08 (Discharge of Lien)

AUTHORITY:

Tenn. Code Ann. Section 55-3-114(c) and 55-3-127

DESCRIPTION:

A Transaction Type 08 is a transaction that’s used when a lien on a vehicle has been satisfied and the lien or submits a discharge as provided by Tenn. Code Ann. Section 55-3-114(c). This can be completed by the local county clerk or at the state level.

REQUIREMENTS:

When the debt is satisfied, the lienor must discharge the lien, mortgage or encumbrance
by doing one of the following three things.

• Submit to the Division a copy of the certificate of title with the date of discharge
and signature reflected thereon.

OR

• Submit to the Division the tear away portion at the top of the new 8 ½” x 11” title
form with the date of discharge and signature reflected thereon.

OR

• Submit to the Division a Notice of Discharge of Lien (Form RV-F1310901)
completed in its entirety.

          o The lien release form must contain the correct and complete VIN
             and the name of the lienholder must match our records

• The lienor is required to deliver the certificate of title to an owner within seven (7)
business days of the owner’s request after the lien has been discharged unless
the certificate of title shows on its face one (1) or more liens still outstanding, in
which event the certificate of title shall be delivered to the next prior lienor, either
in person or by registered mail.

• The lienor must report the discharge of lien to the division within 72 hours of the
discharge by registered mail with return receipt demanded.

NOTE:

A faxed lien release is acceptable provided it is signed and dated.

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