Memorandum
To:Kansas Automobile Dealers Association
Kansas Independent Automobile Dealers Association
Kansas Bankers Association
Community Bankers Association of Kansas
CountyTreasurers
Title & Registration employees
From:Peggy Stalcup, Assistant Manager Titles & Registrations/dealers licensing
Date:June 19, 2006
Subject:SB 496 concerning notice of security interest
Effective July 1, 2006 K.S.A 8-135 has been modified to provide lien holders or their designated dealer 30 days instead of 20 days to deliver the notice of securityinterest to the Division of Vehicles. We continue to encourage lien holders and dealers to participate in our E-Lien system which will place the notice of security interest on the vehicle system in one day. They can sign up for this system by accessing our web-site
The vehicle system will be modified to hold an original title application for an additional 10 days. The system is currently programmed to hold an original application for 25 days before the title is issued. It will now be held for 35 days. Everyone should be aware of the fact that this will delay the issuance of titles on original title applications. The programming will not affect the issuance of a title only for a dealer, a secured title for a lender or a duplicate title.
The notice of security interest form has been modified reflecting the filing time of 30 days. A line has been added to include the phone number and address of the business filing the notice of security interest which enables us to contact the person who filed the form if there is missing data. A statement has been added to the owner’s acknowledgement that they have entered into a security agreement and that if for any reason the security interest does not appear on the title that the lien is still valid.
We are sending you the new form which by the time you receive this will be on our web-site. Please encourage your members to discard all old forms and begin using the current one on July 1, 2006.
If you have additional questions, please call me at 785-296-2242. Thanks for your assistance and support implementing this new legislation.
Cc:Carmen Alldritt, Director of Vehicle