§ 2121. Release of security interest. (a) Upon the satisfaction of a
security interest in a vehicle the lienholder shall immediately upon
clearance of payment execute a release of his security interest in a
manner prescribed by the commissioner and mail or deliver the release to
the owner or any person who delivers to the lienholder an authorization
from the owner to receive the certificate. Payment sufficient to satisfy
the security interest by an insurer of the owner shall be deemed an
authorization by the owner for the delivery of the release of the
security interest to the insurer. If the payment in satisfaction of the
security interest is in cash, certified check, intra-bank transfer of
funds or an uncertified check or draft issued by an insurance company
authorized to do business in this state, the payment shall be deemed to
be cleared immediately upon receipt. The owner, other than a dealer
holding the vehicle for resale, may cause the certificate and release to
be mailed or delivered to the commissioner, who shall release the
lienholder's rights on the certificate or issue a new certificate.

(b) A dealer who receives a motor vehicle for the purposes of resale
and who arranges for the satisfaction of any security interest in such
vehicle, and for which a release of security interest has not been
issued, may submit to the commissioner sufficient evidence to
demonstrate that such security interest has been satisfied and shall
provide notice to the lienholder two weeks prior to submission to the
commissioner. The commissioner shall, upon receipt of such evidence, a
proper application and the appropriate fee pursuant to section
twenty-one hundred twenty-five of this article, promptly issue, within
no more than fifteen business days of receipt by the department of all
required information and fees, either a duplicate certificate without
such lien included thereon, or a certificate without such lien included
thereon. Evidence that a security interest has been satisfied shall
include: (i) evidence that an interbank or electronic transfer of funds
has been made; or (ii) evidence that a copy of a cashier's or bank check
has been delivered; or (iii) other evidence as determined to be
satisfactory by the commissioner; and (iv) evidence that the amount
delivered to the lienholder is equal to the amount which has been
represented to the dealer by the lienholder as sufficient to satisfy
such lien. Such evidence shall be accepted by the commissioner as
sufficient. Any evidence submitted to the commissioner pursuant to this
subdivision may, subject to approval of the commissioner, be submitted
in electronic form. In addition to the penalties imposed by section
twenty-one hundred thirty of this article, any dealer who alters or
forges evidence of payment, or fails to make a payment, shall be liable
to any party for any damages resulting from the issuance of a new
certificate by the commissioner, plus attorney's fees and costs incurred
in recovering such damages, provided however no subsequent purchaser of
a vehicle where the security interest was removed by the commissioner
under the provisions of this subdivision shall be liable for any errors
in the removal of such security interest, and any dealer who so applied
for the removal of such security interest on such vehicle shall
indemnify any such purchaser and lienholder. The commissioner is
authorized to adopt and enforce reasonable rules and regulations
necessary to carry out the provisions of this subdivision.