Skip to content

Renewing A Collateralized Loan: Do we have to re-file the lien?

Answered by: 

Question: 
If we renew a consumer loan that has an auto as collateral and give the customer new money do we have to re-file our lien on the auto?
Answer: 

If your original security agreement contains language that contemplates the security interest covering a renewal of the loan and the lien does not specify an initial loan amount, you are not required to re-file or file a new lien. Generally, the lien entry filing system utilized by most states does not list the amount of the indebtedness. If the indebtedness is listed on the lien and the total amount outstanding after the renewal exceeds the amount listed on the lien, you may need to re-file. Check with your attorney regarding your state law and court cases that may address this issue.

First published on BankersOnline.com 3/5/01

First published on 03/05/2001

Banker Store View All

From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

Banker Store

hot right now

image description

Looking for effective, convenient training on a particular subject?

BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

Search Topics