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| 1. Assignment. A lienholder may assign a security interest to a | | person other than the owner without affecting the interest of the | owner or the validity of the security interest. A | | provided in subsection 5, a lienholder who assigns a security | | interest to a person other than the owner must provide notice of | | the assignment to the Secretary of State within 30 days of the | | assignment. The notice must include the name, address and | | telephone number of the assignee, the name of the owner and the | | certificate of salvage, certificate of lien or certificate of title | | number. Failure to provide notice to the Secretary of State as | | required by this subsection is a civil violation for which the | | Secretary of State may assess a civil penalty of not more than $500 | | per violation. |
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| | | Sec. 2. 29-A MRSA §704, sub-§4, as amended by PL 2001, c. 671, §15, | | is further amended to read: |
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| | | 4. Endorsement. Beginning August 1, 2002 | | in subsection 5, the assignee must, in order to perfect the | | assignment, have a certificate of title, certificate of salvage | | or certificate of lien issued with the assignee named as | | lienholder, by delivering to the Secretary of State within 30 | | days of the assignment the certificate and an assignment by the | | lienholder named in the certificate in the form the Secretary of | | State prescribes, together with an application and the required | | fee. |
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| | | Sec. 3. 29-A MRSA §704, sub-§5 is enacted to read: |
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| | | 5.__Exceptions.__The notice requirement described in | | subsection 1 and the filing requirement described in subsection 4 | | do not apply to an assignment of a security interest by a | | lienholder if the lienholder retains the obligation to perform | | servicing functions in connection with the security interest.__As | | used in this subsection, "servicing functions" includes, without | | limitation, the obligations to release the lien or the obligation | | to obtain the release of lien upon satisfaction of the security | | interest as provided in section 705, to furnish information as | | provided in section 706, to respond to a request for information | | concerning the security interest from the Secretary of State and | | to retain possession of the certificate of title or certificate | | of salvage. |
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| | | Emergency clause. In view of the emergency cited in the preamble, | | this Act takes effect when approved. |
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