I. INFORMATION REQUIRED FOR SECURITY AGREEMENT
The security agreement used should describe the loan transaction in detail. It should also provide an area to describe the titled vehicle(s) in detail so that a lien may be recorded on the title. Information recorded here is:
A. The year of the unit;
II. SECURITY AGREEMENT/PERFECTION
A. Introduction
In 2009, the Nebraska legislature adopted LB 202. Pursuant to the legislation, the Nebraska Department of Motor Vehicles (DMV) was directed to implement an electronic title and lien system by January 1, 2011.
The DMV has issued the Nebraska Electronic Lender Guide (Lender Guide) which can be accessed at www.dmv.state.ne.us/. The Guide provides lenders with the necessary information to participate in the Nebraska’s Electronic Lien and Title System (ELT). The ELT program is the responsibility of the DMV. The goal of ELT is to provide for the electronic transmission of lien transaction data between lenders and the DMV. The electronic transmission of data will be a benefit to the participating lenders, the vehicle/motorboat owners, the local county treasurer offices and the DMV.
B. ELT Program
Lender participation in the ELT program is, at present, optional. However, upon implementation, Nebraska certificates of title that contain lien information will be stored electronically. No printed copy will be produced for mailing to the lender unless specifically requested.
Certificate of title and lien applications will continue to be filed at title issuing offices [local county treasurer office or the DMV, Division of Motor Carrier Services (MCS) for any common, contract or private carrier of property by motor vehicles in interstate commerce]. Upon the notation of a lien, the certificate of title record will be stored electronically on the DMV Vehicle Title and Registration (VTR) database, and a participating lender will be electronically notified of the title issuance/lien notation.
At the time of lien satisfaction, a participating lender will electronically notify the DMV of the lien release, and the DMV will print and mail the certificate of title to the owner (or other entity as directed by the lender).
Participating lenders will exchange data files with the DMV on a daily basis. These files will contain lien notation, lien release, error/correction information and requests for paper titles.
C. Transition Into ELT
1. Existing Paper Titles – Noting of a Lien
Each paper certificate of title presented for the notation of a lien will be retained by the title issuing office and upon lien notation the certificate of title will become electronic.
2. Existing Paper Titles – Release of a Lien
The lien will be required to be released on the face of the certificate of title, presented to a title issuing office for release on VTR, and then the certificate of title will be returned to the owner (or other entity as directed).
D. Non-Participating Lender Process
1. Certificate of Title Issuance with a Lien Notation
Applications are submitted to the county treasurer office in the county where the vehicle has situs (tax district where the vehicle is stored and kept for the greater portion of the calendar year). The exceptions to this rule are the applications submitted by any common, contract or private carrier of property by motor vehicles in interstate commerce whose vehicles are registered with MCS (applications are filed with MCS) and motorboat applications that are filed with any county treasurer office.
Upon issuance of the certificate of title with the lien noted, the certificate of title is stored electronically on VTR. No printed copy will be produced for mailing to the lender.
Title issuance and lien notation can be verified through a check of the DMV records through the Title Inquiry function available at: www.clickdmv.ne.gov.
A Non-Participating Lender Lien Release application, completed by the lender, must be submitted to a title issuing office. Upon acceptance of the Application, the lien will be released on VTR and the DMV will print and mail the certificate of title to the owner (or other entity as directed on the application).
An electronic certificate of title may be printed, at the request of a lender, if the owner is relocating to another state or for other purposes as approved by the DMV. A Non-Participating Lender Request for Paper Title, completed by the lender, must be submitted to the DMV. Upon acceptance of the application the DMV will print and mail the certificate of title as directed by the lender.
E. How To Become a Participating Lender
1. What is a Participating Lender?
A participating lender is one who has registered with the DMV as a participating lender, has been assigned a Participating Lender ID by the DMV and has established a service relationship with a DMV approved provider.
A provider is an entity that has entered into a written agreement with the DMV to provide electronic lien and title services for participating lenders.
Complete the Nebraska Electronic Lien and Title Participating Lender Application and submit to the DMV. Requests for additional information or assignment of the Participating Lender ID (PLID) will be returned within 5 business days. A participating lender may also become a provider or must engage an existing provider for the interface with DMV.
F. ELT Providers
Unless a participating lender also becomes a provider, the lender must engage an existing provider for the interface with the DMV. Dealertrack Technologies is among the entities that have been approved by the DMV as providers.
IV. MOBILE HOMES
A. Security Interest/Certificates of Title
1. Introduction
You can find the following forms at the link below or by going to www.dmv.nebraska.gov and searching for them.
Affidavit of Affixture for a Mobile Home with a Nebraska Certificate of Title (https://dmv.nebraska.gov/sites/dmv.nebraska.gov/files/doc/dvr/forms/affixaff.pdf).
Affidavit of Detachment for a Mobile Home (https://dmv.nebraska.gov/sites/dmv.nebraska.gov/files/doc/dvr/forms/detachaff.pdf)
V. MOTORBOATS
In 1994, the Nebraska Legislature enacted LB 123, which requires all vessels meeting the definition of a motorboat to have a certificate of title. This change in the law modified the manner in which a security interest in a motorboat must be perfected. Under Section 37-1204, a motorboat is defined as “any watercraft propelled in any respect by machinery, including watercraft temporarily equipped with detachable motors, but does not include a vessel which has a valid marine document issued by the Bureau of Customs of the United States Government or any federal agency successor thereto.” Previously, lenders obtained a perfected security interest in a motorboat by completing a UCC-1 financing statement and filing it with the county clerk in the county in which the debtor resides, or if the debtor is not a resident of Nebraska, in the county in which the motorboat is kept. (NOTE: If the motorboat constitutes business inventory, afinancing statement must be filed with the Secretary of State.)
A. Rules for Perfection
Any motorboat purchased or sold in this State must be issued a certificate of title. As a result, perfection of a security interest in a motorboat, requires the notation of lien on the motorboat certificate of title. The notation of lien may be made by either the County Clerk or the Department of Motor Vehicles. Please note that the statutory provisions for noting a lien on a motorboat certificate of title are virtually identical to the provisions relating to motor vehicle liens under Chapter 60 of the Nebraska Statutes.
NOTE:
1. Liens taken against motorboats which are inventory held for sale by a person or corporation that is in the business of selling motorboats will continue to be perfected by complying with the UCC filing requirements.
2. The new certificate of title requirement only applies to the motorboat itself. Thus, lenders wishing to take a security interest in unattached personal property, such as an outboard motor, will need to comply with the UCC filing requirements, with the filing location determined by the character of such unattached personal property as consumer goods (local filing) or business equipment or inventory (Secretary of State).