House Bill 1264

AN ACT TO AMEND SECTIONS 27-53-15, 63-21-30, 63-21-43 AND 63-21-45, MISSISSIPPI CODE OF 1972, TO CLARIFY HOW TO PERFECT A LIEN ON A MOBILE HOME; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 27-53-15, Mississippi Code of 1972, is amended as follows:

27-53-15. (1) The manufactured homeowner or mobile homeowner who owns the land on which the manufactured home or mobile home is located shall have the option * * * of declaring whether the manufactured home or mobile home shall be classified as personal or real property by surrendering to the State Tax Commission the certificate of title or certificate of origin and by providing the following documentation:

(a) Certificate of Affixation. If the manufactured home or mobile home is to be classified as real property, then the wheels and axles must be removed and it must be anchored and blocked in accordance with the rules and procedures promulgated by the Commissioner of Insurance of the State of Mississippi. After the wheels and axles have been removed and the manufactured home or mobile home has been anchored and blocked in accordance with such rules and procedures, the manufactured home or mobile home shall be considered to have been affixed to a permanent foundation. The county tax assessor shall then enter the manufactured home or mobile home on the land rolls and tax it as real property on the land on which it is located from the date of registration. At such time, the county tax assessor shall issue a certificate certifying that the manufactured home or mobile home has been classified as real property. Such certificate shall contain the name of the owner of the manufactured home or mobile home, the name of the manufacturer, the model, the serial number and the legal description of the real property on which the manufactured home or mobile home is located. The county tax assessor shall cause such certificate to be filed in the land records of the county in which the property is situated. After filing, the chancery clerk shall forward the certificate to the owner. For issuance of the certificate, a fee of Twelve Dollars ($12.00) shall be collected by the county tax assessor, Ten Dollars ($10.00) of which shall be retained by the assessor and Two Dollars ($2.00) of which shall be forwarded to the chancery clerk for filing the certificate. Upon the filing of the certificate in the land records, the manufactured home or mobile home shall then be considered real property for purposes of ad valorem taxation.

(b) A copy of the deed or other instrument of conveyance of legal ownership to the real property to which the manufactured home has become affixed conveying fee simple title or other ownership interest in the subject real property and which has been filed in the office of the chancery clerk in the county in which the real property is located. The mortgage or deed of trust shall include a description of the mobile home or manufactured home which is affixed to the real property, however, the failure of a mortgage or deed of trust to describe the mobile home or manufactured home shall not affect the priority or perfection of a lienholder's security interest in said mobile home or manufactured home. Further more, if any mobile home or manufactured home shall have a duly filed Certificate of Affixation, a rebuttable presumption of a perfected first lien on said mobile home shall inure to the benefit of any lienholder with a valid deed of trust or mortgage to the real property to which the mobile home or manufactured home has been affixed.

(c) If the legal owner of a manufactured home, and the real property to which the manufactured home has become affixed, desires a surrendered certificate of title to be reissued, the legal owner shall:

(i) Reapply for a new certificate pursuant to the provisions of Chapter 21, Title 63, Mississippi Code of 1972;

(ii) Provide an abstract of land title showing legal ownership of the manufactured home and real property along with any liens recorded upon the real property;

(iii) For every lienholder listed on the abstract of land title, provide a lien release as to the manufactured home or lienor's statement that such lien is to be recorded on the face of the certificate of title for the manufactured home; and

(iv) Pay the required fee for the certificate of title for the manufactured home or each component unit. Upon such request, the tax assessor may issue a certificate cancelling the classification of the manufactured home or mobile home as real property and cause such certification to be filed in the land records of the county in which the property is situated. For issuance of the certificate, a fee of Twelve Dollars ($12.00) shall be collected by the county tax assessor, Ten Dollars ($10.00) of which shall be retained by the assessor and Two Dollars ($2.00) of which shall be forwarded to the chancery clerk for filing the certificate.

SECTION 2. Section 63-21-30, Mississippi Code of 1972, is amended as follows:

63-21-30. The certificate of title issued for a manufactured home that is classified as real property may be mailed or delivered to the State Tax Commission for cancellation. In order to have the manufactured home or mobile home classified as real property, the owner shall first obtain a release of any lien indicated on the certificate of title, if any such certificate was issued, or a lienor's statement that the lienor's security interest in the manufactured home or mobile home shall be perfected by mortgage or deed of trust. The State Tax Commission may require any documents or information that it considers necessary to be mailed or delivered to the commission along with the certificate of title.

