In general, a credit union or any lending institution that provides financing for a motorcycle can repossess the vehicle if the borrower defaults on their loan, even if the credit union is not listed as the lien-holder on the title. The key factor in this situation is the existence of a legally binding agreement between the borrower and the credit union, which grants the credit union the right to repossess the motorcycle in case of non-payment.
When a borrower finances a motorcycle through a credit union or any other lending institution, they typically sign a loan agreement that outlines the terms and conditions of the loan, including the borrower's obligations and the lender's rights in case of default. These loan agreements often contain clauses that allow the lender to repossess the motorcycle if the borrower fails to meet their loan repayment obligations.
The lien on a vehicle's title serves as a legal claim or security interest held by the lender until the loan is fully repaid. While it is common for the lien-holder to be listed on the title, the absence of the credit union's name on the title does not necessarily prevent them from exercising their rights to repossess the motorcycle if the borrower defaults.
It's important to note that laws and regulations regarding vehicle repossession can vary between jurisdictions. Therefore, it is advisable to consult local laws or seek legal advice to understand the specific requirements and procedures applicable to your situation.