PHILADELPHIA — VINtek recently reported that the company
assisted with the passage of electronic lien and title (ELT) legislation in
Nevada, which has been signed into law by Gov. Brian Sandoval.

The company explained ELT replaces paper automotive liens
with an electronic exchange of data between the department of motor vehicles
(DMV) and automotive lenders.

VINtek highlighted Assembly Bill 309, signed into law on
June 11, is the first ELT legislation in the country to outsource the building
and maintenance of a cloud-based electronic lien system in a public-private
collaboration.

After selection in an RFP process, the chosen supplier, or
suppliers, will build and maintain Nevada's internet-based ELT program, which
will be paid for by sharing a portion of the cost savings lenders and consumers
will realize from the paperless process.

The legislation requires the reimbursement of any initial
direct launch costs incurred by the DMV, as well as ongoing DMV ELT program
operating costs.

Although deadlines have not been set for compliance with the
legislation, VINtek indicated that it is expected that all but the smallest of lenders
will ultimately be required to participate in the program.

In addition to the state incurring no expense for ELT
implementation, the DMV and participating lienholders will also benefit from
reduced costs through the elimination of paper, less postage and storage, and
the automation of a manual process.

Currently, 19 states operate ELT programs, which combined,
process roughly two-thirds of new vehicle lien volumes, while many other states
are reviewing their options for implementing ELT.

"Nevada has chosen to implement ELT in the most innovative,
efficient way possible," VINtek president Larry Highbloom said. "The DMV and
lienholders in Nevada will soon experience the cost savings and process improvements
afforded by removing paper from the titling process.

"We are seeing a growing national trend in outsourcing of
legacy state agency operations in order to improve state operating efficiencies
and Nevada has applied the concept to the DMV," he continued.

"VINtek commends the Nevada legislature for their decision
to be responsive to stakeholder requests for operational improvements and
efficiency gains," Highbloom went on to say.

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