Section R17-4-208. Lien Clearance

A.      Lien clearance. The Division shall remove the lien from the vehicle or mobile home record indicated on the lien clearance and issue a new Arizona Certificate of Title upon receiving proof that the lien is satisfied and an application furnished by the Division, the most recently issued certificate of title, the fee or fees to be paid as provided by law, and any other docu- mentation required pursuant to A.R.S. Title 28. The Division considers the following instruments satisfactory proof that the lien or encumbrance recorded on a vehicle or mobile home record is satisfied:

1.        The transmission of an electronic lien release from an ELT Participant,

2.        A certificate of title acknowledged by the lienholder as prescribed under subsection (B)(1),

3.        An original lien filing receipt acknowledged by the lien- holder as prescribed under subsection (B)(1),

4.        An original computer-generated Lienholder Record acknowledged by the lienholder as prescribed under sub- section (B)(1),

5.        A lender copy of the original lien instrument indicating the lien is paid in full acknowledged by the lienholder as prescribed under subsection (B)(1); or

6.        Any document giving a complete description of the vehi- cle, as recorded on the Arizona Certificate of Title, indi- cating that the lien is either “paid in full” or “satisfied” acknowledged by the lienholder as prescribed under sub- section (B)(1).

B.       Lienholder satisfaction of lien requirements.

1.        The Division shall not accept a satisfaction of lien when the authorized signature of the lienholder or authorized agent of the lienholder, appearing on the lien clearance instrument, is not acknowledged before a Notary Public or witnessed by an authorized Division employee.

2.        The lienholder shall deliver the Arizona Certificate of Title to the next lienholder or, if there is not another lien- holder, to the owner of the vehicle or mobile home within 15 business days after receiving payment in full satisfac- tion of the lien.

3.        A lienholder that fails to deliver the certificate of title within 15 business days may be assessed a civil penalty, as prescribed under A.R.S. § 28-2134.

C.      Lien release received in error. The Division will not reimburse any parties for any monetary damages that may occur when a lienholder issues a lien clearance to the Division in error.

D.      Administrative hearing. A lienholder who is assessed a civil penalty, as prescribed under A.R.S. § 28-2134, may request a hearing in accordance with the procedures prescribed under 17

A.A.C. 1, Article 5.

Historical Note

Former Rule, General Order 83. Former Section R17-4- 35 renumbered without change as Section R17-4-208 (Supp. 87-2). Section repealed by final rulemaking at 6

A.A.R. 2468, effective June 8, 2000 (Supp. 00-2). Section recodified from R17-4-231 at 7 A.A.R. 3479, effective July 20, 2001 (Supp. 01-3). Section repealed; new Sec- tion made by final rulemaking at 13 A.A.R. 3281, effec-

tive November 10, 2007 (Supp. 07-3).