Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance on estate administration and vehicle lien satisfaction.
Detailed Answer
1. Obtain a Written Lien Release from the Lender
Under Montana law, once a vehicle loan is paid in full, the secured party (lender) must provide a written release of lien. See Montana Code Annotated (MCA) 61-3-316 (Secured party's duties on termination of security interest). This document typically states that the debt is satisfied and authorizes removal of the lien from the certificate of title.
2. Verify Release on the Certificate of Title
After receiving the lien release, the administrator should confirm that the vehicle title no longer lists any liens. Request a current certificate of title from the Montana Motor Vehicle Division (MVD) showing “no lien” entries. MCA 61-3-315 (Surrender of certificate of title by secured party) sets out the lenders duty to submit a clear title to MVD within 30 days of lien termination.
3. Conduct a State Lien Search
The administrator can perform an MVD lien search online to confirm no active security interests on the vehicle. This search cross-checks state filings and validates that the lender has removed its lien. Retain a printout or digital record of the search result as proof of lien clearance.
4. Document Retention for Estate Administration
Under Montana probate rules, the personal representative (administrator) must collect and preserve estate assets and related documents. MCA 72-3-706 (Payment of claims) emphasizes thorough recordkeeping when settling debts. Keep copies of the lien release, updated title, and lien search report in the estate file.
Helpful Hints
- Ask the lender for an official lien release form rather than an informal letter.
- Confirm timing: Montana law gives a lender 30 days to clear the lien after payoff.
- Use the MVD's online services portal for a quick lien search and updated title order.
- Keep digital and paper copies of every correspondence and MVD report.
- If the lien isn’t removed in 30 days, send a written demand referencing MCA 61-3-315 and follow up with MVD.