Detailed Answer
Overview: When an estate administrator in Mississippi pays off a vehicle loan, the administrator must confirm that the lender released its lien and the vehicle’s title reflects full satisfaction. Below are the key steps to verify payoff under Mississippi law.
1. Obtain a Written Payoff Statement
Request a written payoff statement from the lender. This document shows the exact payoff amount, date of payoff, and any accrued fees. Keep it as proof of payment.
2. Secure a Lien Release or Satisfaction of Security Interest
Upon payment, the lender must issue a lien release or Satisfaction of Security Interest. Under UCC rules in Mississippi, a lender must send a termination statement to the Secretary of State within 30 days after receiving full payment. See Mississippi Code § 75-9-513.
3. Check the Certificate of Title
After lien release, the Mississippi Department of Public Safety (DPS) issues a clear certificate of title showing “no lienholder.” Contact DPS’s Title Division or use its online portal to ensure the lien no longer appears. Legally, the DPS must update title records within 45 days of receiving all documents.
4. Review UCC Public Filings
Verify that the termination statement is filed by searching the Mississippi Secretary of State’s UCC database. A filed UCC-3 termination confirms the lender no longer holds a security interest. Access the database at Mississippi SOS UCC Search.
5. Retain All Documentation
Keep copies of the payoff statement, lien release, updated title, and UCC termination. These records protect the estate against future claims.
Disclaimer
This article provides general information about Mississippi law. It does not constitute legal advice. Always consult a qualified attorney to address your specific situation.
Helpful Hints
- Act promptly: Request payoff statements at least 10 days before payment.
- Confirm fees: Verify any late fees or insurance charges before payoff.
- Follow up: Check with DPS if title records don’t update within 45 days.
- Use certified mail: Send lien-release documents to DPS via certified mail to track delivery.
- Consult counsel: Consider an attorney to navigate complex estate matters.