Satisfaction of security interest - 75 Pa. Cons. Stat. § 1135

Legal Research Home > Pennsylvania Statutes

     § 1135.  Satisfaction of security interest.
        (a)  Absence of subsequent liens.--Where there are no
     subsequent liens upon a vehicle, the following rules apply upon
     the satisfaction of a security interest in the vehicle:
            (1)  The outstanding certificate of title shall be mailed
        or delivered immediately to the owner of the vehicle with
        proper evidence of satisfaction and release or the lienholder
        may apply for corrected title to be issued in the name of the
        owner.
            (2)  The owner may mail or deliver the certificate of
        title with proper evidence of satisfaction of the security
        interest to the department which shall issue a corrected
        certificate of title without a statement of liens or
        encumbrances. The corrected certificate of title may also be
        issued when the outstanding certificate of title cannot be
        returned and proper evidence is produced that all recorded
        security interests have been satisfied.
        (b)  Prior or subsequent liens.--Where there are subsequent
     liens upon a vehicle or the lien to be released is not a first
     lien, the following rules apply upon the satisfaction of a
     security interest in the vehicle:
            (1)  If the lienholder whose security interest is
        satisfied has possession of the certificate of title, the
        lienholder shall mail or deliver the certificate of title,
        immediately upon satisfaction, to the department with proper
        evidence of satisfaction and release of the security
        interest. A corrected certificate of title, containing a
        statement of the remaining security interests on record,
        shall be mailed by the department to the person holding the
        next lien upon the vehicle.
            (2)  Upon the satisfaction of a security interest in a
        vehicle for which the certificate of title is in the
        possession of a prior lienholder, the lienholder whose
        security interest is satisfied shall, immediately upon
        satisfaction, mail or deliver to the owner proper evidence of
        the satisfaction and release of the security interest. Upon
        request of the owner and receipt of the release, the
        lienholder in possession of the certificate of title shall
        mail or deliver the certificate of title together with the
        release to the department. The department shall issue a
        corrected certificate of title which shall be mailed to the
        first lienholder.
        (c)  Penalties.--
            (1)  Any person failing to deliver upon demand a
        satisfied certificate of title as required by subsection
        (a)(1) is guilty of a summary offense and shall, upon
        conviction, for a first offense be sentenced to pay a fine of
        $50 and for a subsequent offense be sentenced to pay a fine
        of $100.
            (2)  Any person failing to return to the department a
        certificate of title where there are other liens, for
        correction and delivery, as required by subsection (b) is
        guilty of a summary offense and shall, upon conviction, be
        sentenced to pay a fine of $100.
            (3)  No person shall be deemed guilty of a violation of
        this section if the person delivers the certificate of title
        to the department within five days of the satisfaction of the
        lien.
     (June 8, 2001, P.L.123, No.18, eff. July 1, 2001)

        2001 Amendment.  Act 18 amended subsec. (a)(2).
        Cross References.  Section 1135 is referred to in section
     7508 of this title.

Last modified: November 27, 2007