Or. Admin. R. 735-020-0010 - Perfection of Security Interest; Primary Ownership Document
(1) This rule specifies the documents DMV will consider primary ownership documents for the purposes of perfecting a security interest in a vehicle.
(2) Except as provided in section (3) of this rule, a primary ownership document is:
(a) A manufacturer's certificate of origin (MCO) or equivalent document as described in OAR 735-022-0030 through 735-022-0060. This subsection applies to:
(A) A vehicle or camper built by a manufacturer that has never been titled or registered; and
(B) A vehicle or camper built, assembled, or reconstructed using a component kit that has never been titled or registered. The MCO may only be considered a primary ownership document for the vehicle or camper parts contained in the kit.
(b) A current certificate of title or salvage title issued for a vehicle or camper; or
(c) A Certificate to Obtain Title for a Vehicle (U.S. Government Form SF 97), for a vehicle or camper previously owned by the U.S. Government and where interest is being transferred.
(3) Notwithstanding section (2) of this rule, DMV may, at its discretion, consider other documents to be primary ownership documents when:
(a) DMV is satisfied that the original Oregon title has been lost or destroyed, and that there has been a change in interest;
(b) Interest has been transferred by operation of law under Oregon law, or through court action in a court having jurisdiction over persons or property located in Oregon, and the primary ownership documents described in section (2) of this rule are not available;
(c) The security interest is in a vehicle or camper not manufactured for sale in the U.S., and that is not currently registered or titled in the U.S.;
(d) The security interest is in a vehicle or camper last titled or registered outside the U.S.; or
(e) DMV is satisfied that a primary ownership document described in section (2) of this rule was never issued, is not obtainable, or has been surrendered to another jurisdiction.
(4) Documents DMV may determine are primary ownership documents under section (3) of this rule include but are not limited to:
(a) A court judgment or decree from a court having jurisdiction over persons or property located in Oregon that awards ownership of a vehicle or camper as a matter of law;
(b) A certificate of possessory lien foreclosure as described in OAR 735-020-0012;
(c) A completed and signed Inheritance Affidavit (DMV Form 735-516) vesting the interest of a deceased owner in the person designated by all the heirs as the owner of the vehicle or camper;
(d) A completed and signed Certificate of Ownership of an Assembled Light Trailer or Heavy Trailer (DMV Form 735-6644) for a trailer built by someone other than a manufacturer;
(e) A completed and signed Application for Replacement Title (DMV Form 735-515) or Application for Replacement Salvage Title (DMV Form 735-230) where:
(A) The application is accompanied by an Application for Title and Registration (DMV Form 735-226) that includes a release of interest from anyone listed on the original title that will not be listed on the new title; and
(B) Any change in interest is of a type not subject to odometer disclosure requirements under ORS 803.102 and OAR 735-028-0000 through 735-028-0100;
(f) A completed and signed Certification of Ownership Facts (DMV Form 735-550);
(g) An Ownership document issued by the U.S. Armed Forces for a vehicle or camper owned by a member of the U.S. Armed Forces;
(h) A salvage title, salvage bill of sale, or, except as provided in section (12) of this rule, a dismantler (wrecker) bill of sale on a vehicle or camper whose title has been surrendered to a jurisdiction; or
(i) For a vehicle or camper described under subsections (3)(c) and (d) of this rule:
(A) A certificate for export purposes issued by a foreign jurisdiction; or
(B) A vehicle or camper registration if the vehicle has been registered but is not currently titled.
(5) When the application for notation of a security interest is for a vehicle or camper that is initially being titled as assembled, reconstructed, or a vehicle replica, the primary ownership document must be specific to the frame or unibody.
(6) When the application for notation of a security interest is for a vehicle or camper manufactured in more than one stage, the primary ownership document(s) must cover each stage of manufacture.
(7) DMV may invalidate a primary ownership document as evidence of ownership if it determines:
(a) The document is fraudulent or contains false information; or
(b) The document does not show the most current ownership interest in the vehicle or camper.
(8) If, after a title has been issued, it is determined that the evidence of ownership is invalid under section (7) of this rule, DMV may cancel the vehicle title. Before a title is cancelled, DMV will send a notice of the proposed cancellation to the vehicle owner or lessee, security interest holder(s) and lessor (if applicable), as listed in DMV records. A cancellation becomes effective 10 days after the date the notice is deposited with the postal service, unless a hearing is requested within that 10-day period. If a timely hearing is requested, the cancellation will be contingent on the outcome of the hearing.
(9) A title cancellation under section (8) of this rule automatically invalidates the security interest(s) noted on that title. A new application for notation for perfection of security interest and valid evidence of ownership must be submitted to DMV before security interest in a vehicle can be perfected pursuant to ORS 803.097.
(10) DMV will not invalidate a primary ownership document as evidence of ownership based solely on missing title requirements (e.g., missing odometer information, and fees).
(11) A document considered by DMV to be a primary ownership document under section (3) of this rule constitutes proof of ownership for purposes of ORS 803.205.
(12) DMV has determined that a dismantler (wrecker) bill of sale provided for the purpose of transferring ownership on a vehicle or camper whose title has been surrendered to another jurisdiction is insufficient proof of ownership if the bill of sale is not on a controlled form issued by the other jurisdiction, contains information that is unverifiable, or does not contain language regarding the truth and accuracy of information contained on the form.
Forms referenced are available from the agency.
Statutory/Other Authority: ORS 184.619, 801.402, 802.010, 803.097
Statutes/Other Implemented: ORS 801.402, 803.097, 803.205
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