(1) Upon the satisfaction of a security interest in a vehicle, manufactured home or mobile home for which the certificate of title is in the possession of the lienholder, he shall, within ten (10) days after demand and, in any event, within thirty (30) days, execute a release of his security interest, in the space provided therefor on the certificate or as the State Tax Commission prescribes, and mail or deliver the certificate and release to the next lienholder named therein, or, if none, to the owner or any person who delivers to the lienholder an authorization from the owner to receive the certificate. The owner other than a dealer holding the vehicle, manufactured home or mobile home for resale, shall promptly cause the certificate and release to be mailed or delivered to the commission, who shall release the lienholder’s rights on the certificate or issue a new certificate.

(2) Upon the satisfaction of a security interest in a vehicle, manufactured home or mobile home for which the certificate of title is in the possession of a prior lienholder, the lienholder whose security interest is satisfied shall within ten (10) days after demand and, in any event, within thirty (30) days execute a release in the form the commission prescribes and deliver the release to the owner or any person who delivers to the lienholder an authorization from the owner to receive it. The lienholder in possession of the certificate of title shall either deliver the certificate to the owner, or the person authorized by him, for delivery to the commission or, upon receipt of the release, mail or deliver it with the certificate to the commission who shall release the subordinate lienholder’s rights on the certificate or issue a new certificate.

(3) Upon receipt of the aforementioned releases of security interests, the commission shall file each release in the manner prescribed by the commission and note the same upon the records of notices of security interests maintained by it.