The Motor Vehicle Temporary Lien Program began on July 1, 1998. This program establishes a procedure in the Office of the Secretary of State for recording a temporary lien on a motor vehicle prior to the issuance by the Department of Revenue of a permanent certificate of title evidencing that lien.
If a manufacturer’s statement of origin or an existing certificate of title on a motor vehicle is unavailable, a first lienholder or his designee may file with the Business Services Division an Application for Motor Vehicle Temporary Lien. The proper filing of such a document with the Business Services Division constitutes constructive notice of the lien against the motor vehicle described therein to creditors of the owner, subsequent purchasers and encumbrances, except liens that are by law dependent on possession. Constructive notice is effective from the time of the filing of the application.
A temporary lien properly filed with the Division of Business Services automatically terminates after 180 days or upon being otherwise perfected, whichever occurs first. After 270 days, the temporary lien documents are purged from the filing system and destroyed.