(a) The Director of the Department of Finance and Administration may permit lienholders and motor vehicle dealers to make applications for registration and certificates of title and to furnish them to the Office of Motor Vehicle on behalf of the purchaser of a new or used motor vehicle.

(b) The director shall promulgate reasonable rules to be complied with by motor vehicle dealers and lienholders in making application for registration and certificates of title on behalf of purchasers of new or used motor vehicles and may, if the director deems necessary, require the dealer or lienholder to post bond to ensure faithful compliance with the rules.

(c)

(1) Any motor vehicle dealer or lienholder who has been authorized by the director to prepare applications for registration and certificates of title with respect to new or used motor vehicles shall transmit the applications to the director and shall attach thereto a copy of any conditional sales contract, conditional lease, chattel mortgage, or other lien or encumbrance or title retention instrument upon the motor vehicle.

(2) Upon receipt of the documents under subdivision (c)(1) of this section, the director shall file a lien and encumbrance, as provided in § 27-14-801 et seq., which from the date of filing shall be notice of the lien or encumbrance.

(d) On issuing the registration and certificate of title, the director shall mail the registration to the owner and the title to the lienholder, or to the owner if no lien exists.

(e) If the failure of a motor vehicle dealer or other lienholder to comply with the provisions of § 27-14-802 or § 27-14-806 results in the motor vehicle dealer or lienholder holding an unperfected security interest in the motor vehicle, no action shall lie against the Department of Finance and Administration for any damages resulting from the failure to perfect a security interest.