Vermont § 2042 - Perfecting security interest

§ 2042. Perfecting security interest

• (a) Unless excepted by section 2041 of this title, a security interest in a vehicle of a type for which a certificate of title is required
  is not valid against creditors of the owner or subsequent transferees or lienholders
  of the vehicle unless perfected as provided in this subchapter. (b) A security interest is perfected by the delivery to the Commissioner of the existing
  certificate of title, if any, an application for a certificate of title containing
  the name and address of the lienholder and the date of his or her security agreement,
  and the required fee. It is perfected as of the time of its creation if delivery
  is completed within 20 days thereafter, otherwise as of the time of the delivery. (c) If a vehicle is subject to a security interest when brought into this State, the validity
  of the security interest is determined by the law of the jurisdiction where the vehicle
  was when the security interest attached, subject to the following: (1) If the parties understood at the time the security interest attached that the vehicle
  would be kept in this State and it was brought into this State within 30 days thereafter
  for purposes other than transportation through this State, the validity of the security
  interest in this State is determined by the law of this State. (2) If the security interest was perfected under the law of the jurisdiction where the
  vehicle was when the security interest attached, the following rules apply: (A) If the name of the lienholder is shown on an existing certificate of title issued
  by that jurisdiction, his or her security interest continues perfected in this State. (B) If the name of the lienholder is not shown on an existing certificate of title issued
  by that jurisdiction, the security interest continues perfected in this State for
  four months after a first certificate of title of the vehicle is issued in this State,
  and also thereafter if, within the four-month period, it is perfected in this State.
  The security interest may also be perfected in this State after the expiration of
  the four-month period; in that case perfection dates from the time of perfection in
  this State. (3) If the security interest was not perfected under the law of the jurisdiction where
  the vehicle was when the security interest attached, it may be perfected in this State;
  in that case, perfection dates from the time of perfection in this State. (4) A security interest may be perfected under subdivision (2)(B) or subdivision (3) of
  this subsection either as provided in subsection (b) of this section or by the lienholder
  delivering to the Commissioner a notice of security interest in the form the Commissioner
  prescribes and the required fee. (Added 1969, No. 297 (Adj. Sess.), § 1, eff. Sept. 1, 1971; amended 1979, No. 38.)