§11304. Security interests in certain motor vehicles

(a) In this section-

(1) "motor vehicle" means a truck of rated capacity (gross vehicle weight) of at least 10,000 pounds, a highway tractor of rated capacity (gross combination weight) of at least 10,000 pounds, a property-carrying trailer or semitrailer with at least one load-carrying axle of at least 10,000 pounds, or a motor bus with a seating capacity of at least 10 individuals.

(2) "lien creditor" means a creditor having a lien on a motor vehicle and includes an assignee for benefit of creditors from the date of assignment, a trustee in a case under title 11 from the date of filing of the petition in that case, and a receiver in equity from the date of appointment of the receiver.

(3) "security interest" means an interest (including an interest established by a conditional sales contract, mortgage, equipment trust, or other lien or title retention contract, or lease) in a motor vehicle when the interest secures payment or performance of an obligation.

(4) "perfection", as related to a security interest, means taking action (including public filing, recording, notation on a certificate of title, and possession of collateral by the secured party), or the existence of facts, required under law to make a security interest enforceable against general creditors and subsequent lien creditors of a debtor, but does not include compliance with requirements related only to the establishment of a valid security interest between the debtor and the secured party.

(b) A security interest in a motor vehicle owned by, or in the possession and use of, a carrier having a certificate or permit issued under section 10922 or 10923 of this title and owing payment or performance of an obligation secured by that security interest is perfected in all jurisdictions against all general, and subsequent lien, creditors of, and all persons taking a motor vehicle by sale (or taking or retaining a security interest in a motor vehicle) from, that carrier when-

(1) a certificate of title is issued for a motor vehicle under a law of a jurisdiction that requires or permits indication, on a certificate or title, of a security interest in the motor vehicle if the security interest is indicated on the certificate;

(2) a certificate of title has not been issued and the law of the State where the principal place of business of that carrier is located requires or permits public filing or recording of, or in relation to, that security interest if there has been such a public filing or recording; and

(3) a certificate of title has not been issued and the security interest cannot be perfected under paragraph (2) of this subsection, if the security interest has been perfected under the law (including the conflict of laws rules) of the State where the principal place of business of that carrier is located.

(c) This section does not affect a security interest perfected before January 1, 1959.

( Pub. L. 95–473, Oct. 17, 1978, 92 Stat. 1431 ; Pub. L. 96–258, §1(12), June 3, 1980, 94 Stat. 426 .)

The text of 49:313(a)(1), (2), and (7) is included in the text of subsection (b) of the revised section to eliminate unnecessary definitions. The words "District of Columbia" are omitted in view of the definition of "State" in section 10102 of the revised title.

In subsection (a)(1), the word "of" is substituted for "having a" for clarity. The words "at least 10,000 pounds" are substituted for "of ten thousand pounds or more" for clarity. The word "individuals" is substituted for "persons" as being more precise.

In subsection (a)(2), the words "having a lien on a motor vehicle" are substituted for "who has acquired a lien on the motor vehicle involved by attachment, levy, or the like" for clarity and as being more precise. The word "date" is substituted for "time" as being more precise.

In subsection (a)(3), the words "but not limited to" are omitted as surplus. The words "owned by, or the possession and use of which vehicle has been transferred to, a debtor carrier" are omitted as surplus. The words "when the interest secures" are substituted for "which interest secures" for clarity.

In subsection (a)(4), the words "taking action" are substituted for "the taking of the steps" as being more precise. The words "but not limited to" are omitted as surplus. The word "applicable" is omitted as unnecessary. The words "compliance with requirements related only to" are substituted for "any reference to compliance with requirements, if any, as to capacity, authority, form of instruments, value, consideration, good faith, and other matters which go only to" for clarity and as being more inclusive. The word "establishment" is substituted for "creation" as being more appropriate.

In the introductory matter in subsection (b), 49:313(a)(1) and (7) are restated for clarity. The words "carrier having a certificate or permit issued under section 10922 or 10923 of this title" are substituted for "common or contract carrier having a certificate of public convenience and necessity or permit issued under this Act" for clarity and to conform to the style of the revised title. The words " 'debtor carrier' means" and " 'purchaser' means" are omitted as surplus.

In subsection (b), the word "law" is substituted for "statute" as being more appropriate. The words "In the case of any security interest in a motor vehicle for which" are omitted as surplus. The word "and" is substituted for "(1) if" for clarity. The words "in relation to" are substituted for "with respect to" for clarity. The words "and (2)" are omitted as surplus. The words "perfection of such a security interest shall be governed by the law of" are omitted as unnecessary in view of the restatement. The words "as to general creditors and subsequent lien creditors" are omitted as surplus in view of subsection (a)(4) of the revised section. The words "of the United States" are omitted as unnecessary.

Amendments

1980-Subsec. (a)(2). Pub. L. 96–258 substituted "a trustee in a case under title 11 from the date of filing of the petition in that case" for "a trustee in bankruptcy from the date of filing of the petition in bankruptcy".

Effective Date of 1980 Amendment

Section 3(e) of Pub. L. 96–258 provided that: "The amendment made by section 1(12) of this Act [amending this section] and the repeal, by subsection (b) of this section, of section 337 of the Act of November 6, 1978 (Public Law 95–598, 92 Stat. 2680) [amending sections 20c, 313, and 922a of former Title 49, Transportation], are effective on the date of enactment of this Act [June 3, 1980] or on October 1, 1979, whichever is later."