New Lien Release Requirements Effective Jan. 1 in Maryland

The Maryland Motor Vehicle Administration (MVA) is advising lien holders and dealers, who offer the service of financing motor vehicle liens, of changes in the law for submitting lien releases electronically.

Effective January 1, 2021, a lien release pertaining to a motor vehicle must be filed electronically with the MVA within five business days after the holder has been paid in full. Customer Connect, the state's new online platform, will record and release security interests, and transmit publicly available vehicle records.

Additionally, a motor vehicle lienholder must file electronically with MVA:
• Each of its liens, and
• When a lien is paid in full, the lien release.
• These requirements do not apply to a lienholder that is not regularly engaged in the business or practice of financing motor vehicles.

To sign up for electronic lien services, lienholders should visit the MVA’s website: https://mva.maryland.gov/businesses/Pages/els.aspx

The Association testified in support of the bill passed by the General Assembly earlier this year to require electronic lien releases.