Sec. 1. 29-A MRSA §665, sub-§6 is enacted to read:

6.__Repossession.__Upon a lienholder's exercise of the right to take possession of a vehicle, ownership of the vehicle vests in the lienholder, subject to the duties imposed on the lienholder and the rights granted to the owner under Title 11, Article 9-A, Part 6.

SUMMARY

This bill clarifies that when a titled vehicle is repossessed by a lienholder, the owner must purchase the vehicle at a commercially reasonable sale under the Maine Revised Statutes, Title 11, section 9-1601 or must redeem the vehicle under Title 11, section 9-1623 in order to regain ownership of the vehicle. This bill reverses current practice in the bankruptcy courts whereby lienholders are required to return repossessed vehicles to owners who file bankruptcy before the lienholder is able to hold a sale of the vehicle.