|
I'm writing up a simple promissory note to loan a family member the
money to buy a car. My note states, "This Note is secured by
___________..."
On the Certificate of Title, I have entered my name and address as the
"Lienor." Obviously, I wish to secure my loan with a lien upon the
title. But, the question is, what is the legally proper terminology for
this section of the Note? Am I placing a lien on the title to the
vehicle, or on the vehicle itself?
In other words, should I state that the note is secured by "a Ford
Windstar LX, VIN # XXXXXXXXXXXXXXXXX...", etc? Or should it state that
the Note is secured by "a lien on a Ford Windstar LX, VIN # XXXXX...",
or, a lien on "the Certificate of Title" to the Ford Windstar, etc?
Thanks for your suggestions
BE
|
| |
| |
Bloated Elvis <returntosender@notell.hotel.not> wrote:
I'm writing up a simple promissory note to loan a family member
the money to buy a car. My note states, "This Note is secured by
___________..."
On the Certificate of Title, I have entered my name and address
as the "Lienor." Obviously, I wish to secure my loan with a
lien upon the title. But, the question is, what is the legally
proper terminology for this section of the Note? Am I placing a
lien on the title to the vehicle, or on the vehicle itself?
Just describe the auto in a way that can only identify that
particular car - make, model, year, VIN.
In other words, should I state that the note is secured by "a
Ford Windstar LX, VIN # XXXXXXXXXXXXXXXXX...", etc? Or should it
state that the Note is secured by "a lien on a Ford Windstar LX,
VIN # XXXXX...", or, a lien on "the Certificate of Title" to the
Ford Windstar, etc?
Doesn't really matter. In this situation I'd say simpler is better
- I'll pick door number 1.
But remember that simply putting this in the note does not perfect
the security interest (meaning that it may well not be effective
without more). The "more" that is missing is to get your name on
the actual title as the lienholder. Talk to your state DMV about
how to do that.
Stu
|
| |
| |
In article <h82bpvsst84799qvkrqvng8bsacga2c659@4ax.com>,
Bloated Elvis <bluesuede@shoes.not> wrote:
I'm writing up a simple promissory note to loan a family member the
money to buy a car. My note states, "This Note is secured by
___________..."
On the Certificate of Title, I have entered my name and address as the
"Lienor." Obviously, I wish to secure my loan with a lien upon the
title. But, the question is, what is the legally proper terminology for
this section of the Note? Am I placing a lien on the title to the
vehicle, or on the vehicle itself?
In other words, should I state that the note is secured by "a Ford
Windstar LX, VIN # XXXXXXXXXXXXXXXXX...", etc? Or should it state that
the Note is secured by "a lien on a Ford Windstar LX, VIN # XXXXX...",
or, a lien on "the Certificate of Title" to the Ford Windstar, etc?
In the latter case, you have a lien on a piece of paper.
Consider what happens if the owner crashes the car and the insurance
company totals it (and pays for it). Do you want a lien against the
car (and therefore the payment for the car), or against the title to a
worthless pile of junk metal?
Seth
|
| |
| |
|
