Motor Vehicle Security Interests

A security interest is an interest in personal property that secures payment or performance of an obligation. For example, if someone took out a "title loan" on a vehicle and did not meet the specified repayment schedule, the lender could collect its security interest by taking the vehicle. However, a lender cannot collect on a security interest if the owner of the vehicle has not acknowledged the security interest by signing the title or Security Interest Action form (Form MV81B).

Security Interest Filing Fees – $8 for a security interest on all motor vehicles, including boats, trailers and snowmobiles. Security interests on newly purchased vehicles or vehicles new to Montana are filed at the county treasurer's office.

Collateral Security Interests – A lending institution files a security interest against a vehicle currently titled in your name through the Title and Registration Bureau. Since Montana is not a title holding state, the Montana title is mailed to the registered owner, and the lending institution receives a Notice of Security Interest/Lien Filing/Lien Release/Repossession form with which it can either release a security interest or apply for a repossession title.

How to Have a Security Interest Removed from a Title

• The secured party mails to the Title and Registration Bureau either:
  • a completed Notice of Security Interest/Lien Filing/Lien Release/Repossession form or the generic Lien Release (Form MV37A) or
  • a security interest/lien release on letterhead with a complete vehicle description and lien information
• A new Montana title is not automatically issued once the secured parties have released their interest.
• Should the owner wish to have a new title issued without the security interest showing, the owner must send the original title and $10 to the Title and Registration Bureau. The bureau then issues a clear title. If the bureau does not have a security interest/lien release on file, the title is returned to the owner with a letter asking to have the title returned along with a security interest/lien release.

How to Find Out if a Security Interest is Filed on a Vehicle

Contact the Title and Registration Bureau with the Vehicle Identification Number and the registered owner's name and address. The bureau will let you know if a security interest is filed on the vehicle.

Out-of-state Lienholders: If an out-of-state secured party is holding the title for your vehicle, it is still possible to transfer the title to Montana.

• Ask your county treasurer for a Foreign Title Transfer (Form MV63). Complete and sign the form.
• Mail the form to the secured party, asking that your out-of-state title be released to your county treasurer's office.
• When the county treasurer's office receives the secured party's request and the out-of-state title, the new Montana title is sent to the out-of-state secured party.