Bill Text: MS HB285 | 2021 | Regular Session | Introduced
Bill Title: Certificate of title; remove requirement for applicant to file a bond or deposit of cash as a condition of issuance.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2021-02-02 - Died In Committee [HB285 Detail]
Download: Mississippi-2021-HB285-Introduced.html
MISSISSIPPI LEGISLATURE
2021 Regular Session
To: Ways and Means
By: Representative Newman
House Bill 285
AN ACT TO AMEND SECTION 63-21-23, MISSISSIPPI CODE OF 1972, TO REMOVE THE REQUIREMENT FOR AN APPLICANT OR DEALER THAT IS SEEKING ISSUANCE OF A CERTIFICATE OF TITLE FOR A VEHICLE TO FILE A BOND OR DEPOSIT OF CASH WITH THE DEPARTMENT OF REVENUE AS A CONDITION OF ISSUING A CERTIFICATE OF TITLE IF THE VEHICLE IS CONSIDERED ABANDONED AND UNCLAIMED; TO SPECIFY THE REQUIREMENTS FOR AN ABANDONED VEHICLE TO BE UNCLAIMED; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 63-21-23, Mississippi Code of 1972, is amended as follows:
63-21-23. If the * * * Department of Revenue
is not satisfied as to the ownership of the vehicle, manufactured home or
mobile home or that there are no undisclosed security interests in it, the * * * department may accept the
application but shall either:
(a) Withhold issuance
of a certificate of title until the applicant presents documents reasonably
sufficient to satisfy the * * *commission department as to the applicant's ownership
of the vehicle, manufactured home or mobile home and that there are no
undisclosed security interests in it; or
(b) (i) Except as otherwise
provided in this subsection (b), as a condition of issuing a certificate of
title, require the applicant or dealer to file with the * * * department a bond in the form
prescribed by the * * *
department and executed by the applicant or dealer and by a person
authorized to conduct a surety business in this state, or require the application
to be accompanied by the deposit of cash with the * * * department. The bond or cash
shall be in an amount equal to one and one-half (1-1/2) times the value of the
vehicle, manufactured home or mobile home as determined by the * * * department and conditioned to
indemnify any prior owner and lienholder and any subsequent purchaser of the
vehicle, manufactured home or mobile home or person acquiring any security
interest in it, and their respective successors in interest, against any
expense, loss or damage, including reasonable attorney's fees, by reason of the
issuance of the certificates of title of the vehicle, manufactured home or
mobile home or on account of any defect in or undisclosed security interest
upon the right, title and interest of the applicant in and to the vehicle,
manufactured home or mobile home. Any such interested person has a right of
action to recover on the bond or cash for any breach of its conditions, but the
aggregate liability of the surety to all persons shall not exceed the amount of
the bond or cash. The bond or cash shall be returned at the end of three (3)
years unless the * * *
department has been notified of the pendency of an action to recover on
the bond or cash or that the vehicle, manufactured home or mobile home does not
belong to the registered owner or that it is encumbered by an undisclosed lien.
(ii) However, the department shall not require the applicant or dealer to file a bond or deposit of cash as a condition of issuing a certificate of title if the vehicle is an abandoned vehicle as defined in Section 63-23-3 and is unclaimed. For purposes of this subparagraph (ii), an abandoned vehicle is unclaimed if the owner or lienholder of record has not claimed ownership or title within ten (10) years from the date the notice was sent to the owner or lienholder of record as provided in Section 63-23-9, or if no owner or lienholder of record could be determined, ownership or title has not been claimed within ten (10) years.
SECTION 2. This act shall take effect and be in force from and after July 1, 2021.
