South Dakota is on schedule to implement their new ELT program on July 1, 2012. DDI has been working with the South Dakota DMV providing input and feedback about their program, including sharing the recommendations on AllAboutTitles.com, the site we maintain as a resource for state DMVs.
So far the SD DMV has shared two drafts of their ELT specifications with us and it looks like a good program. The DMV has taken a lot of lender feedback into account. Some key points about the program as we understand it:
- The planned implementation date is July 1, 2012 (yes, less than 2 months away)
- South Dakota will not require participation, but they will immediately stop printing titles with liens. (I'll be adding them to the list of states that "compel" participation in ELT.)
- Lenders who do not participate in ELT will use a form to release their lien (since there will be no printed title with the lien printed on it). Lenders in the ELT program will be required to release their liens electronically, a fraud prevention measure.
- All lenders will have access to a public inquiry site to verify that their lien was correctly placed. This allows individuals and businesses who do not normally place liens to validate the lien placement and lien release.
We will provide more details as the program rules are finalized.
Image above is Ft. Pierre, South Dakota: 4th of July Parade, 2002.