For vehicles covered by a certificate of title, how is perfection achieved?

Perfection of a security interest in vehicles covered by a certificate of title is primarily achieved by having the lien noted directly on the certificate of title through the Department of Motor Vehicles (DMV). When a secured party applies to the DMV to have their interest noted, it reflects the secured party's claim against the vehicle, giving them priority over other potential claims.

This process ensures that any subsequent purchasers or creditors can see that there is an existing secured interest in the vehicle, which helps to protect the rights of the creditor. By having the lien properly recorded on the title, the secured party achieves legal rights to take possession of the vehicle in case of default.

The other methods listed, such as filing a UCC-1 form with the local court or notifying the seller, do not create a perfected security interest for vehicles in the way that noting the lien on the title does. Securing a court judgment regarding the lien is also not relevant to perfection but might instead relate to enforcement of an already perfected interest. Therefore, the mechanism for perfection in this scenario clearly lies with the correct action taken with the DMV.