QUESTION
If you use automobiles as collateral against a business commercial loan, must the bank possess the titles?
Asked on May 28th, 2017 on Bankruptcy - Michigan
6 ANSWERS
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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Are you asking if the bank must physically possess the titles, the answer is no. They can simply file their lien with the Division of Motor Vehicles and it will be printed on the title. However, their having the titles on deposit may give them some degree of additional assurance.
Answered on Aug 15th, 2017 at 7:30 AM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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In Ohio, the lender must possess the title to the vehicle any time a vehicle is being used as collateral.
Answered on Aug 15th, 2017 at 7:30 AM
Not necessarily. Read the contract and the financing paperwork. Also, read the terms of the Uniform Commercial Code in your state.
Answered on Aug 14th, 2017 at 12:45 PM
Bankruptcy Attorney serving Alpena, MI
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Carl C. Silver Attorney at Law
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In Michigan, the owner holds title with the Bank's name on it as secured party. If their name is not on the title then they are not secured.
Answered on Aug 14th, 2017 at 12:41 PM
They should have copies of the title and should be on the title.
Answered on Aug 14th, 2017 at 12:41 PM