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HB0243 • 2023

Perfection of security interest-required information.

AN ACT relating to motor vehicles; removing the requirement for use of a security agreement to perfect a security interest in a vehicle or motor vehicle; making conforming amendments; and providing for an effective date.

Inactive

Wyoming marks this bill as inactive, which usually means it is no longer moving in the current session.

Sponsor
Representative Henderson
Last action
2023-02-07
Official status
inactive
Effective date
3/1/2023

Plain English Breakdown

The bill was marked as inactive by Wyoming's legislature, which means it did not pass during its current session.

Removing Requirement for Security Agreements in Vehicle Financing

The bill removes the requirement that a security agreement must be used to perfect a security interest in vehicles and motor vehicles, making conforming amendments.

What This Bill Does

  • Removes the requirement that a security agreement must be used to perfect a security interest in a vehicle or motor vehicle.
  • Amends existing laws to remove references to security agreements where they are no longer needed.

Who It Names or Affects

  • People who buy or sell vehicles with financing arrangements.
  • Financial institutions and lenders involved in vehicle loans.
  • County clerks responsible for recording security interests on vehicle titles.

Terms To Know

Security interest
A legal claim a lender has over a borrower's property until the loan is paid off.
Financing statement
A document that officially records a security interest in a vehicle or other asset.

Limits and Unknowns

  • The bill does not specify what happens if the transitional ownership document is not filed within 90 days.
  • It is unclear how this change will affect existing laws and practices outside of Wyoming.
  • This bill was marked as inactive, meaning it did not pass in its current session.

Bill History

  1. 2023-02-07 House

    H:Died in Committee Returned Bill Pursuant to HR 5-4

  2. 2023-02-07 House

    H No report prior to CoW Cutoff

  3. 2023-01-27 House

    H Introduced and Referred to H08 - Transportation

  4. 2023-01-25 House

    H Received for Introduction

  5. 2023-01-24 LSO

    Bill Number Assigned

Current Bill Text

Read the full stored bill text 
23LSO-0702
2023
STATE OF WYOMING
23LSO-0702
Numbered
2.0

HOUSE BILL NO. HB0243

Perfection of security interest-required information.

Sponsored by: Representative(s) Henderson

A BILL

for

AN ACT relating to motor vehicles; removing the requirement for use of a security agreement to perfect a security interest in a vehicle or motor vehicle; making conforming amendments; 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)(i), (c) and (g) is amended to read:

31
‑
2
‑
801.

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

(a)

Perfection of a security interest in a vehicle or motor vehicle required to be 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;
and

(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 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 the other officer shall promptly endorse same on the certificate copy on file in his office. Every financing statement
or security agreement
delivered pursuant to the provisions of this subsection shall take effect and be in force from and after the time 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.

(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 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 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, 2023
.

(END)

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HB0243