Definition & Meaning of Title Lien Statement
A Title Lien Statement in Boone County, Kentucky, is a legal document that serves to officially record a lien on a vehicle, manufactured home, or motorboat. This document is crucial for establishing the secured party's interest in the property. The Title Lien Statement is filed with the Boone County Clerk's Office and is essential for ensuring that the lien is noted on the Kentucky certificate of title. This process protects the lender's investment by providing a legal claim to the collateral in case of default.
The Title Lien Statement is formally known as Form TC 96-187. It includes vital information such as the names and addresses of the debtor and secured party, the execution date, and a detailed description of the collateral, including its year, make, and identification number. This information is crucial for the proper identification of the lien and the parties involved.
How to Fill Out the Title Lien Statement
Filling out the Title Lien Statement requires careful attention to detail to ensure all necessary information is accurately provided. The following steps outline the process:
- Obtain the Form: Access Form TC 96-187 from the Boone County Clerk's Office or their official website.
- Provide Debtor Information: Enter the full name and address of the debtor. This is the individual or entity that owns the vehicle or property.
- Enter Secured Party Information: Fill in the name and address of the secured party, which is the lender or entity that holds the lien.
- Describe the Collateral: Include a complete description of the vehicle or property, specifying the year, make, model, and identification number.
- Execution Date: Indicate the date on which the lien is being executed.
- Signatures: Ensure that all required parties sign the document. Original signatures are necessary for the filing process.
After completing the form, it must be submitted to the Boone County Clerk's Office for processing.
Submission Methods for the Title Lien Statement
The Title Lien Statement can be submitted in several ways to the Boone County Clerk's Office. Here are the available methods:
- In-Person Submission: You can bring the completed form directly to the Clerk's Office in Burlington or Florence. This method allows for immediate processing and confirmation.
- Mail Submission: If you prefer to submit the form by mail, ensure that you send it to the correct address of the Boone County Clerk's Office. Include any necessary fees and allow for processing time.
Regardless of the submission method, it is essential to keep a copy of the submitted form for your records.
Key Elements of the Title Lien Statement
The Title Lien Statement contains several key elements that must be correctly filled out to ensure its validity:
- Debtor's Information: Full legal name and current address of the individual or entity that owns the property.
- Secured Party's Information: Name and address of the lender or entity holding the lien.
- Collateral Description: Detailed information about the vehicle or property, including year, make, model, and identification number.
- Execution Date: The date on which the lien is executed, which is critical for determining the lien's validity period.
These elements ensure that the lien is properly recorded and enforceable under Kentucky law.
Legal Use of the Title Lien Statement
The Title Lien Statement is legally binding and serves several important purposes:
- Establishing a Claim: It establishes a legal claim against the property in question, protecting the lender's interest.
- Public Record: Once filed, it becomes part of the public record, providing notice to other potential creditors about the existing lien.
- Duration of Lien: The lien is typically effective for ten years, or thirty years for manufactured homes, unless released earlier.
Understanding the legal implications of the Title Lien Statement is essential for both lenders and borrowers to navigate their rights and obligations.
Who Typically Uses the Title Lien Statement
The Title Lien Statement is commonly used by various parties involved in financing vehicles or properties:
- Lenders: Banks, credit unions, and other financial institutions use this document to secure loans against vehicles or manufactured homes.
- Dealerships: Auto dealerships may file a lien when financing a vehicle sale, ensuring they have a legal claim until the loan is paid off.
- Individuals: Private lenders or individuals who provide loans for vehicle purchases may also use the Title Lien Statement to protect their interests.
Each of these parties plays a role in the financing process, making the Title Lien Statement a crucial document for securing loans.
Examples of Using the Title Lien Statement
Understanding practical scenarios can clarify how the Title Lien Statement is utilized:
- Loan for a Vehicle: An individual purchases a car and takes out a loan from a bank. The bank files a Title Lien Statement to secure its interest in the vehicle until the loan is fully repaid.
- Manufactured Home Financing: A couple buys a manufactured home and finances it through a credit union. The credit union files a Title Lien Statement to establish a claim on the home, which is effective for thirty years.
These examples illustrate the importance of the Title Lien Statement in protecting the interests of lenders while providing access to financing for borrowers.
State-Specific Rules for the Title Lien Statement
In Boone County, Kentucky, specific rules govern the filing and management of Title Lien Statements:
- Filing Location: The Title Lien Statement must be filed with the Boone County Clerk's Office, either in Burlington or Florence.
- Original Signatures Required: The form must contain original signatures from all parties involved to be considered valid.
- Effective Duration: The lien is effective for ten years unless released earlier or extended, particularly for manufactured homes, which have a thirty-year duration.
These rules ensure that the process is standardized and legally enforceable within the jurisdiction.
