NC H621

Division of Motor Vehicles must implement a statewide electronic lien system by July 1, 2014 to process security interest notifications and releases using electronic means instead of paper documents.

Division shall contract with qualified vendors through competitive request for proposal, with vendors covering all implementation costs and receiving per-transaction fees from lienholders not to exceed $3.50, which lienholders may pass to borrowers with an additional fee not exceeding $4.00.

Beginning July 1, 2015, all individuals and lienholders engaged in motor vehicle financing must use the electronic lien system to record security interest perfection and releases.

Electronic notices and releases through the system have the same legal effect as paper documents, and vendors serving as service providers cannot use vehicle title information for marketing and must share data with other approved service providers.

Division shall conduct a pilot program of up to 90 days before statewide implementation and must report to the Joint Legislative Transportation Oversight Committee by October 1, 2013 on costs, benefits, and feasibility.