CHAPTER 376

FORMERLY

SENATE BILL NO. 317

AS AMENDED BY SENATE AMENDMENT NO. 1

AN ACT TO AMEND TITLE 21, OF THE DELAWARE CODE RELATING TO LIENS ON MOTOR VEHICLES.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE.

Section 1. Amend Section 2331, Title 21 of the Delaware Code by striking subsections (a) and (b) in their entirety and replacing them with: "Every application for a certificate of title shall contain a section where the applicant must disclose any and all liens on the vehicle to be titled."

Section 2. Amend Section 2335(a), Title 21 of the Delaware Code by striking the second sentence in its entirety and replacing that sentence with: "The application shall be made upon the appropriate form furnished and approved by the Department."

Section 3. Amend Section 2337, Title 21 of the Delaware Code by striking that section in its entirety and replacing it with: "Liens or encumbrances on a motor vehicle properly set out in the application for a certificate of title, whereby any such liens or encumbrances are sought to be secured on a motor vehicle, shall for all purposes be valid from the date of the issuance of the certificate of title. If there is more than one such lien on any one motor vehicle, then such liens shall have priority according to the dates of the application as evidence of such claims. Such liens and encumbrances entered upon the certificate of title and recorded in the lien register shall he notice to all creditors of whatever description that such liens or encumbrances exist against the motor vehicle."

Approved July 7, 1998