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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
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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 lien is on the vehicle.
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?
Secure it by a first lien on the Windstar
Thanks for your suggestions
BE
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Make sure that lien is recorded with the title section of the department of
motor vehicles in your state, dude.
Otherwise, it will be ineffective against innocent purchasers.
The lien is on the vehicle.
Secure it by a first lien on the Windstar
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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."
I would expect the "lienor" to be the one who gives the lien, and the one
to whom the lien is given is the "lienee." (Compare, the "mortgagor" is the
one who gives a mortgage, and the "mortgagee" is the one to whom the
mortgage is given.)
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?
On the vehicle itself.
In other words, should I state that the note is secured by "a Ford
Windstar LX, VIN # XXXXXXXXXXXXXXXXX...", etc?
Yes, except that since the lien has to be endorsed on the title itself,
and the title already describes the vehicle fully, it would seem to be
a waste of ink to bother repeating the vehicle's full description.
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?
No.
Thanks for your suggestions
A lien on a car is not effective unless/until properly endorsed
on the certificate of title -and- processed by the department
of motor vehicles (or whatever it is called in your jurisdiction).
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Recently, "tomG" <tmg.nospam@jorsm.com> created this masterpiece for the
newsgroup archives:
I would expect the "lienor" to be the one who gives the lien, and the
one
to whom the lien is given is the "lienee." (Compare, the "mortgagor"
is the
one who gives a mortgage, and the "mortgagee" is the one to whom the
mortgage is given.)
On the vehicle itself.
Yes, except that since the lien has to be endorsed on the title
itself,
and the title already describes the vehicle fully, it would seem to be
a waste of ink to bother repeating the vehicle's full description.
No.
A lien on a car is not effective unless/until properly endorsed
on the certificate of title -and- processed by the department
of motor vehicles (or whatever it is called in your jurisdiction).
Thanks, guys, for the help.
BE
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