Nevada § 482.4285 - Electronic lien system for notification and release of security interests: Duties of Department; qualifications and requirements of contractor; participation of lienholders; electronic lien admissible as evidence of existence of lien; regulations

§ 482.4285. Electronic lien system for notification and release of security interests: Duties of Department; qualifications and requirements of contractor; participation of lienholders; electronic lien admissible as evidence of existence of lien; regulations

1. The Department shall enter into one or more contracts pursuant to this section

to establish, implement and operate, in lieu of the issuance and maintenance of paper

documents otherwise required by this chapter, an electronic lien system to process

the notification and release of security interests through electronic batch file transfers. 2. Any contract entered into pursuant to this section must not require the Department

to pay any amount to a contractor unless otherwise provided in this section. A contractor must be required to reimburse the Department for any reasonable implementation

costs directly incurred by the Department during the establishment and ongoing administration

of the electronic lien system. A contract entered into pursuant to this section must include provisions specifically

prohibiting a contractor from using information concerning vehicle titles for marketing

or solicitation purposes. 3. The electronic lien system must allow qualified service providers to participate

in the system. A lienholder may participate in the system through any qualified service provider

approved by the Department for participation in the system. 4. Service providers may be required to collect fees from lienholders and their agents

for the implementation and administration of the electronic lien system. The amount of the fee collected by a service provider and paid to a contractor for

the establishment and maintenance of the electronic lien system must not exceed $4

per transaction. 5. A contractor may also serve as a service provider under such terms and conditions

as are established by the Department pursuant to the terms of a contract entered into

pursuant to this section and the regulations adopted by the Department. If a contractor will also serve as a service provider: (a) The Department may perform audits of the contractor at intervals determined by

the Department to ensure the contractor is not engaged in predatory pricing. The contractor shall reimburse the Department for the cost of all audits. (b) The contract between the Department and the contractor entered into pursuant to

this section must include an acknowledgment by the contractor that the contractor

is required to enter into agreements to exchange electronic lien data with all service

providers who offer electronic lien and title services to lienholders doing business

in the State of Nevada, have been approved by the Department for participation in

the electronic lien system pursuant to this section and elect to use the contractor

for access to the electronic lien system. A service provider must not be required to provide confidential or proprietary information

to any other service provider. 6. Except for persons who are not normally engaged in the business or practice of

financing vehicles, all lienholders shall use the electronic lien system to process

all notifications and releases of security interests through electronic batch file

transfers. 7. For the purposes of this chapter, any requirement that a lien or other information

appear on a certificate of title is satisfied by the inclusion of that information

in an electronic file maintained in an electronic lien system. The satisfaction of a lien may be electronically transmitted to the Department. A certificate of title is not required to be issued until the lien is satisfied

or the certificate of title is otherwise required to meet the requirements of any

legal proceeding or other provision of law. If a vehicle is subject to an electronic lien, the certificate of title shall be

deemed to be physically held by the lienholder for the purposes of state or federal

law concerning odometer readings and disclosures. 8. A certified copy of the Department's electronic record of a lien is admissible

in any civil, criminal or administrative proceeding in this State as evidence of the

existence of the lien. If a certificate of title is maintained electronically in the electronic lien system,

a certified copy of the Department's electronic record of the certificate of title

is admissible in any civil, criminal or administrative proceeding in this State as

evidence of the existence and contents of the certificate of title. 9. The Director may adopt such regulations as are necessary to carry out the provisions

of this section, including, without limitation: (a) The amount of the fee a service provider is required to charge pursuant to subsection

4 and pay to a contractor for the establishment and maintenance of the electronic

lien system. (b) The qualifications of service providers for participation in the electronic lien

system. (c) The qualifications for a contractor to enter into a contract with the Department

to establish, implement and operate the electronic lien system. (d) Program specifications that a contractor must adhere to in establishing, implementing

and operating the electronic lien system. (e) Additional requirements for and restrictions upon a contractor who will also serve

as a service provider. 10. As used in this section: (a) “ Contractor ” means a person who, pursuant to this section, enters into a contract with the Department

to establish, implement and operate the electronic lien system. (b) “ Electronic lien system ” means a system to process the notification and release of security interests through

electronic batch file transfers that is established and implemented pursuant to this

section. (c) “ Service provider ” means a person who, pursuant to this section, provides lienholders with software

to manage electronic lien and title data.