O.C.G.A. § 40-3-27 — Reﬂection of subsequent transactions

(a) Whenever the certiﬁcate of title is in the possession of a security interest holder or lienholder as allowed by this chapter and some other person, including the owner, who has an interest in a transaction concerning a security interest or lien shown on the certiﬁcate of title desires to have that transaction reﬂected on the certiﬁcate of title, such security interest holder or lienholder may execute a notice of that transaction in the form prescribed by the commissioner, setting forth the details of the transaction such security interest holder or lienholder desires to be reﬂected on the certiﬁcate of title. The notice, a fee as provided by Code Section 40-3-38, and the title application shall be mailed by certiﬁed mail or statutory overnight delivery, return receipt requested, by the person desiring the change to the ﬁrst security interest holder or lienholder having possession of the certiﬁcate of title. 390 40-3-27 CERTIFICATES OF TITLE, LIENS, ETC. 40-3-27 The notice shall contain on its face instructions to the security interest holder or lienholder having custody of the certiﬁcate of title directing such security interest holder or lienholder within ten days to forward the notice, the fee, the title application, and the certiﬁcate of title to the commissioner or the commissioner’s duly authorized county tag agent. The ﬁrst security interest holder or lienholder having possession of the certiﬁcate of title shall comply with the instructions contained in the notice. The commissioner or the authorized county tag agent, upon receipt of such a notice and title application, together with the fee and certiﬁcate of title, shall enter the transaction shown on the notice on such commissioner’s or authorized county tag agent’s records and on the certiﬁcate of title or issue a new certiﬁcate of title and shall then deliver the certiﬁcate of title as provided for in this chapter. The person desiring the change shall retain the return certiﬁed mail or statutory overnight delivery receipt as proof of such person’s compliance with this Code section. (b) In the event the ﬁrst security interest holder or lienholder holding the certiﬁcate of title fails, refuses, or neglects to forward the title application, notice, fee, and original certiﬁcate of title to the commissioner or the commissioner’s duly authorized county tag agent, as required by this Code section, the person desiring the change may, on a form prescribed by the commissioner, make direct application to the commissioner or the authorized county tag agent. Such direct application to the commissioner or the authorized county tag agent shall have attached to it the return registered or certiﬁed mail or statutory overnight delivery receipt showing the previous mailing of the title application, fee, and notice to the ﬁrst security interest holder or lienholder. Upon receipt of such a direct application, the commissioner or the authorized county tag agent shall order the ﬁrst security interest holder or lienholder having custody of the certiﬁcate of title to forward the certiﬁcate of title to the commissioner or the authorized county tag agent for the purpose of having the subsequent transaction entered thereon or a new certiﬁcate of title issued. If, after a direct application to the commissioner or the authorized county tag agent and the order of the commissioner or authorized county tag agent, the ﬁrst security interest holder or lienholder continues to fail, refuse, or neglect to forward the certiﬁcate of title as provided in this Code section, the commissioner or authorized county tag agent may cancel the outstanding certiﬁcate of title and issue a new certiﬁcate of title reﬂecting all security interests and liens, including the subsequent security interest, and this new certiﬁcate of title shall be delivered as provided for in this chapter. (c) As an alternative to mailing notices of transactions concerning a security interest or lien on the certiﬁcate of title to the commissioner or the commissioner’s appropriate authorized county tag agent in accor391 40-3-27 MOTOR VEHICLES & TRAFFIC 40-3-28 dance with this Code section, the commissioner shall be authorized to permit the transaction to be made by electronic means in accordance with regulations promulgated by the commissioner. (d) Any ﬁrst security interest holder or lienholder having possession of a certiﬁcate of title shall not have the validity of such ﬁrst security interest holder’s or lienholder’s security interest or lien affected by surrendering the certiﬁcate of title as provided by this Code section. History. Ga. L. 1965, p. 304, § 2; Ga. L. 1981, p. 883, § 4; Ga. L. 1986, p. 438, § 2; Ga. L. 1990, p. 2048, § 3; Ga. L. 1997, p. 739, § 11; Ga. L. 1998, p. 1179, § 33; Ga. L. 2000, p. 1589, § 3. 40-3-28. Registration of vehicle where commissioner not satisﬁed as to ownership of vehicle; bond. If the commissioner or the commissioner’s duly authorized county tag agent is not satisﬁed as to the ownership of the vehicle or that there are no undisclosed security interests in it, the commissioner or authorized county tag agent may register the vehicle, but shall either: (1) withhold issuance of a certiﬁcate of title until the applicant presents documents reasonably sufficient to satisfy the commissioner or authorized county tag agent as to the applicant’s ownership of the vehicle and that there are no undisclosed security interests in it; or (2) as a condition of issuing a certiﬁcate of title, require the applicant to ﬁle with the commissioner or authorized county tag agent a bond in the form prescribed by the commissioner and executed by the applicant and by a bonding, surety, or insurance company licensed to do business in Georgia. The bond shall be in an amount equal to the value of the vehicle as determined by the commissioner or authorized county tag agent and payable to the commissioner for the beneﬁt of any prior owner, lienholder, or security interest holder, and any subsequent purchaser of the vehicle or person acquiring any security interest or lien on it, and their respective successors in interest, against any expense, loss, or damage, by reason of the issuance of the certiﬁcate of title of the vehicle or on account of any defect in or undisclosed security interest upon the right, title, and interest of the applicant in and to the vehicle. The commissioner shall have a right of action to recover on the bond for any breach of its conditions, but the aggregate liability of the surety to all persons shall not exceed the amount of the bond. The bond shall expire at the end of four years unless the commissioner or authorized county tag agent has been notiﬁed of a breach of a condition of the bond. History. Ga. L. 1967, p. 450, § 1; Ga. L. 1973, p. 712, § 1; Ga. L. 1976, p. 319, § 1; Ga. L. 1990, p. 2048, § 3; Ga. L. 1997, p. 739, § 12; Ga. L. 2002, p. 838, § 3. 392 40-3-28 CERTIFICATES OF TITLE, LIENS, ETC. 40-3-29