Vermont § 2045 - Release of security interest

§ 2045. Release of security interest

• (a) Upon satisfaction of a security interest in a vehicle for which the lienholder possesses
  the certificate of title, the lienholder shall, within 12 business days after a request
  for release of the security interest, fully execute a release of the security interest
  in the space provided on the certificate or in the form the Commissioner prescribes
  and mail or deliver the certificate and release to the next named lienholder or, if
  none, to the owner or any person authorized by the owner to receive the certificate
  (hereafter, “owner’s designee”). The owner or the owner’s designee, other than a dealer
  holding the vehicle for resale, shall promptly cause the certificate and release to
  be mailed or delivered to the Commissioner, who shall release the lienholder’s rights
  on the certificate or issue a new certificate. (b) Upon satisfaction of the security interest of a subordinate lienholder who does not
  possess the certificate of title, the subordinate lienholder shall, within 12 business
  days after a request for release of the security interest, fully execute a release
  in the form the Commissioner prescribes and deliver the release to the owner or the
  owner’s designee. The lienholder in possession of the certificate of title shall either
  deliver the certificate to the owner or the owner’s designee for delivery to the Commissioner
  or, if the lienholder in possession receives the release, mail or deliver it with
  the certificate to the Commissioner, who shall release the subordinate lienholder’s
  rights on the certificate or issue a new certificate. A subordinate lienholder whose
  security interest is fully satisfied but receives the certificate of title pursuant
  to subsection (a) of this section shall, within three business days after its receipt,
  mail or deliver the title to the owner or the owner’s designee. (c) For purposes of subsections (a) and (b) of this section, a release not sent by electronic
  means is deemed fully executed when it is completed and placed in the U.S. mail postage
  prepaid or delivered to the person requesting the release as shown on the form so
  requesting it. (d) A lienholder that fails to satisfy the requirements of subsection (a) or (b) of this
  section shall, upon written demand sent by certified mail, be liable to pay the owner
  or the owner’s designee $25.00 per day for each day that the requirements of subsection
  (a) or (b) remain unsatisfied, up to a maximum of $2,500.00, in addition to any other
  remedies that may be available at law or equity. If the lienholder fails to pay the
  amount owed under this subsection within 60 days following the written demand, the
  owner or the owner’s designee may bring a civil action and, if the lienholder is found
  to have violated subsection (a) or (b) of this section, the amount owed under this
  subsection shall be trebled, resulting in an award of up to $7,500.00, and reasonable
  attorney’s fees and costs shall be awarded. (Added 1969, No. 297 (Adj. Sess.), § 1, eff. Sept. 1, 1971; amended 2011, No. 46, § 14; 2019, No. 131 (Adj. Sess.), § 216; 2023, No. 85 (Adj. Sess.), § 302, eff. July 1, 2024.)