{"data":{"id":"us-ky/krs-186a.190","jurisdiction":"us-ky","citation":"KRS 186A.190","heading":"Security interest notation required on title document -- Notarized","body":"designation of debtor's county of residence provides reliance on and relief\nfrom liability -- Requirements to perfect title on security interest --\nContinuation statements -- Determination of debtor's residence when debtor is\nother than a natural person -- Discharge of security interest -- Issuance of new\nownership document to creditor in possession upon certain conditions -- Fees --\nElectronic transmission of liens.\n(1) Except as provided in subsection (6) of this section and in KRS 355.9 -311(4), the\nperfection of a security interest in any property for which has been issued a\nKentucky certificate of title shall be by notation on the certificate of titl e which\nshall be deemed to have occurred when the provisions of subsection (3) of this\nsection have been complied with. Discharge of a security interest shall be by\nnotation on the certificate of title. Notation shall be made by the entry of\ninformation required by subsection (9) of this section into the Automated Vehicle\nInformation System. The notation of the security interest on the certificate of title\nshall be in accordance with this chapter and shall remain effective from the date on\nwhich the security interest is noted on the certificate of title for a period of ten (10)\nyears, or, in the case of a manufactured home, for a period of thirty (30) years, or\nuntil discharged under this chapter and KRS Chapter 186. The filing of a\ncontinuation statement wi thin the six (6) months preceding the expiration of the\ninitial period of a notation's effectiveness extends the expiration date for five (5)\nadditional years, commencing on the day the notation would have expired in the\nabsence of the filing. Succeeding c ontinuation statements may be filed in the same\nmanner to continue the effectiveness of the initial notation.\n(2) A motor vehicle dealer, a secured party or its representative, an assignee of a retail\ninstallment contract lender, the cabinet, or a county c lerk shall rely on a county of\nresidence designated by the debtor on any approved, notarized state form utilized in\nlien titling or the title transfer process signed by the debtor. Reliance on the\nforegoing by the motor vehicle dealer, secured parties, cab inet, and county clerk\nshall relieve those persons from liability to any third party claiming failure to\ncomply with this section.\n(3) Except as provided in subsection (6) of this section, the notation of security\ninterests relating to property required to  be titled under this chapter in Kentucky\nthrough the cabinet shall be done in the office of a county clerk. The notation of a\nsecurity interest shall reflect the county in which the debtor resides as determined\nby subsections (2) and (4) of this section. The security interest shall be deemed to\nbe noted on the certificate of title and perfected, or deemed perfected at the time the\nsecurity interest attaches as provided in KRS 355.9 -203, if in compliance with KRS\n186A.195(8), when a title lien statement:\n(a) Is received by the county clerk, together with the required fees;\n(b) Describes the titled vehicle, or vehicle to be titled, by year, model, make, and\nvehicle identification number;\n(c) Provides the name of the secured party, or a representative of the s ecured\nparty, together with the additional information about the secured party\nrequired by subsection (9) of this section with reasonable particularity; and\n(d) Includes the date and time -stamped entry of the notation of the security\ninterest by the county  clerk of the required information in the Automated\nVehicle Information System (AVIS), or its successor title processing system\nmaintained by the Division of Motor Vehicle Licensing of the Transportation\nCabinet.\n(4) Except as provided in subsection (6) of  this section, if the debtor is other than a\nnatural person, the following provisions govern the determination of the county of\nthe debtor's residence:\n(a) A partnership shall be deemed a resident of the county in which its principal\nplace of business in this state is located. If the debtor does not have a place of\nbusiness in this state, then the debtor shall be deemed a nonresident for\npurposes of filing in this state;\n(b) A limited partnership organized under KRS Chapter 362 or as defined in KRS\n362.2-102(14) shall be deemed a resident of the county in which its principal\nplace of business is located, as set forth in its certificate of limited partnership\nor most recent amendment thereto filed pursuant to KRS Chapter 362 or\n362.2-202. If the office is not  located in this state, the debtor shall be deemed\na nonresident for purposes of filing in this state;\n(c) A limited partnership not organized under the laws of this state and authorized\nto do business in this state shall be deemed a resident of the county in which\nthe office of its process agent is located, as set forth in the designation or most\nrecent amendm ent thereto filed with the Secretary of State of the\nCommonwealth of Kentucky;\n(d) A corporation organized under KRS Chapter 271B, 273, or 274 or a limited\nliability