AN ACT TO CLARIFY THE RENEWAL, RELEASE, AND CANCELLATION PROCESS FOR SECURITY INTERESTS ON A CERTIFICATE OF TITLE FOR A MANUFACTURED HOME AND TO CLARIFY THE CALCULATION OF THE COST OF THE UNDERTAKING FOR THE INSTALLATION OF A MANUFACTURED HOME. Enacted June 30, 2016. Section 6 is effective August 1, 2016. The remainder is effective July 1, 2017.
Bill Summaries: H870 CERT. OF TITLE/MANUF. HOME CHANGES.
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Bill H 870 (2015-2016)Summary date: Jun 30 2016 - View Summary
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Bill H 870 (2015-2016)Summary date: Jun 14 2016 - View Summary
Senate amendment makes the following changes to the 3rd edition.
Amends GS 20-58.4, concerning the release of a security interest in a vehicle, by amending and reformatting the proposed revisions to subsection (e) and proposed subsection (e1).
Provides in subsection (e) that, if it is possible for the owner to secure from the secured party the release contemplated by the statute, the owner may exhibit to the Division of Motor Vehicles such evidence as may be available showing satisfaction or other discharge of the debt secured, together with a sworn affidavit by the owner that the debt has been satisfied. Makes technical change to subsection (e).
Deletes the provisions of proposed subsection (e1), and instead moves, and adds to, the language from proposed subdivision (2) of subsection (e) of the previous edition to subsection (e1). Provides that, if the vehicle is a manufactured home, the owner may proceed in accordance with subsection (e), as amended, or may in the alternative provide the Division with a sworn affidavit by the owner that the debt has been satisfied and that either (1) after diligent inquiry the owner has been unable to determine the identity or the current location of the secured creditor or its successor in interest or (2) the secured creditor has not responded within 30 days to a written request from the owner to release the secured creditor's security interest.
Moves and amends the proposed language from subsection (e1) to new subsection (e2), and provides that the Division may treat either of the methods employed by the owner pursuant to subsection (e) or subsection (e1) of the statute (previously, either of the methods provided in subsection (e)) as a proper release for purposes of the statute when satisfied as to genuineness, truth, and sufficiency thereof.
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Bill H 870 (2015-2016)Summary date: Jun 13 2016 - View Summary
Senate committee substitute makes the following changes to the 2nd edition.
Changes the long title.
Amends GS 20-58(c), concerning perfection by indication of security interest on a certificate of title, by removing the specified date after which an application for the notation of a security interest on a certificate of title for a manufactured home must state the maturity date of the secured obligation.
Amends GS 20-58.3A, concerning the automatic expiration of a security interest in a manufactured home, by changing the definition of the term borrower in subsection (a) to mean the homeowner or the debtor on the obligation (previously, the borrower of the obligation) secured by the security interest noted on the certificate of title for a manufactured home. Adds an exception to subsection (b), which establishes a 30-year automatic expiration of a security interest in a manufactured home that is perfected by a notation on the certificate of title, to allow a different maturity date to control if one is stated on the title. Amends subsection (c) to account for the extension of the original maturity date of the security interest in the provisions setting out automatic expiration of a security interest. Makes clarifying changes to subsections (b) and (c).
Amends subsection (d) to provide that, prior to the date of the perfection of a secured party's security interest in a manufactured home automatically expires pursuant to subsection (b) or (c) (previously, only pursuant to subsection (c)) of the statute, the secured party may deliver an application for renewal of perfection to the Division.
Amends the requirements of the Division of Motor Vehicles (Division) in subsection (e), upon receipt of the application for renewal of the perfection of the secured party's security interest, as follows.
Requires the Division to issue a new certificate of title bearing the original or extended maturity date of the security interest (previously, required the new title to also bear the date of the original security interest, a notation of the renewed perfection, the maturity date of the security interest, and the date of renewal) if the existing certificate of title is included with the application for renewal.
Allows the Division to request the certificate of title from the party in possession for the purpose of notating the original or extended maturity date of the security interest (previously, required the Division to obtain title from the party to notate the date of the original security interest, the renewal of the perfection, and the date of renewal) if the existing certificate of title is in the possession of a prior secured party.
Requires the Division to cancel the existing certificate of title and issue a new certificate of title if the existing certificate is not obtained upon request (previously, if title cannot be obtained). Requires the new certificate of title to list all known security interests and bear notation that shows the original or extended maturity date of the security interest (previously, also required notation to show the date of the original security interest, the renewal of the perfection, and the date of renewal).
Amends subsection (f) to require each renewed security interest to retain its original date of perfection, and the perfection is to thereafter expire on the earlier of: (1) 10 years after the date of renewal of the perfection of the security interest, (2) 90 days after the original maturity date of the security interest if the original maturity date has not been extended, or (3) 90 days after any extended maturity date stated on the application of renewal (previously, either 10 years after the date of renewal of perfection or the original or extended maturity date).
