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SF0028 • 2021

Motor vehicles-security interest perfection.

AN ACT relating to motor vehicles; modifying requirements for perfection of a security interest; and providing for an effective date.

Elections
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Corporations
Last action
2021-04-06
Official status
enrolled
Effective date
7/1/2021

Plain English Breakdown

The bill summary and text do not provide comprehensive details on all aspects of the law.

Motor Vehicles - Security Interest Perfection

This law changes how security interests are perfected for motor vehicles by requiring additional documents to be submitted to county clerks.

What This Bill Does

  • Modifies the process for perfecting a security interest in a vehicle or motor vehicle by adding requirements for submitting an application and valid title record.
  • Requires that a financing statement or security agreement, along with a properly completed certificate of title application and the current title, be delivered to the county clerk's office.
  • Specifies that upon receiving all required documents, the county clerk must endorse the security interest on the vehicle’s title.

Who It Names or Affects

  • People who have security interests in motor vehicles
  • County clerks responsible for processing and endorsing security interests

Terms To Know

security interest
A legal claim on a vehicle used as collateral for a loan or debt.
financing statement
A document filed with the county clerk to record a security interest in a motor vehicle.

Limits and Unknowns

  • The law does not specify what happens if required documents are missing.
  • It is unclear how this change will affect existing security interests before the effective date.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

SF0028SS001

Standing Committee • Senate Corporations, Elections & Political Subdivi

Adopted

Plain English: The amendment changes how security interests in motor vehicles must be perfected and recorded.

  • Replaces the word 'licensed' with 'titled'.
  • Adds new requirements for filing a financing statement or security agreement, including providing a completed title application along with the vehicle's valid title.
  • Specifies that the county clerk must endorse a notation of the security interest on the certificate of title when receiving the required information.
  • The amendment text does not provide details about what happens if the requirements are not met or how enforcement would work.

Bill History

  1. 2021-04-06 LSO

    Assigned Chapter Number 137

  2. 2021-04-06 Governor

    Governor Signed SEA No. 0062

  3. 2021-04-02 House

    H Speaker Signed SEA No. 0062

  4. 2021-04-02 Senate

    S President Signed SEA No. 0062

  5. 2021-04-02 LSO

    Assigned Number SEA No. 0062

  6. 2021-04-02 House

    H 3rd Reading:Passed 58-1-1-0-0

  7. 2021-04-01 House

    H 2nd Reading:Passed

  8. 2021-03-31 House

    H COW:Passed

  9. 2021-03-31 House

    H Placed on General File

  10. 2021-03-31 House

    H07 - Corporations:Recommend Do Pass 9-0-0-0-0

  11. 2021-03-26 House

    H Introduced and Referred to H07 - Corporations

  12. 2021-03-25 House

    H Received for Introduction

  13. 2021-03-24 Senate

    S 3rd Reading:Passed 30-0-0-0-0

  14. 2021-03-23 Senate

    S 2nd Reading:Passed

  15. 2021-03-22 Senate

    S COW:Passed

  16. 2021-03-22 Senate

    S Placed on General File

  17. 2021-03-22 Senate

    S07 - Corporations:Recommend Amend and Do Pass 4-0-1-0-0

  18. 2021-01-12 Senate

    S Introduced and Referred to S07 - Corporations

  19. 2021-01-12 Senate

    S Received for Introduction

  20. 2020-12-31 LSO

    Bill Number Assigned

Official Summary Text

Bill Summary - 21LSO-0089
Bill No.:

SF0028

Effective:

7/1/2021 12:00:00 AM

LSO No.:

21LSO-0089

Enrolled Act No.:

SEA No. 0062

Chapter No.:

137

Prime Sponsor:

Joint Corporations, Elections & Political Subdivisions Interim Committee

Catch Title:

Motor vehicles-security interest perfection.

Subject:

Perfection of security interests in motor vehicles.

Summary/Major Elements:

Current law offers two (2) methods to perfect a security interest in a vehicle, including motor vehicles:

Under the first method, a person may deliver a financing statement or security agreement to a county clerk and upon endorsement of the financing statement or security agreement on the vehicle certificate of title, the security interest becomes perfected; or
Under the second method, a person may perfect a security interest by filing with a county clerk a transitional ownership document with the financing statement or security agreement; this method allows for the perfection of a security interest on the date of filing.

The act revamps these two (2) methods to perfect a security interest in a vehicle. The first method is amended to allow for the perfection of a security interest upon delivery to the county clerk of a financing statement or security agreement and a properly tendered, completed application for certificate of title along with the valid title of record. Similarly, the second method is amended to allow the perfection of a security interest upon delivery to the county clerk of a transitional ownership document and a financing statement or security agreement.
The above summary is not an official publication of the Wyoming Legislature and is not an official statement of legislative intent.

While the Legislative Service Office endeavored to provide accurate information in this summary, it should not be relied upon as a comprehensive abstract of the bill.

