Section 148.06. Exemptions from requirement to file security interest statement electronically.

 

(1)   Exempt secured parties not required to file or release security interest statements electronically.

(a) The department shall grant an exemption if the secured party filed 48 or fewer security interest statements with the department during the previous calendar year. A new secured party is not eligible for an exemption during the first calendar year.

(b) If a secured party was exempt under this subsection during a calendar year and the department determines that the secured party is not eligible for an exemption for the succeeding year, the department may cancel the secured party's exemption for that succeeding year by written notice. The notice shall require the secured party to file or release security interest statements electronically not less than 30 calendar days after the date the department sends the notice, and the department shall charge the fee and surcharge under s. Trans 148.07 (2) (c) 1. after the date specified in the cancellation notice.

(2)   Exempt secured parties not authorized to file and release security interest statements electronically.

(a) The department shall deny a secured party the authority to file and release security interest statements electronically for any of the following reasons:

1. DMV has reasonable cause to conclude that the accuracy or timeliness of the security interest filings or releases performed by the secured party is insufficient, including any of the following:

a. The secured party has completed electronic processing of security interest statement filing before the secured party has obtained the original title from the vehicle owner or before the secured party and the vehicle owner have finalized their security interest or loan transaction.

b. The secured party has not released security interests in vehicles within statutorily mandated dates.

2. The secured party has failed or refused to provide DMV with any documents, fees, or information required by DMV to administer this chapter or ch. 342 , Stats.

3. DMV has reasonable cause to conclude that the secured party is not in compliance with any provision of written policies and procedures regarding electronic filing of security interest statements, including non-payment of DMV fees.

(b) The department's denial shall remain in effect until the department reauthorizes the secured party to file and release security interest statements electronically.

(3)   Exempt security interest filing transactions.

(a) A security interest statement is not required to be filed electronically if the security interest statement is any of the following:

1. Filed as part of a certificate of title transaction for some purpose other than solely filing a security interest statement.

2. Part of a transaction that is prohibited from successful electronic transaction because of an express limitation on the vehicle title or customer record, or on the e-MV Agent internet-based web application or APPS.

(b) The department may not charge a secured party a transaction processing fee for filing a security interest statement exempted by this subsection. The secured party shall release its security interest in the vehicle electronically.

History: CR 09-113 : cr. Register May 2010 No. 653 , eff. 6-1-10.