company organized under KRS Chapter 275 shall be deemed a\nresident of the county in which its registered office is located, as set forth in\nits most recent corporate filing with the Secretary of State which officially\ndesignates its current registered office;\n(e) A corporation not organized under the laws of this state, but authorized to\ntransact or do business in this state under KRS Chapter 271B, 273, or 274, or\na limited liability company not organized under the laws of this state, but\nauthorized to transact business in this state under KRS Chapter 275, shall be\ndeemed a resident of the county in which its registered office is located, as set\nforth in its most recent filing with the Secretary of State which officially\ndesignates its current registered office;\n(f) A cooperative corporation or association organized under KRS Chapter 272\nshall be  deemed a resident of the county in which its principal business is\ntransacted, as set forth in its articles of incorporation or most recent\namendment thereto filed with the Secretary of State of the Commonwealth of\nKentucky;\n(g) A cooperative corporation organized under KRS Chapter 279 shall be deemed\na resident of the county in which its principal office is located, as set forth in\nits articles of incorporation or most recent amendment thereto filed with the\nSecretary of State of the Commonwealth of Kentucky;\n(h) A business trust organized under KRS Chapter 386 shall be deemed a resident\nof the county in which its principal place of business is located, as evidenced\nby the recordation of its declaration of trust in that county pursuant to KRS\nChapter 386;\n(i) A credit union organized under Subtitle 6 of KRS Chapter 286 shall be\ndeemed a resident of the county in which its principal place of business is\nlocated, as set forth in its articles of incorporation or most recent amendment\nthereto filed with the Sec retary of State of the Commonwealth of Kentucky;\nand\n(j) Any other organization defined in KRS 355.1 -201 shall be deemed a resident\nof the county in which its principal place of business in this state is located,\nexcept that any limited liability company, limited liability partnership, limited\npartnership, or corporation not organized under the laws of this state and not\nauthorized to transact or do business in this state shall be deemed a\nnonresident for purposes of filing in this state. If the organizatio n does not\nhave a place of business in this state, then it shall be deemed a nonresident for\npurposes of filing in this state.\nIf the debtor does not reside in the Commonwealth, the notation of the security\ninterest shall be done in the office of the coun ty clerk in which the property is\nprincipally situated or operated. Notwithstanding the existence of any filed\nfinancing statement under the provisions of KRS Chapter 355 relating to any\nproperty registered or titled in Kentucky, the sole means of perfecti ng and\ndischarging a security interest in property for which a certificate of title is required\nby this chapter is by notation on the property's certificate of title under the\nprovisions of this chapter or in accordance with the provisions of KRS 186.045(3 ).\nIn other respects the security interest is governed by the provisions of KRS Chapter\n355.\n(5) Except as provided in subsection (6) of this section, before ownership of property\nsubject to a lien evidenced by notation on the certificate of title may be t ransferred,\nthe transferor shall obtain the release of the prior liens in his or her name against the\nproperty being transferred. Once a security interest has been noted on the owner's\ntitle, a subsequent title shall not be issued by any county clerk free of the notation\nunless it has been noted in the system of record established under KRS 186A.195\nthat the security interest has been discharged. If this requirement is met, information\nrelating to any security interest shown on the title as having been discharged may be\nomitted from the title to be issued by the clerk. If information relating to the\ndischarge of a security interest is presented to a clerk under the provisions of KRS\n186.045(3), the clerk shall discharge the security interest and remove the l ien\ninformation from AVIS.\n(6) Notwithstanding subsections (1) to (5) of this section, a county clerk shall,\nfollowing inspection of the vehicle by the sheriff, to determine that the vehicle has\nnot been stolen, issue a new ownership document to a vehicle,  clear of all prior\nliens, to a person after he or she provides to the county clerk an affidavit devised by\nthe Transportation Cabinet and completed by the person. The ownership document\npresented as a result of this affidavit shall be in accordance with s ubsection (7) of\nthis section. In the affidavit, the affiant shall attest that:\n(a) The affiant or the agent of the affiant possesses the vehicle;\n(b) Before he or she provided the notices required by paragraphs (c) and (d) of\nthis subsection:\n1. A debt on the vehicle has been owed him or her for more than thirty (30)\ndays;\n2. Within thirty (30) days of payment of damages by an insurance\ncompany and receipt by the current owner of the motor vehicle or\nlienholder of damages pursuant to a claim