What is required if a lienholder is on record when requesting a duplicate title?

When a lienholder is recorded on a vehicle's title, their interest in the vehicle must be considered before any changes can occur, such as issuing a duplicate title. Therefore, obtaining the lienholder's legal authorization or release is necessary because it confirms that the lienholder is aware of and consents to the issuance of a duplicate title. This step protects the rights of the lienholder, ensuring that the owner cannot simply bypass the lienholder's claims or interests in the vehicle.

The other options do not adequately address the specific requirements related to the lienholder's involvement. A receipt of payment is not needed in this context since the request for a duplicate title is focused on the lienholder's authorization. A signature from the vehicle owner is important for other processes, but it does not replace the necessity of the lienholder's consent in this scenario. Verification of the vehicle's inspection may be relevant for the registration or sale of a vehicle but is not a condition required for issuing a duplicate title when a lienholder exists.