§ 31-3.1-22. Release of security interest.
(a) Upon the satisfaction of a security interest in a vehicle for which the certificate of title is in the possession of the lienholder, the lienholder shall, within fifteen (15) business days, execute a release of his or her security interest, in the space provided for it on the certificate or as the division of motor vehicles prescribes, and mail or deliver the certificate and release to the next lienholder named in it, or, if none, to the owner or any person who delivers to the lienholder an authorization from the owner to receive the certificate. The owner, other than a dealer holding the vehicle for resale, shall promptly cause the certificate and release to be mailed or delivered to the division of motor vehicles, which shall release the lienholder’s rights on the certificate or issue a new certificate.
(b) Upon the satisfaction of a security interest in a vehicle for which the certificate of title is in the possession of a prior lienholder, the lienholder whose security interest is satisfied shall within ten (10) days execute a release in the form the division of motor vehicles prescribes and deliver the release to the owner or to any person who delivers to the lienholder an authorization from the owner to receive it. The lienholder in possession of the certificate of title shall either deliver the certificate to the owner, or the person authorized by him or her, for delivery to the division of motor vehicles, or, upon receipt of the release and registration card, mail or deliver them with the certificate to the division of motor vehicles which shall release the subordinate lienholder’s rights on the certificate or issue a new certificate.
(c) It shall be unlawful for the lienholder to charge any fee for the delivery of the certificate and release.
(d) Failure of the lienholder to provide the certificate and release as required by this section shall subject the lienholder to liability for any damages to the owner caused by that failure.
History of Section.P.L. 1971, ch. 100, § 1; P.L. 1985, ch. 377, § 1.
Structure Rhode Island General Laws
Title 31 - Motor and Other Vehicles
Chapter 31-3.1 - Certificates of Title and Security Interests
Section 31-3.1-1. - Certificate of title required.
Section 31-3.1-2. - Exclusions.
Section 31-3.1-3. - Optional certificate of title.
Section 31-3.1-4. - Application for first certificate of title.
Section 31-3.1-5. - Examination of records.
Section 31-3.1-6. - Issuance and records.
Section 31-3.1-7. - Contents and effect of certificate.
Section 31-3.1-9. - Registration without certificate of title — Bond.
Section 31-3.1-10. - Refusing certificate of title.
Section 31-3.1-11. - Lost, stolen or mutilated certificates.
Section 31-3.1-12. - Transfer.
Section 31-3.1-13. - Transfer to or from dealer — Records.
Section 31-3.1-14. - Transfer by operation of law.
Section 31-3.1-15. - Fees — Registration cards.
Section 31-3.1-16. - Issuance of new certificate.
Section 31-3.1-16.1. - Electronic recording of security interests.
Section 31-3.1-17. - Scrapping, dismantling or destroying vehicle.
Section 31-3.1-18. - Excepted liens and security interests.
Section 31-3.1-19. - Perfection of security interests.
Section 31-3.1-20. - Security interest — Change of certificate.
Section 31-3.1-21. - Assignment by lienholder.
Section 31-3.1-22. - Release of security interest.
Section 31-3.1-23. - Duty of lienholder.
Section 31-3.1-24. - Exclusiveness of procedure.
Section 31-3.1-25. - Suspension or revocation of certificates.
Section 31-3.1-26. - Powers of division of motor vehicles.
Section 31-3.1-27. - Vehicle leases that are not sales or security interests.
Section 31-3.1-28 - — 31-3.1-35. [Obsolete.]
Section 31-3.1-36. - Court review.