Public Chapter 523

HOUSE BILL NO. 1047

By Representatives Ritchie, Armstrong

Substituted for: Senate Bill No. 1389

By Senator Gilbert

AN ACT to amend Tennessee Code Annotated, Title 55, relative to titling and registration of motor vehicles.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:

SECTION 1. Tennessee Code Annotated, Section 55-3-126(b)(2), is amended by deleting such subdivision in its entirety and by substituting instead the following language:

(b)(2) The security interest is perfected as of the time of its creation if the delivery is completed within twenty (20) days thereafter; provided that additionally when a previous first lienholder has been satisfied and a different first lienholder is created on a motor vehicle, the security interest shall be perfected as of the time of its creation if the delivery is completed within twenty (20) days from the date the secured party receives the certificate of title for the vehicle from the previous lienholder. Otherwise a security interest is perfected as of the date of delivery to the county clerk or the division of motor vehicles.

SECTION 2. This act shall take effect upon becoming a law, the public welfare requiring it.