PRIA, Government Policy, Made Personal

Summary

Makes a security interest in certain large commercial vehicles owned by or used by a carrier registered under section 13902 valid in all states against other creditors, buyers, and anyone who takes a security interest from that carrier when one of three things happens. First, a certificate of title for the vehicle is issued and it shows the security interest. Second, no title exists, but the State where the carrier’s main office is located lets or requires public filing to protect that interest and the owner has made such a public filing. Third, if no title exists and public filing won’t work, the interest is protected under the law of the State where the carrier’s main office is located (including conflict-of-law rules). Motor vehicle: big trucks, highway tractors, trailers/semitrailers, or buses that meet the weight or seating limits in the law (10,000 pounds or 10 seats). Lien creditor: a creditor with a lien, including an assignee for creditors (from assignment), a bankruptcy trustee (from filing), or a court receiver (from appointment). Security interest: an interest that secures payment or performance (for example, a conditional sale, mortgage, equipment trust, title-retention deal, or lease). Perfection: the steps (like public filing, a note on the title, or taking possession) required by law to make that interest enforceable against other creditors, not just steps that create the basic contract between the parties.

Title 49, §14301

Transportation, Source: USLM XML via OLRC

(a)Definitions.—

In this section, the following definitions apply:

(1)Motor vehicle.—

The term “motor vehicle” means a truck of rated capacity (gross vehicle weight) of at least 10,000 pounds, a highway tractor of rated capacity (gross combination weight) of at least 10,000 pounds, a property-carrying trailer or semitrailer with at least one load-carrying axle of at least 10,000 pounds, or a motor bus with a seating capacity of at least 10 individuals.

(2)Lien creditor.— (3) Security interest.—

The term “lien creditor” means a creditor having a lien on a motor vehicle and includes an assignee for benefit of creditors from the date of assignment, a trustee in a case under title 11 from the date of filing of the petition in that case, and a receiver in equity from the date of appointment of the receiver.

(4)Perfection.—

The term “perfection”, as related to a security interest, means taking action (including public filing, recording, notation on a certificate of title, and possession of collateral by the secured party), or the existence of facts, required under law to make a security interest enforceable against general creditors and subsequent lien creditors of a debtor, but does not include compliance with requirements related only to the establishment of a valid security interest between the debtor and the secured party.

(b)Requirements for Perfection of Security Interest.—

A security interest in a motor vehicle owned by, or in the possession and use of, a carrier registered under section 13902 of this title and owing payment or performance of an obligation secured by that security interest is perfected in all jurisdictions against all general, and subsequent lien, creditors of, and all persons taking a motor vehicle by sale (or taking or retaining a security interest in a motor vehicle) from, that carrier when—

(1)a certificate of title is issued for a motor vehicle under a law of a jurisdiction that requires or permits indication, on a certificate or title, of a security interest in the motor vehicle if the security interest is indicated on the certificate;

(2)a certificate of title has not been issued and the law of the State where the principal place of business of that carrier is located requires or permits public filing or recording of, or in relation to, that security interest if there has been such a public filing or recording; and

(3)a certificate of title has not been issued and the security interest cannot be perfected under paragraph (2) of this subsection, if the security interest has been perfected under the law (including the conflict of laws rules) of the State where the principal place of business of that carrier is located.

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

Provisions similar to those in this section were contained in section 11304 of this title prior to the general amendment of this subtitle by Pub. L. 104–88, § 102(a).

Statutory Notes and Related Subsidiaries

Effective Date

Section effective Jan. 1, 1996, except as otherwise provided in Pub. L. 104–88, see section 2 of Pub. L. 104–88, set out as a note under section 1301 of this title.

§14301 Security Interests in Certain Motor Vehicles