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BizLawyerNate, Attorney
Category: Business Law
Satisfied Customers: 10685
Experience:  7 Years of Legal Experience Representing Small Business Owners
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NJ car lien. My friend has car in NJ ... and I / via my FLa

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NJ car lien. My friend has car in NJ ... and I / via my FLa LLC / wants to lend friend some $$ and we agree that my FLa LLC (the lender) can put a lien on his car in NJ. Looks like the lien procedure is difficult and NJ requires my simple fla llc to get a code and various registration. soooo ... can we (my Fla LLC) file a UCC in NJ ... and list the Car VIN number and have some security that way ?
Submitted: 6 years ago.
Category: Business Law
Expert:  BizLawyerNate replied 6 years ago.
Thank you for your question and welcome to Just Answer.

A security interest under the UCC would be valid between you and your friend, but it would not put other creditors on notice as to your priority interest.

I think the New Jersey lien process is easier than you think.

The financing statement form to file with the DMV is here (

You send that form, along with your friend's title and $85.00 to XXXXX
Database Corrections/In House Agency
P.O. Box 141
225 East State Street

The New Jersey DMV site on the lien process is here

I will be happy to follow up with you if you have additional questions. In the meantime, please click ACCEPT so that I can get credit for answering your question. Of course, if you really liked what I could help you with, please consider a Bonus, too!


Nathan Moore
Customer: replied 6 years ago.
thanks. I reviewed those forms yesterday and spoke with NJ motor vehicle dept. and any simple FLa LLC entity has to register in NJ ... and go through tons of hoops.
many states you do not have to do such registration to make a loan and secure a car lien.

ssooo ...can we (my Fla LLC) file a UCC in NJ ... and list the Car VIN number and have some security that way ? and then others can not lien it / my car lien via UCC is superior?
Expert:  BizLawyerNate replied 6 years ago.
Okay. Your lien would be superior only if others have notice of it. Doing a financing statement under the UCC doesn't give that notice on vehicles.

How about this.

Your LLC loans the money. You personally lien the vehicle (not your LLC). You have a contract with your LLC that if your friend defaults, you transfer your lien interest to the LLC.

That's perfectly valid legally and gets you where you need to be without all the hassle. I'm just afraid that if you do what you're thinking, the rest of the world will not be on notice because, unlike equipment or some other collateral, liens on vehicles are supposed to be discerned from the title. There is no obligation to go any further than the title under the law to determine if someone else has a lien on a vehicle.

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