TITLE 21

Motor Vehicles

Registration, Title and Licenses

CHAPTER 23. TITLE AND LIENS

Subchapter II. Liens


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.

Code 1915, § 254K; 32 Del. Laws, c. 8; 34 Del. Laws, c. 17; 35 Del. Laws, c. 9; 36 Del. Laws, c. 10, § 35; 38 Del. Laws, c. 28, § 1; 40 Del. Laws, c. 32; Code 1935, § 5573; 21 Del. C. 1953, § 2331; 67 Del. Laws, c. 87, § 1; 71 Del. Laws, c. 376, § 1.;

Each certificate of title shall contain a statement of the owner's title and of the liens and encumbrances upon the vehicle therein described as noted in the application and whether possession is held by the owner under a lease, contract of conditional sale or other like agreement.

36 Del. Laws, c. 10, § 10; Code 1935, § 5548; 43 Del. Laws, c. 244, § 5; 21 Del. C. 1953, § 2332.;

In accordance with § 9-311(a)(2) of Title 6 (Uniform Commercial Code), where a lien is required to be filed and noted on a certificate of title pursuant to this title, no additional filing shall be required under Article 9 of Subtitle I of Title 6 (Uniform Commercial Code).

21 Del. C. 1953, § 2332A; 56 Del. Laws, c. 15, § 1.;

This title does not apply to the creation or perfection of a security interest in a motor vehicle held by the debtor as inventory held for sale. The validity and effect of such security interest shall be governed by Article 9 of Subtitle I of Title 6 (Uniform Commercial Code).

21 Del. C. 1953, § 2332B; 56 Del. Laws, c. 15, § 2.;

(a) In the event that any claim of any kind is sought to be secured upon any motor vehicle for which a certificate of title has been previously issued by the Department, and the certificate remains outstanding and valid and no assignment of the certificate has been made or sought to be made and no transfer of title or ownership or possession of the motor vehicle is made or sought to be made, the certificate of title shall be returned to the Department together with the application for placing and recording of such claim as a lien or encumbrance upon the motor vehicle. The application shall be made upon the appropriate form furnished and approved by the Department. Every application shall be accompanied by a fee of $10, which shall be in addition to any other fees required by this title. Upon the filing of the application and the entering of the claim, the certificate of title shall be returned to the person entitled to receive it.

(b) No claim of any kind shall be entered upon the certificate of title for any motor vehicle until the applicant has fully complied with all the provisions of this subchapter, insofar as such provisions may be applicable thereto.

Code 1915, § 254K; 32 Del. Laws, c. 8; 34 Del. Laws, c. 17; 35 Del. Laws, c. 9; 36 Del. Laws, c. 10, § 36; 38 Del. Laws, c. 28, §§ 1, 2; 40 Del. Laws, c. 32; Code 1935, §§ 5573, 5574; 21 Del. C. 1953, § 2333; 53 Del. Laws, c. 221, § 13; 68 Del. Laws, c. 156, § 60(c); 71 Del. Laws, c. 376, § 2.;

The Director shall keep a record of liens or encumbrances upon motor vehicles for a period of 8 years from the date of entering such lien or encumbrance on any certificate of title. For making entry on liens or encumbrances in the aforementioned record, the Director shall charge a fee of $10 which shall be paid by the applicant at the time of entering such lien or encumbrance on the certificate of title.

Code 1915, § 254K; 32 Del. Laws, c. 8; 34 Del. Laws, c. 17; 35 Del. Laws, c. 9; 37 Del. Laws, c. 11, § 3; 38 Del. Laws, c. 28, § 1; 40 Del. Laws, c. 32; Code 1935, § 5573; 21 Del. C. 1953, § 2334; 50 Del. Laws, c. 210, § 1; 53 Del. Laws, c. 221, § 14; 57 Del. Laws, c. 670, § 9A; 58 Del. Laws, c. 174; 61 Del. Laws, c. 110, § 1; 67 Del. Laws, c. 260, § 1; 68 Del. Laws, c. 156, § 60(d).;

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 be notice to all creditors of whatever description that such liens or encumbrances exist against the motor vehicle.

