| Perfection
|| Possession and Sale || New Title
and Plates || Other Issues
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| LAWDOG™ Vermont
Repossession |
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| Perfection and When Perfected With
limited exceptions, 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 by delivery to the commissioner of existing
certificate of title, if any, application for a certificate of title with name and address
of lienholder, date of security agreement, and required fee. It is perfected as of time of
creation if delivery is completed within twenty days after creation. If not, it is
perfected as of the actual time of the delivery to commissioner. See Vermont Statutes
Title 23, Section 2042,
a link to Vermont General Assembly |
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| Duties of Parties On Creation of Security
Interest If an owner creates a security interest in a vehicle, owner must
immediately execute application on certificate of title or on approved form to name
lienholder on the certificate, showing name and address of lienholder and date of security
agreement, and cause the certificate, application and required fee to be delivered to
lienholder. Lienholder must immediately cause certificate, application and fee to be
mailed or delivered to the commissioner. See Vermont Statutes Title 23, Section 2043 |
| Holder 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 subordinate lienholder for delivery to
the commissioner or, upon receipt from subordinate lienholder of owner's application and
required fee, mail or deliver them to commissioner with the certificate. Delivery of the
certificate does not affect the rights of first lienholder. See Vermont Statutes Title 23,
Section 2043 |
| New or Endorsed Certificate Issued
Upon receipt of the certificate of title, the application and the required fee, the
commissioner shall either endorse the certificate or issue a new certificate containing
name and address of the new lienholder, and mail certificate to first lienholder named in
it. See Vermont Statutes Title 23, Section 2043 |
| Exclusive Method of Perfection The
method provided in this subchapter of perfecting and giving notice of security interests
in motor vehicles is exclusive. Security interests subject to this subchapter are exempted
from other provisions of law which require or relate to filing of instruments creating
security interests. See Vermont Statutes Title 23, Section 2047 |
| Vermont Department of
Motor Vehicles |
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| Vermont UCC Title 9A |
| Possession Without Breach of Peace
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
only if this can be done without breach of the peace. If not, a legal action may proceed.
See Vermont Statutes Title 9-503 |
| Right To Redeem At any time
before secured party has disposed of collateral or entered into 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 collateral, expenses
reasonably incurred by 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 Vermont Statutes
Title 9-506 |
| Compulsory Sale If debtor
has paid sixty per cent of the cash price in case of a purchase money security interest in
consumer goods, or sixty per cent of the loan in case of another security interest in
consumer goods, and has not signed, after default, a statement renouncing or modifying
rights, a secured party who has taken possession of collateral must dispose of it by sale
under section 9-504 If secured party fails to do so within ninety days after possession,
debtor may recover certain damages on secured party's liability. See Vermont Statutes
Title 9-505 |
| Acceptance As Satisfaction
In any other case not involving 60% consumer goods rule, 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 notice to debtor or renunciation of rights, written notice of
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. If no such written objection
is received, secured party may retain the collateral in satisfaction of the obligation.
See Vermont Statutes Title 9-505 |
| Sale and Application of Proceeds A
secured party after default may sell, lease or otherwise dispose 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 (art. 2). 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 attorneys' fees and legal expenses incurred. Proceeds
would next apply to satisfaction of debt secured by the security interest under which the
sale is made. See Vermont Statutes Title 9-504 |
| Subordinate Liens If
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, holder of
subordinate security interest must seasonably furnish reasonable proof of interest, and if
holder fails to do so, secured party need not comply with demand. See Vermont Statutes
Title 9-504 |
| Accounting and Deficiency
If security interest secures debt, secured party must account to debtor for any surplus,
and, unless otherwise agreed, the debtor is liable for any deficiency. See Vermont
Statutes Title 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 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 the 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 case of consumer goods, no other notice need be sent. In other cases, notice must be
sent to any other secured party from whom secured party has received, before notice to
debtor or renunciation of rights, written notice of claim of interest in collateral.
See Vermont Statutes Title 9-504 |
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| Sale Under Security Agreement
Requires Affidavit If the interest of owner
is terminated or vehicle is sold under a security agreement by lienholder named in
certificate of title, transferee must promptly mail or deliver to commissioner 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 the owner was lawfully terminated or sold pursuant to the terms of the security
agreement. See Vermont Statutes Title 23, Section 2025. |
| Lienholder May Hold For Resale
If lienholder succeeds to the interest of owner and holds vehicle for resale, lienholder
need not secure a new certificate of title but, upon transfer to another person, must
promptly mail or deliver to transferee or to the commissioner the certificate, affidavit
and other documents required to be sent to commissioner by the transferee. See Vermont
Statutes Title 23, Section 2025. |
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