CHAPTER 234

S.P. 554 - L.D. 1576

An Act To Amend the Motor Vehicle Laws Relating to the

Assignment of Security Interests

Emergency preamble. Whereas, acts of the Legislature do not become effective until 90 days after adjournment unless enacted as emergencies; and

Whereas, current Maine law requires assignees of motor vehicle liens to file new title applications with the Secretary of State within 30 days after the assignment of the lien; and

Whereas, this statutory provision has had an unintended adverse effect on finance companies that purchase Maine motor vehicle contracts and, as a result, on the financing options that dealers can make available to consumers; and

Whereas, this legislation exempts assignees from filing new title applications as long as the lienholder of record continues to accept payments from and service the contract for the consumer; and

Whereas, in the judgment of the Legislature, these facts create an emergency within the meaning of the Constitution of Maine and require the following legislation as immediately necessary for the preservation of the public peace, health and safety; now, therefore,

Be it enacted by the People of the State of Maine as follows:

Sec. 1. 29-A MRSA §704, sub-§1, as amended by PL 2001, c. 671, §15, is further amended to read: