Disclaimer: This information is for educational purposes only and does not constitute legal advice. Consult a qualified attorney for advice on your specific situation.
Detailed Answer
When an administrator needs to confirm that a vehicle loan has been fully satisfied under Nebraska law, the process involves three main steps: obtaining a lien release from the lender, verifying state records, and securing a termination of any Uniform Commercial Code (UCC) filing.
1. Obtain a Lien Release from the Lender
After final payment, the lender must provide a written lien release or satisfaction statement. Under Neb. Rev. Stat. § 9-615(a) (UCC 9-615), a secured party must send a release to the debtor within 20 days of receiving a written demand. The release should include:
- Borrower’s name and address
- Description of the vehicle (VIN, make, model)
- Statement that the obligation is fully satisfied
- Signature of an authorized lender representative
2. Verify the Nebraska Department of Motor Vehicles (DMV) Title
Once you have the lien release, submit it to the DMV or your county treasurer’s office to clear the lien from the vehicle title. Nebraska law requires that titles reflect the current lien status (see Neb. Rev. Stat. § 60-178(7) (Motor Vehicles § 60-178)). The DMV will issue a clean title showing no outstanding liens.
3. Secure a UCC Termination Statement
If the lender filed a UCC financing statement with the Nebraska Secretary of State, you must obtain a termination statement under Neb. Rev. Stat. § 9-625 (UCC 9-625). The lender must file this termination within 20 days of full payment. You can search the Secretary of State’s online UCC records to confirm that the financing statement is marked terminated.
Helpful Hints
- Keep copies of all correspondence and payment records.
- Request tracking or certified mail when submitting documents to the DMV.
- Use the Nebraska Secretary of State’s UCC online search tool to verify termination status.
- If the lender delays releasing the lien, send a formal written demand referencing UCC 9-615(a).
- Check title status six weeks after submission to account for processing times.