Sec. 3. 29-A MRSA §704, sub-§5 is enacted to read:

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 upon satisfaction of the security interest as provided in section 705, to furnish information as provided in section 706 and to respond to a request for information concerning the security interest from the Secretary of State.

Emergency clause. In view of the emergency cited in the preamble, this Act takes effect when approved.

SUMMARY

This bill provides an exemption to the requirements that a lienholder who assigns a security interest in a motor vehicle must notify the Secretary of State and have a certificate of title issued with the assignee named as lienholder for a lienholder who assigns a security interest if the lienholder retains the obligation to perform servicing functions in connection with the security interest.