Bill Text: NY A01346 | 2011-2012 | General Assembly | Amended

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Bill Title: Authorizes a motor vehicle dealer who receives a vehicle for resale and satisfies any security interest in such vehicle, but has not received a release of security interest for such vehicle, to apply to the commissioner of motor vehicles for a certificate of title free of liens upon submission of proof that the security interest in the vehicle has been satisfied.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Passed) 2012-12-17 - signed chap.493 [A01346 Detail]

Download: New_York-2011-A01346-Amended.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                        1346--B
                              2011-2012 Regular Sessions
                                 I N  A S S E M B L Y
                                      (PREFILED)
                                    January 5, 2011
                                      ___________
       Introduced  by M. of A. GANTT -- read once and referred to the Committee
         on Transportation  --  committee  discharged,  bill  amended,  ordered
         reprinted as amended and recommitted to said committee -- reported and
         referred to the Committee on Codes -- again reported from said commit-
         tee  with  amendments, ordered reprinted as amended and recommitted to
         said committee
       AN ACT to amend the vehicle and traffic law, in relation to satisfaction
         of a security interest in a motor vehicle by a dealer
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1.  The  opening paragraph of section 2121 of the vehicle and
    2  traffic law is designated subdivision (a) and a new subdivision  (b)  is
    3  added to read as follows:
    4    (B)  A  DEALER WHO RECEIVES A MOTOR VEHICLE FOR THE PURPOSES OF RESALE
    5  AND WHO ARRANGES FOR THE SATISFACTION OF ANY SECURITY INTEREST  IN  SUCH
    6  VEHICLE,  AND  FOR  WHICH  A  RELEASE  OF SECURITY INTEREST HAS NOT BEEN
    7  ISSUED, MAY SUBMIT TO THE COMMISSIONER  SUFFICIENT  EVIDENCE  TO  DEMON-
    8  STRATE  THAT SUCH SECURITY INTEREST HAS BEEN SATISFIED AND SHALL PROVIDE
    9  NOTICE TO THE LIENHOLDER CONCURRENT WITH OR PRIOR TO SUBMISSION  TO  THE
   10  COMMISSIONER.  THE  COMMISSIONER SHALL, UPON RECEIPT OF SUCH EVIDENCE, A
   11  PROPER  APPLICATION  AND  THE  APPROPRIATE  FEE  PURSUANT   TO   SECTION
   12  TWENTY-ONE  HUNDRED  TWENTY-FIVE OF THIS ARTICLE, PROMPTLY ISSUE, WITHIN
   13  NO MORE THAN FIFTEEN BUSINESS DAYS OF RECEIPT BY THE DEPARTMENT  OF  ALL
   14  REQUIRED  INFORMATION  AND  FEES, EITHER A DUPLICATE CERTIFICATE WITHOUT
   15  SUCH LIEN INCLUDED THEREON, OR A CERTIFICATE WITHOUT SUCH LIEN  INCLUDED
   16  THEREON.  EVIDENCE  THAT  A  SECURITY  INTEREST HAS BEEN SATISFIED SHALL
   17  INCLUDE, BUT NOT BE LIMITED TO: (I) EVIDENCE THAT AN INTERBANK OR  ELEC-
   18  TRONIC  TRANSFER OF FUNDS HAS BEEN MADE; OR (II) EVIDENCE THAT A COPY OF
   19  A CASHIER'S OR BANK CHECK HAS BEEN DELIVERED; AND  (III)  EVIDENCE  THAT
   20  THE  AMOUNT DELIVERED TO THE LIENHOLDER IS EQUAL TO THE AMOUNT WHICH HAS
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD03368-10-1
       A. 1346--B                          2
    1  BEEN REPRESENTED TO THE DEALER BY THE LIENHOLDER AS SUFFICIENT TO SATIS-
    2  FY SUCH LIEN.  SUCH EVIDENCE SHALL BE ACCEPTED BY  THE  COMMISSIONER  AS
    3  SUFFICIENT.  ANY EVIDENCE SUBMITTED TO THE COMMISSIONER PURSUANT TO THIS
    4  SUBDIVISION  MAY  BE  SUBMITTED IN ELECTRONIC FORM.   IN ADDITION TO THE
    5  PENALTIES IMPOSED BY SECTION TWENTY-ONE HUNDRED THIRTY OF THIS  ARTICLE,
    6  ANY  DEALER  WHO ALTERS OR FORGES EVIDENCE OF PAYMENT SHALL BE LIABLE TO
    7  ANY PARTY FOR ANY DAMAGES RESULTING FROM THE ISSUANCE OF A  NEW  CERTIF-
    8  ICATE  BY  THE  COMMISSIONER, PLUS ATTORNEY'S FEES AND COSTS INCURRED IN
    9  RECOVERING SUCH DAMAGES, PROVIDED HOWEVER NO SUBSEQUENT PURCHASER  OF  A
   10  VEHICLE  WHERE  THE  SECURITY  INTEREST  WAS REMOVED BY THE COMMISSIONER
   11  UNDER THE PROVISIONS OF THIS SUBDIVISION SHALL BE LIABLE FOR ANY  ERRORS
   12  IN  THE REMOVAL OF SUCH SECURITY INTEREST, AND ANY DEALER WHO SO APPLIED
   13  FOR THE REMOVAL OF SUCH SECURITY INTEREST ON SUCH VEHICLE  SHALL  INDEM-
   14  NIFY  ANY  SUCH PURCHASER AND LIENHOLDER. THE COMMISSIONER IS AUTHORIZED
   15  TO ADOPT AND ENFORCE REASONABLE RULES AND REGULATIONS NECESSARY TO CARRY
   16  OUT THE PROVISIONS OF THIS SUBDIVISION.
   17    S 2. This act shall take effect on the one hundred eightieth day after
   18  it shall have become a law.