Detailed Answer
When an administrator handles a vehicle with an outstanding loan, verifying full satisfaction of the debt is critical. In New Mexico, follow these steps:
1. Obtain a Lien Release or Satisfaction Letter
Ask the lender for a written lien release or payoff statement. Under New Mexico’s Uniform Commercial Code, the secured party must file a termination statement no later than 20 days after the debtor’s request and payment of any required fee. See NMSA 1978, § 55-9-513 (Termination Statement).
2. Check County Clerk UCC Records
Search the county clerk’s office where the original financing statement (UCC-1) was recorded. Confirm the lender filed a UCC-3 termination statement showing the lien release. Many counties offer online UCC searches; you can also request a certified record.
3. Review the Certificate of Title
Inspect the vehicle’s title issued by the New Mexico Motor Vehicle Division. Under NMSA 1978, § 66-3-303 (Surrender of Certificate; Cancelling Lien), the lienholder must release its interest on the title. A clean title free of liens will show a blank or “Released” lien block.
4. Confirm with the Motor Vehicle Division
Contact the New Mexico MVD. Provide the vehicle identification number (VIN) and title number. The MVD can verify that no liens remain on record.
5. Retain All Documentation
Keep copies of the lien release letter, UCC-3 termination statement, and updated title. These documents protect the administrator from future claims.
Helpful Hints
- Contact the lender first to request official payoff figures and a lien release date.
- Send requests via certified mail or courier for proof of delivery.
- Use both online and in-person searches at the county clerk’s office for UCC filings.
- Verify the VIN and title numbers before requesting a replacement title.
- Store all correspondence and filings for at least five years in case of disputes.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney in New Mexico for advice specific to your situation.