If we have been notified by an insurance company that insurance has been cancelled on a vehicle that we have the loan on, can we repossess the vehicle without notice? The payments are current and no right-to-cures have been sent. There is disagreement at the bank on this issue. I have researched state regs and cannot find an answer.

Usually the note/security agreement require the borrower to maintain full coverage insurance on any collateral. There is also usually a provision under the Default section of the note that essentially says that if we deem ourselves insecure (or feel you will not perform your obligations under the contract) we can declare a default. In the past, I have sent a "modified" RTC wherein I specify the default as being failure to provide proof of insurance on the collateral. I give them the normal cure period to respond and, if no response is forthcoming, I repossess. I would certainly try and contact the borrower by phone as well since insurance companies like to send these cancellation notices when payment is not received immediately then reinstate the coverage without giving notice to the lienholder that it has done so. You don't want to repossess then have to give the vehicle back.