Titled Vehicles: Not as Simple as You Might Think
By: Frank Peretore, Esq., Peretore & Peretore, P.C.
With regard to preparing filings for titled vehicles, secured creditors may be under a misconception that Article 9 is relatively straight forward. In this most informative article, Frank Peretore, Esq. a LEAN attorney from Peretore & Peretore in Sparta NJ warns that such is not the case. As with all instances concerning Article 9, nothing is ever really simple.
Vehicles Held as Inventory
Yes, with titled vehicles one generally perfects a lien by simply noting the lien on the certificate of title 1. Listing the secured party on the title as the owner, as opposed to as lienholder, is also generally adequate to perfect a lien under Article 9 of the U.C.C. 2. It is not, however, always as simple as record your lien on the title and put it in the file. If the vehicle is inventory in the hands of the debtor, placing a lien on the title will not properly perfect a lien. Where the vehicle is inventory perfection must be in accordance with the inventory requirements of Article 9, including advance notice and advance filing (no 20 day grace period).