36 Del. Laws, c. 10, § 36; 38 Del. Laws, c. 28, § 2; Code 1935, § 5574; 47 Del. Laws, c. 391; 21 Del. C. 1953, § 2335; 71 Del. Laws, c. 376, § 3.;

Any lien recorded in favor of a firm or corporation which, since the recording of such lien, has dissolved, ceased to do business or gone out of business for any reason, and which remains of record as a lien of such firm or corporation for a period of more than 3 years from the date of the recording thereof shall become null and void and of no further force and effect.

Code 1915, § 254K; 32 Del. Laws, c. 8; 34 Del. Laws, c. 17; 35 Del. Laws, c. 9, § 1; 40 Del. Laws, c. 32; Code 1935, § 5573; 21 Del. C. 1953, § 2336.;

Within 30 days from the date of final payment being made on any lien or encumbrance recorded under this subchapter, the certificate of title shall be signed accordingly in the manner prescribed by the Department. Upon the certificate of title being presented to the Department, the lien register shall be amended to reflect that the lien or encumbrance has been satisfied and the certificate of title shall be marked or stamped satisfied.

Code 1915, § 254K; 32 Del. Laws, c. 8; 34 Del. Laws, c. 17; 35 Del. Laws, c. 9; 37 Del. Laws, c. 11, § 3; 38 Del. Laws, c. 28, § 1; 40 Del. Laws, c. 32; Code 1935, § 5573; 21 Del. C. 1953, § 2337; 53 Del. Laws, c. 221, § 15; 57 Del. Laws, c. 670, § 9A; 61 Del. Laws, c. 110, § 2; 65 Del. Laws, c. 327, § 1.;

For failure to satisfy any lien or encumbrance within 30 days after final payment has been made, the lien holder shall be fined not less than $25 nor more than $100. Proceedings for enforcement of these provisions shall be made by the Secretary of Transportation in the office of any justice of the peace in the State. Should any lien holder fail, refuse or neglect to satisfy any lien or encumbrance within 60 days after final payment thereon has been made, the Secretary, after due and timely notice given to the lien holder, may, upon the presentation of convincing evidence which the Secretary shall retain in the Secretary's office and file with the lien registrar, satisfy such lien or encumbrance recorded in the lien register.

Code 1915, § 254K; 32 Del. Laws, c. 8; 34 Del. Laws, c. 17; 35 Del. Laws, c. 9; 38 Del. Laws, c. 28, § 1; 40 Del. Laws, c. 32; Code 1935, § 5573; 41 Del. Laws, c. 220; 21 Del. C. 1953, § 2338; 57 Del. Laws, c. 670, §§ 9A, 9B; 65 Del. Laws, c. 503, § 10; 70 Del. Laws, c. 186, § 1; 74 Del. Laws, c. 110, § 47.;

Any person, association of persons, firm or corporation and every agent or officer thereof participating in the transaction, who shall assign, transfer or set over, or cause to be assigned, transferred or set over, to any person, association of persons, firm or corporation the title to any motor vehicle for which a certificate of title is required by this title or who shall sell to any such person, association of persons, firm or corporation a motor vehicle for which a certificate of title is required by this title, shall disclose to such assignee, transferee or purchaser the existence of all existing liens and encumbrances in any form upon such motor vehicle, the holder or holders of such liens or encumbrances and the true amount thereof with all charges and interest due in respect thereof at the time of such assignment, transfer or sale.

Code 1935, § 5575A; 43 Del. Laws, c. 244, § 18; 21 Del. C. 1953, § 2339.;

In the case of motor vehicles or trailers, notwithstanding any other provision of law, a transaction does not create a sale or security interest merely because it provides that the rental price is permitted or required to be adjusted under the agreement either upward or downward by reference to the amount realized upon sale or other disposition of the motor vehicle or trailer.

70 Del. Laws, c. 433, § 1.;