I. If the security interest of a lienholder named in a notice of security interest filed by the department is satisfied, the lienholder shall, within 10 days after demand execute a release of the security interest in the form the director prescribes and mail or deliver the release to the department and the lienholder shall return the certificate to the payor within 10 days of receipt of satisfaction.
II. Upon receipt of the release of security interest the department shall file the release and note it upon the record of notices of security interests maintained by the department pursuant to N.H. Rev. Stat. § 261:36.