33.05.060 Release of Security Interest

Whenever there is no outstanding obligation, and no commitment to make advances, incur obligations or otherwise give value, secured by the security interest in a vehicle under a security agreement between the owner and the secured party, the secured party shall execute and deliver to the owner, as the Director prescribed, a release of the security interest in the form and manner prescribed by the Director.

The owner, other than a dealer holding the vehicle for resale, shall promptly cause the certificate and release to be mailed or delivered to the Director, which shall release the secured party's rights on the certificate and issue a new certificate.

Upon the satisfaction of a security interest in a vehicle for which the certificate of title is in the possession of the lienholder, the lienholder shall, within ten (10) days of demand, and in any event within (30) thirty days, execute a release of the lienholder's security interest as the department prescribes. The lienholder shall:

Mail or deliver the certificate of title and release to the next lienholder named on the certificate of title, who shall, within thirty (30) days of receipt, mail or deliver the certificate of title, release, and pay a fee of five dollars ($5.00) to the department. The department shall issue and mail or deliver a new certificate of title to the first lienholder named on the new certificate of title.

If there are no other lienholders named on the certificate of title, mail or deliver the certificate of title and release to the owner or any other person who delivers to the lienholder an authorization from the owner to receive the certificate of title and release. The person receiving the certificate of title and release, shall, within thirty (30) days of receipt, mail or deliver the certificate of title, release and a fee of five dollars ($5.00) to the department. The department may prescribed further application procedures and, upon determining that there has been a proper compliance with these procedures, shall issue a new certificate of title and mail or deliver it to the owner or any person the owner authorizes to receive it.

Upon the satisfaction of a security interest in a vehicle for which the certificate of title is in the possession of a prior lienholder, the lienholder whose security interest is satisfied shall within ten (10) days after demand and, in any event within thirty (30) days, execute a release in the form the department prescribes and deliver the release to the owner or

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any person who delivers to the lienholder an authorization from the owner to receive it. The lienholder in possession of the certificate of title shall either deliver the certificate of title to the owner or the person authorized by the owner for delivery to the department or, upon receipt of the release, mail or deliver it with the certificate of title to the department which shall, upon the payment of a five dollar ($5.00) fee, issue a new certificate.