GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2015

SESSION LAW 2015-270

SENATE BILL 370

AN ACT to allow the use of electronic means to sign and notate certain documents required by the division of motor vehicles and to provide that a secured party shall provide electronic notice of the satisfaction or other discharge of a security interest in a motor vehicle for which the certificate of title is notated by a lien through electronic means.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 20‑52 is amended by adding a new subsection to read:

"(c) Unless otherwise prohibited by federal law, an application for a certificate of title, a registration plate, a registration card, and any other document required by the Division to be submitted with the application and requiring a signature may be submitted to the Division with an electronic signature in accordance with Article 40 of Chapter 66 of the General Statutes. The required notarization of any electronic signature on any application or document submitted to the Division pursuant to this subsection may be performed electronically in accordance with Article 2 of Chapter 10B of the General Statutes."

SECTION 2.  G.S. 20‑58.4 is amended by adding a new subsection to read:

"(a1) Upon the satisfaction or other discharge of a security interest in a vehicle for which the certificate of title data is notated by a lien through electronic means pursuant to G.S. 20‑58.4A, the secured party shall, within seven business days from the date of satisfaction, send electronic notice of the release of the security interest to the Division through the electronic lien release system established pursuant to G.S. 20‑58.4A. The electronic notice of the release of the security interest sent to the Division by the secured party shall direct that a physical certificate of title be mailed or delivered to the address noted by the secured party providing notice of the satisfaction or other discharge of the security interest. Upon receipt by the Division of an electronic notice of the release of the security interest, the Division shall mail or deliver a certificate of title to the address noted by the secured party within three business days."

SECTION 3.  Section 1 of this act becomes effective August 1, 2016. The remainder of the act becomes effective December 1, 2015.

In the General Assembly read three times and ratified this the 23^rd day of September, 2015.

                                                                    s/  Daniel J. Forest

                                                                         President of the Senate

                                                                    s/  Tim Moore

                                                                         Speaker of the House of Representatives

                                                                    s/  Pat McCrory

                                                                         Governor

Approved 10:15 a.m. this 12^th day of October, 2015