 683, Pt. B, §5(AFF).]B. An application for a certificate of title containing the name and address of the lienholder and the date of the security agreement; and [1993, c. 683, Pt. A, §2(NEW); 1993, c. 683, Pt. B, §5(AFF).]C. The required fee. [1993, c. 683, Pt. A, §2(NEW); 1993, c. 683, Pt. B, §5(AFF).] [1993, c. 683, Pt. A, §2(NEW); 1993, c. 683, Pt. B, §5(AFF).]
2-A.Lienholder registration. A lienholder who participates in the electronic lien titling program is required to register with the Secretary of State for a lienholder identification number in accordance with rules adopted by the Secretary of State. [2023, c. 257, §11(AMD).]
3.Date. A security interest is perfected as of the date of delivery under subsection 2. [1999, c. 699, Pt. B, §26(RPR); 1999, c. 699, Pt. B, §28(AFF).]
4.Vehicle brought into State. If a vehicle is subject to a security interest when brought into this State, the perfection, effect of perfection and priority of the security interest is determined in accordance with Title 11, Article 9-A, Part 3. [1999, c. 699, Pt. B, §26(RPR); 1999, c. 699, Pt. B, §28(AFF).]
5.Vehicles located outside State and registered in State. If a vehicle is located outside this State and is not the subject of a valid certificate of title issued by another jurisdiction, upon registration of the vehicle in this State, the provisions of this chapter on perfection of a security interest apply. Notwithstanding Title 11, Article 9-A, Part 3, perfection under this subchapter remains valid until the certificate issued by this State is surrendered for retitling in another jurisdiction. A. [1999, c. 699, Pt. B, §27(RP); 1999, c. 699, Pt. B, §28(AFF).]B. [1999, c. 699, Pt. B, §27(RP); 1999, c. 699, Pt. B, §28(AFF).] [1999, c. 699, Pt. B, §27(RPR); 1999, c. 699, Pt. B, §28(AFF).]
Amended by 2023SP1, c. 257,§ 11, eff. 10/25/2023.Amended by 2021SP1, c. 216,§ 20, eff. 10/18/2021.RR 1993, c. 2, § 18 (COR) . 1993, c. 683, §A2 (NEW) . 1993, c. 683, §B5 (AFF) . 1999, c. 699, §§B26,27 (AMD) . 1999, c. 699, §B28 (AFF) .