Public Chapter 279
SENATE BILL NO. 1073
Substituted for: House Bill No. 449
AN ACT To amend Tennessee Code Annotated, Title 55, relative to the titling and registration of motor vehicles.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 55-3-126(b), is amended by adding the following language as a new subdivision (3):
(3) Notwithstanding any other law to the contrary, a second or subsequent security interest or lien in a vehicle of the type for which a certificate of title is required shall not be considered perfected unless and until such lien or security interest is physically noted on the certificate of title for such vehicle. In the case of a second or subsequent lien or security interest, there shall be no constructive notice of such second or subsequent lien or security interest unless such is physically noted on the certificate of title.
Nothing in this subdivision shall have any effect on perfection and constructive notice concerning first liens.
SECTION 2. This act shall take effect July 1, 1997, the public welfare requiring it.