| (2) Certificate of title issuance. A certificate of title will not be issued in the name of a transferee until the transferee files an application for the certificate of title as described in this section. (g) Suspension, revocation, or refusal to issue Certificates of Title. (1) Grounds for title suspension, revocation, or refusal to issue. The department will refuse issuance of a certificate of title, or having issued a certificate of title, will suspend or revoke the certificate of title if the: (A) application contains any false or fraudulent statement; (B) applicant has failed to furnish required information requested by the department; (C) applicant is not entitled to the issuance of a certificate of title under Transportation Code, Chapter 501; (D) department has reasonable grounds to believe that the vehicle is a stolen or converted vehicle or that the issuance of a certificate of title would constitute a fraud against the rightful owner or a lienholder; (E) registration of the vehicle stands suspended or revoked; or (F) required fee has not been paid. (2) Contested case procedure. Any person who has an interest in a motor vehicle to which the department has refused to issue a certificate of title or has suspended or revoked the certificate of title may contest the department's decision in accordance with Transportation Code, §501.052 and §501.053, in the following manner. (A) Hearing. Any person who has an interest in a motor vehicle to which the department has refused to issue a certificate of title or has suspended or revoked the certificate of title may apply for a hearing to the designated agent of the county in which the applicant resides. At the hearing the applicant and the department may submit evidence, and a ruling of the designated agent will bind both parties. An applicant wishing to appeal the ruling of the designated agent may do so to the County Court of the county in which the applicant resides. (B) Alternative to hearing. In lieu of a hearing, any person who has an interest in a motor vehicle to which the department has refused to issue a certificate of title or has suspended or revoked a certificate of title may file a bond with the department, in an amount equal to one and one-half times the value of the vehicle as determined by the department, and in a form prescribed by the department. On the filing of the bond, the department may issue a certificate of title. The bond shall expire three years after the date it becomes effective and will be returned to the person posting bond, on expiration, unless the department has been notified of the pendency of an action to recover on the bond. (h) Discharge of lien. A lienholder shall provide the owner, or the owner's designee, a discharge of the lien after receipt of the final payment within the time limits specified in Transportation Code, Chapter 501. The lienholder shall submit one of the following documents: (1) the certificate of title including an authorized signature in the space reserved for release of lien; (2) a release of lien form prescribed by the department, with the form filled out to include the: (A) certificate of title or document number, or a description of the motor vehicle including, but not limited to, the motor vehicle's: (i) year; (ii) make; (iii) vehicle identification number; and (iv) license plate number, if the motor vehicle is subject to registration under Transportation Code, Chapter 502; (B) printed name of lienholder; (C) signature of lienholder or an authorized agent; (D) printed name of the authorized agent if the agent's signature is shown; (E) telephone number of lienholder; and (F) date signed by the lienholder; (3) signed and dated correspondence submitted on company letterhead that includes: (A) a statement that the lien has been paid; (B) a description of the vehicle as indicated in paragraph (2)(A) of this subsection; (C) a certificate of title or document number; or (D) lien information; (4) any out-of-state prescribed release of lien form, including an executed release on a lien entry form; (5) out-of-state evidence with the word "Paid" or "Lien Satisfied" stamped or written in longhand on the face, followed by the name of the lienholder, countersigned or initialed by an agent, and dated; or (6) original security agreements or copies of the original security agreements if the originals or copies are stamped "Paid" or "Lien Satisfied" with a company paid stamp or if they contain a statement in longhand that the lien has been paid followed by the company's name. |
