700.350. Liens and encumbrances--valid, perfected, when, how--home subject to, when, how determined--security procedures--validity of prior transactions.
Liens and encumbrances--valid, perfected, when, how--home subject to,when, how determined--security procedures--validity of priortransactions.
700.350. 1. As used in sections 700.350 to 700.390, the term"manufactured home" shall have the same meanings given it in section700.010 or section 400.9-102(a)(53), RSMo.
2. Unless excepted by section 700.375, a lien or encumbrance on amanufactured home shall not be valid against subsequent transferees orlienholders of the manufactured home who took without knowledge of the lienor encumbrance unless the lien or encumbrance is perfected as provided insections 700.350 to 700.380.
*3. A lien or encumbrance on a manufactured home is perfected by thedelivery to the director of revenue of a notice of lien in a format asprescribed by the director of revenue. Such lien or encumbrance shall beperfected as of the time of its creation if the delivery of the notice oflien required in this subsection to the director of revenue is completedwithin thirty days thereafter, otherwise such lien or encumbrance shall beperfected as of the time of the delivery. A notice of lien shall containthe name and address of the owner of the manufactured home and the securedparty, a description of the manufactured home, including any identificationnumber and such other information as the department of revenue shallprescribe. A notice of lien substantially complying with the requirementsof this section is effective even though it contains minor errors which arenot seriously misleading. Liens may secure future advances. The futureadvances may be evidenced by one or more notes or other documentsevidencing indebtedness and shall not be required to be executed ordelivered prior to the date of the future advance lien securing them. Thefact that a lien may secure future advances shall be clearly stated on thesecurity agreement and noted as "subject to future advances" in the noticeof lien and noted on the certificate of ownership if the motor vehicle ortrailer is subject to only one lien. To secure future advances when anexisting lien on a manufactured home does not secure future advances, thelienholder shall file a notice of lien reflecting the lien to secure futureadvances. A lien to secure future advances is perfected in the same timeand manner as any other lien, except as follows: proof of the lien forfuture advances is maintained by the department of revenue; however, thereshall be additional proof of such lien when the notice of lien reflectssuch lien for future advances, is receipted by the department of revenue,and returned to the lienholder.
*4. Whether a manufactured home is subject to a lien or encumbranceshall be determined by the laws of the jurisdiction where the manufacturedhome was when the lien or encumbrance attached, subject to the following:
(1) If the parties understood at the time the lien or encumbrancesattached that the manufactured home would be kept in this state and it isbrought into this state within thirty days thereafter for purposes otherthan transportation through this state, the validity and effect of the lienor encumbrance in this state shall be determined by the laws of this state;
(2) If the lien or encumbrance was perfected under the laws of thejurisdiction where the manufactured home was when the lien or encumbranceattached, the following rules apply:
(a) If the name of the lienholder is shown on an existing certificateof title or ownership issued by that jurisdiction, his lien or encumbrancecontinues perfected in this state;
(b) If the name of the lienholder is not shown on an existingcertificate of title or ownership issued by the jurisdiction, the lien orencumbrance continues perfected in this state for three months after thefirst certificate of title of the manufactured home is issued in thisstate, and also thereafter if, within the three-month period, it isperfected in this state. The lien or encumbrance may also be perfected inthis state after the expiration of the three-month period, in which caseperfection dates from the time of perfection in this state;
(3) If the lien or encumbrance was not perfected under the laws ofthe jurisdiction where the manufactured home was when the lien orencumbrance attached, it may be perfected in this state, in which caseperfection dates from the time of perfection in this state;
(4) A lien or encumbrance may be perfected under paragraph (b) ofsubdivision (2) or subdivision (3) of this subsection in the same manner asprovided in subsection 3 of this section or by the lienholder delivering tothe director of** revenue a notice of lien or encumbrance in the form thedirector prescribes and the required fee.
5. By rules and regulations, the director of revenue shall establisha security procedure for the purpose of verifying that an electronic noticeof lien or notice of satisfaction of lien on a manufactured home given aspermitted in this chapter is that of the lienholder, verifying that anelectronic notice of confirmation of ownership and perfection of a liengiven as required in this chapter is that of the director of revenue, anddetecting error in the transmission or the content of such notice. Asecurity procedure may require the use of algorithms or other codes,identifying words or numbers, encryption, callback procedures or similarsecurity devices. Comparison of a signature on a communication with anauthorized specimen signature shall not by itself be a security procedure.
6. All transactions involving liens or encumbrances on manufacturedhomes perfected pursuant to sections 700.350 to 700.390 after June 30,2001, and before August 28, 2002, and the rights, duties, and interestsflowing from them are and shall remain valid thereafter and may beterminated, completed, consummated, or enforced as required or permitted bysection 400.9-303, RSMo, or this section. Section 400.9-303, RSMo, andthis section are remedial in nature and shall be given that construction.
7. The repeal and reenactment of subsections 3 and 4 of this sectionshall become effective July 1, 2003.
(L. 1985 S.B. 152 § 700.150, A.L. 1989 H.B. 211, A.L. 2002 H.B. 2008 merged with S.B. 895)*Subsections 3 and 4 became effective 7-01-03. Consult § 700.350, subsections 3 and 4, of main volume 15 for text prior to 7-01-03.
**Word "or" appears in original rolls.