| Perfection
|| Possession and Sale || New Title
and Plates || Other Issues
|| Kelley Blue Book | |
|
| LAWDOG™ Rhode Island Repossession |
|
|
|
|
| Certificate of Title Required With
limited exceptions, every owner of a vehicle in this state and for which no Rhode Island
certificate of title has been issued, must make application to the division of motor
vehicles for a certificate of title to vehicle. The registry of motor vehicles will not
register or renew registration of a vehicle unless certificate of title has been issued by
division to owner, or an application has been delivered by owner to the division. See
Rhode Island Code Section 31-3.1-1 |
| Perfection of Security Interests With
limited exceptions listed in section 31-3.1-18, a security interest in a vehicle for
which a certificate of title is required, is not valid against creditors of owner or
subsequent transferees or lienholders of vehicle unless perfected as provided in this
chapter. See Rhode Island Code Section 31-3.1-19 |
| When Perfected A security
interest is perfected by delivery to the registry of motor vehicles of existing
certificate of title, if any, an application for a certificate of title containing name
and address of lienholder, and date of security agreement, and may also be perfected by
execution of a security lien statement and required fee of twenty-five dollars ($25.00)
and registration card. The security interest, as set forth in application and security
lien statement, is perfected as of the time of creation if the delivery is completed
within twenty (20) days after creation. Otherwise, it is perfected as of the time of
delivery to division. See Rhode Island Code Section 31-3.1-19 |
| Out of State Vehicles If a
vehicle is subject to the security interest when brought into Rhode Island, the validity
of the security interest is determined under the rules set forth in section 31-3.1-19 |
|
|
|
|
| Possession Following Default by Debtor Unless
otherwise agreed, a secured party has, on default, the right to take possession of
collateral. In taking possession, secured party may proceed without judicial process only
if this can be done without breach of the peace. If not, a legal action may proceed.
However, in repossession of any motor vehicle without knowledge of the retail buyer, the local police department must be notified of such repossession within one hour after obtaining such possession. Where there is no
local police department, or when the local police department cannot be reached for
notification, the state police must be promptly notified of such repossession. See Rhode
Island Code Section 6A-9-503 |
| Right to Redeem At
any time before secured party has disposed of collateral or entered into a contract for
its disposition under section 6A-9-504, or before discharge under section 6A-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 as well as the expenses reasonably incurred by the secured party in retaking,
holding, and preparing collateral for disposition, in arranging for sale, and to extent
provided in agreement and not prohibited by law, reasonable attorneys' fees and legal
expenses. See Rhode Island Code Section 6A-9-506 |
| Compulsory Sale If debtor
has paid sixty percent (60%) of the cash price in case of a purchase money security
interest in consumer goods, or sixty percent (60%) 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 must dispose of
collateral by sale under section 6A-9-504. If this sale is not conducted within ninety
(90) days after taking possession, the debtor may recover damages on the secured party's
liability. See Rhode Island Code Section 6A-9-505 |
| Acceptance as Discharge In
cases other than those involving 60% consumer goods rule, a secured party in possession
may, after default, propose to retain the collateral in satisfaction of the obligation.
Written notice of proposal must be sent to debtor if debtor has not signed, after default,
a statement renouncing or modifying rights. In the case of consumer goods, no other notice
need be given. In others, notice must be sent to any other secured party from whom secured
party has received, before sending notice to debtor or before renunciation, written notice
of a claim of an interest in the collateral. If the secured party receives objection in
writing, from a person entitled to receive notice, within twenty-one (21) days after
notice sent, secured party must dispose of the collateral by sale under section 6A-9-504.
If no written objection received, secured party may retain the collateral in satisfaction
of the obligation. See Rhode Island Code Section 6A-9-505 |
| Sale and Application of Proceeds of Sale
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 chapter on sales (chapter 2
of this title). The proceeds of disposition are 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 attorney's fees and legal expenses incurred. Proceeds are then applied to
satisfaction of debt secured by security interest under which the sale is made. See Rhode
Island Code Section 6A-9-504 |
| Subordinate Lienholder
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 the secured party
conducting sale, the holder of subordinate security interest must seasonably furnish
reasonable proof of interest, and unless he or she does so, secured party need not comply
with demand. See Rhode Island Code Section 6A-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 Rhode
Island Code Section 6A-9-504 |
| Public or Private Sale After Reasonable
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 the
disposition including method, manner, time, place, and terms must be commercially
reasonable. Unless collateral is perishable, reasonable notice of time and place of any
public sale, or time after which any private sale is to be made, must be sent by secured
party to debtor, if debtor 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. |
| Notice To Some Junior Liens
In non-consumer goods 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 claim of interest in the collateral. See Rhode Island Code
Section 6A-9-504 |
| Rights Transferred By Sale
When collateral is disposed of by a secured party after default, the disposition generally
transfers to a good faith purchaser for value all of debtor's rights therein, and
discharges the security interest under which the sale is made, and any subordinate liens.
See Rhode Island Code Section 6A-9-504 |
| Guarantors and Other Liable Parties Take
Over A person who is liable to a secured party under a guaranty,
indorsement, repurchase agreement, or the like and who receives a transfer of collateral
from the secured party, or is subrogated to his or her rights, thereafter has the rights
and duties of the secured party. Such a transfer of collateral is not considered a sale or
disposition of the collateral under this chapter. See Rhode Island Code Section 6A-9-504 |
|
|
|
|
|
| License Plates and Repossessed Vehicle
In the repossession of a motor vehicle under a rental agreement, lease, contract of
conditional sale, or other title retention agreement, or if title becomes vested in the
holder of a lien, mortgage, or encumbrance upon a motor vehicle, the person repossessing
or so obtaining title may apply to the registry for and obtain bailee registration plates,
and may operate vehicle under those special plates only for purposes of transporting
vehicle to a garage or warehouse, or for purposes of demonstrating or selling the same.
Anyone repossessing such a vehicle must return registration plates found on the vehicle,
and registration card, if available, to the registry of motor vehicles within five (5)
days thereof. See Rhode Island Code Section 31-4-7 |
| Involuntary Transfer If the
interest of an owner in a vehicle passes to another other than by voluntary transfer, the
transferee must promptly mail or deliver to the registry of motor vehicles the last
certificate of title, if available, proof of the transfer, and application for new
certificate on approved form. If the interest of the owner is terminated or the vehicle is
sold under a security agreement by a lienholder named in the certificate of title, the
transferee shall promptly mail or deliver to the registry the last certificate of title,
his application for a new certificate in the form the registry prescribes, and an
affidavit made by or on behalf of the lienholder that the vehicle was repossessed and that
the interest of the owner was lawfully terminated or sold pursuant to the terms of the
security agreement. See Rhode Island Code Section 31-3.1-14 |
| Lender May Resell If the
lienholder succeeds to the interest of the owner and holds the vehicle for resale, the
lienholder need not secure a new certificate of title but, upon transfer to another person
shall promptly mail or deliver to the transferee or to the registry, the certificate,
affidavit, and other documents and articles required to be sent to the registry by the
transferee. See Rhode Island Code Section 31-3.1-14 |
|
|
|
|
| Copyright © 1998 by LAWDOG.COM
Publishing, Inc. |
|
|
|