settlement whi ch required\ntransfer of the vehicle to the insurance company, the insurance company\nhas been unable to obtain:\na. A properly endorsed certificate of title on the vehicle from the\ncurrent owner; and\nb. If applicable, any lien satisfactions; or\n3. a. The veh icle was voluntarily towed or transported pursuant to a\nrequest of the current owner or an insurance company that a motor\nvehicle dealer, licensed as a used motor vehicle dealer and motor\nvehicle auction dealer, take possession of and store the motor\nvehicle in the regular course of business; and\nb. Within forty -five (45) days of taking possession of the motor\nvehicle, the motor vehicle dealer has not been paid storage fees by\nthe current owner or lienholder and has not been provided both a\nproperly endorse d certificate of title and if applicable, any lien\nsatisfactions;\n(c) More than thirty (30) days before presenting the affidavit to the county clerk,\nthe affiant attempted to notify the owner of the vehicle and all known\nlienholders, including those noted on the title, by certified mail, return receipt\nrequested, or by a nationally recognized courier service, of his or her name,\naddress, and telephone number as well as his or her intention to obtain a new\ntitle or salvage title, as applicable, clear of all prior liens, unless the owner or\na lienholder objects in writing;\n(d) More than fourteen (14) days before presenting the affidavit to the county\nclerk, the affiant had published a legal notice stating his or her intention to\nobtain title to the vehicle. Th e legal notice appeared at least twice in a seven\n(7) day period in a newspaper with circulation in the county. The legal notice\nstated:\n1. The affiant's name, address, and telephone number;\n2. The owner's name;\n3. The names of all known lienholders, including those noted on the title;\n4. The vehicle's make, model, and year; and\n5. The affiant's intention to obtain title to the vehicle unless the owner or a\nlienholder objects in writing within fourteen (14) days after the last\npublication of the legal notice; and\n(e) Neither the owner nor a lienholder has objected in writing to the aff iant's right\nto obtain title to the vehicle.\n(7) (a) If subsection (6)(b)1. of this section applies, the new ownership document\nshall be a title.\n(b) If subsection (6)(b)2. or 3. of this section applies, the new ownership\ndocument shall be a salvage title if the vehicle meets the requirements for a\nsalvage title as stated in KRS 186A.520.\n(c) If subsection (6)(b)2. or 3. of this section applies and the vehicle does not\nmeet the requirements for a salvage title as stated in KRS 186A.520, the new\nownership document shall be a title.\n(8) No more than two (2) active security interests may be noted upon a certificate of\ntitle.\n(9) In noting a security interest upon a certificate of title, the county clerk shall ensure\nthat the certificate of title bears the lienholder's name, mailing address and zip code,\nthe date the lien was noted, the notation number, and the county in which the\nsecurity interest was noted. The clerk shall obtain the information required by this\nsubsection for notation upon the certificate of t itle from the title lien statement\ndescribed in KRS 186A.195.\n(10) For all the costs incurred in the notation and discharge of a security interest on the\ncertificate of title, the county clerk shall receive the fee prescribed by KRS 64.012.\nThe fee prescri bed by this subsection shall be paid at the time of submittal of the\ntitle lien statement described in KRS 186A.195.\n(11) A copy of the application, certified by the county clerk, indicating the lien will be\nnoted on the certificate of title shall be forwarded to the lienholder.\n(12) (a) Any lien or security interest filed under this chapter may be electronically\ntransmitted to the cabinet through the electronic title application and\nregistration system.\n(b) Notwithstanding the provisions of this section an d KRS 186A.015 and\n186A.074 that require a lien to be noted on the face of the title, if there are\none (1) or more liens on a motor vehicle, the cabinet may electronically notify\nthe first lienholder of any additional liens.\n(c) Subsequent lien satisfactio ns may be electronically transmitted to the cabinet\nand shall include the name and address of the person satisfying the lien.\n(d) When liens and lien satisfactions are electronically transmitted, a clean\ncertificate of title shall not be issued until the last lien is satisfied.\n(e) A duly certified copy of the cabinet's electronic record of the lien shall be\nadmissible in any civil, criminal, or administrative proceedings in this state as\nevidence of the existence of the lien.\n(13) If a security interest ex pires without being renewed, the cabinet shall remove the\nlien from the certificate of title in the AVIS system.","path":["KRS Chapter 186A"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=57593","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:51:40Z","sha256":"bc09e251e1d8456530197142cebc4f5aaf5b899a52799454af0b596757f9d604","source_id":"us-ky","stale":false,"prev":"us-ky/krs-186a.185","next":"us-ky/krs-186a.191"},"notice":"GroundRules: Original legal text. Not legal advice."}