Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Detailed Answer
When an estate administrator in Kentucky needs to confirm that a vehicle loan is fully satisfied, follow these key steps:
- Obtain the Lien Release from the Secured Party
After full payment, the lender or lienholder must issue a lien release. Under Kentucky’s Uniform Commercial Code (KRS 355.9-513), the secured party has a duty to send a termination statement to the debtor. Request a copy of this document and verify it references the original financing statement number. (KRS 355.9-513) - Check UCC Filing Records
Access the Kentucky Secretary of State’s UCC online search portal to confirm that a UCC-3 termination statement has been filed against the original UCC-1 financing statement. A verified termination entry shows the lender released its security interest. (KRS 355.9-514) - Review the Vehicle Title
Once the lien is released, the Kentucky Transportation Cabinet updates the lien notation on the certificate of title. Under KRS 186A.050, the lienholder must furnish a lien release so the county clerk can issue a clear title. Examine the title to confirm no liens remain. (KRS 186A.050) - Contact the County Clerk’s Office
Visit or call the county clerk’s office where the vehicle is titled. Request a lien search using the vehicle identification number (VIN). The clerk can confirm whether any active liens are recorded on the title. - Obtain Written Confirmation
Retain copies of the lien release, UCC termination statement, and clear title. A notarized affidavit from the clerk or lienholder provides added assurance that the debt is fully satisfied.
Helpful Hints
- Always compare the VIN on all documents to ensure they match exactly.
- Use the Secretary of State’s UCC portal (https://sos.ky.gov) for real-time lien status.
- County clerks typically charge a small fee for lien searches and certified copies.
- Keep all correspondence and filings in your estate records.
- If the lienholder delays a release, send a written demand under KRS 355.9-513(d) to enforce the termination obligation.