Obtaining a Lien Release from a Closed or Failed Bank. The lienholder must print the letter on the official letterhead of the loan company, and an authorized officer must sign the letter.We overview how to remove a lienholder from a New York State vehicle title. Instructions on locating and obtaining a lien release for a title on a vehicle when the lender has closed or has not been located. Yes, in NY as long as you have an original, stamped letter from the bank, you can trade in the car even if the lien is still on the title. The FDIC may be able to assist you in obtaining a lien release if the request is for a customer of a failed bank that was placed into FDIC receivership. Does anyone know how to get a release of lien where the bank is long out of business and the FDIC was not involved in the bank's dissolution? The person or company that is the lienholder will sign the title in the lien release section. It is sent to the owner. The Queens County Clerk follows the state's regulations here too.