2013 New York Consolidated Laws
VAT - Vehicle & Traffic
Title 10 - UNIFORM VEHICLE CERTIFICATE OF TITLE ACT
Article 46 - (2101 - 2135) UNIFORM VEHICLE CERTIFICATE OF TITLE ACT
2121 - Release of security interest.

 
    § 2121. Release  of  security interest. (a) Upon the satisfaction of a
  security interest in a vehicle the  lienholder  shall  immediately  upon
  clearance  of  payment  execute  a release of his security interest in a
  manner prescribed by the commissioner and mail or deliver the release to
  the owner or any person who delivers to the lienholder an  authorization
  from the owner to receive the certificate. Payment sufficient to satisfy
  the  security  interest  by  an  insurer of the owner shall be deemed an
  authorization by the owner for  the  delivery  of  the  release  of  the
  security  interest to the insurer. If the payment in satisfaction of the
  security interest is in cash, certified check,  intra-bank  transfer  of
  funds  or  an  uncertified check or draft issued by an insurance company
  authorized to do business in this state, the payment shall be deemed  to
  be  cleared  immediately  upon  receipt.  The owner, other than a dealer
  holding the vehicle for resale, may cause the certificate and release to
  be mailed or delivered  to  the  commissioner,  who  shall  release  the
  lienholder's rights on the certificate or issue a new certificate.
    (b)  A  dealer who receives a motor vehicle for the purposes of resale
  and who arranges for the satisfaction of any security interest  in  such
  vehicle,  and  for  which  a  release  of security interest has not been
  issued,  may  submit  to  the  commissioner   sufficient   evidence   to
  demonstrate  that  such  security  interest has been satisfied and shall
  provide notice to the lienholder two weeks prior to  submission  to  the
  commissioner.  The  commissioner shall, upon receipt of such evidence, a
  proper  application  and  the  appropriate  fee  pursuant   to   section
  twenty-one  hundred  twenty-five of this article, promptly issue, within
  no more than fifteen business days of receipt by the department  of  all
  required  information  and  fees, either a duplicate certificate without
  such lien included thereon, or a certificate without such lien  included
  thereon.  Evidence  that  a  security  interest has been satisfied shall
  include: (i) evidence that an interbank or electronic transfer of  funds
  has been made; or (ii) evidence that a copy of a cashier's or bank check
  has  been  delivered;  or  (iii)  other  evidence  as  determined  to be
  satisfactory by the commissioner; and  (iv)  evidence  that  the  amount
  delivered  to  the  lienholder  is  equal  to  the amount which has been
  represented to the dealer by the lienholder  as  sufficient  to  satisfy
  such  lien.  Such  evidence  shall  be  accepted  by the commissioner as
  sufficient. Any evidence submitted to the commissioner pursuant to  this
  subdivision  may,  subject to approval of the commissioner, be submitted
  in electronic form. In addition to  the  penalties  imposed  by  section
  twenty-one  hundred  thirty  of  this  article, any dealer who alters or
  forges evidence of payment, or fails to make a payment, shall be  liable
  to  any  party  for  any  damages  resulting  from the issuance of a new
  certificate by the commissioner, plus attorney's fees and costs incurred
  in recovering such damages, provided however no subsequent purchaser  of
  a  vehicle  where  the security interest was removed by the commissioner
  under the provisions of this subdivision shall be liable for any  errors
  in  the removal of such security interest, and any dealer who so applied
  for the  removal  of  such  security  interest  on  such  vehicle  shall
  indemnify  any  such  purchaser  and  lienholder.  The  commissioner  is
  authorized  to  adopt  and  enforce  reasonable  rules  and  regulations
  necessary to carry out the provisions of this subdivision.