MI HB6487

Establishes an electronic lien title (ELT) system for off-road vehicles (ORVs) to process security interests and releases through electronic file transfers instead of paper documents.

Requires the secretary of state to enter into contracts to establish and operate the ELT system, with all secured parties (except non-finance businesses) mandated to participate by February 16, 2021.

Allows the department of state to maintain electronic records of ORV titles and security interests instead of issuing paper certificates when an ORV is subject to a security interest.

Requires secured parties to execute a release of security interest electronically within 14 days of receiving payment, with liability to the ORV owner for damages if the secured party fails to comply.

Permits ORV dealers to assign ownership through the ELT system without proof that prior security interests were satisfied, with the dealer warranting the title is clear and assuming responsibility for lien satisfaction.