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?
The note is secured by the collateral property, i.e. the vehicle
itself. The title certificate is just evidence of who owns or has any
other property interest in the vehicle (such as a lien).
Your local DMV probably has a form you can use for your promissory
note, unless you're really happy with what you wrote and are sure it
covers all the bases. Many amateur-drafted agreements don't. It
_will_ have a legal effect, but maybe not the one you want.
Your DMV can also be very helpful in making sure you, and your
relative, jump thru all the right hoops to have the title, and the
lien, properly recorded. Don't hesitate to ask questions of the
clerks there. Unless you feel like appealing their decisions to your
state's appellate courts, they're the ones who will decide whether
what you did is kosher or not, anyway. So listen to them. Good
luck,
--
This posting is for discussion purposes, not professional advice.
Anything you post on this Newsgroup is public information.
I am not your lawyer, and you are not my client in any specific legal
matter.
For confidential professional advice, consult a lawyer in a private
communication.
Mike Jacobs
LAW OFFICE OF W. MICHAEL JACOBS
10440 Little Patuxent Pkwy #300
Columbia, MD 21044
(tel) 410-740-5685 (fax) 410-740-4300
