An Electronic Lien and Title (ELT) application provides an electronic means of transferring information between lienholders and jurisdiction motor vehicle agencies to perfect, update, and release lien information on vehicle titles. By participating in an ELT program, lienholders can reduce the handling, storage and mailing costs associated with paper titles by replacing them with electronic titles. ELT also significantly reduces the time a dealer must wait before they can sell a vehicle while awaiting a lien release. The vehicle can be sold and transferred to the new owner in a timely manner. 

An ELT application can be used by a motor vehicle agency to notify the lienholder when a lien is perfected or when any of the information on the lien record changes (e.g., the owner name or address). This application can be used by the lienholder to notify the motor vehicle agency (MVA) when the lienholder releases security interest in the vehicle, changes lienholder information (transfers the lien interest or change to a different branch office of the lienholder), changes the owner address, or requests a printed title without releasing security interest in the vehicle. Releasing a security interest in the vehicle may be done by the lienholder when the loan requirements have been satisfied or when the lienholder determines that it has no interest in a vehicle, such as when a lien is perfected in error.
   

Participation in ELT

Requirements for vehicle dealers and lenders to participate in an ELT program is normally specified by jurisdiction code or rule. To fully realize the benefits of ELT and to provide the highest level of fraud prevention, it is recommended ELT participation be mandatory for all dealers and lenders. It is also recommended that all lien actions (add, remove, or amend) be required to be completed through the ELT program to eliminate the potential for fraudulent paper lien releases, provide for error reduction, and to eliminate the MVAs from having to manage two programs, thereby optimizing agency efficiency.
  

Eliminating the Printing of Titles Upon Lien Satisfaction

MVAs are encouraged to pursue rule or law allowing for the vehicle title record to continue to be managed electronically after the lien has been satisfied. This allows for the reduction in printing paper titles upon lien release, eliminates unnecessary costs and processing, and keeps the vehicle record in a digital format so it can be managed in a fully digital titling process.  
  

Benefits of ELT Participation

The following are identified benefits of ELT participation:

• Lienholders will receive fast, electronic confirmation that the lien has been recorded
• Lienholders will release liens electronically, eliminating the need to hand-release liens on the paper title
• ELT provides for faster notification of lien satisfactions
• If a paper title is needed, it can be printed and mailed with the lien intact or printed and mailed at the time of lien release
• Reduction in title and lien fraud by elimination of the paper title and paper lien release that are subject to tampering, counterfeiting, forgery, or other manipulation
• Reduction in lost titles and the need to obtain duplicate titles
• Better protection for dealers against failed financing
• Reduction in the time needed to obtain release of a lien against a trade vehicle which helps to avoid delays that threaten timely completion of the sale and disposition of the trade vehicle

For a list of AAMVA Associate members who provide ELT products, visit the Membership Directory.
  

Strategies to Complete ELT Adoption

MVAs are encouraged to fully adopt the use of an ELT program and the chart below describes the path to complete ELT adoption. Full adoption of an ELT program provides for the most efficient use of program resources and highest level of fraud prevention. 

• Optional ELT Adoption: Dealers and lenders are not required to participate. MVAs are required to maintain both a paper lien program and ELT program, requiring more resources and allowing for the potential of increased fraud. 
   
• Partially Mandated Adoption: Dealers and lenders are required to participate if they service a specified number of liens annually. Some lien actions may be required to take place within the ELT program (add, remove, or amend). 
   
• Fully Mandated Adoption: Dealers and lenders are required to participate regardless of the number of loans serviced annually. This includes requiring all lien actions to take place within the ELT program (add, remove, or amend). Title record is maintained by the MVA in a digital format with no requirement for printing of a physical title.