HB939.html

To amend Code Section 40-3-56 of the Official Code of Georgia Annotated, relating to satisfaction of security interests and liens on motor vehicles, so as to provide for a holder´s liability for damages and attorney´s fees for failure to execute and return a release in certain cases; to repeal conflicting laws; and for other purposes.

Code Section 40-3-56 of the Official Code of Georgia Annotated, relating to satisfaction of security interests and liens on motor vehicles, is amended by striking paragraph (1) of subsection (a) and inserting in lieu thereof the following:
"(a)(1)(A) If any security interest or lien listed on a certificate of title is satisfied, the holder thereof shall, within ten days after demand, execute a release in the form the commissioner prescribes and mail or deliver the release to the owner, provided that as an alternative to a handwritten signature, the commissioner may authorize use of a digital signature as long as appropriate security measures are implemented which assure security and verification of the digital signature process, in accordance with regulations promulgated by the commissioner. For the purposes of the release of a security interest or lien the 'holder' of the lien or security interest is the parent bank or other lending institution and any branch or office of the parent institution may execute such release.
(B) If the holder fails to execute and return the release to the owner as required by subparagraph (A) of this paragraph within the period prescribed therein after written demand, the holder shall be liable to the owner for the sum of $250.00 plus the amount of any actual loss caused to the owner by such failure, plus reasonable attorney´s fees."