| Perfection
|| Possession and Sale || New Title
and Plates || Other Issues
|| Kelley Blue Book | |
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| LAWDOG™ Maine Repossession |
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| Validity and Perfection
A security interest in a vehicle for which a certificate of title is issued is not
valid against creditors of the owner or subsequent transferees or lienholders unless
perfected as provided in this subchapter. 29A Section 702 |
| Method of Perfection
A security interest is perfected by delivery to the Secretary of State of the
certificate of origin or existing certificate of title or certificate of salvage,
application for a certificate of title containing name and address of lienholder, date of
the security agreement, and required fee. 29A Section 702 |
| When Perfected
A security interest is perfected as of the date of its creation if delivery is completed
within 20 days after its creation. Otherwise, a security interest is perfected as of time
of the actual delivery to Secretary of State. 29A Section 702 |
| Liens When Vehicle Brought
into State If a vehicle is subject to a security interest when brought
into this State, the validity of the security interest is determined by the law of the
jurisdiction in which the vehicle was located when the security interest attached, subject
to each of the rules contained in 29A Section 702 |
| Assignment of Security
Interest A lienholder may assign a security interest to a person other
than the owner without affecting the interest of the owner or the validity of the security
interest. A person without notice of an assignment is protected in dealing with the
lienholder as the holder of the security interest. 29A Section 704 |
| Optional New Certificate The
lienholder remains liable for an obligation as lienholder until the assignee is named as
lienholder on the certificate of title or certificate of salvage. The assignee may, but
need not to perfect the assignment, have a certificate of title or certificate of salvage
issued with assignee named as lienholder, upon delivering to the Secretary of State the
certificate and an assignment by lienholder named in the certificate in form the Secretary
of State prescribes, together with application and required fee. 29A Section 704 |
| Lienholder Must Furnish
Information When Requested Upon request of owner, another lienholder named
on certificate of title or certificate of salvage, or a dealer to which vehicle has been
transferred, a lienholder must disclose pertinent information as to security agreement,
the debt secured by agreement and certificate of title or certificate of salvage numbers.
29A Section 706 |
| This Security Interest
Perfection Method Is Exclusive This subchapter describes the exclusive
method for perfecting and giving notice of security interests subject to this subchapter.
These security interests are exempt from other provisions of law concerning the filing of
instruments creating or evidencing security interests. 29A Section 707 |
| Security Agreement
"Security agreement" means a written agreement that reserves or creates a
security interest. Security interest. "Security interest" means an interest in a
vehicle reserved or created by agreement and that secures payment or performance of an
obligation, including, but not limited to, the interest of a lessor under a lease intended
as security.See Definitions 29A Section 602 |
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| Possession After Default
Unless otherwise agreed, a secured party has on default the right to take
possession of the collateral. In taking possession a secured party may proceed without
judicial process, if this can be done without breach of the peace, or may proceed by
action. Title 11 Section 9-503 |
| Right to Redeem
At any time before the secured party has disposed of collateral or entered into a contract
for its disposition under section 9-504 or before discharge under section 9-505, debtor or
any other secured party, may unless otherwise agreed in writing after default, redeem the
collateral by tendering fulfillment of all obligations secured by the collateral, expenses
reasonably incurred by secured party in retaking, holding and preparing the collateral for
disposition, in arranging for sale, and to extent provided in agreement and not prohibited
by law, reasonable attorneys' fees and legal expenses. Title 11 Section 9-506 |
| Compulsory Sale
If the debtor has paid 60% of the cash price in the case of a purchase money security
interest in consumer goods or 60% of the loan in the case of another security interest in
consumer goods, and has not signed after default a statement renouncing or modifying his
rights under this part a secured party who has taken possession of collateral must dispose
of it under section 9-504 and, if he fails to do so within 90 days after he takes
possession, the debtor at his option may recover in conversion or under section 9-507,
subsection (1) on secured party's liability. Title 11 Section 9-505 |
| Acceptance As Satisfaction
In any other case involving consumer goods or any other collateral, a secured party in
possession may, after default, propose to retain the collateral in satisfaction of the
obligation. Written notice of the proposal must be sent to debtor if debtor has not signed
after default, a statement renouncing or modifying rights. In case of consumer goods, no
other notice need be given. In other cases, notice must be sent to any other secured party
from whom secured party has received, before sending notice to debtor or before
renunciation of rights, written notice of a claim of interest in the collateral. If
