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| 1. Release on satisfaction. Upon satisfaction of the security | interest of the lienholder, the lienholder shall, within 14 days | after demand of receipt of funds intended to satisfy the | security interest of the lienholder, execute a release of the | security interest in the space provided on the certificate. The | lienholder shall: |
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| A. Release the certificate of title, certificate of | salvage or certificate of lien to the subordinate | lienholder if one is named; |
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| B. If the lien was satisfied in conjunction with the sale | of the vehicle and there is no subordinate lienholder, | release and deliver the certificate of title, certificate | of salvage or certificate of lien to the owner or to a | person who delivers to the lienholder an authorization | from the owner to receive the certificate; or |
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| C. Deliver the certificate to the owner and notify the | Secretary of State that the lien has been satisfied. |
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| | Sec. 3. 29-A MRSA §705, sub-§4, as enacted by PL 2001, c. 671, §16, | is amended to read: |
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| | 4. Remedies. The remedies set forth in this section are in | addition to those set forth in section 668. |
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| A. The owner and subordinate lienholder, if any, may | recover $500 $1,000 in each case from a lienholder who | fails to release and deliver the security interest within | 14 days after demand of receipt of funds intended to | satisfy the security interest of the lienholder under this | section, unless, within the 14-day time period, the | lienholder notifies the owner that satisfaction of the | security interest is in dispute. |
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| B. If a lienholder fails to release and deliver the | security interest within 14 days after demand under this | section and has not notified the owner that satisfaction | of the security interest is in dispute, the Secretary of | State may revoke the certificate of title, certificate of | lien or certificate of salvage and issue a replacement | certificate omitting the security interest upon receipt of | a statement by the owner that 14 days have elapsed since | demand for release of the security interest was made and | the owner has not been notified by the lienholder that | satisfaction of the security interest is in dispute. | Submission of a false statement to the Secretary of State | under this subsection is a Class E crime. |
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