Section 4306 Of Article 3. Registration Of Foreign Vehicles From California Vehicle Code >> Division 3. >> Chapter 1. >> Article 3.

. In the event a certificate of title issued by another state shows any lien or encumbrance upon the vehicle therein described, then the department upon registering the vehicle in this State and upon issuing a certificate of ownership shall include therein the name of the lienholder as legal owner unless documents submitted with the foreign certificate of title establish that the lien or encumbrance has been fully satisfied.