Mass. General Laws c.90D § 24

Satisfaction of security interest in vehicle

This is an unofficial version of a Massachusetts General Law.

Updates

Amended by St. 2025, c. 9, § 39, effective January 1, 2026

Section 24

Upon the satisfaction of a security interest in a vehicle for which the certificate of title is in the possession of the lienholder, the lienholder shall, within three days after demand and, in any event, within ten days, execute a release of his security interest, in the space provided therefor on the certificate or as the registrar shall prescribe, and mail or deliver the certificate and release to the next lienholder named therein, or, if none, to the owner or any person who delivers to the lienholder an authorization from the owner to receive the certificate.

Upon the satisfaction of a security interest in a vehicle for which the certificate of title is in the possession of a prior lienholder, the lienholder whose security interest is satisfied shall within three days execute a release in such form as the registrar shall prescribe and deliver the release to the owner, or to any person who delivers to the lienholder an authorization from the owner to receive it. The lienholder in possession of the certificate of title shall either deliver the certificate to the owner, or the person authorized by him for delivery to the registrar, or, upon receipt of the release, mail or deliver it with the certificate to the registrar, who shall release the subordinate lienholder's rights on the certificate or issue a new certificate.

If the payment in satisfaction of the security interest is in cash or by certified check, cashier's check, teller's check, intra-bank or inter-bank transfer of funds, or an electronic transfer of funds, the payment shall be considered cleared immediately upon receipt by a lienholder.

[Paragraphs below added by St. 2025, c. 9 are effective January 1, 2026.]

Notwithstanding subsection (a) of section 16, the registrar shall promulgate rules and regulations to establish an electronic process whereby a vehicle may be sold at retail, reassigned between dealers, or any other method of ownership transfer or sale approved by the registrar. The conveyor of the vehicle shall maintain, invalidate or surrender the existing paper certificate of title, if applicable, upon completion of the transaction and update of the electronic certificate of title for a vehicle that is retailed, reassigned or transferred under this paragraph, in a form or format prescribed by the registrar.

Nothing in this section shall relieve a seller’s obligation under section 15 to assign and deliver title to a purchaser or the registrar at the time of delivery of the vehicle, nor shall anything in this section relieve a purchaser’s obligation under sections 1A and 2 of chapter 90 to take title to said vehicle prior to insuring or registering the vehicle.

Last updated:	June 30, 2025