Detailed Answer
1. Obtain a Written Payoff Statement from the Lender
Begin by requesting a written payoff statement from the vehicle lender. This document shows the exact amount required to fully satisfy the loan as of a specific date. Under Illinois’ Uniform Commercial Code (UCC), a secured party must provide an authenticated payoff or statement of account on demand. See 810 ILCS 5/9-513 (Termination Statement).
2. Make Payment and Collect a Lien Release or Satisfaction Letter
After remitting the required payoff amount, the administrator should ask the lender for a lien release or satisfaction letter. Under 810 ILCS 5/9-515 (Duty to Deliver New Certificate), the lender must either send you the vehicle title marked “satisfied” or file a termination statement with the Illinois Secretary of State if it perfected the security interest by filing. Keep the original release or a certified copy for your records.
3. Verify Title Status with the Illinois Secretary of State
Use the Illinois Secretary of State’s online services or visit a facility to confirm the lien is released. The Secretary of State maintains title records and shows active liens at www.cyberdriveillinois.com. Order a certified title history or conduct a lien search to ensure no outstanding claims remain on the vehicle.
4. Retain Documentation in Estate Records
As an estate administrator, Illinois law (755 ILCS 5/24-2) requires you to pay valid debts before distributing assets. Keep the payoff statement, lien release and title history with the estate inventory to demonstrate compliance with your fiduciary duty.
Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a licensed attorney for guidance tailored to your specific circumstance.
Helpful Hints
- Double-check the payoff statement’s expiration date before sending payment.
- Request the lien release in writing and follow up if you don’t receive it within 30 days.
- Keep certified mail or delivery receipts as proof of payment transmission.
- Use the Secretary of State’s online VIN lookup to confirm lien termination.
- Consult an estate attorney if the lender fails to release the lien as required by 810 ILCS 5/9-515.