MEMORANDUM
05-048
To: County Treasurers and County Motor Vehicle Staff
Titles and Registrations Associates
From: Ray Wilk, Title Manager
Date: October 25, 2005
RE: Repossession Titles for Out of State Lien Holders
Recently the Titles and Registrations Bureau (T&R) conducted a review of the repossession title (repo) applications being submitted. It was determined that a high number of repo title applications do not meet the requirements for a repo title in Kansas.
A repossession title application must have at least one of the following requirements to be accepted:
1. The owner must be a Kansas resident. This will be determined by one of two ways:
Ø There is a Kansas title/etitle in the name of the owner(s) from which the vehicle is being repossessed with the lien holder processing the repo title listed as the lien holder.
Ø If there is a Kansas “No Record” verification, the Secure Agreement must clearly indicate that the owner(s)’ address is/was in Kansas. (Owner was declaring a Kansas address at the time the security agreement was originated.)
2. The lien holder that originated the loan was located within the State of Kansas. (KSA 8-135(c)(2) in part reads, “…financed originally by a financial institution chartered in the state of Kansas…”). This will be determined one of two ways:
Ø The lien holder address on the out of state title clearly indicates a complete Kansas address.
Ø If there is a Kansas “No Record” verification or if the out of state title does not have a complete address for the lien holder clearly indicating a Kansas location, the Secure Agreement must clearly indicate that the lien holder’s complete address was in Kansas. (Lien holder that originated the loan had a Kansas address at the time the security agreement was originated.)
If the lien holder has an out of state location(s) and a Kansas location(s), the Kansas location must be clearly indicated on the security agreement at the time the loan was originated. If the lien holder wishes to transfer the loan from an out of state location to a Kansas location, a new out of state title or etitle must be obtained clearly indicating the lien holder’s new address is within Kansas. An amendment, addendum or attachment to the security agreement changing the address of the lien holder does not qualify as financed originally in Kansas.
Clearly indicated means the city or town must be within the State of Kansas. Examples of clearly indicated are:
Bob Smith or Kansas Financial Institution
123 Anystreet PO Box ### or 321 Sample St.
Anytown, KANSAS 6#### Sample City, KANSAS 6####
If you have any questions, please feel free to contact Matt, Peggy or me at (785) 296-2242.
Thank you for your time and cooperation with this matter.