SB490 Alabama 2012 Session

Summary

Primary Sponsor

Gerald H. AllenSenator

Republican

Session

Regular Session 2012

Title

Motor vehicles, security interests, older model vehicles, time before considered satisfied reduced, Sec. 32-8-64.2 am'd

Summary

SB490 would cut the time to release liens on older motor vehicles (12 or more model years old) from five years to three years.

What This Bill Does

It amends the law to treat any lien or security interest on 12+ model year vehicles as satisfied after three years from the date of the security agreement rather than five years. Lenders can still keep a lien beyond three years by obtaining a new certificate of title listing the lien to continue perfection. Vehicles that are travel trailers or weigh more than 12,000 pounds gross weight are not subject to this three-year rule and remain governed by another section. The Department may require electronic submission of lien releases within 10 days after satisfaction. The act becomes law on the first day of the third month after it is enacted.

Who It Affects

• Lenders and other lienholders on 12+ model year vehicles would see liens considered satisfied after three years, with an option to extend by obtaining a new title listing the lien.
• Vehicle owners and prospective buyers of older vehicles would benefit from earlier lien releases and smoother title transfers.

Key Provisions

• Amends Section 32-8-64.2 to change the satisfaction period for liens on vehicles 12+ model years old from five years to three years.
• Allows continued perfection of a lien beyond three years by obtaining a new certificate of title listing the lien; requires submission of a second title before the end of the applicable period to maintain perfection.
• Excludes travel trailers and vehicles over 12,000 pounds gross weight from the 3-year rule, keeping their liens governed by Section 32-8-64.
• Requires electronic submission of lien releases within 10 days of satisfaction by the department.
• Effective date: becomes law on the first day of the third month after passage/approval.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Motor Vehicles