306.420. Satisfaction of lien or encumbrance, release of, procedure--duties of lienholder and director of revenue--penalty for unauthorized release of a lien.
Satisfaction of lien or encumbrance, release of, procedure--duties oflienholder and director of revenue--penalty for unauthorized releaseof a lien.
306.420. 1. Upon the satisfaction of a lien or encumbrance on anoutboard motor, motorboat, vessel, or watercraft, the lienholder shallwithin ten days execute a release of his or her lien or encumbrance, on thecertificate or separate document, and mail or deliver the certificate orseparate document to the owner or any person who delivers to the lienholderan authorization from the owner to receive the documentation. The releaseon the certificate or separate document shall be notarized. Each perfectedsubordinate lienholder, if any, shall release such lien or encumbrance asprovided in this section for the first lienholder. The owner may cause thecertificate of title, the release, and the required fee to be mailed ordelivered to the director of revenue, who shall release the lienholder'srights on the certificate and issue a new certificate of title.
2. If the electronic certificate of title is in the possession of thedirector of revenue, the lienholder shall notify the director within tenbusiness days of any release of lien and provide the director with the mostcurrent address of the owner. The director shall note such release on theelectronic certificate and if no other lien exists, the director shall mailor deliver the certificate free of any lien to the owner.
3. Any person who knowingly and intentionally sends in a separatedocument releasing a lien of another without authority to do so shall beguilty of a class C felony.
(L. 1985 H.B. 280, et al. § 301.720, A.L. 1999 S.B. 19, A.L. 2000 S.B. 896, A.L. 2002 H.B. 2008 merged with S.B. 895)Effective 8-28-02 (H.B. 2008)
7-01-03 (S.B. 895)