2016 Kentucky Revised Statutes CHAPTER 186A - AUTOMATED MOTOR VEHICLE REGISTRATION SYSTEM .190 Security interest notation required on title document -- Continuation statements -- Determination of debtor's residence when debtor is other than a natural person -- Discharge of security interest -- Issuance of new title to creditor in possession upon certain conditions -- Fees.
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186A.190 Security interest notation required on title document -- Continuation
statements -- Determination of debtor's residence when debtor is other than a
natural person -- Discharge of security interest -- Issuance of new title to
creditor in possession upon certain conditions -- Fees.
(1)
(2)
Except as provided in subsection (4) of this section and in KRS 355.9-311(4), the
perfection and discharge of a security interest in any property for which has been
issued a Kentucky certificate of title shall be by notation on the certificate of title.
Notation shall be made by the entry of information required by subsection (6) of this
section into the Automated Vehicle Information System, and shall be deemed to
have occurred upon the entry. The notation of the security interest on the certificate
of title shall be in accordance with this chapter and shall remain effective from the
date on which the security interest is noted on the certificate of title for a period of
ten (10) years, or, in the case of a manufactured home, for a period of thirty (30)
years, or until discharged under this chapter and KRS Chapter 186. The filing of a
continuation statement within the six (6) months preceding the expiration of the
initial period of a notation's effectiveness extends the expiration date for five (5)
additional years, commencing on the day the notation would have expired in the
absence of the filing. Succeeding continuation statements may be filed in the same
manner to continue the effectiveness of the initial notation.
Except as provided in subsection (4) of this section, the notation of security interests
relating to property required to be titled in Kentucky through the county clerk shall
be done in the office of the county clerk of the county in which the debtor resides. If
the debtor is other than a natural person, the following provisions govern the
determination of the county of the debtor's residence:
(a) A partnership shall be deemed a resident of the county in which its principal
place of business in this state is located. If the debtor does not have a place of
business in this state, then the debtor shall be deemed a nonresident for
purposes of filing in this state;
(b) A limited partnership organized under KRS Chapter 362 or as defined in KRS
362.2-102(14) shall be deemed a resident of the county in which its principal
place of business is located, as set forth in its certificate of limited partnership
or most recent amendment thereto filed pursuant to KRS Chapter 362 or
362.2-202. If such office is not located in this state, the debtor shall be
deemed a nonresident for purposes of filing in this state;
(c) A limited partnership not organized under the laws of this state and authorized
to do business in this state shall be deemed a resident of the county in which
the office of its process agent is located, as set forth in the designation or most
recent amendment thereto filed with the Secretary of State of the
Commonwealth of Kentucky;
(d) A corporation organized under KRS Chapter 271B, 273, or 274 or a limited
liability company organized under KRS Chapter 275 shall be deemed a
resident of the county in which its registered office is located, as set forth in
its most recent corporate filing with the Secretary of State which officially
designates its current registered office;
(e)
(3)
A corporation not organized under the laws of this state, but authorized to
transact or do business in this state under KRS Chapter 271B, 273, or 274, or
a limited liability company not organized under the laws of this state, but
authorized to transact business in this state under KRS Chapter 275, shall be
deemed a resident of the county in which its registered office is located, as set
forth in its most recent filing with the Secretary of State which officially
designates its current registered office;
(f) A cooperative corporation or association organized under KRS Chapter 272
shall be deemed a resident of the county in which its principal business is
transacted, as set forth in its articles of incorporation or most recent
amendment thereto filed with the Secretary of State of the Commonwealth of
Kentucky;
(g) A cooperative corporation organized under KRS Chapter 279 shall be deemed
a resident of the county in which its principal office is located, as set forth in
its articles of incorporation or most recent amendment thereto filed with the
Secretary of State of the Commonwealth of Kentucky;
(h) A business trust organized under KRS Chapter 386 shall be deemed a resident
of the county in which its principal place of business is located, as evidenced
by the recordation of its declaration of trust in that county pursuant to KRS
Chapter 386;
(i) A credit union organized under Subtitle 6 of KRS Chapter 286 shall be
deemed a resident of the county in which its principal place of business is
located, as set forth in its articles of incorporation or most recent amendment
thereto filed with the Secretary of State of the Commonwealth of Kentucky;
and
(j) Any other organization (defined in KRS 355.1-201) shall be deemed a
resident of the county in which its principal place of business in this state is
located, except that any limited liability company, limited liability partnership,
limited partnership, or corporation not organized under the laws of this state
and not authorized to transact or do business in this state shall be deemed a
nonresident for purposes of filing in this state. If the organization does not
have a place of business in this state, then it shall be deemed a nonresident for
purposes of filing in this state.
If the debtor does not reside in the Commonwealth, the notation of the security
interest shall be done in the office of the county clerk in which the property is
principally situated or operated. Notwithstanding the existence of any filed
financing statement under the provisions of KRS Chapter 355 relating to any
property registered or titled in Kentucky, the sole means of perfecting and
discharging a security interest in property for which a certificate of title is required
by this chapter is by notation on the property's certificate of title under the
provisions of this chapter or in accordance with the provisions of KRS 186.045(3).
