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).