Requiring lending institutions to utilize DMV electronic lien system under certain circumstances

SB 114 requires lending institutions conducting five or more vehicle-related transactions annually to use West Virginia's Division of Motor Vehicles (DMV) electronic lien system to record and release vehicle liens, instead of paper records. The law, effective July 1, 2025, mandates electronic transmission of lien information to the DMV, with exceptions defined by the agency. Electronic records will be legally valid as proof of liens and satisfy requirements that previously needed physical paper certificates. This directly affects banks, credit unions, and other lenders handling multiple vehicle loans, streamlining lien management while reducing paper-based processes.