Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Detailed Answer
When a vehicle loan lien is paid in full, Minnesota law requires the lender (secured party) to release the lien and file a termination statement under the Uniform Commercial Code (UCC). An administrator can verify full satisfaction by following these steps:
- Obtain a Lien Release from the Lender. Request a written lien release letter. It should identify the lender, borrower, loan account number, vehicle VIN, and date of full payment.
- Review the UCC Termination Statement. Under Minn. Stat. § 336.9-513(a) (revisor.mn.gov/statutes/cite/336.9-513), the secured party must file a termination statement within 20 days after payment. You can search UCC records on the Minnesota Secretary of State’s website: mblsportal.sos.state.mn.us.
- Check the Certificate of Title. Minnesota uses a centralized certificate of title system managed by the Department of Public Safety (DPS). After lien release, the lender or vehicle owner submits the title to DPS. Verify the current title status online via the DPS title inquiry portal: dps.mn.gov/divisions/dvs.
- Obtain a Copy of the Updated Title. Once DPS processes the lien release, request a new title showing no lien. Under Minn. Stat. § 168A.11 (revisor.mn.gov/statutes/cite/168A.11), the department issues a clear title upon receipt of proper documentation and payment of any fees.
Helpful Hints
- Keep copies of all loan payoff statements and correspondence with the lender.
- Use the exact VIN when searching online UCC or DPS records to avoid mismatches.
- Allow up to 20 days for the secured party to file a UCC termination.
- Follow up with DPS or the Secretary of State if online records remain uncleared after payoff.
- If the lender fails to release the lien, consider consulting a qualified attorney or filing a complaint with the Minnesota Department of Commerce.