| Perfection
|| Possession and Sale || New Title
and Plates || Other Issues
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| LAWDOG™ West Virginia
Repossession |
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| Lien on Certificate
Is Notice A certificate of title, when issued
by department showing a lien or encumbrance, is deemed, from and after filing with the
department of the application, adequate notice to state and agencies, boards and
commissions, to the United States government and its agencies, boards and commissions, to
creditors and to purchasers that a lien against vehicle exists and the recording of such
reservation of title, lien or encumbrance in the county wherein purchaser or debtor
resides or elsewhere is not necessary and shall not be required or have any effect.
Generally, any lien or encumbrance placed upon a vehicle by voluntary act of owner but not
shown on such certificate of title is void as to any purchaser for value or lien creditor,
who, in either case, without notice of such lien or encumbrance, purchases such vehicle or
acquires by attachment, levy or otherwise a lien thereupon. See West Virginia
Code Section 17A-4A-3 |
| Liens On Inventory
Held By Dealer The creation and perfection of
a lien against a vehicle held as inventory for sale by a registered dealer holding title
by assignment in accordance with provisions of article nine, chapter forty-six of this
code (UCC) is deemed adequate notice to the state and its agencies, boards and
commissions, to the United States government and its agencies, boards and commissions, to
creditors and to purchasers that a lien against the vehicle exists, subject to other
provisions, except that any lien or encumbrance on such a vehicle is not effective against
the rights of any purchaser for value who purchases vehicle primarily for personal,
family, household or agricultural purposes unless lien or encumbrance is recorded on
certificate of title or specified on bill of sale. See West Virginia
Code Section 17A-4A-3 |
| Purchase Money Lien Filed
Within Sixty Days A deferred purchase money lien
or encumbrance upon any motor vehicle may be perfected by recording the name and address
of lienholder upon face of the certificate of title for such motor vehicle. If an
application for such a certificate of title is filed with the division of motor vehicles
within sixty days after date of purchase of motor vehicle, the effective date of lien or
encumbrance shall be date the lien or encumbrance was created. If an application for such
a certificate of title is not filed within such sixty-day period, the lien shall be
perfected from date it was filed with the division of motor vehicles. See West
Virginia Code Section 17A-4A-4 |
| Priority of Liens On
Certificate The liens shown upon a
certificate of title issued by the department pursuant to applications for same have
priority over any other liens against such vehicle, however created and recorded, except
as otherwise provided in this article. See West Virginia Code Section 17A-4A-5 |
| Holder of Certificate
With Lien The certificate of title of vehicle
is delivered to person, firm or corporation holding first lien or encumbrance upon
vehicle, and is retained until entire amount of lien is fully paid. Then the certificate
of title must be delivered to next lien holder, and so on, or if none, then to owner of
vehicle. It is the responsibility of each lienor upon satisfaction of lien to deliver
certificate of title to lienor next entitled to possession and, if none to owner, which
may be accomplished through registered or certified mail addressed to lienor or owner
entitled to possession at address as shown upon certificate. See West Virginia
Code Section 17A-4A-6 |
| West Virginia Code from The West Virginia Legislature |
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| 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 West Virginia
Code Section 46-9-503 |
| Right to Redeem At any time before secured party has disposed of collateral
or entered into a contract for its disposition under section 9-504, or before discharge
under section 9-505, debtor or any other secured party may, unless otherwise agreed in
writing after default, redeem collateral by tendering fulfillment of all obligations
secured by the 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 West Virginia Code Section 46-9-506 |
| Compulsory Sale If debtor has paid sixty percent of the cash price in case of a
purchase money security interest in consumer goods, or sixty 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, secured party with possession of
collateral must dispose of it under section 9-504, and if he fails to do so within ninety
days after possession, debtor may recover on secured party's liability. See West
Virginia Code Section 46-9-505 |
| 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 he has not
signed after default a statement renouncing or modifying rights under subsection. 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 renunciation of rights, written notice of claim of interest in the collateral. If the
secured party receives objection in writing from a person entitled to receive notification
within twenty-one days after notice sent, secured party must dispose of collateral under
section 9-504. In the absence of written objection, secured party may retain the
collateral in satisfaction of the obligation. See West Virginia Code Section 46-9-505 |
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§46-9-504. Secured party's right to dispose of collateral
after default; effect of disposition.
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 UCC article 2 on sales. 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 by
secured party. Proceeds are next applied to satisfaction of debt secured by security
interest under which the sale is made. See West Virginia Code Section 46-9-505
Subordinate Interests If any 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. See West Virginia Code Section 46-9-505
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 West Virginia Code Section
46-9-505
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
sale 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 of the time after which any private
sale is to be made must be sent by secured party to debtor, if 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 notice to the debtor
or renunciation of his rights, written notice of a claim of an interest in the collateral.
See West Virginia Code Section 46-9-505
CHAPTER 46.
UNIFORM COMMERCIAL CODE.
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| Involuntary Transfer When the title or interest of an owner in or to a registered
vehicle passes to another by involuntary transfer, the registration expires and vehicle
may not be operated upon highways unless and until person entitled to possession applies
for and obtains the registration, except that the vehicle may be operated by person
entitled to its possession or legal representative, upon the highways for a distance
not exceeding seventy-five miles upon displaying the registration plates issued to former
owner, or in the event title has become vested in the person holding a lien or encumbrance
upon said vehicle, such person may apply to the department for and obtain special plates
as may be issued under this chapter to dealers or others and may operate any said
repossessed vehicle under such special plates only for purposes of transporting the same
to a garage or warehouse or for purposes of demonstrating or selling the same. See
West Virginia Code Section 17A-4-5 |
| Lienholder May Hold
For Resale Upon any transfer new owner may
secure a new registration and certificate of title upon proper application and upon
presentation of last certificate of title, if available, and such instruments or
documents of authority or certified copies as may be sufficient or required by law to
evidence or effect a transfer of title or interest in or to chattels in such case. In the
event title has become vested in person or financial institution holding a lien or
encumbrance upon vehicle, such person or institution need not obtain a new
registration of said vehicle or forward certificate of title to department in order to
sell vehicle, but the person or institution upon transfer of title or interest to another
must execute and acknowledge an assignment and warranty of title upon certificate of title
and deliver same not later than sixty days from date of sale to purchaser. The person or
institution holding a lien or encumbrance upon vehicle who acquires vehicle as a result of
the lien or encumbrance and subsequently, within sixty days, sells vehicle in satisfaction
of debt creating lien or encumbrance, is not subject to any privilege tax or
personal property tax on vehicle imposed by any other section. See West Virginia
Code Section 17A-4-5 |
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