CHAPTER 558

An Act to amend and reenact §§ 46.1-69, 46.1-70, 46.1-71, 46.1-72, 46.1-78,
46.1-74, 46.1-75, 46.1-76, 46.1-77, 46.1-80 and 46.1-87 of the Code of
Virginia, relating to registration of liens, encumbrances and security
interests in motor vehicles.

(S 387]
Approved April 5, 1966

Be it enacted by the General Assembly of Virginia:

1. That §§ 46.1-69, 46.1-70, 46.1-71, 46.1-72, 46.1-73, 46.1-74, 46.1-75,
46.1-76, 46.1-77, 46.1-80 and 46.1-87 of the Code of Virginia be amended
and reenacted as follows:

§ 46.1-69. The Division upon receiving an application for a certifi-
cate of title to a motor vehicle, trailer or semitrailer showing * security
interests upon such motor vehicle, trailer or semitrailer shall, upon is-
suing to the owner thereof a certificate of title therefor, show upon the
face of the certificate of title all * security interests disclosed by such ap-
plication. All such * security interests shall be shown in the order of their
priority, such priority being according to the information contained in
such application.

§ 46.1-70. * Security interests (other than a security interest in in-
ventory held for sale) created in motor vehicles, trailers or semitrailers
by the voluntary act of the owner after the original issue of title to the
owner must be shown on the certificate of title. In such cases, the owner
shall file application with the Division on a blank furnished for that pur-
pose, setting forth the * security interests and such information in con-
nection therewith as the Division may deem necessary. The Division, if
satisfied that it is proper that the same be recorded, and upon surrender of
the certificate of title covering the motor vehicle, trailer or semitrailer,
shall thereupon issue a new certificate of title, showing the * securtty
interests in the order of their priority, the priority being according to
the date of the filing of the application for same. For the purpose of
recording such subsequent * security interest, the Commissioner may re-
quire any * secured party to deliver to him the certificate of title. Upon
issuing the new certificate it shall thereupon be sent or delivered to the
* secured party from whom the prior certificate was obtained. Notwith-
standing the foregoing or any other provision of law, a security interest
in a motor vehicle, trailer or semitrailer which is inventory held for sale
shall be perfected only as provided in §§ 8.9-301 to 8.9-407. _

§ 46.1-71. Such certificate of title, when issued by the Division
showing a * security interest, shall be deemed adequate notice to the
Commonwealth, creditors and purchasers that a * security interest in
the motor vehicle exists and the recording or filing of such creation or
reservation of * a security interest in the county or city wherein the pur-
chaser or debtor resides or elsewhere is not necessary and shall not be
required. Motor vehicles, trailers or semi-trailers (other than those which
are inventory held for sale) registered or for which a certificate of title
shall have been issued under this title shall not be subjected to, but shall be
exempt from the provisions of §§ 8.9-801 to 8.9-407 and 55-96 and whether
or not inventory held for sale shall be exempt from the provisions of
§ 55-152, nor shall recordation or filing of such * security interest except
@ security interest in inventory held for sale in any other place for any
other purpose be required or have any effect.

§ 46.1-72. If application for the registration or recordation of a
* security interest to be placed upon a motor vehicle, trailer or semi-
trailer be filed in the office of the Division in the city of Richmond, Vir-
ginia, within ten days from the date of such applicant’s purchase of such
motor vehicle, trailer or semitrailer, it shall be as valid as to all per-
sons, whomsoever, including the Commonwealth, as if such registration
had been done on the day such * security interest was acquired.

§ 46.1-73. The * security interests, except security interests in motor
vehicles, trailers and semitrailers which are inventory held for sale and
are perfected under §§ 8.9-801 to 8.9-407, shown upon such certificates
of title issued by the Division pursuant to applications for same shall have
priority over any other liens or security interests against such motor
vehicle, trailer or semitrailer, however created and recorded, except that
lien of mechanics for repairs to the extent of * seventy-five dollars given by
§ 43-33 if the requirements therefor exist, provided the mechanic furn-
ishes the holder of any such recorded lien who may request it with an
itemized sworn statement of the work done and materials supplied for
which the said lien is claimed.

