NC S407

Requires North Carolina Division of Motor Vehicles to implement statewide electronic lien system by July 1, 2014 to replace paper documents for recording vehicle liens and security interests.

Division may contract with qualified vendor(s) or develop its own system; vendor contracts must include no costs to Division and vendors must reimburse implementation expenses.

Permits vendors to charge lienholders up to $3.50 per lien notification transaction and service providers to charge market-rate fees; lienholders may pass costs to borrowers up to $3.00 per transaction.

Requires mandatory participation by all individuals and businesses financing motor vehicles with five or more annual transactions beginning July 1, 2015.

Electronic liens have same legal force as paper documents; certificates of title need not be issued until final lien satisfaction; electronic records are admissible as evidence in court proceedings.