Enacts new subsection (g) to establish that the Division is not subject to a claim under Article 31 of GS Chapter 143 (Tort Claims against State Departments and Agencies) related to the renewal of the perfection of a security interest on a certificate of title for a manufactured home pursuant to the statute if the claim is based on a reliance by the Division on any application for renewal submitted to the Division by a third party pursuant to the statute.
Amends GS 20-58.4, concerning the release of a security interest in a vehicle, to make technical changes by reformatting the revisions provided in the previous edition to subsection (e), but retains the language of the previous edition. Also moves part of the revisions of the previous edition to subsection (e) to new subsection (e1). Makes clarifying changes. Deletes the previous language of new subsection (f) and replaces it with language identical to new GS 20-58.3A(g), as described above, concerning claims under Article 31 of GS Chapter 143.
Amends GS 20-85(a), which sets out a fee schedule for certificate of title, registration card, and registration plate concerns for a motor vehicle, by making the $15 fee in subdivision (8) applicable to each application for renewing a security interest on a certificate of title or removing a lien or security interest from a certificate of title (currently, fee is applicable to each application for removing a lien from a certificate of title).
Amends GS 20-109.2(d), concerning the application for title after cancellation of title under the statute, to add that the owner must also submit to the Division verification of the identity of the current owner of the real property upon which the manufactured home was located, in addition to the existing requirements. Requires the Division, upon receipt of the required information, together with a title application and required fee, to issue a new title for the manufactured home in the name of the current owner of the real property upon which the manufactured home was located (previously, authorizes the Division to issue a new title for the manufactured home). Effective August 1, 2016, and applies to titles issued on or after that date.
Deletes the provisions of Section 8 of the previous edition, which allowed the Legislative Research Commission to study the law and process related to manufactured housing title and security interests.
Effective July 1, 2017, unless otherwise provided (previously, January 1, 2016).
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Bill H 870 (2015-2016)Summary date: Apr 27 2015 - View Summary
House committee substitute to the 1st edition makes a spelling correction.
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Bill H 870 (2015-2016)Summary date: Apr 17 2015 - View Summary
Amends GS 20-4.01, the definitions section concerning motor vehicles, adding the key term manufactured home providing it means as defined in GS 143-143.9(6). Adds clarifying language to the definitions for house trailer and recreational vehicle providing that those terms do not include a manufactured home. Adds language to the definition of vehicle, providing that unless the context requires otherwise or as provided in GS 20-109.2, 47-20.6, and 47-20.7, a manufactured home is deemed to be a vehicle.
Enacts new subsection GS 20-58(c), concerning perfection of security interest, providing that on and after January 1, 2016, an application of a security interest on a certificate of title for a manufactured home must state the maturity date of the secured obligation. Sets out requirements for the Division of Motor Vehicles (DMV) concerning the maturity date.
Enacts GS 20-58.3A, Automatic expiration of security interest in manufactured home; renewal of security interests in manufactured homes, defining the terms secured party and borrower for the purposes of this section. Provides that, with a few specified exceptions, a security interest in a manufactured home, which is perfected by a notation on the certificate of title must automatically expire 30 years after the date of issuance of the original certificate of title containing the notation of the security interest. Provides that, with a few specified exceptions, a security interest in a manufactured home, which is perfected by a notation on the certificate of title pursuant to GS 20-58(c) will automatically expire in accordance with the specified time frames. Sets out processes and procedures for renewal of the perfection of the secured party's security interest prior to automatic expiration, including requiring an application to be submitted to the DMV containing specified information, such as the secured party's signature and the existing certificate of title. Sets out the requirements of the DMV once an application for renewal has been received, depending on the status of the existing certificate of title. Provides that once issued, the renewal is effective to renew the perfection of the security interest as of the date the application is delivered to the DMV.
Amends GS 20-58.4, concerning the release of a security interest, providing a procedure to secure a release of a security interest by way of a sworn affidavit by the owner stating that the debt has been satisfied and their either (1) the owner has not been able to determine the identity or current location of the secured creditor or (2) the secured creditor has not responded within 30 days to a written request for release. Provides that the DMV cannot cancel a security interest if the secured party responds to the DMV within 15 days of the DMV's notice, stating the security interest remains in effect. Adds new subsection (f) providing that the owner of the manufactured home or the owner of the real property on which the home is located can effect the satisfaction and release of a security interest as provided in GS 20-109.2.
Enacts GS 44A-11.1(a1) concerning lien agents providing that when improvements to a real property leasehold are limited to the purchase, transportation or setup of a manufactured home, with a current certificate of title, the purchase price of the home must be excluded in determining if the costs of the undertaking are $30,000 or more.
Amends GS 153A-357(e) (municipalities) and GS 160A-417(d) (counties), concerning the prohibition on certain issuance of building permits where the costs of work is $30,000 or more, adding language that provides that when improvements to a real property leasehold are limited to the purchase, transportation or setup of a manufactured home, with a current certificate of title, the purchase price of the home must be excluded in determining if the costs of the undertaking are $30,000 or more.
Directs the Legislative Research Commission to study the law and process related to manufactured housing title and security interests. Effective when this act becomes law.
Unless otherwise provided, effective January 1, 2016.