| Perfection
|| Possession and Sale || New Title
and Plates || Other Issues
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| LAWDOG™ New Hampshire
Repossession |
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| CHAPTER
261 Certificates of Title and Registration of Vehicles |
| Perfection of Security Interests
Unless excepted by RSA 261:23, a security interest in a vehicle of a type for
which a certificate of title is required is not valid against creditors of the owner or
subsequent transferees or lienholders of the vehicle unless perfected by delivery to the
department of existing certificate of title, if any, an application for a certificate of
title containing name and address of lienholder and date of his security agreement and
required fee. It is perfected as of the time of its creation if delivery is completed
within 20 days after creation. If not, it is perfected as of time of delivery to
department. See New Hampshire Revised Statutes Section 261:24 Perfecting of Security
Interest. |
| Documents To Lienholder, Then To Department
In creation of a security interest, the owner must immediately execute the
application, on certificate of title or on approved form, to name lienholder on
certificate, showing name and address of lienholder, date of security agreement, and cause
the certificate, application and required fee to be delivered to lienholder. The
lienholder must immediately cause certificate, application and required fee to be mailed
or delivered to the department. See New Hampshire Revised Statutes Section 261:25 Duties on Creation of
Security Interest. |
| Lienholder With Possession Must Make
Certificate Available Upon request of owner or subordinate lienholder, a
lienholder in possession of certificate of title must either mail or deliver certificate
to the subordinate lienholder for delivery to the department or, upon receipt from
subordinate lienholder of the application and required fee, mail or deliver them to the
department with the certificate. The delivery of the certificate does not affect rights of
the first lienholder under security agreement. See New Hampshire Revised Statutes Section
261:25 |
| Deparment Notes Lien and Returns To First
Lienholder Upon receipt of the certificate of title, the application and
the required fee, the department shall either endorse the certificate or issue a new
certificate containing the name and address of the new lienholder, and mail the
certificate to the first lienholder named in it.See New Hampshire Revised Statutes Section
261:25 |
| Notation on Certificate of Title
The filing of a financing statement otherwise required by this Article is not
necessary or effective to perfect a security interest in property subject to RSA 269-A,
the uniform motor vehicle certificate of title and anti-theft act. However, during any
period in which collateral is inventory held for sale by a dealer in the business of
selling vehicles, the filing provisions of the Uniform Commercial Code apply to a security
interest in that collateral created by him as debtor. See New Hampshire Revised Statutes
382-A:9-302 When
Filing Is Required to Perfect Security Interest; Security Interests to Which Filing
Provisions of This Article Do Not Apply |
Exclusive Method of Perfecting
Interest The method provided in this chapter of perfecting and giving notice of
security interests subject to this chapter is exclusive. Security interests subject to
this chapter are hereby exempted from the provisions of law which otherwise require or
relate to the filing of instruments creating or evidencing security interests. See New
Hampshire Revised Statutes Section 261-29 Method
of Perfecting Interest Exclusive. |
| Vehicles Brought Into New Hampshire With
Liens If a vehicle is subject to a security interest when brought into
this state, the validity of the security interest is determined by law of the jurisdiction
where the vehicle was when the security interest attached, subject to specific rules
contained in New Hampshire Revised Statutes Section 261:29 |
TITLE 34A
Uniform Commercial Code |
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| Possession After Default Without
Breach of Peace Unless otherwise agreed, secured party has on default the
right to take possession of the collateral. In taking possession secured party may proceed
without judicial process if this can be done without breach of the peace. If not, a legal
action may proceed. See New Hampshire Revised Statutes 382-A:9-503 Secured
Party's Right to Take Possession After Default. |
| Right to Redeem At any time
before 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, the 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, arranging for sale, and to extent provided in agreement and
not prohibited by law, reasonable attorneys' fees and legal expenses. See New Hampshire
Revised Statutes Section 382-A:9-506 Debtor's
Right to Redeem Collateral. |
| Compulsory Sale If debtor has paid 60
percent of the cash price in case of a purchase money security interest in consumer goods
or 60 percent of the loan in case of another security interest in consumer goods, and has
not signed after default a statement renouncing or modifying rights under this Part, a
secured party who has taken possession of collateral must dispose of it under Section
9-504. If secured party fails to do so within 90 days after taking possession, debtor may
recover in conversion or under Section 9-507(1) on secured party's liability. See New
Hampshire Revised Statutes Section 382-A: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 and, except in the case of consumer
goods, to any other secured party who has a security interest in the collateral and who
has duly filed a financing statement indexed in name of debtor in New Hampshire, or is
known by secured party in possession to have a security interest in it. If the debtor or
other person entitled to receive notice objects in writing within 30 days from receipt of
notice, or if any other secured party objects in writing within 30 days after secured
party obtains possession, 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. See New Hampshire Revised Statutes Section
382-A: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 commercially reasonable preparation or
processing. Any sale of goods is subject to the UCC Article 2 on Sales. The proceeds of
sale must be applied in the order following to reasonable expenses of retaking, holding,
preparing for sale, selling 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 then applied to satisfaction of debt secured by security interest
under which the sale is made. See New Hampshire Revised Statutes 382-A:9-504. |
| Subordinate Liens If any
proceeds remain, they would next apply to satisfaction of debt secured by any subordinate
security interest in collateral if written notice of demand is received before
distribution of proceeds is completed. If requested by secured party, the holder of a
subordinate security interest must seasonably furnish reasonable proof of interest, and
unless he does so, secured party need not comply with his demand. See New Hampshire
Revised Statutes Section 382-A: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. See New
Hampshire Revised Statutes Section 382-A:9-504 |
| Public or Private After Notice Disposition
of 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 time and place of any public sale or time
after which any private sale disposition is to be made must be sent by secured party to
debtor, and except in the case of consumer goods, to any other person who has a security
interest in collateral and who has duly filed a financing statement indexed in name of
debtor in this state or who is known by secured party to have a security interest in
collateral. See New Hampshire Revised Statutes Section 382-A:9-504 |
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Involuntary Transfer If
the interest of an owner in a vehicle passes to another other than by voluntary transfer,
transferee must, except as provided for resale below, promptly mail or deliver to the
department the last certificate of title, if available, proof of transfer, and application
for a new certificate on approved form. See New Hampshire Revised Statutes Section 261:16. |
| Seller Under Security Agreement
May Hold For Resale If the interest of owner
is terminated or vehicle is sold under a security agreement by a lienholder named in the
certificate of title, transferee must promptly mail or deliver to the department the last
certificate of title, application for a new certificate on approved form, and an affidavit
made by or on behalf of lienholder that vehicle was repossessed and that the interest of
owner was lawfully terminated or sold pursuant to terms of security agreement. If
lienholder succeeds to the interest of owner and holds vehicle for resale, he need not
secure a new certificate of title. However, upon transfer to another person, lienholder
must promptly mail or deliver to transferee or to the department certificate, affidavit
and other documents required to be sent to the director by transferee. See New Hampshire
Revised Statutes Section
261:16 |
| Issued and Old Certificate Demanded From
Holder The department, upon receipt of an application for a new
certificate of title by a transferee by involuntary transfer, with proof of transfer,
required fee and any other documents required by law, issues a new certificate of title in
name of transferee as owner. If the outstanding certificate of title is not delivered to
it, the department makes demand therefor from the holder thereof. See New Hampshire
Revised Statutes 261-21 Issuance
of New Certificate. |
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