TITLE 49

MOTOR VEHICLES

CHAPTER 5

VEHICLE TITLES

49-511.  Cancellation or discharge of lien or encumbrance. (1) When a lien or encumbrance is canceled or discharged, the lienholder shall provide notice of such cancellation or discharge to the department within thirty (30) days. If the lienholder was holding the paper certificate of title, he shall note the cancellation or discharge on the certificate of title in the space provided, over his signature, or by some other legal document, discharging the encumbrance, and shall deliver the paper certificate of title to the owner within thirty (30) days of receipt of payoff of the encumbrance. If the lienholder was holding an electronic title, he shall send the department an electronic transaction that directs the department to provide a paper title to the owner free of the lienholder’s lien within thirty (30) days of receipt of payoff of the encumbrance.

(2)(a)  Notwithstanding the provisions of subsection (1) of this section, when an Idaho vehicle dealer licensed pursuant to chapter 16, title 49, Idaho Code, cancels or discharges a lien or encumbrance, the lienholder shall provide notice of such cancellation or discharge to the department within ten (10) business days of receipt of verified funds. If the lienholder was holding the paper certificate of title, such lienholder shall note the cancellation or discharge on the certificate of title in the space provided, over his signature, or by some other legal document, discharging the encumbrance. If the lienholder has received authorization from the current owner to do so, by personal notification from the current owner, by power of attorney, or by other legal document granted to a dealer, the lienholder shall send the paper certificate of title to the dealer within ten (10) business days of receipt of verified funds to pay off the encumbrance.

(b)  For the purposes of this subsection, "verified funds" means funds when such funds credit to the lienholder’s account and become final in accordance with the law or rules applicable to the method by which the funds were transmitted to the lienholder.

History:

[49-511, added 1988, ch. 265, sec. 126, p. 648; am. 1991, ch. 153, sec. 6, p. 365; am. 1993, ch. 298, sec. 3, p. 1099; am. 1994, ch. 297, sec. 1, p. 941; am. 2014, ch. 38, sec. 13, p. 81; am. 2026, ch. 143, sec. 2, p. 667.]