§ 46.1-74. The certificate of title of such motor vehicle, trailer or
semitrailer shall be delivered to the person, firm or corporation holding
the * security interest having first priority upon the motor vehicle, trailer
or semitrailer and retained by him or them until the entire amount of
his or their * security interest is fully paid by the owner of the motor
vehicle, trailer or semitrailer. Thereupon the certificate of title shall be
delivered to the * secured party next in order of priority and so on, or,
none, then to the owner of the motor vehicle, trailer or semitrailer.

8 46.1-75. An owner upon securing the release of any * security in-
terest upon a motor vehicle, trailer or semitrailer shown upon the certifi-
cate of title issued therefor may exhibit the documents evidencing such
release, signed by the person or persons making such release and acknowl-
edged before a notary public or someone authorized by the laws of this
State to take acknowledgments of deeds, and the certificate of title to the
Division ; or when it is impossible to secure such release from the * secured
party the owner may exhibit to the Division whatever evidence may be
available showing that the debt secured has been satisfied, together with
a statement by the owner under oath that the debt has been paid. The
Division when satisfied as to the genuineness and regularity thereof shall
issue to the owner either a new certificate of title in proper form or an
endorsement or rider showing the release of the * security interest which
the Division shall attach to the outstanding certificate of title.

§ 46.1-76. It shall be unlawful and constitute a misdemeanor for a
* secured party who holds a certificate of title as provided in this title
to refuse or fail to surrender such certificate of title to the person legally
entitled thereto within ten days after his * security interest shall have
been paid and satisfied.

§ 46.1-77. A levy made by virtue of an execution, fieri facias or
other proper court order, upon a motor vehicle, trailer or semitrailer, for
which a certificate of title has been issued by the Division, shall constitute
a lien, subsequent to * security interests theretofore recorded by the Di-
vision and subsequent to security interests in inventory held for sale and
perfected as otherwise permitted by law, if and when the officer making
such levy reports to the Division at its office in Richmond, Virginia, on
forms provided therefor by the Division, that such levy has been made and
that the motor vehicle, trailer or semitrailer thus levied upon has been
seized by and is in the custody of such officer. Should such lien be there-
after satisfied or should the motor vehicle, trailer or semitrailer thus
levied upon and seized be thereafter released by such officer, he shall
immediately report that fact to the Division at its office in Richmond.
Any owner who after such levy and seizure by an officer and before the
report thereof by the officer to the Division shall fraudulently assign or
transfer his title to or interest in such motor vehicle, trailer or semi-
trailer or cause the certificate of title thereto to be assigned or transferred
or cause a * security interest to be shown upon such certificate of title
shall be deemed guilty of a misdemeanor and upon conviction thereof
shall be fined not less than twenty-five nor more than five hundred dollars,
or imprisoned in jail for not less than ten days nor more than twelve
months.

§ 46.1-80. It shall be unlawful and constitute a misdemeanor for any
person in this State to have in his possession a certificate of title issued by
the Commissioner to a person other than the holder thereof, unless and
until the certificate of title has been duly assigned to the holder and
acknowledged before a party authorized to administer oaths as provided
in this title. This section shall not apply to * secured parties who legally
hold such certificates of title as provided in this title.

§ 46.1-87. The owner of a motor vehicle, trailer or semitrailer
registered under the provisions of this chapter transferring or assigning
his title or interest thereto shall endorse an assignment and warranty of
title upon the reverse side of the certificate of title of the motor vehicle,
trailer or semitrailer to the purchaser thereof, with a statement of all
* security interests thereon, shall acknowledge his signature thereto be-
fore a person authorized to administer oaths and shall deliver the certifi-
cate to the purchaser or transferee at the time of delivering the motor
vehicle, trailer or semitrailer.

2. An emergency exists and this Act is in force from its passage.