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| Imposing a lien |
A lien is imposed on a vehicle usually as security for payment of a loan and prevents transfer of ownership until the lien is removed. A lien in favor of a bank or finance company is transmitted directly to the License Bureau computer system. In the case of a lien being registered at the License Bureau, the vehicle owner or power-of attorney must be present. If the vehicle is registered under the name of a company, association or suchlike, a power-of-attorney signed by a lawyer is required.
A request to register a lien must be submitted on the official letterhead of the company imposing the lien. The letterhead must include the company's address and registration number. The request must also declare that the party imposing the lien guarantees to register the lien with the Registrar of Pledge (at the Ministry of Justice) or with an applicable authorized registrar, and include the official stamp, signature and full name of the party imposing the lien, as well as the vehicle owner's agreement to registration of the lien. |
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| Removing a lien |
Removal of a lien by a bank or finance company is shown directly on the License Bureau computer system. A request to remove a lien registered in favor of another party must be presented at the License Bureau. The request must be written on the official letterhead of the party that imposed the lien and include a guarantee to remove the lien at the Registrar of Pledge (or the applicable authorized registrar), as well as the official stamp, signature and full name of the encumbrancer. |
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| Attachment |
Attachment is usually issued due to debt owed to a court, municipality, labor court, rabbinical court, tax authority, the National Insurance Institute, Bailiff's Office, and suchlike. The writ of attachment must state the full name and identity card number or company registration number of the debtor. |
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| Release from attachment |
Once the debt has been settled or the attachment cancelled, the party that requested the attachment is obliged to report the release to the License Bureau. Please Note: An attachment or lien is cancelled ONLY by the party that imposed it! |
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| How do I know whether the vehicle has a lien or attachment? |
Not all liens appear on the Ministry of Transport and Road Safety's computer system, and it is possible that the Post Office branch computer permits transfer of ownership even though there is a lien on the vehicle. The obligation to check whether a vehicle has a lien or any attachment falls solely on the buyer, and is neither the responsibility of the Ministry of Transport and Road Safety nor of the Postal Authority. We strongly recommend that before buying the vehicle, you check that it is free of any lien or attachment with the Registrar of Pledge at the Ministry of Justice, the pertinent authority in these cases. |
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