Sec. 1. (a) Except as provided in subsection (b), a person having physical possession of a certificate of title for a vehicle because the person has a lien or an encumbrance on the vehicle must:

(1) note the discharge on the certificate of title over the signature of the holder of the lien or encumbrance; and

Terms Used In Indiana Code 9-17-5-1

  • Attorney: includes a counselor or other person authorized to appear and represent a party in an action or special proceeding. See Indiana Code 1-1-4-5
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Power of attorney: A written instrument which authorizes one person to act as another's agent or attorney. The power of attorney may be for a definite, specific act, or it may be general in nature. The terms of the written power of attorney may specify when it will expire. If not, the power of attorney usually expires when the person granting it dies. Source: OCC
(2) deliver not more than ten (10) business days after receipt of the final payment for the satisfaction or discharge of the lien or encumbrance indicated upon the certificate of title to the person that:

(A) is listed on the certificate of title as owner of the vehicle; or

(B) is acting as an agent of the owner and that holds power of attorney for the owner of the vehicle.

     (b) A person having a lien or encumbrance on a vehicle for which the certificate of title is electronically recorded shall electronically release the lien or encumbrance not more than ten (10) days after the receipt of the final payment for the satisfaction or discharge of the lien or encumbrance. The electronic lien or encumbrance release referenced in this subsection constitutes notice to the bureau that the lien or encumbrance has been satisfied or discharged.

     (c) A person having a lien or encumbrance on a vehicle for which the certificate of title is electronically recorded shall notify the person:

(1) who is listed on the certificate of title as owner of the vehicle; or

(2) who:

(A) is acting as an agent of the owner; and

(B) holds power of attorney for the owner of the vehicle;

of the release of the lien or encumbrance not more than ten (10) business days after receipt of the final payment for the satisfaction or discharge of the lien or encumbrance.

     (d) A notice under subsection (c) must include:

(1) the date the satisfaction or discharge of the lien or encumbrance occurred; and

(2) the name and address of the person:

(A) who is listed on the certificate of title as owner of the vehicle; or

(B) who:

(i) is acting as an agent of the owner; and

(ii) holds power of attorney for the owner of the vehicle.

     (e) When the bureau receives notice under subsection (b), the bureau shall remove the record of the lien or encumbrance from the certificate of title.

     (f) A person that:

(1) fails to remove a lien or encumbrance under subsection (b);

(2) fails to notify the owner of a vehicle or the owner’s agent under subsection (c); or

(3) fails to deliver a certificate of title to the owner of a vehicle as required under subsection (a);

commits a Class C infraction.

[Pre-1991 Recodification Citation: 9-1-3.5-1 part.]

As added by P.L.2-1991, SEC.5. Amended by P.L.268-2003, SEC.16; P.L.188-2015, SEC.12; P.L.198-2016, SEC.239; P.L.27-2018, SEC.12.

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