O.C.G.A. § 40-3-51 (2019)
Creation of security interest by owner
If the 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 that the commissioner prescribes, naming the holder of the security interest on the certificate and showing the name and address of the security interest holder, and shall cause the certificate, the application, and the required fee to be delivered to the security interest holder; (2) The security interest holder shall immediately cause the certificate of title and application and the required fee to be mailed or delivered to the commissioner or the commissioner’s appropriate authorized county tag agent within 30 days of the date of creation of the security interest or lien. If the certificate of title and application and the required fee are not mailed or delivered within such time, the lien or security interest holder shall be required to pay a $10.00 penalty in addition to the ordinary title fee provided for by this chapter. If the documents submitted in support of the title application are rejected, the party submitting the documents shall have 60 days from the date of initial rejection to resubmit the documents required by the commissioner or the authorized county tag agent for the issuance of title. If the documents are not properly resubmitted within the 60 day period, there shall be an additional $10.00 penalty assessed, and the owner of the vehicle shall be required to remove immediately the license plate of the vehicle and return same to the commissioner or authorized county tag agent. The license plate shall be deemed to have expired at 12:00 Midnight of the sixtieth day following the initial rejection of the documents, if the documents have not been resubmitted as required under this paragraph; and (3) Upon receipt of the certificate of title, the application, and the
required fee, the commissioner or the commissioner’s duly authorized county tag agent shall issue a new certificate containing the name and address of the holder of the security interest and of holders of previous unreleased security interests and liens, if any, and shall mail the certificate to the first holder on it. If more than one holder is named on the certificate, the first holder shall comply with subsection (b) of Code Section 40-3-26 in regard to notifying other holders of the content of the certificate.
History
Ga. L. 1961, p. 68, § 22; Ga. L. 1962, p. 79, § 12; Ga. L. 1964, p. 436, § 4; Ga. L. 1965, p. 304, § 6; Ga. L. 1969, p. 92, § 5;
Ga. L. 1981, p. 883, § 11; Ga. L. 1990, p. 8, § 40; Ga. L. 1990, p. 2048, § 3; Ga. L. 1997, p. 739, § 19; Ga. L. 2008, p. 835, § 7/SB 437.
Annotations
JUDICIAL DECISIONS Chapter as sole means of perfection. - Only way to perfect security interest in motor vehicles is by filing under Ga. L. 1961, p. 68 (see now O.C.G.A. § 40-3-1 et seq.). General Fin. Corp. v. Hester, 141 Ga. App. 28, 232 S.E.2d 375, 1977 Ga. App. LEXIS 1742 (1977). Penalty for failure to deliver documents. - O.C.G.A. § 40-3-51 does not purport to void a security interest if delivery of the certificate of title is not made within the prescribed time, but merely sets forth a ten dollar ($10.00) penalty for delivery of relevant documents to the commissioner if not completed in a timely fashion. Perkins v. Gilbert, 169 B.R. 455, 1994 Bankr. LEXIS 997 (Bankr. M.D. Ga. 1994). Retroactivity of late-perfected security interest. - Late-perfected security interest is not retroactively valid against an innocent third party who acquired the automobile for value. General Fin. Corp. v. Hester, 141 Ga. App. 28, 232 S.E.2d 375, 1977 Ga. App. LEXIS 1742 (1977). No obligation to perfect security interest. - Credit union which loaned
money to a borrower to purchase a van had no obligation to perfect a security interest therein. The borrower never received or took title to the van which was to be security for the loan and, thus, although the credit union could have perfected a security interest by delivering the title to the revenue commissioner, it could do so only after the security interest was created by submitting a title application pursuant to O.C.G.A. § 40-3-51. Hairston v. Savannah River Plant Fed. Credit Union, 216 Ga. App. 246, 453 S.E.2d 811, 1995 Ga. App. LEXIS 89 (1995). Security interest without perfecting interest on certificate of title. - Although an application for certificate of title pursuant to O.C.G.A. § 40-3-51 is the exclusive means of perfecting a lien in a motor vehicle, a party may have a security interest in a vehicle without having perfected that interest on the certificate of title. In re Dukes, 213 B.R. 202, 1997 Bankr. LEXIS 2014 (Bankr. S.D. Ga. 1997).
OPINIONS OF THE ATTORNEY GENERAL Receipt of application or notice of lien in commissioner’s records. - Department of Revenue’s (now commissioner’s) records show when an application or notice of lien is received under Ga. L. 1961, p. 68 (see now O.C.G.A.
§ 40-3-1 et seq.) for use in determining relative priority of security interest. 1962 Ga. Op. Att’y Gen. 310. Correction of title certificate. - If title certificate is incorrect, it should be returned to commissioner and the owner
MOTOR VEHICLES & TRAFFIC
notified by the security interest holder that the holder has received the certificate, that it contained an error, and that the holder has returned the certificate to the commissioner; the commissioner will issue a correct certificate of title if such seems to be required under the circumstances. 1962 Ga. Op. Att’y Gen. 311.
Used car dealers. - Failure of a used car dealer to be listed on the certificate of title as an owner or security interest holder does not affect the creation of the security interest and all the rights attached thereto, including repossession. 1990 Op. Att’y Gen. No. 90-8.
RESEARCH REFERENCES Am. Jur. 2d. 7A Am. Jur. 2d, Automobiles and Highway Traffic, §§ 36, 37, 56. 51 Am. Jur. 2d, Liens, § 16. C.J.S. 60 C.J.S., Motor Vehicles, § 103 et seq. 72 C.J.S., Pledges, § 13. 78A C.J.S., Sales, § 807 et seq.
U.L.A. Uniform Motor Vehicle Certificate of Title and Anti-Theft Act (U.L.A.) §§ 20, 21. ALR. Lien for repairs to or services in connection with automobile, 62 A.L.R. 1485.