Motor and Other Vehicles

CHAPTER 31-3.1
Certificates of Title and Security Interests

SECTION 31-3.1-21

§ 31-3.1-21. Assignment by lienholder.

(a) A lienholder may assign, absolutely or otherwise, his or her security interest in the vehicle to a person other than the owner without affecting the interest of the owner or the validity of the security interest, but any person without notice of the assignment is protected in dealing with the lienholder as the holder of the security interest, and the lienholder remains liable for any obligations as lienholder until the assignee is named as lienholder on the certificate.

(b) The assignee may, but need not to perfect the assignment, have the certificate of title endorsed or issued with the assignee named as lienholder, upon delivering to the division of motor vehicles the certificate and an assignment by the lienholder named in the certificate in the form the division of motor vehicles prescribes.

History of Section.
(P.L. 1971, ch. 100, § 1.)