secured party receives objection in writing from a person entitled to receive notification
within 21 days after notice sent, secured party must dispose of the collateral by sale
under section 9-504. In the absence of such written objection, secured party may retain
the collateral in satisfaction of the obligation. Title 11 Section 9-505 |
| Sale and application of
Proceeds A secured party after default may sell, lease or otherwise
dispose of any or all of the collateral in its then condition or following any
commercially reasonable preparation or processing. Any sale of goods is subject to the
Article on sales (Article 2). The proceeds of disposition must be applied in the order
following to reasonable expenses of retaking, holding, preparing for sale or lease,
selling, leasing and the like and, to extent provided for in agreement and not prohibited
by law, reasonable attorneys' fees and legal expenses incurred by secured party. Proceeds
are next applied to satisfaction of debt secured by the security interest under which the
sale is made. Title 11 Section 9-504 |
| Subordinate Interests If
proceeds remain, they would next apply to satisfaction of debt secured by any subordinate
security interest in the collateral, if written notice of demand is received before
distribution of proceeds is completed. If requested by secured party, holder of a
subordinate security interest must seasonably furnish reasonable proof of interest, and
unless he does so, secured party need not comply with demand. Title 11 Section 9-504 |
| Accounting and Deficiency
If the security interest secures debt, secured party must account to debtor for any
surplus, and unless otherwise agreed, debtor is liable for any deficiency. But, if the
underlying transaction was a sale of accounts, or chattel paper, debtor is entitled to any
surplus or is liable for any deficiency only if the security agreement so provides. Title
11 Section 9-504 |
| Public or Private Sale After Notice
Disposition of the collateral may be by public or private proceedings and may be at any
time and place and on any terms but every aspect of disposition including method, manner,
time, place and terms must be commercially reasonable. Unless collateral is perishable or
threatens to decline speedily in value, reasonable notice of the time and place of
any public sale, or the time after which any private sale is to be made must be sent by
secured party to debtor if, except in the case of consumer goods, he has not signed after
default a statement renouncing or modifying right to notice of sale. In the case of
consumer goods, no other notification need be sent. In other cases, notice must be sent to
any other secured party from whom secured party has received, before sending notice to
debtor or before renunciation of his rights, written notice of claim of interest in the
collateral. The secured party may buy at any public sale and, if the collateral is of a
type customarily sold in a recognized market or is of a type which is the subject of
widely distributed standard price quotations, he may buy at private sale. Title 11 Section
9-504 |
| Repossession Without Entry or
Breach of Peace A debt collector, acting on behalf of a creditor, may take
possession of collateral only if possession can be taken without entry into a dwelling,
unless that entry has been authorized after default, and without the use of force or other
breach of the peace. 32 Maine Revised Statutes 11017 |
| Inventory and Return Private
Property A debt collector must inventory any unsecured property taken with
repossessed collateral and immediately notify the consumer that the property will be made
available in a manner convenient to the consumer. 32 Maine Revised Statutes 11017 |
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| Involuntary Transfer If
the interest of an owner in a vehicle passes to another, other than by voluntary transfer,
owner must immediately surrender the certificate of title or certificate of salvage to
transferee or the Secretary of State. Except as otherwise provided in this section,
transferee must promptly deliver to the Secretary of State the last certificate, if
available, proof of transfer and an application for a new certificate. 29A Section 665 |
| Interest Terminated by
Lienholder If the interest of owner is terminated or vehicle is sold under
a security agreement by a lienholder named in the certificate of title or salvage, the
provisions apply. If owner has the certificate of title or certificate of salvage, the
owner must immediately surrender the certificate to lienholder or the Secretary of State.
29A Section 665 |
| Affidavit on Behalf of
Lienholder, Certificate of Lien The transferee shall promptly deliver to
the Secretary of State the last certificate of title or certificate of salvage,
application for a new certificate and an affidavit made on behalf of lienholder that
vehicle was repossessed, and the interest of owner was lawfully terminated or sold
pursuant to terms of security agreement. If the last certificate of title or
certificate of salvage is not available, the lienholder may execute an assignment in the
space provided on the certificate of lien. 29A Section 665 |
| Lienholder May Hold For Resale
If the lienholder holds the vehicle for resale, lienholder need not apply for a new
certificate. Upon transfer to another person, lienholder must promptly mail or deliver to
transferee or to the Secretary of State the certificate showing the lien to be released,
the affidavit, and other documents required to be sent to the Secretary of State by
transferee. 29A Section 665 |
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LAWDOG.COM Publishing, Inc. |
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