(1) Upon the payment or discharge of the undertaking secured by a mortgage on a motor or off-highway vehicle that has been filed for record under section 42-6-121, the legal holder, on a form approved by the director, shall notify the director or authorized agent of the discharge of the obligation and release of the mortgage securing the obligation and set forth in the notice the facts concerning the right of the holder to release the mortgage as the director may require by rule. The lienholder shall include in the notice of satisfaction and release a signed affirmation, noted in the certificate of title on file with the director or the authorized agent, that contains or is accompanied by a notarized declaration or a written declaration that it is made under the penalties of perjury in the second degree, as defined in section 18-8-503. Thereupon, the holder of the released mortgage shall dispose of the certificate of title as follows: (a) If the motor or off-highway vehicle is encumbered by a mortgage filed under section 42-6-121 after the date on which the released mortgage was filed for record, the holder of the certificate of title shall deliver the certificate to the person shown to be the holder of the mortgage noted on the title filed earliest after the filing of the released mortgage, or to the person or agent of the person shown to be the assignee or other legal holder of the mortgage, or shall mail the certificate to the mortgagee or holder at the address appearing on the mortgage. If the certificate is returned unclaimed, the holder shall mail the certificate to the director. (b) If it appears from an examination of the certificate of title that there are no other outstanding mortgages against the motor or off-highway vehicle upon the release of the mortgage as provided in this section, the holder of the mortgage shall deliver the certificate of title to the owner of the vehicle or shall mail the title to the owner at his or her address, and, if for any reason the certificate of title is not delivered to the owner or is returned unclaimed, the holder shall immediately mail the certificate to the director. (c) The director's authorized agent shall note in the electronic record of the lien the satisfaction and release of the lien or mortgage and shall file a notice of the satisfaction and release in accordance with section 42-6-122. (2) (a) (I) Except when a lienholder can show extenuating circumstances, within fifteen calendar days after a lien or mortgage on a motor or off-highway vehicle is paid and satisfied, a lienholder shall release the lien or mortgage as required by subsection (1) of this section. (II) As used in this subsection (2), "extenuating circumstances" means a situation where access to the title is impaired, making good faith compliance with this subsection (2) impossible within the time frame required by this paragraph (a). "Extenuating circumstances" does not include intentional or negligent acts by a lienholder that result in delay beyond the time frame required in this subsection (2). (b) Any person aggrieved by a violation of this subsection (2) may bring a civil action in a court of competent jurisdiction to bring about compliance with this subsection (2) and for any damages arising from the violation. (3) Mortgage or lien satisfactions may be electronically transmitted to the department's authorized agent as authorized by rules of the director. When electronic transmission of mortgages or liens or mortgage or lien satisfactions is used, a certificate of title need not be issued until the last mortgage or lien is satisfied and a clear certificate of title is issued to the owner of the motor or off-highway vehicle under section 42-6-126.
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