Current Bill Text

Read the full stored bill text
21LSO-0089

ORIGINAL Senate

File No
.
SF0028

ENROLLED ACT NO. 62,

SENATE

SIXTY-SIXTH LEGISLATURE OF THE STATE OF WYOMING
2021 General Session

AN ACT relating to motor vehicles; modifying requirements for perfection of a security interest; and providing for an effective date.

Be It Enacted by the Legislature of the State of Wyoming:

Section 1
.

W.S. 31
‑
2
‑
801(a), by amending and renumbering (b) as (c), by renumbering (c) and (d) as (d) and (f) and by amending and renumbering (f) as (g) is amended to read:

31
‑
2
‑
801.

Perfection of a security interest in a vehicle or motor vehicle.

(a)

Two (2) steps are required for
P
erfection of a security interest in a vehicle or motor vehicle required to be
licensed
titled
as hereinafter defined
shall occur upon delivery of the following to the office of the county clerk in which the vehicle is located
:

(i)

A financing statement or security agreement
;
must be filed in the office of the county clerk of the county in which the vehicle is located;
and

(ii)

A properly tendered, completed application for certificate of title along with the valid title of record issued pursuant to W.S. 31
‑
2
‑
103.

(ii)
(b)

A notation of the security interest must be endorsed on
Upon receiving the information required under subsection (a) of this section, the county clerk shall endorse
the certificate of title to the vehicle or motor vehicle
, the endorsement to be made concurrently with the filing of the financing statement or security agreement

with the lien information, including the month, day and year it was delivered to the county clerk
.

(b)
(c)

Each owner of a vehicle or motor vehicle concerning which an original or substitute certificate of title has been issued who encumbers the title thereto, shall deliver the certificate to the holder of the security interest who, within five (5) days thereafter, shall deliver the certificate to the clerk of the county in which the vehicle is located, and the clerk shall then endorse on the face of the certificate appropriate notation showing the date and amount of the security interest, and the name of the secured party. If
such
the
clerk issued the certificate, he shall immediately endorse the same security interest data on the certificate copy on file in his office. If the certificate was issued in some other county or state, he shall promptly transmit to the state or county officer who issued the certificate the same security interest data and
such
the
other officer shall promptly endorse same on the certificate copy on file in his office. Every financing statement or security agreement
when filed
delivered
pursuant to the provisions of this subsection shall take effect and be in force from and after the time
of filing
the secured party delivers a properly tendered, complete application for a certificate of title issued pursuant to W.S. 31
‑
2
‑
103 and the financing statement or security agreement to the office of the county clerk of the county in which the vehicle is located
and not before, as to all creditors, subsequent purchasers
,
and holders of a security interest in good faith for valuable consideration and without notice.

(c)
(d)

When a termination statement has been filed pursuant to W.S. 34.1
‑
9
‑
513, the owner of the motor vehicle shall present the certificate of title to the county clerk
in whose office the financing statement has been filed, and the county clerk shall endorse a statement of the termination of the security interest on the face of the certificate. If the clerk issued the certificate of title, he shall endorse a like statement of termination of the security interest on the certificate copy on file in his office, but otherwise he shall promptly transmit to the state or county officer who issued the certificate of title the statement of termination for endorsement on the certificate copy on file in his office.

(d)
(f)

The term "vehicle or motor vehicle required to be licensed" and the words "vehicle" and "motor vehicle" as used in this section means and includes all vehicles, motor vehicles, house trailers, trailers, semitrailers, motor coaches, trailer coaches, trucks, motorcycles, multipurpose vehicles and mobile homes required by the motor vehicle laws of the state of Wyoming to have a certificate of title or required to be registered or licensed under the laws of this state and includes off
‑
road recreational vehicles for which a certificate of title has been issued under the laws of this state.

(f)
(g)

When the certificate of title to the vehicle or motor vehicle is not available for perfection under subsection (a) of this section, a "transitional ownership document", on a form prescribed by the department of transportation, may be
filed
delivered
with the financing statement or security agreement and the fee as specified in W.S. 18
‑
3
‑
402(a)(xvi)(T) to enable a security interest to be perfected in a timely manner. The transitional ownership document serves to perfect a lien upon
the date of filing
receipt by the county clerk
as to all creditors, subsequent purchasers and holders of a security interest in good faith for valuable consideration and without notice. No
endorsement on the transitional ownership document is required to perfect the security interest. Within ninety (90) days from the date of the financing statement or security agreement, the certificate of title shall be filed along with a five dollar ($5.00) fee with the county clerk. If the certificate of title is not timely filed, the transitional ownership document is invalid, without force and effect.

Section 2
.

This act is effective July 1, 2021
.

(END)

Speaker of the House

President of the Senate

Governor

TIME APPROVED: _________

DATE APPROVED: _________

I hereby certify that this act originated in the Senate.

Chief Clerk

1