28-2132. Indication of lien or
encumbrance


A. The department shall provide on the application for title and the application
for registration only a section that provides for the indication of a lien or encumbrance
on the vehicle.


B. The applicant's signature on the application for title or the application for
registration only is consent for the lien or encumbrance to be indicated by the
department on its official title record for the vehicle.


C. Except as provided in subsection D and on receipt of the application as provided
in this section, the department shall endorse on the application the date and hour it was
received at the registering office of the department.


D. The department shall not issue a new certificate of title if the outstanding
certificate of title indicates an existing lien or encumbrance unless the lien or
encumbrance has been satisfied or the lienor or encumbrancer has consented in writing or
electronically to the transfer of title.