2005 Idaho Code - 49-510 — LIENS AND ENCUMBRANCES -- FILING -- FEE -- NOTATION ON CERTIFICATE -- CONSTRUCTIVE NOTICE

                                  TITLE  49
                                MOTOR VEHICLES
                                  CHAPTER 5
                                VEHICLE TITLES
    49-510.  LIENS AND ENCUMBRANCES -- FILING -- FEE -- NOTATION ON
CERTIFICATE -- CONSTRUCTIVE NOTICE. (1) No lien or encumbrance on any vehicle
registered under the laws of this state created subsequent to December 31,
1986, irrespective of whether such registration was effected prior or
subsequent to the creation of the lien or encumbrance, shall be perfected as
against creditors or subsequent purchasers or encumbrancers without notice
until the holder of the lien or encumbrance, or his successor, agent or
assignee, has complied with the requirements of section 49-504, Idaho Code,
and has filed the properly completed title application and all required
supporting documents with the department or an agent of the department.
    When the holder of a lien or encumbrance, his successor, agent or
assignee, has filed with the department or agent of the department a properly
completed title application and supporting documents as required by section
49-504, Idaho Code, it shall be the duty of the department or agent of the
department to file the same, indorsing on the title application the date of
the creation of the lien or encumbrance. A lien is perfected as of the time of
its creation if the transaction is notarized and if the filing is completed
with the department or an agent of the department within twenty (20) calendar
days thereafter; otherwise, as of the date of the filing with the department
or an agent of the department. If the title application is incomplete or if
the supporting documents are incomplete or missing, the title application and
supporting documents as submitted will be returned to the lienholder or his
successor, agent or assignee for correction and, if the application is not
resubmitted in a complete form, including completed supporting documents, to
the department or to the agent of the department within twenty (20) days of
their having been returned to the lienholder or his successor, agent or
assignee, the original date of receipt by the department or agent of the
department shall be void.
    When the department is satisfied as to the genuineness and regularity of
the documents submitted, it shall issue a new certificate of title or create a
paperless electronic record of the title and lien filing when substantiated by
a written agreement as provided in section 49-505, Idaho Code.  The title
shall contain the name of the owner of the vehicle, the name and address of
each holder of a lien or encumbrance, and a statement of all liens or
encumbrances which have been filed with the department, together with the date
of each lien or encumbrance and the date received by the department or agent
of the department. The filing of a lien or encumbrance and the notation of it
shall be a condition of perfection and shall constitute constructive notice of
the lien or encumbrance and its contents to creditors and subsequent
purchasers and encumbrancers. All liens or encumbrances so filed with the
department shall be perfected and take priority according to the order in
which the same are noted upon the certificate of title or entered into the
electronic records of the department.
    (2)  The notarization requirement set out in the second paragraph of
subsection (1) of this section shall not apply to transactions involving a
lien in favor of a regulated lender, as defined in section 28-41-301(37),
Idaho Code, or a motor vehicle dealer licensed by the Idaho transportation
department.