Tennessee Code Annotated
Tenn. Code Ann. § 55-3-123 (2026)
Liens to be noted on certificates of title - County clerk entering lien
✓ current as of May 2026
- (a) When any new lien, other than a lien dependent solely upon possession, or a lien of the state for taxes established pursuant to title 67, chapter 1, part 14, is placed on any motor vehicle coming within the title provisions of chapters 1-6 of this title in a transaction not involving any change of ownership, the owner shall deliver the certificate of title, if in the owner's possession, on to the lienor, who shall forward the certificate of title, together with the required fee for noting the lien on the certificate of title, with proof of the lien required by the reasonable rules and regulations of the commissioner directly to the county clerk. The county clerk, when satisfied of the lienor's right to have the lien noted on the certificate of title, shall note the lien on the certificate of title and return the certificate of title to the lienor.
- (b) In the event the certificate of title is in the possession of some prior lienor, the new or subordinate lienor shall forward to the county clerk the required fee for noting the lien, together with proof of the lien required by the reasonable rules and regulations of the commissioner, and the county clerk, when satisfied of the right of the lienor to have the lien noted on the certificate of title, shall forward the application and proof of lien to the department. The department shall procure the certificate of title from the lienor in whose possession it is being held, for the sole purpose of noting the new lien on the certificate of title, and shall return the certificate of title to the lienor from whom it was obtained and shall further notify the new lienor of the fact that the lien has been noted on the certificate of title.
Amended by 2019 Tenn. Acts, ch. 462,Secs.s4, s5 eff. 7/1/2019.
Amended by 2019 Tenn. Acts, ch. 462,s 3, eff. 7/1/2019.
Acts 1951, ch. 70, § 53 (Williams, § 5538.153); Acts 1978, ch. 686, § 2; T.C.A. (orig. ed.), § 59-324; Acts 2007, ch. 484, § 24.
Notes of Decisions
Cited in 7
cases, 1980–2011 · leading case: Parks v. Mid-Atl. Fin. Co., Inc., 343 S.W.3d 792 (Tenn. Ct. App. 2011).
Parks v. Mid-Atl. Fin. Co., Inc., 343 S.W.3d 792 (Tenn. Ct. App. 2011). “Tenn.Code Ann. § 55-3-123 (2008). An assignee of a lien in an automobile, at its election, is provided a mechanism for having its name reflected on the title in place of the assignor by TenmCode Ann.”
Still v. First Tennessee Bank, N.A., 900 S.W.2d 282 (Tenn. 1995). “Tenn.Code Ann. § 55-3-123. This provides the lienor ample opportunity to ensure that its interest in the security is protected.”
Ray v. Sec. Mut. Fin. Corp. (In Re Arnett), 17 B.R. 912 (E.D. Tenn. 1982). “The appellant’s arguments that Security Mutual should have followed the procedure of TCA § 55-3-123 do not seem persuasive as that statute makes no allowance for the release of American National’s prior lien.”
Weill v. United Bank of Chattanooga (In Re Poteet), 5 B.R. 631 (Bankr. E.D. Tenn. 1980). “2 § 55-3-123. Generally a security interest is perfected by giving notice of its existence to third parties.”
Fruehauf Corp. v. Sexton (In Re Sexton), 18 B.R. 733 (E.D. Tenn. 1982). “Sections 55-3-123, et seq. are statutes which require indication of the security interest on a certificate of title.”
Fruehauf Corp. v. Sexton (In Re Sexton), 18 B.R. 730 (Bankr. E.D. Tenn. 1981). “” Finally, when a lien is placed on any “motor vehicle,” § 55-3-123 requires the owner of the motor vehicle to deliver his certificate of title to the lienor for the purpose of noting the lien thereon.”
McLemore v. Liberty State Bank (In re Johnson), 39 B.R. 478 (Bankr. M.D. Tenn. 1984). “§ 55-3-123 provides for delivery of a certificate of title upon which a lien is noted only for “motor vehicles:” When any new lien, other than a lien dependent solely upon possession, or a lien of the state for taxes established pursuant to chapter 60 of title 67, is placed on…”
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