Title Liens
The perfection and discharge of a security interest in any property which has been issued a Kentucky certificate of title shall be by notation on the certificate of title (KRS 186A.190)(1). The lien is effective from the date on which the security interest is noted on the certificate of title for a period of seven (7) years, or in the case of a manufactured home for a period of thirty (30) years or until discharged. A continuation statement can be filed within six months preceding the expiration of the initial notation that extends the notation’s effectiveness for seven additional years. (KRS 186A.190)(1). Effective July 1, 2001.
Requirements for Filing a Title Lien Statement:
- The name(s) of the debtor and their mailing address
- The name of the secured party and their mailing address
- Date executed
- Description of collateral (year, make, ID number)
- Title or goldenrod copy of form (TC-96-187)
- Required fee ($22 if filed within twenty (20) days of execution. $24 if not)
Title Lien Statement (TC 96-187) must be completed using the above information.
The Title Lien Statement is the only recognized form for transmitting the required information needed to establish a lien on the certificate of title.
Place of Filing
Generally, a title lien filing should be made in the county of the debtor’s residence, if an individual, and in the county of principal headquarters of a resident business or in the county of principal use of the titled property, if the business or individual is a nonresident.
Like all other terminations, only the county clerk’s office where the original lien was filed will be allowed to remove an expired lien from the AVIS system.
Late Filing of Title Liens
Statutory laws require the secured party to file the lien within twenty (20) days of its execution by the debtor. If not timely filed or not dated, a penalty of $2.00 is assessed by the County Clerk as a prerequisite for filing, together with the regular fee.
Transfer of Ownership
Ownership transfer is prohibited until the secured party of record terminates any and all existing lien notations in writing. This termination must be filed in the county where the lien was filed.
Continuation Statements
The filing of a continuation statement within six (6) months preceding the expiration of the initial period of a notation’s effectiveness extends the expiration date for seven (7) additional years for all titled property (including mobile or manufactured homes).
The original file date is the date used to determine the expiration date.
The continuation statement must be received in the county clerk’s office of the county in which the original filing was done by the expiration date. Do NOT process a continuation statement after the expiration date.
NO FEE is collected on a continuation statement for any titled property.
Requirements for recording a continuation:
- Received by the county that filed the ORIGINAL TLS
- Name and address of debtor
- Name and address of secured party
- Date of original notation on title
- Original File number
- States that it is a continuation, submitted by the lien holder
Title Lien Statement (TC 96-187) must be completed using the above information.
Terminations
The secured party is required by statute to file a termination within one (1) month after the loan is paid in full or within twenty (20) days after the secured party receives an authenticated demand from a debtor. (KRS 355.9-513 (2)). The termination must be filed in the county where the lien was originally filed. The termination must come from the secured party. Effective July 15, 2004 the termination statement must be signed by the secured party (KRS 186.045).
If the secured party is an individual a photo ID is required for filing termination in person.
Requirements for recording termination:
- The name of the secured party of record
- The name of the debtor
- The original file number
- The original date of filing
- The name and address of the assignee
- A description of the titled property assigned including the ID number
- The signature of the secured party
Title Lien Statement (TC 96-187) must be completed using the above information.
NO FEE is collected on a termination of lien statement filing for any titled vehicle property.
Boats and Motors
When filing liens on boats, motors and trailers use the following guidelines:
Boat is titled property – file on a title lien statement
Trailer is titled property – file on a title lien statement
