Detailed Answer
Under Delaware law, an administrator can confirm that a vehicle loan is fully satisfied by following a clear, three-step process: obtain payoff documentation, verify lien release on the vehicle title, and review Uniform Commercial Code (UCC) records.
1. Obtain a Written Payoff Statement
Request a written payoff statement from the lender or finance company. This document must include the borrower’s name, loan account number, payoff amount, and a statement that the loan is paid in full as of a specific date. Under Del. Code tit. 6, ch. 9, secured parties must provide an accounting upon request. See Del. Code tit. 6, ch. 9.
2. Confirm Release of Lien on the Title
Once the loan is paid, the lender must endorse the Certificate of Title to remove its lien. Delaware Code Title 21, Section 2175 requires the lienholder’s endorsement to show release of the security interest. You should:
- Submit the endorsed title to the Delaware Division of Motor Vehicles (DMV).
- Request a new Certificate of Title reflecting no liens.
For statutory details, see Del. Code tit. 21, ch. 21.
3. Review UCC Filing Records
Many lenders perfect security interests by filing a UCC-1 Financing Statement. After payoff, they must file a UCC-3 Termination Statement. To confirm:
- Search the Delaware Division of Corporations’ UCC database at https://icis.corp.delaware.gov/Ecorp/.
- Verify that a UCC-3 termination statement has been filed against the financing statement.
See Del. Code tit. 6, § 9-513 on termination statements: Del. Code tit. 6, ch. 9.
Helpful Hints
- Obtain all payoff and lien-release documents in writing; keep certified copies.
- Allow up to 30 days for the DMV to process and issue a clear title.
- Check with the lender for any residual fees or administrative charges.
- Use the Delaware DMV online portal to track title status.
- Consult a qualified attorney if you encounter any discrepancies.
Disclaimer: This article provides general legal information under Delaware law and does not constitute legal advice. Consult a licensed attorney to address your specific circumstances.