My girlfriend borrowed money for a motorcycle.  In Kentucky the bank
sends you the title, but puts their name on it as the lien holder. 
She received the title and the bank forgot to put their name on it as
a lein holder.  The bank called and begged her to send the title back.
 If she does not send it back, does this mean she does not have to pay
for the motorcycle legally, as the bank failed to put their name on
the title and the title shows it free and clear and she holds the
title?

Ethics.  Use your head, she should pay for the bike, yes she has to
pay, she has a contact with the bank for the loan. They could sue her
for the $$.  Be ethical, she should pay.

Just wanted the legal asspects of this.  She plans to pay.