(a) When any new lien, other than a lien dependent solely upon possession, or a lien of the state for taxes established pursuant to title 67, chapter 1, part 14, is placed on any motor vehicle coming within the title provisions of chapters 1-6 of this title in a transaction not involving any change of ownership, the owner shall deliver the certificate of title, if in the owner’s possession, on to the lienor, who shall forward the certificate of title, together with the required fee for noting the lien on the certificate of title, with proof of the lien required by the reasonable rules and regulations of the commissioner directly to the county clerk. The county clerk, when satisfied of the lienor’s right to have the lien noted on the certificate of title, shall note the lien on the certificate of title and return the certificate of title to the lienor.
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Terms Used In Tennessee Code 55-3-123

  • Department: means the department of revenue. See Tennessee Code 55-1-111
  • Dependent: A person dependent for support upon another.
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Owner: means a person who holds the legal title of a vehicle, or in the event a vehicle is the subject of an agreement for the conditional sale or lease thereof, with the right of purchase upon performance of the conditions stated in the agreement and with an immediate right of possession vested in the conditional vendee or lessee, or in the event a mortgagor of a vehicle is entitled to possession, then the conditional vendee or lessee or mortgagor shall be deemed the owner for the purpose of this chapter and chapter 10, parts 1-5 of this title. See Tennessee Code 55-8-101
  • State: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
  • Vehicle: means every device in, upon or by which any person or property is or may be transported or drawn upon a highway, excepting devices used exclusively upon stationary rails or tracks. See Tennessee Code 55-8-101
(b) In the event the certificate of title is in the possession of some prior lienor, the new or subordinate lienor shall forward to the county clerk the required fee for noting the lien, together with proof of the lien required by the reasonable rules and regulations of the commissioner, and the county clerk, when satisfied of the right of the lienor to have the lien noted on the certificate of title, shall forward the application and proof of lien to the department. The department shall procure the certificate of title from the lienor in whose possession it is being held, for the sole purpose of noting the new lien on the certificate of title, and shall return the certificate of title to the lienor from whom it was obtained and shall further notify the new lienor of the fact that the lien has been noted on the certificate of title.
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