If an owner creates a security interest in a vehicle:
(1) The owner shall immediately execute the application in the space provided therefor on the certificate of title, or on a separate form the department prescribes to name the lienholder on the certificate showing the name and address of the lienholder and the date of his security agreement, and cause the certificate, application and the required fee to be delivered to the lienholder.
(2) The lienholder shall immediately cause the certificate, application and required fee to be mailed or delivered to the department.
(3) Upon request of the owner or subordinate lienholder, a lienholder in possession of the certificate of title shall either mail or deliver the certificate to the subordinate lienholder for delivery to the department, or, upon receipt from the subordinate lienholder of the owner's application and the required fee, mail or deliver them to the department with the certificate. The delivery of the certificate does not affect the rights of the first lienholder under his security agreement.
(4) Upon receipt of the certificate of title, application and the required fee, the department shall either endorse on the certificate or issue a new certificate containing the name and address of the new lienholder, and mail the certificate to the first lienholder named in it.
Structure Code of Alabama
Title 32 - Motor Vehicles and Traffic.
Chapter 8 - Uniform Certificate of Title and Antitheft Act.
Article 3 - Security Interests.
Section 32-8-60 - Excepted Liens and Security Interests.
Section 32-8-61 - Perfection of Security Interests.
Section 32-8-62 - Procedure When Owner Creates Security Interest.
Section 32-8-63 - Assignment by Lienholder.
Section 32-8-64 - Release of Security Interest.
Section 32-8-64.1 - Satisfaction of Security Interest After 12 Years.
Section 32-8-64.2 - Release of Certain Liens.
Section 32-8-65 - Duty of Lienholder to Disclose Information.
Section 32-8-66 - Exclusiveness of Procedure.
Section 32-8-67 - Filing and Recording of Notices of Security Interests; Examination of Record.
Section 32-8-68 - Recording and Releasing Security Interests by Electronic Means.