In other respects the security interest is governed by the provisions of KRS Chapter
355.
Except as provided in subsection (4) of this section, before ownership of property
(4)
(5)
(6)
subject to a lien evidenced by notation on the certificate of title may be transferred,
the transferor shall obtain the release of the prior liens in his name against the
property being transferred. Once a security interest has been noted on the owner's
title, a subsequent title shall not be issued by any county clerk free of the notation
unless the owner's title is presented to the clerk and it has been noted thereon that
the security interest has been discharged. If this requirement is met, information
relating to any security interest shown on the title as having been discharged may be
omitted from the title to be issued by the clerk. If information relating to the
discharge of a security interest is presented to a clerk under the provisions of KRS
186.045(3), the clerk shall discharge the security interest and remove the lien
information from AVIS.
Notwithstanding subsections (1), (2), and (3) of this section, a county clerk shall,
following inspection of the vehicle by the sheriff, to determine that the vehicle has
not been stolen, issue a new title to a vehicle, clear of all prior liens, to a person
after he provides to the county clerk an affidavit devised by the Transportation
Cabinet and completed by the person. In the affidavit, the person shall attest that:
(a) He possesses the vehicle;
(b) A debt on the vehicle was owed him for more than thirty (30) days before he
provided the notices required by paragraphs (c) and (d) of this subsection;
(c) More than fourteen (14) days before presenting the affidavit to the county
clerk, the person attempted to notify the owner of the vehicle and all known
lienholders, including those noted on the title, by certified mail, return receipt
requested, of his name, address, and telephone number as well as his intention
to obtain a new title, clear of all prior liens, unless the owner or a lienholder
objected in writing;
(d) More than fourteen (14) days before presenting the affidavit to the county
clerk, the person had published a legal notice stating his intention to obtain
title to the vehicle. The legal notice appeared at least twice in a seven (7) day
period in a newspaper published, and with a statewide circulation, in
Kentucky. The legal notice stated:
1.
The person's name, address, and telephone number;
2.
The owner's name;
3.
The names of all known lienholders, including those noted on the title;
4.
The vehicle's make, model, and year; and
5.
The person's intention to obtain title to the vehicle unless the owner or a
lienholder objects in writing within fourteen (14) days after the last
publication of the legal notice; and
(e) Neither the owner nor a lienholder has objected in writing to the person's right
to obtain title to the vehicle.
No more than two (2) active security interests may be noted upon a certificate of
title.
In noting a security interest upon a certificate of title, the county clerk shall ensure
that the certificate of title bears the lienholder's name, mailing address and zip code,
(7)
(8)
the date the lien was noted, the notation number, and the county in which the
security interest was noted. The clerk shall obtain the information required by this
subsection for notation upon the certificate of title from the title lien statement
described in KRS 186A.195, or an equivalent out-of-state-issued instrument, to be
provided to the county clerk by the secured party.
For all the costs incurred in the notation and discharge of a security interest on the
certificate of title, the county clerk shall receive the fee prescribed by KRS 64.012.
The fee prescribed by this subsection shall be paid at the time of submittal of the
title lien statement described in KRS 186A.195.
A copy of the application, certified by the county clerk, indicating the lien will be
noted on the certificate of title shall be forwarded to the lienholder.
Effective: July 15, 2016
History: Amended 2016 Ky. Acts ch. 11, sec. 1, effective July 15, 2016; and ch. 118,
sec. 1, effective July 15, 2016. -- Amended 2006 Ky. Acts ch. 149, sec. 225, effective
July 12, 2006; and ch. 242, sec. 63, effective July 12, 2006. -- Amended 2003 Ky.
Acts ch. 103, sec. 2, effective June 24, 2003. -- Amended 2001 Ky. Acts ch. 65, sec.
1, effective July 1, 2001. -- Amended 2000 Ky. Acts ch. 408, sec. 179, effective July
1, 2001. -- Amended 1996 Ky. Acts ch. 297, sec. 1, effective July 15, 1996. -Amended 1990 Ky. Acts ch. 478, sec. 4, effective July 13, 1990. -- Amended 1988
Ky. Acts ch. 132, sec. 2, effective March 31, 1988. -- Amended 1986 Ky. Acts ch.
118, sec. 97, effective July 1, 1987. -- Created 1982 Ky. Acts ch. 164, sec. 35,
effective July 15, 1982.
Legislative Research Commission Note (7/15/2016). This statute was amended by 2016
Ky. Acts chs. 11 and 118, which do not appear to be in conflict and have been
codified together.
Legislative Research Commission Note (7/12/2006). 2006 Ky. Acts ch. 247 instructs
the Reviser of Statutes to adjust KRS references throughout the statutes to conform
with the 2006 renumbering of the Financial Services Code, KRS Chapter 286. Such
an adjustment has been made in this statute.
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