SECTION 3. Section 63-21-43, Mississippi Code of 1972, is amended as follows:

63-21-43. (1) Unless excepted by Section 63-21-41, a security interest in a vehicle, or any manufactured home or mobile home which is not affixed to real property, is not valid against creditors of the owner or subsequent transferees or lienholders of the vehicle, manufactured home or mobile home unless perfected as provided in this chapter.

(2) (a) A security interest is perfected at the time the owner signs a security agreement describing the vehicle, manufactured home or mobile home, the secured party gives value, the owner has rights in the vehicle, manufactured home or mobile home, and an application for certificate of title signed by the owner is presented to a designated agent.

(b) The designated agent shall deliver to the State Tax Commission the existing certificate of title, if any, or manufacturer's certificate of origin and application for a certificate of title containing the name and address of the lienholder and the date of his security agreement, and the required fee, but the security interest will perfect at the time the requirements of subsection 2(a) of this section are met.

(c) When a manufacturer's statement of origin or an existing certificate of title on a motor vehicle, manufactured home or mobile home is unavailable, a first lienholder or the first lienholder's designee may file a notarized copy of an instrument creating and evidencing a lien or encumbrance on such motor vehicle with the State Tax Commission and shall remit therewith the appropriate information for each lien to be filed. Such recording and filing shall constitute constructive notice of such lien against the motor vehicle described therein to creditors of the owner, subsequent purchasers and encumbrancers, except such liens as are by law dependent upon possession.

(3) If a vehicle, manufactured home or mobile home is subject to a security interest when brought into this state, the validity of the security interest is determined by the law of the jurisdiction where the vehicle, manufactured home or mobile home was when the security interest attached, subject to the following:

(a) If the parties understood at the time the security interest attached that the vehicle, manufactured home or mobile home would be kept in this state and it was brought into this state within thirty (30) days thereafter for purposes other than transportation through this state, the validity of the security interest in this state is determined by the law of this state.

(b) If the security interest was perfected under the law of the jurisdiction where the vehicle, manufactured home or mobile home was when the security interest attached, the following rules apply:

(i) If the name of the lienholder is shown on an existing certificate of title issued by that jurisdiction, his security interest continues perfected in this state.

(ii) If the name of the lienholder is not shown on an existing certificate of title issued by that jurisdiction the security interest continues perfected in this state for four (4) months after a first certificate of title of the vehicle, manufactured home or mobile home is issued in this state, and also thereafter if, within the period of four (4) months, it is perfected in this state. The security interest may also be perfected in this state after the expiration of the period of four (4) months, in which case perfection dates from the time of perfection in this state.

(c) If the security interest was not perfected under the law of the jurisdiction where the vehicle, manufactured home or mobile home was when the security interest attached, it may be perfected in this state, in which case perfection dates from the time of perfection in this state.

(d) A security interest may be perfected under paragraph (b)(ii) or paragraph (c) of this subsection, either as provided in subsection (2), or by the holder of the lien created out of this state delivering to a county tax collector or a designated agent a notice of security interest in the form the State Tax Commission prescribes, together with documents to support the security interest as required by the State Tax Commission and the required fee. The county tax collector or a designated agent shall process said notice in the manner prescribed by the State Tax Commission.

SECTION 4. Section 63-21-45, Mississippi Code of 1972, is amended as follows:

63-21-45. (1) If an owner, dealer or lienholder creates a security interest in a vehicle, manufactured home or mobile home:

(a) The owner shall immediately execute the application in the space provided therefor on the certificate of title, or on a separate form the State Tax Commission prescribes to name the lienholder on the certificate showing the name and address of the lienholder and the date of his security agreement, and cause the certificate, application and the required fee to be delivered to the lienholder.

(b) The lienholder shall immediately cause the certificate, application and required fee to be mailed or delivered to a county tax collector or a designated agent.

(c) Upon request of the owner or subordinate lienholder, a lienholder in possession of the certificate of title shall either mail or deliver the certificate to the subordinate lienholder for delivery to a county tax collector or a designated agent or, upon receipt from the subordinate lienholder of the owner's application and the required fee, mail or deliver them to a county tax collector or a designated agent with the certificate. The delivery of the certificate does not affect the rights of the first lienholder under his security agreement.

(d) Upon receipt of the certificate of title, application and the required fee, the State Tax Commission shall either endorse on the certificate or issue a new certificate containing the name and address of the new lienholder, and mail the certificate to the first lienholder named in it.

(2) Information evidencing a bank or lending institution's lien or other security interest in a motor vehicle's, manufactured home's or mobile home's certificate of title may be transferred by electronic means as provided in Section 63-21-16.

SECTION 5. This act shall take effect and be in force from and after July 1, 2007.