What is considered “secured property”?

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What is considered “secured property”?

We have a used car dealership. One of our clients who has a secured loan on a car has sold the car, we found the car and are in possession of it. Is it a crime to sell a car with a lien attached without permission of lienholder?

Asked on September 16, 2011 under Business Law, Arkansas

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

You as the dealer sold a car to a patron and held a loan secured by the vehicle, correct?  The car is the property that is secured.  The title to the vehicle should list the lender along with the purchaser of the vehicle to protect the lender from an attempt at transfer with out being paid off the balance of the loan.  So I guess here that is what happened: the purchaser transferred the vehicle.  It is not a crime to sell the car with out the lien holders permission so long as the lien holder is paid off.  Another guess: that did not happen.  So now you have to decide how you wish to proceed.  You have a contract I assume for the purchase and for the loan.  Bring the documents to an attorney to discuss the matter.  Good luck.


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